Question 1

When three or more accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A) compound entry. 
B) triple entry. 
C) multiple entry. 
D) simple entry. 
A) compound entry. 
B) triple entry. 
C) multiple entry. 
D) simple entry.

Question 2

Which of the following is incorrect regarding a trial balance?

Accepted Answer

A) It proves that the debits equal the credits after posting. 
B) It proves that the company has recorded all transactions. 
C) A trial balance uncovers errors in journalizing and posting. 
D) A trial balance is useful in the preparation of financial statements. 
A) It proves that the debits equal the credits after posting. 
B) It proves that the company has recorded all transactions. 
C) A trial balance uncovers errors in journalizing and posting. 
D) A trial balance is useful in the preparation of financial statements.

Question 3

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 4

Posting of journal entries should be done in

Accepted Answer

A) account number order. 
B) alphabetical order. 
C) chronological order. 
D) dollar amount order. 
A) account number order. 
B) alphabetical order. 
C) chronological order. 
D) dollar amount order.

Question 5

Which of the following statements is not true?

Accepted Answer

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

Question 6

If a company has overdrawn its bank balance, then

Accepted Answer

A) its cash account will show a debit balance. 
B) its cash account will show a credit balance. 
C) the cash account debits will exceed the cash account credits. 
D) it cannot be detected by observing the balance of the cash account. 
A) its cash account will show a debit balance. 
B) its cash account will show a credit balance. 
C) the cash account debits will exceed the cash account credits. 
D) it cannot be detected by observing the balance of the cash account.

Question 7

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 8

All business transactions must be entered first in the general ledger.

Accepted Answer

A) True 
 B)False

Question 9

The recording process occurs

Accepted Answer

A) once a year. 
B) once a month. 
C) repeatedly during the accounting period. 
D) infrequently in a manual accounting system. 
A) once a year. 
B) once a month. 
C) repeatedly during the accounting period. 
D) infrequently in a manual accounting system.

Question 10

The double-entry system requires that each transaction must be recorded

Accepted Answer

A) in at least two different accounts. 
B) in two sets of books. 
C) in a journal and in a ledger. 
D) first as a revenue and then as an expense. 
A) in at least two different accounts. 
B) in two sets of books. 
C) in a journal and in a ledger. 
D) first as a revenue and then as an expense.

Question 11

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

Accepted Answer

A) cash register sales tape. 
B) bill. 
C) advertising brochure. 
D) check. 
A) cash register sales tape. 
B) bill. 
C) advertising brochure. 
D) check.

Question 12

An account consists of

Accepted Answer

A) a title, a debit balance, and a credit balance. 
B) a title, a left side, and a debit balance. 
C) a title, a debit side, and a credit side. 
D) a title, a right side, and a debit balance. 
A) a title, a debit balance, and a credit balance. 
B) a title, a left side, and a debit balance. 
C) a title, a debit side, and a credit side. 
D) a title, a right side, and a debit balance.

Question 13

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 14

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

Accepted Answer

A) True 
 B)False

Question 15

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A) no errors have been made. 
B) no errors can be discovered. 
C) that all accounts reflect correct balances. 
D) the mathematical equality of the accounting equation. 
A) no errors have been made. 
B) no errors can be discovered. 
C) that all accounts reflect correct balances. 
D) the mathematical equality of the accounting equation.

Question 16

A debit is not the normal balance for which of the following?

Accepted Answer

A) Asset account 
B) Dividends account 
C) Expense account 
D) Share capital-ordinary account 
A) Asset account 
B) Dividends account 
C) Expense account 
D) Share capital-ordinary account

Question 17

Compound entries

Accepted Answer

A) Would include an entry to record the purchase of a computer for cash. 
B) Include at least two debits or two credits. 
C) Require that all credits be listed before the debits for entries affecting the statement of financial position. 
D) Should be broken into their component parts and recorded as simple entries. 
A) Would include an entry to record the purchase of a computer for cash. 
B) Include at least two debits or two credits. 
C) Require that all credits be listed before the debits for entries affecting the statement of financial position. 
D) Should be broken into their component parts and recorded as simple entries.

Question 18

During 2011, its first year of operations, Yaspo's Bakery had revenues of $80,000 and expenses of $44,000.The business paid dividends of $24,000.What is the amount of equity at December 31, 2011?

Accepted Answer

A) $0 
B) $24,000 debit 
C) $12,000 credit 
D) $36,000 credit 
A) $0 
B) $24,000 debit 
C) $12,000 credit 
D) $36,000 credit

Question 19

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Question 20

After a transaction has been posted, the reference column in the journal should not be blank.

Accepted Answer

A) True 
 B)False

When three or more accounts are required in one journal entry, the entry is referred to as a

Which of the following is incorrect regarding a trial balance?

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

Posting of journal entries should be done in

Which of the following statements is not true?

If a company has overdrawn its bank balance, then

The recording process becomes more efficient and informative if all transactions are recorded in one account.

All business transactions must be entered first in the general ledger.

The recording process occurs

The double-entry system requires that each transaction must be recorded

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

An account consists of

If a revenue account is credited, the revenue account is increased.

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

A debit is not the normal balance for which of the following?

Compound entries

During 2011, its first year of operations, Yaspo's Bakery had revenues of $80,000 and expenses of $44,000.The business paid dividends of $24,000.What is the amount of equity at December 31, 2011?

The complete effect of a transaction on the accounts is disclosed in the journal.

After a transaction has been posted, the reference column in the journal should not be blank.

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

When three or more accounts are required in one journal entry, the entry is referred to as a

Which of the following is incorrect regarding a trial balance?

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

Posting of journal entries should be done in

Which of the following statements is not true?

If a company has overdrawn its bank balance, then

The recording process becomes more efficient and informative if all transactions are recorded in one account.

All business transactions must be entered first in the general ledger.

The recording process occurs

The double-entry system requires that each transaction must be recorded

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

An account consists of

If a revenue account is credited, the revenue account is increased.

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

A debit is not the normal balance for which of the following?

Compound entries

During 2011, its first year of operations, Yaspo's Bakery had revenues of $80,000 and expenses of $44,000.The business paid dividends of $24,000.What is the amount of equity at December 31, 2011?

The complete effect of a transaction on the accounts is disclosed in the journal.

After a transaction has been posted, the reference column in the journal should not be blank.

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