Question 1

If Capital has been credited,it is likely that:

Accepted Answer

A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) All of these are possible 
A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) All of these are possible C

Question 2

Which of the following accounts would be credited in a proper journal entry?

Accepted Answer

A) Cash when it is increased 
B) Service Fees when it is increased 
C) Capital when it is decreased 
D) Accounts Payable when it is decreased 
A) Cash when it is increased 
B) Service Fees when it is increased 
C) Capital when it is decreased 
D) Accounts Payable when it is decreased B

Question 3

A credit to an asset account was posted to a liability account.This would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) revenue to be overstated. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) revenue to be overstated. B

Question 4

As Withdrawals increase:

Accepted Answer

A) owner's equity decreases. 
B) owner's equity increases. 
C) Cash increases. 
D) expense increases. 
A) owner's equity decreases. 
B) owner's equity increases. 
C) Cash increases. 
D) expense increases.

Question 5

To find an explanation for a transaction,look in the:

Accepted Answer

A) ledger. 
B) balance sheet. 
C) journal. 
D) trial balance. 
A) ledger. 
B) balance sheet. 
C) journal. 
D) trial balance.

Question 6

A debit to a revenue account was posted to an expense account.This would cause:

Accepted Answer

A) expenses to be overstated. 
B) revenue to be understated. 
C) expenses to be understated. 
D) capital to be overstated. 
A) expenses to be overstated. 
B) revenue to be understated. 
C) expenses to be understated. 
D) capital to be overstated.

Question 7

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Accepted Answer

A) calendar year. 
B) natural business years. 
C) fiscal year. 
D) accounting cycle. 
A) calendar year. 
B) natural business years. 
C) fiscal year. 
D) accounting cycle.

Question 8

"PR" in the general journal and general ledger stands for:

Accepted Answer

A) per reviewer. 
B) posting reference. 
C) prior receipt. 
D) None of the above are correct. 
A) per reviewer. 
B) posting reference. 
C) prior receipt. 
D) None of the above are correct.

Question 9

A debit to the Capital account was posted to an expense account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) expense to be understated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) expense to be understated.

Question 10

During the month of January,Katelyn invested $11,000 in starting her legal practice.The proper journal entry would be:

Accepted Answer

A) Cash,debit $11,000; Katelyn's Capital,credit $11,000 
B) Accounts Payable,debit $11,000; Cash,credit $11,000 
C) Cash,debit $11,000; Revenue,credit $11,000 
D) Katelyn's Capital,debit $11,000; Cash,credit $11,000 
A) Cash,debit $11,000; Katelyn's Capital,credit $11,000 
B) Accounts Payable,debit $11,000; Cash,credit $11,000 
C) Cash,debit $11,000; Revenue,credit $11,000 
D) Katelyn's Capital,debit $11,000; Cash,credit $11,000

Question 11

A journal entry affecting three or more accounts is called a:

Accepted Answer

A) multi-level entry. 
B) multi-step entry. 
C) compound entry. 
D) simple entry. 
A) multi-level entry. 
B) multi-step entry. 
C) compound entry. 
D) simple entry.

Question 12

The proper sequence used in recording a business transaction is:

Accepted Answer

A) analyze,post,journalize,record the account balance,and complete the reference column in the journal. 
B) analyze,journalize,post,record the account balance,and complete the reference column in the journal. 
C) analyze,journalize,post,complete the reference column in the journal,and record the account balance. 
D) journalize,analyze,post,record the account balance,and complete the reference column in the journal. 
A) analyze,post,journalize,record the account balance,and complete the reference column in the journal. 
B) analyze,journalize,post,record the account balance,and complete the reference column in the journal. 
C) analyze,journalize,post,complete the reference column in the journal,and record the account balance. 
D) journalize,analyze,post,record the account balance,and complete the reference column in the journal.

Question 13

If Accounts Payable has been credited,it is most likely that:

Accepted Answer

A) a payment was made on account. 
B) a purchase was made on account. 
C) a correcting entry was made for the overstatement of the purchase of equipment on account. 
D) None of these are possible. 
A) a payment was made on account. 
B) a purchase was made on account. 
C) a correcting entry was made for the overstatement of the purchase of equipment on account. 
D) None of these are possible.

