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

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

Accepted Answer

A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements. 
A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements.

Question 3

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client.Karl paid his telephone bill and also bought equipment on account.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

Which of the following rules is incorrect?

Accepted Answer

A) Credits decrease the dividends account. 
B) Debits increase the common stock account. 
C) Credits increase revenue accounts. 
D) Debits decrease liability accounts. 
A) Credits decrease the dividends account. 
B) Debits increase the common stock account. 
C) Credits increase revenue accounts. 
D) Debits decrease liability accounts.

Question 5

An accountant has debited an asset account for $1,200 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 a Stockholders' equity account for $700. 
C) Debit another asset account for $700. 
D) Credit a different asset account for $700. 
A) Nothing further must be done. 
B) Debit a Stockholders' equity account for $700. 
C) Debit another asset account for $700. 
D) Credit a different asset account for $700.

Question 6

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 7

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 8

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800.The Cash account has a(n)

Accepted Answer

A) $800 credit balance. 
B) $1,200 debit balance. 
C) $400 debit balance. 
D) $400 credit balance. 
A) $800 credit balance. 
B) $1,200 debit balance. 
C) $400 debit balance. 
D) $400 credit balance.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A) The account. 
B) Debit and credit rules. 
C) Steps in the recording process. 
D) All of these answers are correct.
IFRS. 
A) The account. 
B) Debit and credit rules. 
C) Steps in the recording process. 
D) All of these answers are correct.
IFRS.

Question 11

On July 7, 2021, Hidden Camera Enterprises performed cash services of $1,700.The entry to record this transaction would include

Accepted Answer

A) a debit to Service Revenue of $1,700. 
B) a credit to Accounts Receivable of $1,700. 
C) a debit to Cash of $1,700. 
D) a credit to Accounts Payable of $1,700. 
A) a debit to Service Revenue of $1,700. 
B) a credit to Accounts Receivable of $1,700. 
C) a debit to Cash of $1,700. 
D) a credit to Accounts Payable of $1,700.

Question 12

The ledger should be arranged in

Accepted Answer

A) alphabetical order. 
B) chronological order. 
C) dollar amount order. 
D) financial statement order. 
A) alphabetical order. 
B) chronological order. 
C) dollar amount order. 
D) financial statement order.

Question 13

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 14

Under IFRS, the trial balance

Accepted Answer

A) follows the same format as under GAAP. 
B) shows credits on the left and debits on the right. 
C) includes less accounts than under GAAP. 
D) includes more accounts than under GAAP.
IFRS. 
A) follows the same format as under GAAP. 
B) shows credits on the left and debits on the right. 
C) includes less accounts than under GAAP. 
D) includes more accounts than under GAAP.
IFRS.

Question 15

The journal provides a chronological record of transactions.

Accepted Answer

A) True 
 B)False

Question 16

In the first month of operations for Gallowsbird Industries, the total of the debit entries to the cash account amounted to $36,000 ($16,000 investment by stockholders and revenues of $20,000).The total of the credit entries to the cash account amounted to $22,000 (purchase of equipment $8,000 and payment of expenses $14,000).At the end of the month, the cash account has a(n)

Accepted Answer

A) $6,000 credit balance. 
B) $6,000 debit balance. 
C) $14,000 debit balance. 
D) $14,000 credit balance. 
A) $6,000 credit balance. 
B) $6,000 debit balance. 
C) $14,000 debit balance. 
D) $14,000 credit balance.

Question 17

The normal balance of any account is the

Accepted Answer

A) left side. 
B) right side. 
C) side which increases that account. 
D) side which decreases that account. 
A) left side. 
B) right side. 
C) side which increases that account. 
D) side which decreases that account.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the accounts listed below is not a subdivision of retained earnings?

Accepted Answer

A) Dividends 
B) Revenues 
C) Expenses 
D) Common stock 
A) Dividends 
B) Revenues 
C) Expenses 
D) Common stock

Question 20

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

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

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

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

Which of the following rules is incorrect?

An accountant has debited an asset account for $1,200 and credited a liability account for $500.What can be done to complete the recording of the transaction?

A debit to an asset account indicates

The standard form of a journal entry has the

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800.The Cash account has a(n)

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

Which of the following are the same under both GAAP and IFRS?

On July 7, 2021, Hidden Camera Enterprises performed cash services of $1,700.The entry to record this transaction would include

The ledger should be arranged in

In recording an accounting transaction in a double-entry system

Under IFRS, the trial balance

The journal provides a chronological record of transactions.

The normal balance of any account is the

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

Which of the accounts listed below is not a subdivision of retained earnings?

Business documents can provide evidence that a transaction has occurred.

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: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Payroll Accounting

Other Significant Liabilities

Filters

Exam 2: The Recording Process

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

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

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

Which of the following rules is incorrect?

An accountant has debited an asset account for $1,200 and credited a liability account for $500.What can be done to complete the recording of the transaction?

A debit to an asset account indicates

The standard form of a journal entry has the

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800.The Cash account has a(n)

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

Which of the following are the same under both GAAP and IFRS?

On July 7, 2021, Hidden Camera Enterprises performed cash services of $1,700.The entry to record this transaction would include

The ledger should be arranged in

In recording an accounting transaction in a double-entry system

Under IFRS, the trial balance

The journal provides a chronological record of transactions.

The normal balance of any account is the

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

Which of the accounts listed below is not a subdivision of retained earnings?

Business documents can provide evidence that a transaction has occurred.

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: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Payroll Accounting

Other Significant Liabilities

Filters