Question 1

Errors in a trial balance may only be caused by an error in posting the journal entries to the accounts.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true?

Accepted Answer

A)  Debits increase assets and increase liabilities. 
B)  Credits decrease assets and decrease liabilities. 
C)  Credits decrease assets and increase liabilities. 
D)  Debits increase liabilities and increase assets. 
A)  Debits increase assets and increase liabilities. 
B)  Credits decrease assets and decrease liabilities. 
C)  Credits decrease assets and increase liabilities. 
D)  Debits increase liabilities and increase assets.

Question 3

The withdrawal of cash for personal use by the owners of a business requires a ________ to the drawings account and a ____________ to the cash account.

Accepted Answer

A)  debit; debit 
B)  debit; credit 
C)  credit; credit 
D)  credit; debit 
A)  debit; debit 
B)  debit; credit 
C)  credit; credit 
D)  credit; debit

Question 4

Posting must be completed before a trial balance can be done.

Accepted Answer

A) True 
 B)False

Question 5

Archie and Associates is a financial planning service. The account balances at July 31, 2014 are shown by the following alphabetical list:   Instructions
Prepare a trial balance with the accounts arranged in financial statement order. All accounts have normal balances.

Accepted Answer

The answer of Archie and Associates is a financial planning...

Question 6

If an entry has been posted to the accounts twice, the trial balance will still balance.

Accepted Answer

A) True 
 B)False

Question 7

Posting

Accepted Answer

A)  is only done in a manual accounting system. 
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)  is only done in a manual accounting system. 
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 8

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 9

The usual sequence of steps in the recording process is to

Accepted Answer

A)  analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. 
B)  analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal. 
C)  analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal. 
D)  analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal. 
A)  analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. 
B)  analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal. 
C)  analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal. 
D)  analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal.

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

A debit to an asset account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Question 12

A chart of accounts for a company

Accepted Answer

A)  is a graph of the financial position of the company. 
B)  indicates the amount of profit or loss for the period. 
C)  lists the accounts and account numbers that identify their location in the ledger. 
D)  shows the balance of each account in the general ledger. 
A)  is a graph of the financial position of the company. 
B)  indicates the amount of profit or loss for the period. 
C)  lists the accounts and account numbers that identify their location in the ledger. 
D)  shows the balance of each account in the general ledger.

Question 13

Delaurier and Associates is an accounting practice. The account balances at December 31, 2014, are shown by the following alphabetical list:   Instructions
Prepare a trial balance with the accounts arranged in financial statement order.

Accepted Answer

The answer of Delaurier and Associates is an accounting practice....

Question 14

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 15

Melinda's Magic Store has balances in the following accounts at the end of May. For each of the accounts indicate:
a. the type of account (Asset, Liability, Owner's capital, Owner's drawings, Revenue, Expense),
b. the debit and credit effects, and
c. the normal account balance.

Accepted Answer

1. a. Asset account. 
 b. Debit increase

Question 16

The chart of accounts is list of all the accounts in a company.

Accepted Answer

A) True 
 B)False

Question 17

A trial balance that balances proves only that the debit accounts equal the credit accounts.

Accepted Answer

A) True 
 B)False

Question 18

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  general journal. 
A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  general journal.

Question 19

Journal entries are prepared

Accepted Answer

A)  only at the end of the month. 
B)  only when cash is received or disbursed. 
C)  whenever there is a business transaction which will generate an entry. 
D)  only when financial statements are prepared. 
A)  only at the end of the month. 
B)  only when cash is received or disbursed. 
C)  whenever there is a business transaction which will generate an entry. 
D)  only when financial statements are prepared.

Question 20

Posting is the transfer of journal entries to the ledger accounts.

Accepted Answer

A) True 
 B)False

Errors in a trial balance may only be caused by an error in posting the journal entries to the accounts.

Which of the following statements is true?

The withdrawal of cash for personal use by the owners of a business requires a to the drawings account and a ____ to the cash account.

Posting must be completed before a trial balance can be done.

Archie and Associates is a financial planning service. The account balances at July 31, 2014 are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in financial statement order. All accounts have normal balances.

If an entry has been posted to the accounts twice, the trial balance will still balance.

Posting

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?

The usual sequence of steps in the recording process is to

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

A debit to an asset account indicates an increase in that account.

A chart of accounts for a company

Delaurier and Associates is an accounting practice. The account balances at December 31, 2014, are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in financial statement order.

The usual sequence of steps in the transaction recording process is

Melinda's Magic Store has balances in the following accounts at the end of May. For each of the accounts indicate: a. the type of account (Asset, Liability, Owner's capital, Owner's drawings, Revenue, Expense), b. the debit and credit effects, and c. the normal account balance.

The chart of accounts is list of all the accounts in a company.

A trial balance that balances proves only that the debit accounts equal the credit accounts.

The final step in the recording process is to transfer the journal information to the

Journal entries are prepared

Posting is the transfer of journal entries to the ledger accounts.

Accounting in Action

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

Exam 2: The Recording Process

Errors in a trial balance may only be caused by an error in posting the journal entries to the accounts.

Which of the following statements is true?

The withdrawal of cash for personal use by the owners of a business requires a ________ to the drawings account and a ____________ to the cash account.

Posting must be completed before a trial balance can be done.

Archie and Associates is a financial planning service. The account balances at July 31, 2014 are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in financial statement order. All accounts have normal balances.

If an entry has been posted to the accounts twice, the trial balance will still balance.

Posting

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?

The usual sequence of steps in the recording process is to

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

A debit to an asset account indicates an increase in that account.

A chart of accounts for a company

Delaurier and Associates is an accounting practice. The account balances at December 31, 2014, are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in financial statement order.

The usual sequence of steps in the transaction recording process is

Melinda's Magic Store has balances in the following accounts at the end of May. For each of the accounts indicate: a. the type of account (Asset, Liability, Owner's capital, Owner's drawings, Revenue, Expense), b. the debit and credit effects, and c. the normal account balance.

The chart of accounts is list of all the accounts in a company.

A trial balance that balances proves only that the debit accounts equal the credit accounts.

The final step in the recording process is to transfer the journal information to the

Journal entries are prepared

Posting is the transfer of journal entries to the ledger accounts.

Accounting in Action

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

The withdrawal of cash for personal use by the owners of a business requires a to the drawings account and a ____ to the cash account.