Question 14

If Accounts Payable has been debited,it is most likely that:

Accepted Answer

A) a payment was made on account. 
B) a purchase was made on account. 
C) a charge customer made a payment. 
D) None of these are possible. 
A) a payment was made on account. 
B) a purchase was made on account. 
C) a charge customer made a payment. 
D) None of these are possible.

Question 15

How are explanations distinguished in the journal?

Accepted Answer

A) They are underlined. 
B) They are in bold print. 
C) They are indented below the credit entries. 
D) They are written at the margin,in line with the debit entries. 
A) They are underlined. 
B) They are in bold print. 
C) They are indented below the credit entries. 
D) They are written at the margin,in line with the debit entries.

Question 16

A company would review the ledger if an account balance was needed.

Accepted Answer

A) True 
 B)False

Question 17

Business transactions are first recorded in the:

Accepted Answer

A) ledger. 
B) journal. 
C) trial balance. 
D) balance sheet. 
A) ledger. 
B) journal. 
C) trial balance. 
D) balance sheet.

Question 18

The entry to record completing a financial lecture and immediately collecting payment from customers would be:

Accepted Answer

A)  $\begin{array}{|l|l|}
\hline \text { Cash } & 500 \
\hline \text { Lecture Fees } & 500\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|l|}
\hline \text { Cash } & 500 \
\hline \text { Accounts Payable } & 500\
\hline
\end{array}$ 
C)  $\begin{array}{|l|l|}
\hline \text { Lecture Fees } & 500 \
\hline \text { Cash } & 500\
\hline
\end{array}$ 
D)  $\begin{array}{|l|l|l|}
\hline \text { Lecture Fees } & 500 \
\hline  \text { Accounts Payable } & 500\
\hline
\end{array}$ 
A)  $\begin{array}{|l|l|}
\hline \text { Cash } & 500 \
\hline \text { Lecture Fees } & 500\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|l|}
\hline \text { Cash } & 500 \
\hline \text { Accounts Payable } & 500\
\hline
\end{array}$ 
C)  $\begin{array}{|l|l|}
\hline \text { Lecture Fees } & 500 \
\hline \text { Cash } & 500\
\hline
\end{array}$ 
D)  $\begin{array}{|l|l|l|}
\hline \text { Lecture Fees } & 500 \
\hline  \text { Accounts Payable } & 500\
\hline
\end{array}$

Question 19

Interim statements are statements that are usually prepared for a portion of the business' fiscal year.

Accepted Answer

A) True 
 B)False

Question 20

In preparing the trial balance of the K&L's Bridal Service,the Withdrawal account (which had a normal balance in the general ledger)was listed as a credit for $400.What will be the difference between the debit and credit sides of the trial balance?

Accepted Answer

A) $150 
B) $200 
C) $300 
D) $800 
A) $150 
B) $200 
C) $300 
D) $800

Exam 3: Beginning the Accounting Cycle

If Capital has been credited,it is likely that:

Which of the following accounts would be credited in a proper journal entry?

A credit to an asset account was posted to a liability account.This would cause:

As Withdrawals increase:

To find an explanation for a transaction,look in the:

A debit to a revenue account was posted to an expense account.This would cause:

The process that begins with recording business transactions and includes the completion of the financial statements is the:

"PR" in the general journal and general ledger stands for:

A debit to the Capital account was posted to an expense account.This would cause:

During the month of January,Katelyn invested $11,000 in starting her legal practice.The proper journal entry would be:

A journal entry affecting three or more accounts is called a:

The proper sequence used in recording a business transaction is:

If Accounts Payable has been credited,it is most likely that:

If Accounts Payable has been debited,it is most likely that:

How are explanations distinguished in the journal?

A company would review the ledger if an account balance was needed.

Business transactions are first recorded in the:

The entry to record completing a financial lecture and immediately collecting payment from customers would be:

Interim statements are statements that are usually prepared for a portion of the business' fiscal year.

In preparing the trial balance of the K&L's Bridal Service,the Withdrawal account (which had a normal balance in the general ledger)was listed as a credit for $400.What will be the difference between the debit and credit sides of the trial balance?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters