Question 1

The usual sequence of steps in the transaction recording process is:

Accepted Answer

A)  journal $\rightarrow$ analyze $\rightarrow$ ledger. 
B)  analyze $\rightarrow$ journal $\rightarrow$ledger. 
C)  journal $\rightarrow$ledger $\rightarrow$analyze. 
D)  ledger $\rightarrow$ journal $\rightarrow$analyze. 
A)  journal $\rightarrow$ analyze $\rightarrow$ ledger. 
B)  analyze $\rightarrow$ journal $\rightarrow$ledger. 
C)  journal $\rightarrow$ledger $\rightarrow$analyze. 
D)  ledger $\rightarrow$ journal $\rightarrow$analyze.

Question 2

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Accepted Answer

A) True 
 B)False

Question 3

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Accepted Answer

A)  Nothing further must be done. 
B)  Debit an owner's equity account for $500. 
C)  Debit another asset account for $500. 
D)  Credit a different asset account for $500. 
A)  Nothing further must be done. 
B)  Debit an owner's equity account for $500. 
C)  Debit another asset account for $500. 
D)  Credit a different asset account for $500.

Question 4

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

Question 5

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

Accepted Answer

A)  $500 credit balance. 
B)  $800 debit balance. 
C)  $400 debit balance. 
D)  $400 credit balance. 
A)  $500 credit balance. 
B)  $800 debit balance. 
C)  $400 debit balance. 
D)  $400 credit balance.

Question 6

An account is a part of the financial information system and is described by all except which one of the following?

Accepted Answer

A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title. 
A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title.

Question 7

An account consists of

Accepted Answer

A)  one part. 
B)  two parts. 
C)  three parts. 
D)  four parts. 
A)  one part. 
B)  two parts. 
C)  three parts. 
D)  four parts.

Question 8

Which of the following statements is false?

Accepted Answer

A)  Revenues increase owner's equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits. 
A)  Revenues increase owner's equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits.

Question 9

A trial balance is a listing of

Accepted Answer

A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages. 
A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages.

Question 10

Assets normally show

Accepted Answer

A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances. 
A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances.

Question 11

At June 1, 2010, Estrada Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $25,000 and collected accounts receivable of $27,000. What is the balance in accounts receivable at June 30, 2008?

Accepted Answer

The balance at the e

Question 12

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Accepted Answer

The answer of A sales slip, a check, and a...

Question 13

Glynn Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:   
Instructions
Organize the accounts into the order in which they should appear in the ledger of Glynn Company and assign account numbers. Use the following system to assign account numbers.

Accepted Answer

There are several possible correct accou

Question 14

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

Question 15

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal. 
A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal.

Question 16

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.

Accepted Answer

The answer of Prepare a corrected trial balance for Luzon...

Question 17

The standard format of a journal would not include

Accepted Answer

A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column. 
A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column.

Question 18

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 19

A number in the reference column in a general journal indicates

Accepted Answer

A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction. 
A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction.

Question 20

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

The usual sequence of steps in the transaction recording process is:

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Posting is the process of proving the equality of debits and credits in the trial balance.

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

An account is a part of the financial information system and is described by all except which one of the following?

An account consists of

Which of the following statements is false?

A trial balance is a listing of

Assets normally show

At June 1, 2010, Estrada Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $25,000 and collected accounts receivable of $27,000. What is the balance in accounts receivable at June 30, 2008?

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.

The standard format of a journal would not include

Under the double-entry system, revenues must always equal expenses.

A number in the reference column in a general journal indicates

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

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