Question 1

An accounting record of the balances of all assets, liabilities, and stockholders' 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 2

Debit and credit can be interpreted to mean increase and decrease, respectively.

Accepted Answer

A) True 
 B)False

Question 3

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following statements is false?

Accepted Answer

A) Revenues increase stockholders' equity. 
B) Revenues have normal credit balances. 
C) Revenues are a positive factor in the computation of net income. 
D) Revenues are increased by debits. 
A) Revenues increase stockholders' equity. 
B) Revenues have normal credit balances. 
C) Revenues are a positive factor in the computation of net income. 
D) Revenues are increased by debits.

Question 6

Assets normally show

Accepted Answer

A) credit balances. 
B) debit balances. 
C) debit and credit balances. 
D) debit or credit balances. 
A) credit balances. 
B) debit balances. 
C) debit and credit balances. 
D) debit or credit balances.

Question 7

The chart of accounts is a

Accepted Answer

A) list of accounts and their balances at a given time. 
B) device used to prove the mathematical accuracy of the ledger. 
C) listing of the accounts and the account numbers which identify their location in the ledger. 
D) required step in the recording process. 
A) list of accounts and their balances at a given time. 
B) device used to prove the mathematical accuracy of the ledger. 
C) listing of the accounts and the account numbers which identify their location in the ledger. 
D) required step in the recording process.

Question 8

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 9

The name given to entering transaction data in the journal is

Accepted Answer

A) chronicling. 
B) listing. 
C) posting. 
D) journalizing. 
A) chronicling. 
B) listing. 
C) posting. 
D) journalizing.

Question 10

On January 14, Edamame Industries purchased supplies with a cost of $700 on account.The entry to record the purchase will include

Accepted Answer

A) a debit to Supplies and a credit to Accounts Payable. 
B) a debit to Supplies Expense and a credit to Accounts Receivable. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Supplies. 
A) a debit to Supplies and a credit to Accounts Payable. 
B) a debit to Supplies Expense and a credit to Accounts Receivable. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Supplies.

Question 11

TransAm Mail Service purchased equipment for $2,500.TransAm paid $400 in cash and signed a note for the balance.TransAm debited the Equipment account, credited Cash and

Accepted Answer

A) nothing further must be done. 
B) debited the retained earnings account for $2,100. 
C) credited another asset account for $400. 
D) credited a liability account for $2,100. 
A) nothing further must be done. 
B) debited the retained earnings account for $2,100. 
C) credited another asset account for $400. 
D) credited a liability account for $2,100.

Question 12

The best interpretation of the word credit is the

Accepted Answer

A) offset side of an account. 
B) increase side of an account. 
C) right side of an account. 
D) decrease side of an account. 
A) offset side of an account. 
B) increase side of an account. 
C) right side of an account. 
D) decrease side of an account.

Question 13

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 14

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

Question 15

A number in the reference column in a general journal indicates

Accepted Answer

A) that the entry has been posted to a particular account. 
B) the page number of the journal. 
C) the dollar amount of the transaction. 
D) the date of the transaction. 
A) that the entry has been posted to a particular account. 
B) the page number of the journal. 
C) the dollar amount of the transaction. 
D) the date of the transaction.

Question 16

A compound journal entry involves

Accepted Answer

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

Question 17

The right side of an account

Accepted Answer

A) is the correct side. 
B) reflects all transactions for the accounting period. 
C) shows all the balances of the accounts in the system. 
D) is the credit side. 
A) is the correct side. 
B) reflects all transactions for the accounting period. 
C) shows all the balances of the accounts in the system. 
D) is the credit side.

Question 18

Credits

Accepted Answer

A) decrease both assets and liabilities. 
B) decrease assets and increase liabilities. 
C) increase both assets and liabilities. 
D) increase assets and decrease liabilities. 
A) decrease both assets and liabilities. 
B) decrease assets and increase liabilities. 
C) increase both assets and liabilities. 
D) increase assets and decrease liabilities.

Question 19

Selected transactions for Good Home, a property management company, in its first month of business, are as follows:   Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset (A), liability (L), stockholders' equity (SE)).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased (incr.) or decreased (decr).
(d) The normal balance of the specific account.
Use the following format, in which the January 2 transaction is given as an example.

Accepted Answer

The answer of Selected transactions for Good Home, a property...

Question 20

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

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

Debit and credit can be interpreted to mean increase and decrease, respectively.

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

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

Which of the following statements is false?

Assets normally show

The chart of accounts is a

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

The name given to entering transaction data in the journal is

On January 14, Edamame Industries purchased supplies with a cost of $700 on account.The entry to record the purchase will include

TransAm Mail Service purchased equipment for $2,500.TransAm paid $400 in cash and signed a note for the balance.TransAm debited the Equipment account, credited Cash and

The best interpretation of the word credit is the

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

Which of the following correctly identifies normal balances of accounts?

A number in the reference column in a general journal indicates

A compound journal entry involves

The right side of an account

Credits

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected 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: 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

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

Debit and credit can be interpreted to mean increase and decrease, respectively.

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

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

Which of the following statements is false?

Assets normally show

The chart of accounts is a

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

The name given to entering transaction data in the journal is

On January 14, Edamame Industries purchased supplies with a cost of $700 on account.The entry to record the purchase will include

TransAm Mail Service purchased equipment for $2,500.TransAm paid $400 in cash and signed a note for the balance.TransAm debited the Equipment account, credited Cash and

The best interpretation of the word credit is the

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

Which of the following correctly identifies normal balances of accounts?

A number in the reference column in a general journal indicates

A compound journal entry involves

The right side of an account

Credits

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected 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: 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