Question 1

A numbering system for a chart of accounts

Accepted Answer

A) is prescribed by GAAP. 
B) is uniform for all businesses. 
C) usually starts with income statement accounts. 
D) usually starts with balance sheet accounts. 
A) is prescribed by GAAP. 
B) is uniform for all businesses. 
C) usually starts with income statement accounts. 
D) usually starts with balance sheet accounts.

Question 2

An account is a part of the financial information system and is described by all of the following statements except:

Accepted Answer

A) An account has a debit and credit side. 
B) An account is a source document. 
C) An account may be part of a manual or a computerized accounting system. 
D) An account has a title. 
A) An account has a debit and credit side. 
B) An account is a source document. 
C) An account may be part of a manual or a computerized accounting system. 
D) An account has a title.

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

On June 1, 2021 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note.When journalizing this transaction, he will

Accepted Answer

A) use two journal entries. 
B) make a compound entry. 
C) make a simple entry. 
D) list the credit entries first, which is proper form for this type of transaction. 
A) use two journal entries. 
B) make a compound entry. 
C) make a simple entry. 
D) list the credit entries first, which is proper form for this type of transaction.

Question 5

Chik Chik Company showed the following balances at the end of its first year:   What did Chik Chik Company show as total credits on its trial balance?

Accepted Answer

A) $51,400 
B) $60,800 
C) $62,200 
D) $70,200 
A) $51,400 
B) $60,800 
C) $62,200 
D) $70,200

Question 6

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

Question 7

A journal is also known as a book of original entry.

Accepted Answer

A) True 
 B)False

Question 8

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2021.

Accepted Answer

The answer of Prepare a trial balance from the ledger...

Question 9

A debit is not the normal balance for which of the accounts listed below?

Accepted Answer

A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue 
A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A credit balance in a liability account indicates that an error in recording has occurred.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A trial balance is a listing of

Accepted Answer

A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages. 
A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages.

Question 14

At October 1, 2021, Padilla Industries had an accounts payable balance of $40,000.During the month, the company made purchases on account of $33,000 and made payments on account of $48,000.At October 31, 2021, the accounts payable balance is

Accepted Answer

A) $25,000. 
B) $41,000. 
C) $55,000. 
D) $121,000. 
A) $25,000. 
B) $41,000. 
C) $55,000. 
D) $121,000.

Question 15

Electrelane Company showed the following balances at the end of its first year:   What did Electrelane Company show as total credits on its trial balance?

Accepted Answer

A) $9,000 
B) $44,000 
C) $45,000 
D) $49,000 
A) $9,000 
B) $44,000 
C) $45,000 
D) $49,000

Question 16

The steps in preparing a trial balance include all of the following except

Accepted Answer

A) listing the account titles and their balances. 
B) totaling the debit and credit columns. 
C) proving the equality of the two columns. 
D) transferring journal amounts to ledger accounts. 
A) listing the account titles and their balances. 
B) totaling the debit and credit columns. 
C) proving the equality of the two columns. 
D) transferring journal amounts to ledger accounts.

Question 17

The Dividends account

Accepted Answer

A) appears on the income statement along with the expenses of the business. 
B) must show transactions every accounting period. 
C) is increased with debits and decreased with credits. 
D) is not a proper subdivision of retained earnings. 
A) appears on the income statement along with the expenses of the business. 
B) must show transactions every accounting period. 
C) is increased with debits and decreased with credits. 
D) is not a proper subdivision of retained earnings.

Question 18

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 19

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

Question 20

During February 2021, its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000.Ariel had cash revenues of $10,000 and paid expenses of $14,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Accepted Answer

A) $4,000 credit 
B) $4,000 debit 
C) $46,000 debit 
D) $54,000 debit 
A) $4,000 credit 
B) $4,000 debit 
C) $46,000 debit 
D) $54,000 debit

A numbering system for a chart of accounts

An account is a part of the financial information system and is described by all of the following statements except:

A chart of accounts for a business firm

On June 1, 2021 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note.When journalizing this transaction, he will

Chik Chik Company showed the following balances at the end of its first year: What did Chik Chik Company show as total credits on its trial balance?

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

A journal is also known as a book of original entry.

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2021.

A debit is not the normal balance for which of the accounts listed below?

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

A credit balance in a liability account indicates that an error in recording has occurred.

The final step in the recording process is to

A trial balance is a listing of

At October 1, 2021, Padilla Industries had an accounts payable balance of $40,000.During the month, the company made purchases on account of $33,000 and made payments on account of $48,000.At October 31, 2021, the accounts payable balance is

Electrelane Company showed the following balances at the end of its first year: What did Electrelane Company show as total credits on its trial balance?

The steps in preparing a trial balance include all of the following except

The Dividends account

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

Posting is the process of proving the equality of debits and credits in the trial balance.

During February 2021, its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000.Ariel had cash revenues of $10,000 and paid expenses of $14,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

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

A numbering system for a chart of accounts

An account is a part of the financial information system and is described by all of the following statements except:

A chart of accounts for a business firm

On June 1, 2021 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note.When journalizing this transaction, he will

Chik Chik Company showed the following balances at the end of its first year: What did Chik Chik Company show as total credits on its trial balance?

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

A journal is also known as a book of original entry.

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2021.

A debit is not the normal balance for which of the accounts listed below?

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

A credit balance in a liability account indicates that an error in recording has occurred.

The final step in the recording process is to

A trial balance is a listing of

At October 1, 2021, Padilla Industries had an accounts payable balance of $40,000.During the month, the company made purchases on account of $33,000 and made payments on account of $48,000.At October 31, 2021, the accounts payable balance is

Electrelane Company showed the following balances at the end of its first year: What did Electrelane Company show as total credits on its trial balance?

The steps in preparing a trial balance include all of the following except

The Dividends account

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

Posting is the process of proving the equality of debits and credits in the trial balance.

During February 2021, its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000.Ariel had cash revenues of $10,000 and paid expenses of $14,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

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