Question 1

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance. 
A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance. A

Question 2

Transactions for Tom Petty Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Invested $40,000 cash in the business.
2. Purchased land costing $28,000 for cash.
3. Purchased equipment costing $12,000 for $3,000 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $1,000 for a one-year insurance policy.
6. Received $3,000 cash for services performed.
7. Received $4,000 for services previously performed on account.
8. Paid wages to employees for $2,500.
9. Petty withdrew $1,000 cash from the business.

Accepted Answer

The answer of Transactions for Tom Petty Company for the...

Question 3

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Accepted Answer

The answer of For the accounts listed below, indicate if...

Question 4

Identify the impact on the accounting equation of the following transactions.
1. Purchased 36-month insurance policy for cash.
2. Purchased supplies on account.
3. Received utility bill to be paid at later date.
4. Paid utility bill previously accrued.

Accepted Answer

1. Net effect is no change: Increases as

Question 5

The entire group of accounts maintained by a company is called the

Accepted Answer

A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance. 
A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance.

Question 6

Taylor Industries purchased supplies for $1,000. They paid $500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $500. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for $500. 
B)  Credit another liability account for $500. 
C)  Credit the Taylor, Capital account for $500. 
D)  Debit the Taylor, Capital account for $500. 
A)  Credit an asset account for $500. 
B)  Credit another liability account for $500. 
C)  Credit the Taylor, Capital account for $500. 
D)  Debit the Taylor, Capital account for $500.

Question 7

When journalizing, the reference column is

Accepted Answer

A)  left blank. 
B)  used to reference the source document. 
C)  used to reference the journal page. 
D)  used to reference the financial statements. 
A)  left blank. 
B)  used to reference the source document. 
C)  used to reference the journal page. 
D)  used to reference the financial statements.

Question 8

The drawing account

Accepted Answer

A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of owner's equity. 
A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of owner's equity.

Question 9

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A)  A debit balance in the drawing account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account 
A)  A debit balance in the drawing account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account

Question 10

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 11

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Accepted Answer

A)  credit to Josh Antonio, Capital. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable. 
A)  credit to Josh Antonio, Capital. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable.

Question 12

A bookkeeping student has come to you for tutoring on the recording process. She is confused about the relationship between the chart of accounts and the ledger. Explain the purpose of the chart of accounts and the general ledger. In your explanation indicate the relationship between these two items as well.

Accepted Answer

The chart of accounts lists all of the a

Question 13

Which one of the following is not a part of an account?

Accepted Answer

A)  Credit side 
B)  Trial balance 
C)  Debit side 
D)  Title 
A)  Credit side 
B)  Trial balance 
C)  Debit side 
D)  Title

Question 14

Which of the following journal entries is recorded correctly and in the standard format?

Accepted Answer

The answer of Which of the following journal entries is...

Question 15

In recording an accounting transaction in a double-entry system

Accepted Answer

A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction. 
A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction.

Question 16

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Accepted Answer

The answer of For each of the following accounts indicate...

Question 17

Posting

Accepted Answer

A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating. 
A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating.

Question 18

A simple journal entry requires only one debit to an account and one credit to an account.

Accepted Answer

A) True 
 B)False

Question 19

The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ________________, and transfer the _______________ information to appropriate accounts in the ________________.

Accepted Answer

analyze, j

Question 20

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance. 
A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance.

Exam 2: The Recording Process

A T-account is

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

The entire group of accounts maintained by a company is called the

When journalizing, the reference column is

The drawing account

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

The normal balance of all accounts is a debit.

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Which one of the following is not a part of an account?

Which of the following journal entries is recorded correctly and in the standard format?

In recording an accounting transaction in a double-entry system

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Posting

A simple journal entry requires only one debit to an account and one credit to an account.

The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ________________, and transfer the _______________ information to appropriate accounts in the ________________.

An account consists of

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

The basic steps in the recording process are: _______ each transaction, enter the transaction in a , and transfer the _ information to appropriate accounts in the __________.