Question 1

Numerous errors may exist even though the trial balance columns agree.Which of the following is not one of these types of errors?

Accepted Answer

A) A transaction is not journalized. 
B) Transposition error related to the statement of financial position. 
C) A journal entry is posted twice. 
D) A journal entry to purchase $100 worth of equipment is posted as a $1,000 purchase. 
A) A transaction is not journalized. 
B) Transposition error related to the statement of financial position. 
C) A journal entry is posted twice. 
D) A journal entry to purchase $100 worth of equipment is posted as a $1,000 purchase.

Question 2

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 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 equity account for $500. 
C) Debit another asset account for $500. 
D) Credit a different asset account for $500.

Question 3

Companies report share capital-ordinary and dividends in the equity section of the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 4

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

Taylor Industries purchased supplies for $£ 1,000$. They paid $£ 500$ in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $£ 1,000$, a credit to a liability account for $£ 500$. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for $£ 500$. 
B)  Credit another liability account for $£ 500$. 
C)  Credit the retained earnings account for $£ 500$. 
D)  Debit the retained earnings account for $£ 500$. 
A)  Credit an asset account for $£ 500$. 
B)  Credit another liability account for $£ 500$. 
C)  Credit the retained earnings account for $£ 500$. 
D)  Debit the retained earnings account for $£ 500$.

Question 8

Transactions are entered in the ledger accounts and then transferred to journals.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A debit is not the normal balance for which account listed below?

Accepted Answer

A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue 
A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue

Question 11

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A) A debit balance in the dividends account 
B) A credit balance in an expense account 
C) A credit balance in a liabilities account 
D) A credit balance in a revenue account 
A) A debit balance in the dividends account 
B) A credit balance in an expense account 
C) A credit balance in a liabilities account 
D) A credit balance in a revenue account

Question 14

An account is often referred to as a T-account because of the way it is constructed.

Accepted Answer

A) True 
 B)False

Question 15

Which account below is not a subdivision of retained earnings?

Accepted Answer

A) Dividends 
B) Revenues 
C) Expenses 
D) Share Capital-Ordinary 
A) Dividends 
B) Revenues 
C) Expenses 
D) Share Capital-Ordinary

Question 16

On January 14, Ericsson Industries purchased supplies of $500 on account.The entry to record the purchase will include

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Ayala Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 14,000 \
\text { Prepaid insurance } & 1,400 \
\text { Accounts receivable } & 7,000 \
\text { Accounts payable } & 5,600 \
\text { Notes payable } & 8,400 \
\text { Share capital-ordinary } & 2,800 \
\text { Dividends } & 1,400 \
\text { Revenues } & 42,000 \
\text { Expenses } & 35,000
\end{array}$$ What did Ayala Company show as total credits on its trial balance?

Accepted Answer

A) $21,500 
B) $21,000 
C) $20,500 
D) $22,000 
A) $21,500 
B) $21,000 
C) $20,500 
D) $22,000

Question 19

Posting

Accepted Answer

A) Accumulates the effects of ledger entries and transfers them to the general journal. 
B) Is done only for income statement activity; activity related to the statement of financial position does not require posting. 
C) is done at least once per year. 
D) Is done by posting all the debits and credits of one entry before moving on to the next entry. 
A) Accumulates the effects of ledger entries and transfers them to the general journal. 
B) Is done only for income statement activity; activity related to the statement of financial position does not require posting. 
C) is done at least once per year. 
D) Is done by posting all the debits and credits of one entry before moving on to the next entry.

Question 20

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

A)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
B)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
C)  
$\begin{array}{ll}
\text { Assets } & \text { Credit } \
\text { Liabilities } & \text { Debit } \
\text { Equity } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$ 
D)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$ 
A)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
B)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
C)  
$\begin{array}{ll}
\text { Assets } & \text { Credit } \
\text { Liabilities } & \text { Debit } \
\text { Equity } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$ 
D)  
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Equity } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$

Numerous errors may exist even though the trial balance columns agree.Which of the following is not one of these types of errors?

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?

Companies report share capital-ordinary and dividends in the equity section of the statement of financial position.

The normal balance of all accounts is a debit.

A trial balance is a listing of

An account consists of

Transactions are entered in the ledger accounts and then transferred to journals.

After journal entries are posted, the reference column

A debit is not the normal balance for which account listed below?

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

A debit to an asset account indicates

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

An account is often referred to as a T-account because of the way it is constructed.

Which account below is not a subdivision of retained earnings?

On January 14, Ericsson Industries purchased supplies of $500 on account.The entry to record the purchase will include

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

Posting

Which of the following correctly identifies normal balances of accounts?

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: The Recording Process

Numerous errors may exist even though the trial balance columns agree.Which of the following is not one of these types of errors?

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?

Companies report share capital-ordinary and dividends in the equity section of the statement of financial position.

The normal balance of all accounts is a debit.

A trial balance is a listing of

An account consists of

Transactions are entered in the ledger accounts and then transferred to journals.

After journal entries are posted, the reference column

A debit is not the normal balance for which account listed below?

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

A debit to an asset account indicates

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

An account is often referred to as a T-account because of the way it is constructed.

Which account below is not a subdivision of retained earnings?

On January 14, Ericsson Industries purchased supplies of $500 on account.The entry to record the purchase will include

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

Posting

Which of the following correctly identifies normal balances of accounts?

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters