Question 1

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Accepted Answer

A)   compound entry.
B)   general journal.
C)   general ledger.
D)   chart of accounts.E) All of the above
F) B) and C)

Question 2

Credits

Accepted Answer

A)   decrease both assets and liabilities.
B)   decrease assets and increase liabilities.
C)   increase both assets and liabilities.
D)   increase assets and decrease liabilities.E) None of the above
F) A) and D)

Question 3

A trial balance may balance even when each of the following occurs except when

Accepted Answer

A)   a transaction is not journalized.
B)   a journal entry is posted twice.
C)   incorrect accounts are used in journalizing.
D)   a transposition error is made.E) C) and D)
F) A) and C)

Question 4

The name given to entering transaction data in the journal is

Accepted Answer

A)   chronicling.
B)   listing.
C)   posting.
D)   journalizing.E) B) and C)
F) A) and C)

Question 5

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.E) A) and B)
F) C) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When journalizing, the reference column is

Accepted Answer

A)   left blank.
B)   used to reference the source document.
C)   used to reference the journal page.
D)   used to reference the financial statements.E) B) and C)
F) A) and B)

Question 8

If a company has overdrawn its bank balance, then

Accepted Answer

A)   its cash account will show a debit balance.
B)   its cash account will show a credit balance.
C)   the cash account debits will exceed the cash account credits.
D)   it cannot be detected by observing the balance of the cash account.E) A) and B)
F) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The left side of an account is

Accepted Answer

A)   blank.
B)   a description of the account.
C)   the debit side.
D)   the balance of the account.E) B) and C)
F) B) and D)

Question 11

The usual sequence of steps in the transaction recording process is:

Accepted Answer

A)   journal ➔ analyze ➔ ledger.
B)   analyze ➔ journal ➔ ledger.
C)   journal ➔ ledger ➔ analyze.
D)   ledger ➔ journal ➔ analyze.E) B) and C)
F) A) and B)

Question 12

An account consists of

Accepted Answer

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

Question 13

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Accepted Answer

A) True 
 B)False

Question 14

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.E) A) and C)
F) A) and B)

Question 15

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.E) C) and D)
F) A) and B)

Question 16

At January 1, 2015, Alligator Industries reported retained earnings of $150,000. During 2015, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2015, the amount of retained earnings is

Accepted Answer

A)   $105,000.
B)   $120,000.
C)   $135,000.
D)   $165,000.E) None of the above
F) A) and B)

Question 17

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

Accepted Answer

A)   $600 debit.
B)   $3,000 debit.
C)   $600 credit.
D)   $3,000 credit.E) A) and C)
F) A) and B)

Question 18

A debit is not the normal balance for which account listed below?

Accepted Answer

A)   Dividends
B)   Cash
C)   Accounts Receivable
D)   Service RevenueE) All of the above
F) A) and C)

Question 19

Which of the following journal entries is recorded correctly and in the standard format? a. Salaries and Wages Expense$\quad$$\quad$500
$\quad$Cash$\quad$$\quad$1,500
$\quad$Advertising Expense$\quad$$\quad$1,000

b. Salaries and Wages Expense $\quad$$\quad$500
$\quad$Advertising Expense$\quad$$\quad$1,000
$\quad$Cash$\quad$$\quad$1,500

c. Cash$\quad$$\quad$1,500
$\quad$Salaries and Wages Expense$\quad$$\quad$500
$\quad$Advertising Expense$\quad$$\quad$1,000

d. Salaries and Wages Expense$\quad$$\quad$500
$\quad$Advertising Expense$\quad$$\quad$1,000
$\quad$Cash$\quad$$\quad$1,500

Accepted Answer

The answer of Which of the following journal entries is...

Question 20

The double-entry accounting system is the basis of accounting systems

Accepted Answer

A)   worldwide.
B)   worldwide, except for the U.S.
C)   in the U.S. only
D)   neither internationally nor in the U.S.E) B) and C)
F) None of the above

Exam 2: The Recording Process

An account consists of

Correct Answer
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A debit is not the normal balance for which account listed below?

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

Correct Answer
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At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

Correct Answer
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The name given to entering transaction data in the journal is

Correct Answer
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A T-account is

Correct Answer
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A trial balance may balance even when each of the following occurs except when

Correct Answer
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An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Correct Answer
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Credits

Correct Answer
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The standard format of a journal would not include

Correct Answer
verified

The double-entry accounting system is the basis of accounting systems

Correct Answer
verified

The usual sequence of steps in the transaction recording process is:

Correct Answer
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At January 1, 2015, Alligator Industries reported retained earnings of $150,000. During 2015, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2015, the amount of retained earnings is

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
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A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Correct Answer
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The left side of an account is

Correct Answer
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If a company has overdrawn its bank balance, then

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

Correct Answer
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When journalizing, the reference column is

Correct Answer
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Exam 2: The Recording Process

An account consists of

Correct AnswerverifiedShow Answer

A debit is not the normal balance for which account listed below?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

Correct AnswerverifiedShow Answer

The name given to entering transaction data in the journal is

Correct AnswerverifiedShow Answer

A T-account is

Correct AnswerverifiedShow Answer

A trial balance may balance even when each of the following occurs except when

Correct AnswerverifiedShow Answer

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Correct AnswerverifiedShow Answer

Credits

Correct AnswerverifiedShow Answer

The standard format of a journal would not include

Correct AnswerverifiedShow Answer

The double-entry accounting system is the basis of accounting systems

Correct AnswerverifiedShow Answer

The usual sequence of steps in the transaction recording process is:

Correct AnswerverifiedShow Answer

At January 1, 2015, Alligator Industries reported retained earnings of $150,000. During 2015, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2015, the amount of retained earnings is

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Correct AnswerverifiedShow Answer

The left side of an account is

Correct AnswerverifiedShow Answer

If a company has overdrawn its bank balance, then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When journalizing, the reference column is

Correct AnswerverifiedShow Answer

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