Question 1

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 2

The standard format of a journal would not include

Accepted Answer

A)  a reference column.
B)  an account title column.
C)  a T-account.
D)  a date column.

Question 3

A debit is not the normal balance for which of the following accounts?

Accepted Answer

A)  Asset account
B)  Dividends account
C)  Expense account
D)  Common stock account

Question 4

Which of the following statements is incorrect?

Accepted Answer

A)  Expenses increase stockholders' equity.
B)  Expenses have normal debit balances.
C)  Expenses decrease stockholders' equity.
D)  Expenses are a negative factor in the computation of net income.

Question 5

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

Which of the following is the correct sequence of steps in the recording process?

Accepted Answer

A)  Posting, journalizing, analyzing
B)  Journalizing, analyzing, posting
C)  Analyzing, posting, journalizing
D)  Analyzing, journalizing, posting

Question 9

At January 1, 2021, Alligator Industries reported retained earnings of $150,000.During 2021, Alligator had a net loss of $30,000 and paid dividends of $15,000.At December 31, 2021, the balance of retained earnings is

Accepted Answer

A)  $105,000.
B)  $120,000.
C)  $135,000.
D)  $165,000.

Question 10

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account.
B)  what the computer uses to organize bytes of information.
C)  a special account used instead of a trial balance.
D)  used for accounts that have both a debit and credit balance.

Question 11

Which of the following is not true of the terms debit and credit?

Accepted Answer

A)  They can be abbreviated as Dr.and Cr.
B)  They can be interpreted to mean increase and decrease.
C)  They can be used to describe the balance of an account.
D)  They can be interpreted to mean left and right.

Question 12

An account will have a credit balance if the

Accepted Answer

A)  credits exceed the debits.
B)  first transaction entered was a credit.
C)  debits exceed the credits.
D)  last transaction entered was a credit.

Question 13

European companies rely

Accepted Answer

A)  less on historical cost and more on fair values than U.S.companies.
B)  less on fair values and more on historical cost than U.S.companies.
C)  completely on fair values for financial reporting.
D)  completely on historical cost for financial reporting.IFRS.

Question 14

An account consists of

Accepted Answer

A)  one part.
B)  two parts.
C)  three parts.
D)  four parts.

Question 15

At January 31, 2021, 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

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 17

Which of the following statements is true?

Accepted Answer

A)  Debits increase assets and increase liabilities.
B)  Credits decrease assets and decrease liabilities.
C)  Credits decrease assets and increase liabilities.
D)  Debits decrease liabilities and decrease assets.

Question 18

The ledger is merely a bookkeeping device and, therefore, does not provide useful data for management.

Accepted Answer

A) True 
 B)False

Question 19

A compound journal entry requires several debits to one account and several credits to one account.

Accepted Answer

A) True 
 B)False

Question 20

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

When a company distributes dividends,

Correct Answer
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Which of the following is the correct sequence of steps in the recording process?

Correct Answer
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Which of the following statements is true?

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
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At January 31, 2021, 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

An account consists of

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

Correct Answer
verified

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Correct Answer
verified

A T-account is

Correct Answer
verified

Which of the following is not true of the terms debit and credit?

Correct Answer
verified

A debit is not the normal balance for which of the following accounts?

Correct Answer
verified

A compound journal entry requires several debits to one account and several credits to one account.

Correct Answer
verified

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Correct Answer
verified

The chart of accounts is a special ledger used in accounting systems.

Correct Answer
verified

The standard format of a journal would not include

Correct Answer
verified

The ledger is merely a bookkeeping device and, therefore, does not provide useful data for management.

Correct Answer
verified

An account will have a credit balance if the

Correct Answer
verified

European companies rely

Correct Answer
verified

At January 1, 2021, Alligator Industries reported retained earnings of $150,000.During 2021, Alligator had a net loss of $30,000 and paid dividends of $15,000.At December 31, 2021, the balance of retained earnings is

Correct Answer
verified

Exam 2: The Recording Process

When a company distributes dividends,

Correct AnswerverifiedShow Answer

Which of the following is the correct sequence of steps in the recording process?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

At January 31, 2021, 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

An account consists of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Correct AnswerverifiedShow Answer

A T-account is

Correct AnswerverifiedShow Answer

Which of the following is not true of the terms debit and credit?

Correct AnswerverifiedShow Answer

A debit is not the normal balance for which of the following accounts?

Correct AnswerverifiedShow Answer

A compound journal entry requires several debits to one account and several credits to one account.

Correct AnswerverifiedShow Answer

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Correct AnswerverifiedShow Answer

The chart of accounts is a special ledger used in accounting systems.

Correct AnswerverifiedShow Answer

The standard format of a journal would not include

Correct AnswerverifiedShow Answer

The ledger is merely a bookkeeping device and, therefore, does not provide useful data for management.

Correct AnswerverifiedShow Answer

An account will have a credit balance if the

Correct AnswerverifiedShow Answer

European companies rely

Correct AnswerverifiedShow Answer

At January 1, 2021, Alligator Industries reported retained earnings of $150,000.During 2021, Alligator had a net loss of $30,000 and paid dividends of $15,000.At December 31, 2021, the balance of retained earnings is

Correct AnswerverifiedShow Answer

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