Question 1

The usual order of accounts in the general ledger is

Accepted Answer

A) assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses. 
B) assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues. 
C) liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends. 
D) common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues. 
A) assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses. 
B) assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues. 
C) liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends. 
D) common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues.

Question 2

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 3

After a transaction has been posted, the reference column in the journal should not be blank.

Accepted Answer

A) True 
 B)False

Question 4

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A) trial balance. 
B) income statement. 
C) book of original entry. 
D) ledger. 
A) trial balance. 
B) income statement. 
C) book of original entry. 
D) ledger.

Question 5

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 6

The ledger accounts should be arranged in

Accepted Answer

A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal. 
A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal.

Question 7

The first step in posting involves

Accepted Answer

A) entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B) writing in the journal the account number to which the debit amount was posted. 
C) writing in the journal the account number to which the credit amount was posted. 
D) entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. 
A) entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B) writing in the journal the account number to which the debit amount was posted. 
C) writing in the journal the account number to which the credit amount was posted. 
D) entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.

Question 8

The first step in the recording process is to

Accepted Answer

A) prepare financial statements. 
B) analyze each transaction for its effect on the accounts. 
C) post to a journal. 
D) prepare a trial balance. 
A) prepare financial statements. 
B) analyze each transaction for its effect on the accounts. 
C) post to a journal. 
D) prepare a trial balance.

Question 9

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A) journal, and transfer the information to the ledger accounts. 
B) ledger, and transfer the information to the journal. 
C) book of accounts, and transfer the information to the journal. 
D) book of original entry, and transfer the information to the journal. 
A) journal, and transfer the information to the ledger accounts. 
B) ledger, and transfer the information to the journal. 
C) book of accounts, and transfer the information to the journal. 
D) book of original entry, and transfer the information to the journal.

Question 10

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A) A transaction that is not journalized 
B) A journal entry that is posted twice 
C) Offsetting errors are made in recording the transaction 
D) A transposition error when transferring the debit side of journal entry to the ledger 
A) A transaction that is not journalized 
B) A journal entry that is posted twice 
C) Offsetting errors are made in recording the transaction 
D) A transposition error when transferring the debit side of journal entry to the ledger

Question 11

The explanation column of the general ledger

Accepted Answer

A) is completed without exception. 
B) is nonexistent. 
C) is used infrequently. 
D) shows account titles. 
A) is completed without exception. 
B) is nonexistent. 
C) is used infrequently. 
D) shows account titles.

Question 12

Revenues are a subdivision of retained earnings.

Accepted Answer

A) True 
 B)False

Question 13

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Question 14

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 15

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Accepted Answer

A) True 
 B)False

Question 16

An account is often referred to as a T-account because of the way it is constructed.

Accepted Answer

A) True 
 B)False

Question 17

A debit to an account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Question 18

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Question 19

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

Question 20

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

The usual order of accounts in the general ledger is

The recording process becomes more efficient and informative if all transactions are recorded in one account.

After a transaction has been posted, the reference column in the journal should not be blank.

After transaction information has been recorded in the journal, it is transferred to the

If a revenue account is credited, the revenue account is increased.

The ledger accounts should be arranged in

The first step in posting involves

The first step in the recording process is to

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

A trial balance would only help in detecting which one of the following errors?

The explanation column of the general ledger

Revenues are a subdivision of retained earnings.

The complete effect of a transaction on the accounts is disclosed in the journal.

The normal balance of an expense account is a credit.

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

An account is often referred to as a T-account because of the way it is constructed.

A debit to an account indicates an increase in that account.

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

A new account is opened for each transaction entered into by a business firm.

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

The usual order of accounts in the general ledger is

The recording process becomes more efficient and informative if all transactions are recorded in one account.

After a transaction has been posted, the reference column in the journal should not be blank.

After transaction information has been recorded in the journal, it is transferred to the

If a revenue account is credited, the revenue account is increased.

The ledger accounts should be arranged in

The first step in posting involves

The first step in the recording process is to

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

A trial balance would only help in detecting which one of the following errors?

The explanation column of the general ledger

Revenues are a subdivision of retained earnings.

The complete effect of a transaction on the accounts is disclosed in the journal.

The normal balance of an expense account is a credit.

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

An account is often referred to as a T-account because of the way it is constructed.

A debit to an account indicates an increase in that account.

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

A new account is opened for each transaction entered into by a business firm.

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