Question 1

The process of copying journal information to the ledger is called

Accepted Answer

A) Double-entering. 
B) An external business transaction. 
C) Posting. 
D) Journalizing. 
E) An internal business transaction. 
A) Double-entering. 
B) An external business transaction. 
C) Posting. 
D) Journalizing. 
E) An internal business transaction. C

Question 2

Of the following errors, which one by itself will cause the trial balance to be out of balance?

Accepted Answer

A) A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. 
B) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. 
C) A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. 
D) A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. 
E) All of these errors will cause the trial balance to be out of balance. 
A) A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. 
B) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. 
C) A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. 
D) A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. 
E) All of these errors will cause the trial balance to be out of balance. D

Question 3

An account balance is

Accepted Answer

A) The same as the balance sheet equation. 
B) Not used in the real world. 
C) The total of the debit side of the account. 
D) The total of the credit side of the account. 
E) The difference between the increases (including the beginning balance)and decreases recorded in the account. 
A) The same as the balance sheet equation. 
B) Not used in the real world. 
C) The total of the debit side of the account. 
D) The total of the credit side of the account. 
E) The difference between the increases (including the beginning balance)and decreases recorded in the account. E

Question 4

The accounting cycle begins with

Accepted Answer

A) Posting to the ledger. 
B) Presentation of financial information to decision makers. 
C) Analysis of economic events and recording their effects. 
D) Preparing financial statements and other reports. 
E) None of these answers is correct. 
A) Posting to the ledger. 
B) Presentation of financial information to decision makers. 
C) Analysis of economic events and recording their effects. 
D) Preparing financial statements and other reports. 
E) None of these answers is correct.

Question 5

The right side of a T-account is a(n)

Accepted Answer

A) Debit. 
B) Credit. 
C) Increase. 
D) Decrease. 
E) Account balance. 
A) Debit. 
B) Credit. 
C) Increase. 
D) Decrease. 
E) Account balance.

Question 6

A column in journals and accounts used to cross reference journal and ledger entries iscalled the:

Accepted Answer

A) Debit. 
B) Description. 
C) Credit. 
D) Account balance. 
E) Posting reference. 
A) Debit. 
B) Description. 
C) Credit. 
D) Account balance. 
E) Posting reference.

Question 7

Cash withdrawn by the owner of an unincorporated business in the form of a monthlysalary should be treated as an expense of the business.

Accepted Answer

A) True 
 B)False

Question 8

Green's Book Store purchased a new automobile that cost $25,000, made a downpayment of $4,000, and signed a note payable for the balance. The entry to record this transaction is:

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 9

Eli opened a new business by investing the following assets: cash, $6,000; land,$30,000; building, $100,000. Also, the business will assume responsibility for a notepayable of $22,000. Eli signed the note as part of his payment for the land and building. Which journal entry should be used on the books of the new business to record theinvestment by Eli?

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 10

To make it easier for the bookkeeper, the cost of land is separated from the cost of 8)buildings located on the land.

Accepted Answer

A) True 
 B)False

Question 11

A building is an example of an asset that does not provide any benefit to its owner

Accepted Answer

A) True 
 B)False

Question 12

A compound journal entry usually affects three or more accounts

Accepted Answer

A) True 
 B)False

Question 13

Indicate whether a debit or a credit entry would be made to record the followingchanges in each account.(a)To decrease Cash.(b)To increase Owner, Capital.(c)To decrease Accounts PayableTo increase Salaries Expense.(e)To decrease SuppliesTo increase Revenue.(g)To decrease Accounts ReceivableTo increase Owner, Withdrawals.

Accepted Answer

(a) Credit (b) Credi

Question 14

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is$7,419, the difference could have been caused by:

Accepted Answer

A) A transposition error. 
B) A sliding error. 
C) Posting only one side of an entry. 
D) An error in copying an account balance from the ledger to the trial balance. 
E) All of these answers are correct. 
A) A transposition error. 
B) A sliding error. 
C) Posting only one side of an entry. 
D) An error in copying an account balance from the ledger to the trial balance. 
E) All of these answers are correct.

Question 15

Double-entry accounting means that every transaction affects and is recorded in at leasttwo accounts.

Accepted Answer

A) True 
 B)False

Question 16

An account is a detailed record of increases and decreases in a specific asset, liability or 2)equity item.

Accepted Answer

A) True 
 B)False

Question 17

Explain the recording and posting processes

Accepted Answer

Information from business transactions i

Question 18

In a double-entry accounting system, total debits must always equal total credits

Accepted Answer

A) True 
 B)False

Question 19

What types of account balances are increased by credits? 105)

Accepted Answer

A) Liabilities and revenues. 
B) Owners' equity and expenses. 
C) Liabilities and expenses. 
D) Revenues and expenses. 
E) Assets and Liabilities. 
A) Liabilities and revenues. 
B) Owners' equity and expenses. 
C) Liabilities and expenses. 
D) Revenues and expenses. 
E) Assets and Liabilities.

Question 20

A chart of accounts lists the accounts and balances at a specific time

Accepted Answer

A) True 
 B)False

The process of copying journal information to the ledger is called

Of the following errors, which one by itself will cause the trial balance to be out of balance?

An account balance is

The accounting cycle begins with

The right side of a T-account is a(n)

A column in journals and accounts used to cross reference journal and ledger entries iscalled the:

Cash withdrawn by the owner of an unincorporated business in the form of a monthlysalary should be treated as an expense of the business.

Green's Book Store purchased a new automobile that cost $25,000, made a downpayment of $4,000, and signed a note payable for the balance. The entry to record this transaction is:

To make it easier for the bookkeeper, the cost of land is separated from the cost of 8)buildings located on the land.

A building is an example of an asset that does not provide any benefit to its owner

A compound journal entry usually affects three or more accounts

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is$7,419, the difference could have been caused by:

Double-entry accounting means that every transaction affects and is recorded in at leasttwo accounts.

An account is a detailed record of increases and decreases in a specific asset, liability or 2)equity item.

Explain the recording and posting processes

In a double-entry accounting system, total debits must always equal total credits

What types of account balances are increased by credits? 105)

A chart of accounts lists the accounts and balances at a specific time

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 2: Analyzing and Recording Transactions

The process of copying journal information to the ledger is called

Of the following errors, which one by itself will cause the trial balance to be out of balance?

An account balance is

The accounting cycle begins with

The right side of a T-account is a(n)

A column in journals and accounts used to cross reference journal and ledger entries iscalled the:

Cash withdrawn by the owner of an unincorporated business in the form of a monthlysalary should be treated as an expense of the business.

Green's Book Store purchased a new automobile that cost $25,000, made a downpayment of $4,000, and signed a note payable for the balance. The entry to record this transaction is:

To make it easier for the bookkeeper, the cost of land is separated from the cost of 8)buildings located on the land.

A building is an example of an asset that does not provide any benefit to its owner

A compound journal entry usually affects three or more accounts

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is$7,419, the difference could have been caused by:

Double-entry accounting means that every transaction affects and is recorded in at leasttwo accounts.

An account is a detailed record of increases and decreases in a specific asset, liability or 2)equity item.

Explain the recording and posting processes

In a double-entry accounting system, total debits must always equal total credits

What types of account balances are increased by credits? 105)

A chart of accounts lists the accounts and balances at a specific time

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters