Question 1

The entire group of accounts and their balances maintained by a company is called the ________________.

Accepted Answer

The answer of The entire group of accounts and their...

Question 2

After a transaction has been posted, the reference column in the journal should not be blank.

Accepted Answer

A) True 
 B)False

Question 3

For each of the following transactions of Chen Inc., identify the account to be debited and the account to be credited.
1. Purchased 18-month insurance policy for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to be paid at later date.

Accepted Answer

The answer of For each of the following transactions of...

Question 4

The usual ordering of accounts in the general ledger is

Accepted Answer

A)  assets, liabilities, owner's capital, drawings, revenues, and expenses. 
B)  assets, liabilities, drawings, owner's capital, expenses, and revenues. 
C)  liabilities, assets, owner's capital, revenues, expenses, and drawings. 
D)  owner's capital, assets, liabilities, drawings, expenses, and revenues. 
A)  assets, liabilities, owner's capital, drawings, revenues, and expenses. 
B)  assets, liabilities, drawings, owner's capital, expenses, and revenues. 
C)  liabilities, assets, owner's capital, revenues, expenses, and drawings. 
D)  owner's capital, assets, liabilities, drawings, expenses, and revenues.

Question 5

A credit to a liability account

Accepted Answer

A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account. 
A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account.

Question 6

The four subdivisions of owner's equity are: ________________, ________________, ________________, and ________________.

Accepted Answer

capital, d

Question 7

All recordable transactions are initially recorded in the journal. Discuss the contributions that the journal makes to the recording process.

Accepted Answer

The journal makes several significant co

Question 8

Management could determine the amounts due from customers by examining which ledger account?

Accepted Answer

A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies 
A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies

Question 9

An accounting record where transactions are initially recorded in chronological order is called a ________________.

Accepted Answer

The answer of An accounting record where transactions are initially...

Question 10

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 11

During 2010, its first year of operations, Yaspo's Bakery had revenues of $60,000 and expenses of $33,000. The business had owner drawings of $18,000. What is the amount of owner's equity at December 31, 2010?

Accepted Answer

A)  $0 
B)  $18,000 debit 
C)  $9,000 credit 
D)  $27,000 credit 
A)  $0 
B)  $18,000 debit 
C)  $9,000 credit 
D)  $27,000 credit

Question 12

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation. 
A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation.

Question 13

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal. 
A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal.

Question 14

Root Company provided consulting services and billed the client $2,500. As a result of this event,

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  owner's equity increased by $2,500. 
D)  Both b and C 
A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  owner's equity increased by $2,500. 
D)  Both b and C

Question 15

Match the items below by entering the appropriate code letter in the space provided.
A. Account 
B. Normal account balance 
C. Debit 
D. Revenue account 
E. Compound entry
F. Journal
G. Posting
H. Chart of accounts
I. Trial balance
 J. Simple entry
1. An entry that involves three or more accounts.
2. Transferring journal entries to ledger accounts.
3. The side which increases an account.
4. A list of all the accounts used by an enterprise.
5. A record of increases and decreases in specific assets, liabilities, and owner's equity items.
6. Left side of an account.
7. An entry that involves only two accounts.
8. A book of original entry.
9. A list of accounts and their balances at a given time.
10. Has a credit normal balance
Answers to Matching

Accepted Answer

1. E 6. C
2. G 7. J

Question 16

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance.
 1. Notes Payable
 2. Prepaid Insurance
 3. Salaries Expense
 4. Repair Revenue
 5. Equipment
 6. M.Mantle, Capital

Accepted Answer

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

Question 17

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 18

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 19

Juan Ybarra withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to

Accepted Answer

A)  Juan Ybarra, Drawing. 
B)  Juan Ybarra, Capital. 
C)  Owner's Salary Expense. 
D)  Salaries Expense. 
A)  Juan Ybarra, Drawing. 
B)  Juan Ybarra, Capital. 
C)  Owner's Salary Expense. 
D)  Salaries Expense.

Question 20

A debit to an asset account indicates

Accepted Answer

A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset. 
A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset.

Exam 2: The Recording Process

The entire group of accounts and their balances maintained by a company is called the ________________.

After a transaction has been posted, the reference column in the journal should not be blank.

For each of the following transactions of Chen Inc., identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

The usual ordering of accounts in the general ledger is

A credit to a liability account

The four subdivisions of owner's equity are: ________________, ________________, ________________, and ________________.

All recordable transactions are initially recorded in the journal. Discuss the contributions that the journal makes to the recording process.

Management could determine the amounts due from customers by examining which ledger account?

An accounting record where transactions are initially recorded in chronological order is called a ________________.

For the basic accounting equation to stay in balance, each transaction recorded must

During 2010, its first year of operations, Yaspo's Bakery had revenues of $60,000 and expenses of $33,000. The business had owner drawings of $18,000. What is the amount of owner's equity at December 31, 2010?

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

The ledger accounts should be arranged in

Root Company provided consulting services and billed the client $2,500. As a result of this event,

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance. 1. Notes Payable 2. Prepaid Insurance 3. Salaries Expense 4. Repair Revenue 5. Equipment 6. M.Mantle, Capital

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

The recording process occurs

Juan Ybarra withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to

A debit to an asset account indicates

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 four subdivisions of owner's equity are: , , , and .