Question 1

The Item column in the general ledger is used for

Accepted Answer

A)  account titles. 
B)  the balance of the account. 
C)  a description of special entries. 
D)  footings.

Question 2

The steps in the journalizing process include all of the following EXCEPT

Accepted Answer

A)  enter the balance. 
B)  enter the debit. 
C)  enter the date. 
D)  enter the credit.

Question 3

The process of copying the debits and credits from the journal to the ledger accounts is known as journalizing.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms with the definitions.
-The process of copying the debits and credits from the journal to the ledger accounts.

Accepted Answer

A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance

Question 5

If cash is paid for office rent, the transaction includes

Accepted Answer

A)  debiting Rent Expense and crediting Cash. 
B)  debiting Rent Expense and crediting Accounts Payable. 
C)  debiting Rent Expense and crediting Capital. 
D)  debiting Cash and crediting Rent Expense.

Question 6

Instead of T accounts, businesses are more likely to use a

Accepted Answer

A)  chart of accounts. 
B)  balance sheet. 
C)  four-column account. 
D)  general journal.

Question 7

To find an error, you should do all of the following EXCEPT

Accepted Answer

A)  double-check every entry. 
B)  find the difference between debits and credits. 
C)  erase questionable entries. 
D)  retrace any math computations.

Question 8

The purpose of a journal is to provide a chronological record of all transactions completed by the business.

Accepted Answer

A) True 
 B)False

Question 9

The Description column of a two-column journal is used to enter the titles of the accounts affected by each transaction, together with a description of the transaction.

Accepted Answer

A) True 
 B)False

Question 10

The flow of data through the accounting information system includes analyzing transactions, journalizing, posting, and preparing a trial balance.

Accepted Answer

A) True 
 B)False

Question 11

Almost any document that provides information about a business transaction is included in the chart of accounts.

Accepted Answer

A) True 
 B)False

Question 12

Transactions which do not affect the cash account do not need to be entered in the journal, since they do not affect net income or loss.

Accepted Answer

A) True 
 B)False

Question 13

Journalizing does NOT include

Accepted Answer

A)  debiting account(s) that are affected. 
B)  crediting account(s) that are affected. 
C)  posting the debits and credits to the accounts. 
D)  entering the date.

Question 14

The ledger is a reliable source of information only when all of the transactions entered in the journal have been posted.

Accepted Answer

A) True 
 B)False

Question 15

Match the terms with the definitions.
-A list of all accounts (account titles) used by a business.

Accepted Answer

A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance

Question 16

When delivery equipment is purchased on account, the transaction to be entered by the purchaser includes

Accepted Answer

A)  debiting Delivery Equipment and crediting Accounts Payable. 
B)  debiting Delivery Expense and crediting Cash. 
C)  debiting Delivery Expense and crediting Accounts Payable. 
D)  debiting Delivery Equipment and crediting Cash.

Question 17

Purchase invoices received from suppliers provide information about cash payments.

Accepted Answer

A) True 
 B)False

Question 18

Match the terms with the definitions.
-An entry to change an incorrect entry that has been journalized and posted to the wrong account.

Accepted Answer

A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance

Question 19

Match the terms with the definitions.
-Occurs when debit or credit amounts move a digit or two to the left or right when entered.

Accepted Answer

A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance

Question 20

An account in the chart of accounts is assigned a number at random.

Accepted Answer

A) True 
 B)False

Exam 4: Journalizing and Posting Transactions

The Item column in the general ledger is used for

The steps in the journalizing process include all of the following EXCEPT

The process of copying the debits and credits from the journal to the ledger accounts is known as journalizing.

Match the terms with the definitions. -The process of copying the debits and credits from the journal to the ledger accounts.

If cash is paid for office rent, the transaction includes

Instead of T accounts, businesses are more likely to use a

To find an error, you should do all of the following EXCEPT

The purpose of a journal is to provide a chronological record of all transactions completed by the business.

The Description column of a two-column journal is used to enter the titles of the accounts affected by each transaction, together with a description of the transaction.

The flow of data through the accounting information system includes analyzing transactions, journalizing, posting, and preparing a trial balance.

Almost any document that provides information about a business transaction is included in the chart of accounts.

Transactions which do not affect the cash account do not need to be entered in the journal, since they do not affect net income or loss.

Journalizing does NOT include

The ledger is a reliable source of information only when all of the transactions entered in the journal have been posted.

Match the terms with the definitions. -A list of all accounts (account titles) used by a business.

When delivery equipment is purchased on account, the transaction to be entered by the purchaser includes

Purchase invoices received from suppliers provide information about cash payments.

Match the terms with the definitions. -An entry to change an incorrect entry that has been journalized and posted to the wrong account.

Match the terms with the definitions. -Occurs when debit or credit amounts move a digit or two to the left or right when entered.

An account in the chart of accounts is assigned a number at random.