Question 1

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 2

The Item column in the general ledger is used to describe special entries not including the following entries?

Accepted Answer

A)  Adjusting entries 
B)  Reversing entries 
C)  Correcting entries 
D)  Forwarding entries 
A)  Adjusting entries 
B)  Reversing entries 
C)  Correcting entries 
D)  Forwarding entries

Question 3

Match the terms with the definitions.
-​Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

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 
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 4

The following transactions occurred at Forever Green Lawn Service. Identify which account would be debited and
credited to record each transaction. Write the identifying letters in the proper columns. The first transaction has been
completed as an examplE.​
A.Cash
B.Accounts Receivable
C.Supplies
D.Equipment
E.Accounts Payable
F.Fees Income
G.Rent Expense
H.Salaries Expense
I.Telephone Expense
​

Accepted Answer

The answer of The following transactions occurred at Forever Green...

Question 5

Purchase invoices received from suppliers provide information about cash payments.

Accepted Answer

A) True 
 B)False

Question 6

When an incorrect entry has been journalized and posted to a wrong account or for the wrong amount, a(n) ____________________ is required.

Accepted Answer

The answer of When an incorrect entry has been journalized...

Question 7

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 
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 8

Source documents begin the process of entering transactions in the accounting system.

Accepted Answer

A) True 
 B)False

Question 9

A two-column journal has only two amount columns-one for the amount of the entry and one for the running
balance.

Accepted Answer

A) True 
 B)False

Question 10

Match the terms with the definitions.
-​A complete set of all the accounts 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 
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 11

Match the terms with the definitions.
-​Entering the transactions in a journal.

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 
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 12

The month in the journal is recorded

Accepted Answer

A)  with every transaction. 
B)  as the first entry on a page. 
C)  for the first and last transaction of the month. 
D)  for the last transaction of the month. 
A)  with every transaction. 
B)  as the first entry on a page. 
C)  for the first and last transaction of the month. 
D)  for the last transaction of the month.

Question 13

Entering the account number in the Posting Reference column of the journal is the first step in the posting process.

Accepted Answer

A) True 
 B)False

Question 14

When entering titles of accounts in the two-column journal, the account to be credited is entered first and the account to be debited is entered second.

Accepted Answer

A) True 
 B)False

Question 15

The payment of a utility bill (like electricity) for the month would include

Accepted Answer

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

Question 16

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 17

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. 
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 18

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information
in the journal.

Accepted Answer

A) True 
 B)False

Question 19

The main advantage of a two-column account is that it maintains a running balance.

Accepted Answer

A) True 
 B)False

Question 20

The simplest form of journal is one with

Accepted Answer

A)  four columns. 
B)  three columns. 
C)  two columns. 
D)  one column. 
A)  four columns. 
B)  three columns. 
C)  two columns. 
D)  one column.

Exam 4: Journalizing and Posting Transactions

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.

The Item column in the general ledger is used to describe special entries not including the following entries?

Match the terms with the definitions. -​Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

Purchase invoices received from suppliers provide information about cash payments.

When an incorrect entry has been journalized and posted to a wrong account or for the wrong amount, a(n) ____________________ is required.

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

Source documents begin the process of entering transactions in the accounting system.

A two-column journal has only two amount columns-one for the amount of the entry and one for the running balance.

Match the terms with the definitions. -​A complete set of all the accounts used by a business.

Match the terms with the definitions. -​Entering the transactions in a journal.

The month in the journal is recorded

Entering the account number in the Posting Reference column of the journal is the first step in the posting process.

When entering titles of accounts in the two-column journal, the account to be credited is entered first and the account to be debited is entered second.

The payment of a utility bill (like electricity) for the month would include

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

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

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal.

The main advantage of a two-column account is that it maintains a running balance.

The simplest form of journal is one with

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

Filters

Match the terms with the definitions. -Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

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

Match the terms with the definitions. -A complete set of all the accounts used by a business.

Match the terms with the definitions. -Entering the transactions in a journal.