Question 1

The journal provides the information needed to transfer the debits and credits to the accounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 2

Information about cash disbursements can be obtained from check stubs and carbon copies of checks.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of a trial balance is to prove that the totals of the debit and credit balances in the ledger accounts
are equal.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms with the definitions.
-​The process of copying the debits and credits from the journal to the ledger accounts.

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 5

After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference
column of the journal to indicate that the transaction item has been posted.

Accepted Answer

A) True 
 B)False

Question 6

The flow of financial data through the accounting information system does NOT include

Accepted Answer

A)  analyzing transactions. 
B)  journalizing and posting transactions. 
C)  preparing a trial balance. 
D)  receiving payment for all accounts receivable. 
A)  analyzing transactions. 
B)  journalizing and posting transactions. 
C)  preparing a trial balance. 
D)  receiving payment for all accounts receivable.

Question 7

Match the terms with the definitions.
-​Occurs when two digits are reversed.

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

The journal is commonly referred to as a(n) ____________________, because it is here that the first formal accounting record of a transaction is made.

Accepted Answer

BOOK OF OR

Question 9

Corrections in accounts should NOT be

Accepted Answer

A)  traceable. 
B)  initialed. 
C)  ruled. 
D)  covered completely. 
A)  traceable. 
B)  initialed. 
C)  ruled. 
D)  covered completely.

Question 10

All transactions must be posted before preparing a trial balance.

Accepted Answer

A) True 
 B)False

Question 11

An erasure may suggest that you are hiding something.

Accepted Answer

A) True 
 B)False

Question 12

George Smyth opened a computer repair business on Apr. 1, 20--. During the first month of operations, the firm had
the following transactions. Record these transactions on page 1 of the general journal. Omit explanations.
Post appropriate transactions to the general ledger.
Apr. 1
George Smyth invested $30,000 cash in the business.
2
Paid rent for April, $2,100.
8
Bought equipment for $12,000 and issued a check for $3,000 as a down payment.
12
Performed services for $3,200 in cash, and $1,200 on credit.
19
Paid electric bill, $225.
25
Received $900 on account from credit customers.
​
​
​
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​
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​
​

Accepted Answer

The answer of George Smyth opened a computer repair business...

Question 13

Every entry in the journal should include all of the following EXCEPT

Accepted Answer

A)  the title of each account affected. 
B)  the amounts. 
C)  a brief description. 
D)  the balance of the accounts affected. 
A)  the title of each account affected. 
B)  the amounts. 
C)  a brief description. 
D)  the balance of the accounts affected.

Question 14

The chart of accounts includes the account titles in numerical order.

Accepted Answer

A) True 
 B)False

Question 15

Match the terms with the definitions.
-​Occurs when debit or credit amounts move a digit or two to the left or right when entered.

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 16

The process of copying the debits and credits from the journal to the ledger accounts is known as posting.

Accepted Answer

A) True 
 B)False

Question 17

Because the first formal accounting record of a transaction is made in a journal from source document information, a journal is commonly referred to as a(n)

Accepted Answer

A)  ledger. 
B)  account. 
C)  cross-reference. 
D)  book of original entry. 
A)  ledger. 
B)  account. 
C)  cross-reference. 
D)  book of original entry.

Question 18

Source documents provide the input for the accounting process.

Accepted Answer

A) True 
 B)False

Question 19

To find an error, you should do all of the following EXCEPT

Accepted Answer

A)  double-check every entry. 
B)  find the difference between debits and credits. 
C)  erase questionable entries. 
D)  retrace any math computations. 
A)  double-check every entry. 
B)  find the difference between debits and credits. 
C)  erase questionable entries. 
D)  retrace any math computations.

Question 20

When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger.

Accepted Answer

A) True 
 B)False

Exam 4: Journalizing and Posting Transactions

The journal provides the information needed to transfer the debits and credits to the accounts in the ledger.

Information about cash disbursements can be obtained from check stubs and carbon copies of checks.

The purpose of a trial balance is to prove that the totals of the debit and credit balances in the ledger accounts are equal.

Match the terms with the definitions. -​The process of copying the debits and credits from the journal to the ledger accounts.

After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference column of the journal to indicate that the transaction item has been posted.

The flow of financial data through the accounting information system does NOT include

Match the terms with the definitions. -​Occurs when two digits are reversed.

The journal is commonly referred to as a(n) ____________________, because it is here that the first formal accounting record of a transaction is made.

Corrections in accounts should NOT be

All transactions must be posted before preparing a trial balance.

An erasure may suggest that you are hiding something.

Every entry in the journal should include all of the following EXCEPT

The chart of accounts includes the account titles in numerical order.

Match the terms with the definitions. -​Occurs when debit or credit amounts move a digit or two to the left or right when entered.

The process of copying the debits and credits from the journal to the ledger accounts is known as posting.

Because the first formal accounting record of a transaction is made in a journal from source document information, a journal is commonly referred to as a(n)

Source documents provide the input for the accounting process.

To find an error, you should do all of the following EXCEPT

When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger.

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. -The process of copying the debits and credits from the journal to the ledger accounts.

Match the terms with the definitions. -Occurs when two digits are reversed.

Match the terms with the definitions. -Occurs when debit or credit amounts move a digit or two to the left or right when entered.