Question 1

The first step of the accounting cycle is:

Accepted Answer

A)  recording journal entries. 
B)  posting to the ledger. 
C)  preparing closing entries. 
D)  analyzing business transactions. 
A)  recording journal entries. 
B)  posting to the ledger. 
C)  preparing closing entries. 
D)  analyzing business transactions.

Question 2

A calendar year is:

Accepted Answer

A)  any 12-month period that a business chooses for its accounting year. 
B)  the 12-month period beginning with January. 
C)  the period for when an interim financial statement would be completed. 
D)  All of these answers are correct. 
A)  any 12-month period that a business chooses for its accounting year. 
B)  the 12-month period beginning with January. 
C)  the period for when an interim financial statement would be completed. 
D)  All of these answers are correct.

Question 3

The following trial balance has been improperly completed. All the accounts have normal balances. Prepare a corrected trial balance in good form.

Accepted Answer

The answer of The following trial balance has been improperly...

Question 4

During the month of June, Jane invested $19,000 in starting her legal practice. The proper journal entry would be:

Accepted Answer

A)  Cash, debit $19,000; Jane, Capital, credit $19,000 
B)  Accounts Payable, debit $19,000; Cash, credit $19,000 
C)  Cash, debit $19,000; Revenue, credit $19,000 
D)  Jane's Capital, debit $19,000; Cash, credit $19,000 
A)  Cash, debit $19,000; Jane, Capital, credit $19,000 
B)  Accounts Payable, debit $19,000; Cash, credit $19,000 
C)  Cash, debit $19,000; Revenue, credit $19,000 
D)  Jane's Capital, debit $19,000; Cash, credit $19,000

Question 5

The general journal entry to record the purchase of an asset for cash would include:

Accepted Answer

A)  a debit to Accounts Receivable and a credit to Fees Earned. 
B)  a debit to Equipment and a credit to Accounts Payable. 
C)  a debit to Accounts Payable and a credit to Cash. 
D)  a debit to Supplies and a credit to Cash. 
A)  a debit to Accounts Receivable and a credit to Fees Earned. 
B)  a debit to Equipment and a credit to Accounts Payable. 
C)  a debit to Accounts Payable and a credit to Cash. 
D)  a debit to Supplies and a credit to Cash.

Question 6

A debit to the Accounts Receivable account was posted to an Expenses account. This would cause:

Accepted Answer

A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  assets to be overstated. 
D)  expenses to be understated. 
A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  assets to be overstated. 
D)  expenses to be understated.

Question 7

Posting is the process of entering amounts in the journal.

Accepted Answer

A) True 
 B)False

Question 8

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Accepted Answer

A)  operating cycle. 
B)  natural business year. 
C)  fiscal year. 
D)  accounting cycle. 
A)  operating cycle. 
B)  natural business year. 
C)  fiscal year. 
D)  accounting cycle.

Question 9

Which of the following entries records the owner taking cash for personal use?

Accepted Answer

A)  Wage Expense, debit; Cash, credit 
B)  Capital, debit; Cash, credit 
C)  Withdrawals, debit; Cash, credit 
D)  No entry is necessary since this is a personal transaction. 
A)  Wage Expense, debit; Cash, credit 
B)  Capital, debit; Cash, credit 
C)  Withdrawals, debit; Cash, credit 
D)  No entry is necessary since this is a personal transaction.

Question 10

Journalize, in proper form, the following transactions that occurred during September. Omit explanations.
June

Accepted Answer

The answer of Journalize, in proper form, the following transactions...

Question 11

A trial balance is a list of the accounts and their ledger balances.

Accepted Answer

A) True 
 B)False

Question 12

Post the following transactions to the ledger of Perry Company. The partial chart of accounts of Perry Company is as follows:
100 Cash
120 Equipment
210 Accounts Payable
300 Perry, Capital

Accepted Answer

The answer of Post the following transactions to the ledger...

Question 13

A running balance is maintained in the journal after each transaction is posted.

Accepted Answer

A) True 
 B)False

Question 14

If you debit Prepaid Insurance, you most likely will:

Accepted Answer

A)  credit Fees Earned. 
B)  credit Capital. 
C)  credit Insurance Expense. 
D)  credit Cash. 
A)  credit Fees Earned. 
B)  credit Capital. 
C)  credit Insurance Expense. 
D)  credit Cash.

Question 15

The journal entry to record a shift of assets would include:

Accepted Answer

A)  a debit to Cash and a credit to Fees Earned. 
B)  a debit to Supplies and a credit to Accounts Payable. 
C)  a debit to Cash and a credit to Accounts Receivable. 
D)  a debit to Fees Earned and a credit to Accounts Receivable. 
A)  a debit to Cash and a credit to Fees Earned. 
B)  a debit to Supplies and a credit to Accounts Payable. 
C)  a debit to Cash and a credit to Accounts Receivable. 
D)  a debit to Fees Earned and a credit to Accounts Receivable.

Question 16

The posting reference column on the general journal:

Accepted Answer

A)  shows which transactions have been posted to the ledger. 
B)  displays to which accounts the transactions have been posted. 
C)  allows us to cross reference to the general ledger. 
D)  All of the above are correct. 
A)  shows which transactions have been posted to the ledger. 
B)  displays to which accounts the transactions have been posted. 
C)  allows us to cross reference to the general ledger. 
D)  All of the above are correct.

Question 17

Revenue is traditionally recognized in the accounting records when:

Accepted Answer

A)  cash is received. 
B)  services are rendered. 
C)  it is incurred. 
D)  None of the answers are correct. 
A)  cash is received. 
B)  services are rendered. 
C)  it is incurred. 
D)  None of the answers are correct.

Question 18

The general journal:

Accepted Answer

A)  is the book of original entry. 
B)  is the book of final entry. 
C)  contains account balances. 
D)  is completed after the closing entries. 
A)  is the book of original entry. 
B)  is the book of final entry. 
C)  contains account balances. 
D)  is completed after the closing entries.

Question 19

The posting reference column in the ledger is:

Accepted Answer

A)  used to record the journal and page number the transactions originated. 
B)  used to record the ledger number. 
C)  used to record the date. 
D)  not used. 
A)  used to record the journal and page number the transactions originated. 
B)  used to record the ledger number. 
C)  used to record the date. 
D)  not used.

Question 20

A slide is evenly divisible by the number 8.

Accepted Answer

A) True 
 B)False

Exam 3: Beginning the Accounting Cycle

The first step of the accounting cycle is:

A calendar year is:

The following trial balance has been improperly completed. All the accounts have normal balances. Prepare a corrected trial balance in good form.

During the month of June, Jane invested $19,000 in starting her legal practice. The proper journal entry would be:

The general journal entry to record the purchase of an asset for cash would include:

A debit to the Accounts Receivable account was posted to an Expenses account. This would cause:

Posting is the process of entering amounts in the journal.

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Which of the following entries records the owner taking cash for personal use?

Journalize, in proper form, the following transactions that occurred during September. Omit explanations. June

A trial balance is a list of the accounts and their ledger balances.

Post the following transactions to the ledger of Perry Company. The partial chart of accounts of Perry Company is as follows: 100 Cash 120 Equipment 210 Accounts Payable 300 Perry, Capital

A running balance is maintained in the journal after each transaction is posted.

If you debit Prepaid Insurance, you most likely will:

The journal entry to record a shift of assets would include:

The posting reference column on the general journal:

Revenue is traditionally recognized in the accounting records when:

The general journal:

The posting reference column in the ledger is:

A slide is evenly divisible by the number 8.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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