Question 1

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answers are correct.
IFRS. 
A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answers are correct.
IFRS.

Question 2

After journal entries are posted, the reference column

Accepted Answer

A)  of the general journal will be blank. 
B)  of the general ledger will show journal page numbers. 
C)  of the general journal will show "Dr" or "Cr". 
D)  of the general ledger will show account numbers. 
A)  of the general journal will be blank. 
B)  of the general ledger will show journal page numbers. 
C)  of the general journal will show "Dr" or "Cr". 
D)  of the general ledger will show account numbers.

Question 3

The process of entering an amount on the left side of an account is called ____________ the account, and making an entry on the right side is called _________________ the account.

Accepted Answer

The answer of The process of entering an amount on...

Question 4

The explanation column of the general ledger

Accepted Answer

A)  is completed without exception. 
B)  is nonexistent. 
C)  is used infrequently. 
D)  shows account titles. 
A)  is completed without exception. 
B)  is nonexistent. 
C)  is used infrequently. 
D)  shows account titles.

Question 5

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A)  A transaction that is not journalized 
B)  A journal entry that is posted twice 
C)  Offsetting errors are made in recording the transaction 
D)  A transposition error when transferring the debit side of journal entry to the ledger 
A)  A transaction that is not journalized 
B)  A journal entry that is posted twice 
C)  Offsetting errors are made in recording the transaction 
D)  A transposition error when transferring the debit side of journal entry to the ledger

Question 6

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 7

A list of accounts and their balances at a given time is called a(n)

Accepted Answer

A)  journal. 
B)  posting. 
C)  trial balance. 
D)  income statement. 
A)  journal. 
B)  posting. 
C)  trial balance. 
D)  income statement.

Question 8

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 9

A trial balance will not balance if

Accepted Answer

A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted. 
A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted.

Question 10

Which of the following statements is incorrect?

Accepted Answer

A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income. 
A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income.

Question 11

Which account below is not a subdivision of retained earnings?

Accepted Answer

A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Common stock 
A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Common stock

Question 12

The right side of an account

Accepted Answer

A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side. 
A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side.

Question 13

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 14

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 15

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A)  journalizing. 
B)  analyzing. 
C)  reporting. 
D)  posting. 
A)  journalizing. 
B)  analyzing. 
C)  reporting. 
D)  posting.

Question 16

Phair and Associates is a financial planning service. The account balances at December 31, 2018 are shown by the following alphabetical list: $$\begin{array} { l r } 
\text { Accounts Payable } & 5,000 \
\text { Accounts Receivable } & 19,000 \
\text { Buildings } & 140,000 \
\text { Cash } & 11,700 \
\text { Common Stock } & 143,400 \
\text { Equipment } & 15,400 \
\text { Land } & 42,000 \
\text { Notes Payable } & 95,000 \
\text { Notes Receivable } & 8,100 \
\text { Prepaid Insurance } & 6,400 \
\text { Supplies } & 800
\end{array}$$ 
Instructions
Prepare a trial balance with the accounts arranged in financial statement order.

Accepted Answer

None

Question 17

The standard form of a journal entry has the

Accepted Answer

A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin. 
A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin.

Question 18

The steps in preparing a trial balance include all of the following except

Accepted Answer

A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts. 
A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts.

Question 19

The first step in the recording process is to

Accepted Answer

A)  prepare financial statements. 
B)  analyze each transaction for its effect on the accounts. 
C)  post to a journal. 
D)  prepare a trial balance. 
A)  prepare financial statements. 
B)  analyze each transaction for its effect on the accounts. 
C)  post to a journal. 
D)  prepare a trial balance.

Question 20

The following transactions took place for Xiu Xiu Company during June 2018:
(a) Purchased equipment on account for $9,000.
(b) Billed customers $5,000 for services performed.
(c) Made payment of $2,300 on account for equipment purchased earlier in month.
(d) Collected $2,900 on customer accounts.
1. What is the balance in Accounts Payable at June 30, 2018?
2. What is the balance in Accounts Receivable at June 30, 2018?

Accepted Answer

1. Account

Exam 2: The Recording Process

Which of the following are the same under both GAAP and IFRS?

After journal entries are posted, the reference column

The process of entering an amount on the left side of an account is called ____________ the account, and making an entry on the right side is called _________________ the account.

The explanation column of the general ledger

A trial balance would only help in detecting which one of the following errors?

A credit to a liability account

A list of accounts and their balances at a given time is called a(n)

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

A trial balance will not balance if

Which of the following statements is incorrect?

Which account below is not a subdivision of retained earnings?

The right side of an account

Posting

Business documents can provide evidence that a transaction has occurred.

The procedure of transferring journal entries to the ledger accounts is called

The standard form of a journal entry has the

The steps in preparing a trial balance include all of the following except

The first step in the recording process is to

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

Filters

The process of entering an amount on the left side of an account is called the account, and making an entry on the right side is called _____ the account.