Question 1

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

Question 2

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 3

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client.Josh paid his telephone bill, and he also bought equipment on credit.For the three transactions, at least one of the entries will include a

Accepted Answer

A) credit to Retained Earnings. 
B) credit to Notes Payable. 
C) debit to Accounts Receivable. 
D) credit to Accounts Payable. 
A) credit to Retained Earnings. 
B) credit to Notes Payable. 
C) debit to Accounts Receivable. 
D) credit to Accounts Payable.

Question 4

A chart of accounts usually starts with

Accepted Answer

A) asset accounts. 
B) expense accounts. 
C) liability accounts. 
D) revenue accounts. 
A) asset accounts. 
B) expense accounts. 
C) liability accounts. 
D) revenue accounts.

Question 5

A journal is not useful for

Accepted Answer

A) disclosing in one place the complete effect of a transaction. 
B) preparing financial statements. 
C) providing a record of transactions. 
D) locating and preventing errors. 
A) disclosing in one place the complete effect of a transaction. 
B) preparing financial statements. 
C) providing a record of transactions. 
D) locating and preventing errors.

Question 6

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

Accepted Answer

A) True 
 B)False

Question 7

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) file cabinets. 
A) trial balance. 
B) financial statements. 
C) ledger. 
D) file cabinets.

Question 8

The entire group of accounts maintained by a company is called the

Accepted Answer

A) chart of accounts. 
B) general journal. 
C) general ledger. 
D) trial balance. 
A) chart of accounts. 
B) general journal. 
C) general ledger. 
D) trial balance.

Question 9

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 10

The left side of an account is

Accepted Answer

A) blank. 
B) a description of the account. 
C) the debit side. 
D) the balance of the account. 
A) blank. 
B) a description of the account. 
C) the debit side. 
D) the balance of the account.

Question 11

The final step in the recording process is to

Accepted Answer

A) analyze each transaction. 
B) enter the transaction in a journal. 
C) prepare a trial balance. 
D) transfer journal information to ledger accounts. 
A) analyze each transaction. 
B) enter the transaction in a journal. 
C) prepare a trial balance. 
D) transfer journal information to ledger accounts.

Question 12

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $600.The cash account has a(n)

Accepted Answer

A) $600 credit balance. 
B) $900 debit balance. 
C) $300 debit balance. 
D) $300 credit balance. 
A) $600 credit balance. 
B) $900 debit balance. 
C) $300 debit balance. 
D) $300 credit balance.

Question 13

Which of the following statements is false concerning use of currency signs?

Accepted Answer

A) Currency signs do not appear in journals or ledgers. 
B) Currency signs are generally only shown for the first item in a column and for the column total. 
C) Currency signs are not typically used in the trial balance. 
D) All of the choices are correct regarding currency signs. 
A) Currency signs do not appear in journals or ledgers. 
B) Currency signs are generally only shown for the first item in a column and for the column total. 
C) Currency signs are not typically used in the trial balance. 
D) All of the choices are correct regarding currency signs.

Question 14

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 15

A trial balance may balance even when each of the following occurs except when

Accepted Answer

A) a transaction is not journalized. 
B) a journal entry is posted twice. 
C) incorrect accounts are used in journalizing. 
D) a transposition error is made. 
A) a transaction is not journalized. 
B) a journal entry is posted twice. 
C) incorrect accounts are used in journalizing. 
D) a transposition error is made.

Question 16

Which of the following rules is incorrect?

Accepted Answer

A) Credits decrease the dividends account. 
B) Debits increase the share capital-ordinary account. 
C) Credits increase revenue accounts. 
D) Debits decrease liability accounts. 
A) Credits decrease the dividends account. 
B) Debits increase the share capital-ordinary account. 
C) Credits increase revenue accounts. 
D) Debits decrease liability accounts.

Question 17

The standard format of a journal would not include

Accepted Answer

A) a reference column. 
B) an account title column. 
C) a T-account. 
D) a date column. 
A) a reference column. 
B) an account title column. 
C) a T-account. 
D) a date column.

Question 18

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 19

Under U.S.GAPP

Accepted Answer

A) Currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B) Share Capital-Ordinary is referred to as Retained Earnings. 
C) The statement of financial position is often called the statement of changes in financial position. 
D) The rules of debits and credits, and the steps in the recording process are the same as under IFRS. 
A) Currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B) Share Capital-Ordinary is referred to as Retained Earnings. 
C) The statement of financial position is often called the statement of changes in financial position. 
D) The rules of debits and credits, and the steps in the recording process are the same as under IFRS.

Question 20

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

A new account is opened for each transaction entered into by a business firm.

Posting

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client.Josh paid his telephone bill, and he also bought equipment on credit.For the three transactions, at least one of the entries will include a

A chart of accounts usually starts with

A journal is not useful for

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

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

The entire group of accounts maintained by a company is called the

Business documents can provide evidence that a transaction has occurred.

The left side of an account is

The final step in the recording process is to

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $600.The cash account has a(n)

Which of the following statements is false concerning use of currency signs?

The standard form of a journal entry has the

A trial balance may balance even when each of the following occurs except when

Which of the following rules is incorrect?

The standard format of a journal would not include

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Under U.S.GAPP

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

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

A new account is opened for each transaction entered into by a business firm.

Posting

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client.Josh paid his telephone bill, and he also bought equipment on credit.For the three transactions, at least one of the entries will include a

A chart of accounts usually starts with

A journal is not useful for

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

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

The entire group of accounts maintained by a company is called the

Business documents can provide evidence that a transaction has occurred.

The left side of an account is

The final step in the recording process is to

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $600.The cash account has a(n)

Which of the following statements is false concerning use of currency signs?

The standard form of a journal entry has the

A trial balance may balance even when each of the following occurs except when

Which of the following rules is incorrect?

The standard format of a journal would not include

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Under U.S.GAPP

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

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