Question 1

Able2 Company received a cash advance of $800 from a customer. As a result of this event,

Accepted Answer

A)  assets increased by $800. 
B)  owner's equity increased by $800. 
C)  liabilities decreased by $800. 
D)  assets and owner's equity both increased by $800. 
A)  assets increased by $800. 
B)  owner's equity increased by $800. 
C)  liabilities decreased by $800. 
D)  assets and owner's equity both increased by $800.

Question 2

Qwik Company showed the following balances at the end of its first year: $\begin{array}{lr}
\text { Cash } & \$ 8,700 \
\text { Prepaid insurance } & 9,400 \
\text { Accounts receivable } & 7,000 \
\text { Accounts payable } & 5,800 \
\text { Notes payable } & 9,400 \
\text { Owner's Capital } & 2,300 \
\text { Owner's Drawings } & 1,400 \
\text { Revenues } & 44,000 \
\text { Expenses } & 35,000
\end{array}$ What did Qwik Company show as total credits on its trial balance?

Accepted Answer

A)  $52,400 
B)  $61,500 
C)  $62,900 
D)  $70,900 
A)  $52,400 
B)  $61,500 
C)  $62,900 
D)  $70,900

Question 3

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 4

An accounting record of the balances of all assets, liabilities, and owner's equity accounts is called a

Accepted Answer

A)  compound entry. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts. 
A)  compound entry. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts.

Question 5

A journal entry to record the purchase of equipment on credit is posted to the

Accepted Answer

A)  debit side of Cash. 
B)  debit side of Equipment. 
C)  credit side of Cash. 
D)  credit side of Equipment 
A)  debit side of Cash. 
B)  debit side of Equipment. 
C)  credit side of Cash. 
D)  credit side of Equipment

Question 6

Which of the following is false about a journal?

Accepted Answer

A)  It discloses in one place the complete effects of a transaction. 
B)  It provides a chronological record of transactions. 
C)  It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D)  It keeps in one place all the information about changes in specific account balances. 
A)  It discloses in one place the complete effects of a transaction. 
B)  It provides a chronological record of transactions. 
C)  It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D)  It keeps in one place all the information about changes in specific account balances.

Question 7

A compound journal entry involves

Accepted Answer

A)  two accounts. 
B)  three accounts. 
C)  three or more accounts. 
D)  four or more accounts. 
A)  two accounts. 
B)  three accounts. 
C)  three or more accounts. 
D)  four or more accounts.

Question 8

A two column list of all accounts and their balances at a given time is a ______________.

Accepted Answer

The answer of A two column list of all accounts...

Question 9

The trial balance will not balance if a purchase of supplies is charged to Supplies Expense rather than Supplies.

Accepted Answer

A) True 
 B)False

Question 10

Haselhof Company purchases equipment for $2,400 and supplies for $700 from Behrman Co. for $3,100 cash. The journal entry for this transaction will include a

Accepted Answer

A)  debit to Equipment $2,400 and a debit to Supplies Expense $700 for Behrman. 
B)  credit to Cash for Behrman. 
C)  credit to Accounts Payable for Haselhof. 
D)  debit to Equipment $2,400 and a debit to Supplies $700 for Haselhof. 
A)  debit to Equipment $2,400 and a debit to Supplies Expense $700 for Behrman. 
B)  credit to Cash for Behrman. 
C)  credit to Accounts Payable for Haselhof. 
D)  debit to Equipment $2,400 and a debit to Supplies $700 for Haselhof.

Question 11

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

Accepted Answer

A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC. 
A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC.

Question 12

A trial balance will not balance if

Accepted Answer

A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted. 
A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted.

Question 13

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False

Question 14

Journalizing is the process of transferring information from the journal to the ledger.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

Accepted Answer

The posting process begins with locating

Question 18

On July 7, 2022, Rancho Realty Co. performed cash services of $1,900. The journal entry to record this transaction would include

Accepted Answer

A)  a debit to Service Revenue of $1,900. 
B)  a credit to Accounts Receivable of $1,900. 
C)  a debit to Cash of $1,900. 
D)  a credit to Accounts Payable of $1,900. 
A)  a debit to Service Revenue of $1,900. 
B)  a credit to Accounts Receivable of $1,900. 
C)  a debit to Cash of $1,900. 
D)  a credit to Accounts Payable of $1,900.

Question 19

Which of the following journal entries is recorded correctly and in the standard format?

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 20

Eastman Service Enterprises bills Trait Company for services rendered. Trait's journal entry to record payment of the account will include a debit to

Accepted Answer

A)  Maintenance Expense. 
B)  Owner's Capital. 
C)  Accounts Receivable. 
D)  Accounts Payable. 
A)  Maintenance Expense. 
B)  Owner's Capital. 
C)  Accounts Receivable. 
D)  Accounts Payable.

Able2 Company received a cash advance of $800 from a customer. As a result of this event,

Posting

An accounting record of the balances of all assets, liabilities, and owner's equity accounts is called a

A journal entry to record the purchase of equipment on credit is posted to the

Which of the following is false about a journal?

A compound journal entry involves

A two column list of all accounts and their balances at a given time is a ______________.

The trial balance will not balance if a purchase of supplies is charged to Supplies Expense rather than Supplies.

Haselhof Company purchases equipment for $2,400 and supplies for $700 from Behrman Co. for $3,100 cash. The journal entry for this transaction will include a

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

A trial balance will not balance if

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Journalizing is the process of transferring information from the journal to the ledger.

The final step in the recording process is to

After journal entries are posted, the reference column

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

On July 7, 2022, Rancho Realty Co. performed cash services of $1,900. The journal entry to record this transaction would include

Which of the following journal entries is recorded correctly and in the standard format?

Eastman Service Enterprises bills Trait Company for services rendered. Trait's journal entry to record payment of the account will include a debit to

Welcome to Accounting

The Accounting Equation and Transaction Analysis

The Recording Process: Debits and Credits

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters

Exam 4: The Recording Process: the Journal, the Ledger, and the Trial Balance

Able2 Company received a cash advance of $800 from a customer. As a result of this event,

Posting

An accounting record of the balances of all assets, liabilities, and owner's equity accounts is called a

A journal entry to record the purchase of equipment on credit is posted to the

Which of the following is false about a journal?

A compound journal entry involves

A two column list of all accounts and their balances at a given time is a ______________.

The trial balance will not balance if a purchase of supplies is charged to Supplies Expense rather than Supplies.

Haselhof Company purchases equipment for $2,400 and supplies for $700 from Behrman Co. for $3,100 cash. The journal entry for this transaction will include a

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

A trial balance will not balance if

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Journalizing is the process of transferring information from the journal to the ledger.

The final step in the recording process is to

After journal entries are posted, the reference column

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

On July 7, 2022, Rancho Realty Co. performed cash services of $1,900. The journal entry to record this transaction would include

Which of the following journal entries is recorded correctly and in the standard format?

Eastman Service Enterprises bills Trait Company for services rendered. Trait's journal entry to record payment of the account will include a debit to

Welcome to Accounting

The Accounting Equation and Transaction Analysis

The Recording Process: Debits and Credits

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters