Question 1

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Accepted Answer

A) True 
 B)False

Question 2

A T-account is

Accepted Answer

A) a way of depicting the basic form of an account. 
B) what the computer uses to organize bytes of information. 
C) a special account used instead of a trial balance. 
D) used for accounts that have both a debit and credit balance. 
A) a way of depicting the basic form of an account. 
B) what the computer uses to organize bytes of information. 
C) a special account used instead of a trial balance. 
D) used for accounts that have both a debit and credit balance.

Question 3

A chart of accounts for a business firm

Accepted Answer

A) is a graph. 
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. 
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 4

In recording an accounting transaction in a double-entry system

Accepted Answer

A) the number of debit accounts must equal the number of credit accounts. 
B) there must always be entries made on both sides of the accounting equation. 
C) the amount of the debits must equal the amount of the credits. 
D) there must only be two accounts affected by any transaction. 
A) the number of debit accounts must equal the number of credit accounts. 
B) there must always be entries made on both sides of the accounting equation. 
C) the amount of the debits must equal the amount of the credits. 
D) there must only be two accounts affected by any transaction.

Question 5

When a company pays dividends

Accepted Answer

A) it doesn't have to be cash, it could be another asset. 
B) the dividends account will be increased with a credit. 
C) the retained earnings account will be directly increased with a debit. 
D) the dividends account will be decreased with a debit. 
A) it doesn't have to be cash, it could be another asset. 
B) the dividends account will be increased with a credit. 
C) the retained earnings account will be directly increased with a debit. 
D) the dividends account will be decreased with a debit.

Question 6

Basic steps in the recording process include all of the following except

Accepted Answer

A) Transfer the journal information to the appropriate account in the statement of financial position. 
B) Analyze each transaction for its effect on the accounts. 
C) Enter the transaction information in a journal. 
D) All of the choices are correct regarding the basic steps in the recording process. 
A) Transfer the journal information to the appropriate account in the statement of financial position. 
B) Analyze each transaction for its effect on the accounts. 
C) Enter the transaction information in a journal. 
D) All of the choices are correct regarding the basic steps in the recording process.

Question 7

A simple journal entry requires only one debit to an account and one credit to an account.

Accepted Answer

A) True 
 B)False

Question 8

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A) journalizing. 
B) analyzing. 
C) reporting. 
D) posting. 
A) journalizing. 
B) analyzing. 
C) reporting. 
D) posting.

Question 9

Management could determine the amounts due from customers by examining which ledger account?

Accepted Answer

A) Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Supplies 
A) Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Supplies

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

A T-account is

A chart of accounts for a business firm

In recording an accounting transaction in a double-entry system

When a company pays dividends

Basic steps in the recording process include all of the following except

A simple journal entry requires only one debit to an account and one credit to an account.

The procedure of transferring journal entries to the ledger accounts is called

Management could determine the amounts due from customers by examining which ledger account?

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

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

A T-account is

A chart of accounts for a business firm

In recording an accounting transaction in a double-entry system

When a company pays dividends

Basic steps in the recording process include all of the following except

A simple journal entry requires only one debit to an account and one credit to an account.

The procedure of transferring journal entries to the ledger accounts is called

Management could determine the amounts due from customers by examining which ledger account?

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