Question 1

A business's fiscal year that ends at the same time as a slow seasonal period begins is the natural business year.

Accepted Answer

A) True 
 B)False

Question 2

The chart of accounts contains the same information as the journal.

Accepted Answer

A) True 
 B)False

Question 3

The balances for the individual accounts used to complete the Trial Balance are taken from the

Accepted Answer

A)  journal. 
B)  general ledger. 
C)  chart of accounts. 
D)  invoices.

Question 4

The journal entry to record a withdrawal by the owner would most commonly include

Accepted Answer

A)  a debit to Wage Expense and a credit to Cash. 
B)  a debit to Capital and a credit to Cash. 
C)  a debit to Withdrawals and a credit to Cash. 
D)  a debit to Cash and a credit to Wage Expense.

Question 5

The journal entry to record an exchange of assets would include

Accepted Answer

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

Question 6

An $800 cheque written for supplies was journalized as $80. The entry to correct this error is

Accepted Answer

A)  debit Supplies, $720; credit Cash, $720. 
B)  debit Cash, $720; credit Supplies, $720. 
C)  debit Supplies, $80; credit Cash, $80. 
D)  debit Cash, $80; credit Cash, $80.

Question 7

David journalized and posted an entry for $2,000 debit to Cash; and $2,000 credit to Service Fees. The correct amount on the billing was $200. The entry to correct this error is

Accepted Answer

A)  debit Cash, $1,800; credit Service Fees, $1,800. 
B)  debit Service Fees, $1,800; credit Cash, $1,800. 
C)  debit Service Fees, $2,800; credit Cash, $2,000. 
D)  debit Service Fees, $200; credit Cash, $200.

Question 8

B. Flat, CPA, collected fees of $650 not previously billed or recorded. The journal entry to record the collection would include

Accepted Answer

A)  debit Cash, $650; credit Accounting Fees, $650. 
B)  debit Accounts Receivable, $650; credit Accounting Fees, $650. 
C)  debit Accounting Fees, $650; credit Accounting Fees, $650. 
D)  debit Cash, $650, credit Accounts Receivable, $650.

Question 9

The journal entry to record an investment by the owner would most commonly include

Accepted Answer

A)  a debit to Cash and a credit to Fees Earned. 
B)  a debit to Capital and a credit to Cash. 
C)  a debit to Fees Earned and a credit to Capital. 
D)  a debit to Cash and a credit to Capital.

Question 10

The first step of completing the journal is to fill in the post reference column.

Accepted Answer

A) True 
 B)False

Question 11

The trial balance proves the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 12

Financial statements that are prepared for a period shorter than a year are called

Accepted Answer

A)  accounting period statements. 
B)  fiscal year statements. 
C)  interim statements. 
D)  journal statements.

Question 13

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 year. 
C)  fiscal year. 
D)  accounting cycle.

Question 14

The accountant should check the chart of accounts to see what account titles should be used when journalizing.

Accepted Answer

A) True 
 B)False

Question 15

The posting reference column in the journal is used for

Accepted Answer

A)  recording the source documents identification number. 
B)  recording the account number to which the entry was posted. 
C)  recording the time when the entry was posted. 
D)  recording the initials of the person who did the posting.

Question 16

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error.

Accepted Answer

A)  Failure to record a transaction. 
B)  Recording the same erroneous amount for both the debit and the credit sides of a transaction. 
C)  Incorrectly adding the debit side of the trial balance. 
D)  Recording the same transaction more than once.

Question 19

The general ledger

Accepted Answer

A)  is the book of original entry. 
B)  is the book of final entry. 
C)  lists transactions in chronological order. 
D)  contains T accounts.

Question 20

The general journal entry to record a payment to a creditor would most commonly include

Accepted Answer

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

Exam 3: Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

A business's fiscal year that ends at the same time as a slow seasonal period begins is the natural business year.

The chart of accounts contains the same information as the journal.

The balances for the individual accounts used to complete the Trial Balance are taken from the

The journal entry to record a withdrawal by the owner would most commonly include

The journal entry to record an exchange of assets would include

An $800 cheque written for supplies was journalized as $80. The entry to correct this error is

David journalized and posted an entry for $2,000 debit to Cash; and $2,000 credit to Service Fees. The correct amount on the billing was $200. The entry to correct this error is

B. Flat, CPA, collected fees of $650 not previously billed or recorded. The journal entry to record the collection would include

The journal entry to record an investment by the owner would most commonly include

The first step of completing the journal is to fill in the post reference column.

The trial balance proves the equality of debits and credits.

Financial statements that are prepared for a period shorter than a year are called

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

The accountant should check the chart of accounts to see what account titles should be used when journalizing.

The posting reference column in the journal is used for

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

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

If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error.

The general ledger

The general journal entry to record a payment to a creditor would most commonly include