Question 1

After a transaction has been posted, the reference column in the journal should not be blank.

Accepted Answer

A) True 
 B)False

Question 2

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A)  trial balance.
B)  income statement.
C)  book of original entry.
D)  ledger.

Question 3

The explanation column of the general ledger

Accepted Answer

A)  is completed without exception.
B)  is nonexistent.
C)  is used infrequently.
D)  shows account titles.

Question 4

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A)  journal, and transfer the information to the ledger accounts.
B)  ledger, and transfer the information to the journal.
C)  book of accounts, and transfer the information to the journal.
D)  book of original entry, and transfer the information to the journal.

Question 5

A debit to an account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Question 6

The first step in the recording process is to

Accepted Answer

A)  prepare financial statements.
B)  analyze each transaction for its effect on the accounts.
C)  post to a journal.
D)  prepare a trial balance.

Question 7

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 8

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 9

The usual order of accounts in the general ledger is

Accepted Answer

A)  assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses.
B)  assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues.
C)  liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends.
D)  common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Question 12

An account is often referred to as a T-account because of the way it is constructed.

Accepted Answer

A) True 
 B)False

Question 13

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Accepted Answer

A) True 
 B)False

Question 14

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A)  A transaction that is not journalized
B)  A journal entry that is posted twice
C)  Offsetting errors are made in recording the transaction
D)  A transposition error when transferring the debit side of journal entry to the ledger

Question 15

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Question 16

The first step in posting involves

Accepted Answer

A)  entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.
B)  writing in the journal the account number to which the debit amount was posted.
C)  writing in the journal the account number to which the credit amount was posted.
D)  entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.

Question 17

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order.
B)  alphabetical order.
C)  financial statement order.
D)  order of appearance in the journal.

Question 18

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

Question 19

Revenues are a subdivision of retained earnings.

Accepted Answer

A) True 
 B)False

Question 20

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

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

Correct AnswerverifiedShow Answer

An account is often referred to as a T-account because of the way it is constructed.

Correct AnswerverifiedShow Answer

A debit to an account indicates an increase in that account.

Correct AnswerverifiedShow Answer

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Correct AnswerverifiedShow Answer

After a transaction has been posted, the reference column in the journal should not be blank.

Correct AnswerverifiedShow Answer

A new account is opened for each transaction entered into by a business firm.

Correct AnswerverifiedShow Answer

After transaction information has been recorded in the journal, it is transferred to the

Correct AnswerverifiedShow Answer

The first step in the recording process is to

Correct AnswerverifiedShow Answer

The normal balance of an expense account is a credit.

Correct AnswerverifiedShow Answer

The explanation column of the general ledger

Correct AnswerverifiedShow Answer

If a revenue account is credited, the revenue account is increased.

Correct AnswerverifiedShow Answer

A trial balance would only help in detecting which one of the following errors?

Correct AnswerverifiedShow Answer

Revenues are a subdivision of retained earnings.

Correct AnswerverifiedShow Answer

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Correct AnswerverifiedShow Answer

The first step in posting involves

Correct AnswerverifiedShow Answer

The complete effect of a transaction on the accounts is disclosed in the journal.

Correct AnswerverifiedShow Answer

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Correct AnswerverifiedShow Answer

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Correct AnswerverifiedShow Answer

The ledger accounts should be arranged in

Correct AnswerverifiedShow Answer

The usual order of accounts in the general ledger is

Correct AnswerverifiedShow Answer

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