Question 1

A number in the reference column in a general journal indicates

Accepted Answer

A)   that the entry has been posted to a particular account.
B)   the page number of the journal.
C)   the dollar amount of the transaction.
D)   the date of the transaction.

Question 2

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.

Question 3

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.

Question 4

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A)   journalizing.
B)   analyzing.
C)   reporting.
D)   posting.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When a company distributes dividends

Accepted Answer

A)   it doesn't have to be cash, it could be another asset.
B)   the dividends account will be increased with a credit.
C)   the retained earnings account will be directly increased with a debit.
D)   the dividends account will be decreased with a debit.

Question 7

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)   in at least two different accounts.
B)   in two sets of books.
C)   in a journal and in a ledger.
D)   first as a revenue and then as an expense.

Question 8

When two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)   balanced entry.
B)   simple entry.
C)   posting.
D)   nominal entry.

Question 9

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

Accepted Answer

A)   stockholders' equity decreased by $2,600.
B)   total assets increased by $2,600.
C)   total assets remained unchanged.
D)   stockholders' equity decreased and total assets increased by $2,600.

Question 10

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

Question 11

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 12

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)   Credit an asset account for $400.
B)   Credit another liability account for $400.
C)   Credit the retained earnings account for $400.
D)   Debit the retained earnings account for $400.

Question 13

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A)   A debit balance in the dividends account
B)   A credit balance in an expense account
C)   A credit balance in a liabilities account
D)   A credit balance in a revenue account

Question 14

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Accepted Answer

A)   Nothing further must be done.
B)   Debit a Stockholders' equity account for $700.
C)   Debit another asset account for $700.
D)   Credit a different asset account for $700.

Question 15

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

Accepted Answer

A)   $525 debit.
B)   $975 debit.
C)   $525 credit.
D)   $775 debit.

Question 16

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A)   The journal.
B)   The ledger.
C)   The chart of accounts.
D)   All of these answers are correct.

Question 17

Which of the following rules is incorrect?

Accepted Answer

A)   Credits decrease the dividends account.
B)   Debits increase the common stock account.
C)   Credits increase revenue accounts.
D)   Debits decrease liability accounts.

Question 18

The right side of an account

Accepted Answer

A)   is the correct side.
B)   reflects all transactions for the accounting period.
C)   shows all the balances of the accounts in the system.
D)   is the credit side.

Question 19

The chart of accounts is a

Accepted Answer

A)   list of accounts and their balances at a given time.
B)   device used to prove the mathematical accuracy of the ledger.
C)   listing of the accounts and the account numbers which identify their location in the ledger.
D)   required step in the recording process.

Question 20

An account is a part of the financial information system and is described by all except which one of the following?

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.

Exam 2: The Recording Process

A number in the reference column in a general journal indicates

Correct Answer
verified

When a company distributes dividends

Correct Answer
verified

The double-entry system requires that each transaction must be recorded

Correct Answer
verified

Which of the following rules is incorrect?

Correct Answer
verified

When two accounts are required in one journal entry, the entry is referred to as a

Correct Answer
verified

The normal balance of an expense is a credit.

Correct Answer
verified

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

Correct Answer
verified

Which of the following are the same under both GAAP and IFRS?

Correct Answer
verified

An account is a part of the financial information system and is described by all except which one of the following?

Correct Answer
verified

The chart of accounts is a

Correct Answer
verified

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

Correct Answer
verified

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Correct Answer
verified

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

Correct Answer
verified

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

Correct Answer
verified

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Correct Answer
verified

The right side of an account

Correct Answer
verified

The Dividends account

Correct Answer
verified

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

Correct Answer
verified

Correct Answer
verified

The procedure of transferring journal entries to the ledger accounts is called

Correct Answer
verified

Exam 2: The Recording Process

A number in the reference column in a general journal indicates

Correct AnswerverifiedShow Answer

When a company distributes dividends

Correct AnswerverifiedShow Answer

The double-entry system requires that each transaction must be recorded

Correct AnswerverifiedShow Answer

Which of the following rules is incorrect?

Correct AnswerverifiedShow Answer

When two accounts are required in one journal entry, the entry is referred to as a

Correct AnswerverifiedShow Answer

The normal balance of an expense is a credit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following are the same under both GAAP and IFRS?

Correct AnswerverifiedShow Answer

An account is a part of the financial information system and is described by all except which one of the following?

Correct AnswerverifiedShow Answer

The chart of accounts is a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Correct AnswerverifiedShow Answer

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Correct AnswerverifiedShow Answer

The right side of an account

Correct AnswerverifiedShow Answer

The Dividends account

Correct AnswerverifiedShow Answer

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The procedure of transferring journal entries to the ledger accounts is called

Correct AnswerverifiedShow Answer

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