Question 1

Another name for journal is

Accepted Answer

A) listing. 
B) book of original entry. 
C) book of accounts. 
D) book of source documents. 
A) listing. 
B) book of original entry. 
C) book of accounts. 
D) book of source documents.

Question 2

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A) trial balance. 
B) financial statements. 
C) ledger. 
D) file cabinets. 
A) trial balance. 
B) financial statements. 
C) ledger. 
D) file cabinets.

Question 3

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. 
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 4

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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. 
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 7

An accounting convention is best described as

Accepted Answer

A) an absolute truth. 
B) an accounting custom. 
C) an optional rule. 
D) something that cannot be changed. 
A) an absolute truth. 
B) an accounting custom. 
C) an optional rule. 
D) something that cannot be changed.

Question 8

A three column form of account is so named because it has columns for

Accepted Answer

A) debit, credit, and account name. 
B) debit, credit, and reference. 
C) debit, credit, and balance. 
D) debit, credit, and date. 
A) debit, credit, and account name. 
B) debit, credit, and reference. 
C) debit, credit, and balance. 
D) debit, credit, and date.

Question 9

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

Accepted Answer

A) a debit to Supplies and a credit to Accounts Payable. 
B) a debit to Supplies Expense and a credit to Accounts Receivable. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Supplies. 
A) a debit to Supplies and a credit to Accounts Payable. 
B) a debit to Supplies Expense and a credit to Accounts Receivable. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Supplies.

Question 10

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 11

The double-entry system requires that each transaction must be recorded

Accepted Answer

A) in at least two different accounts. 
B) in two sets of books. 
C) in a journal and in a ledger. 
D) first as a revenue and then as an expense. 
A) in at least two different accounts. 
B) in two sets of books. 
C) in a journal and in a ledger. 
D) first as a revenue and then as an expense.

Question 12

Transactions are recorded in alphabetic order in a journal.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

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. 
A) worldwide. 
B) worldwide, except for the U.S. 
C) in the U.S.only 
D) neither internationally nor in the U.S.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

Accepted Answer

A) debit to Equipment $2,700 and a debit to Supplies Expense $400 for Milkman. 
B) credit to Cash for Milkman. 
C) credit to Accounts Payable for Deerhoof. 
D) debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof. 
A) debit to Equipment $2,700 and a debit to Supplies Expense $400 for Milkman. 
B) credit to Cash for Milkman. 
C) credit to Accounts Payable for Deerhoof. 
D) debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof.

Question 17

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

Question 18

At September 1, 2015, Promise Ring Co. reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders' equity at September 30, 2015?

Accepted Answer

A) $166,000 
B) $171,000 
C) $173,000 
D) $176,000 
A) $166,000 
B) $171,000 
C) $173,000 
D) $176,000

Question 19

The journal provides a chronological record of transactions.

Accepted Answer

A) True 
 B)False

Question 20

An account consists of

Accepted Answer

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

Another name for journal is

The final step in the recording process is to transfer the journal information to the

Which of the following statements is true?

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

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

The usual order of accounts in the general ledger is

An accounting convention is best described as

A three column form of account is so named because it has columns for

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

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

The double-entry system requires that each transaction must be recorded

Transactions are recorded in alphabetic order in a journal.

The explanation column of the general ledger

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

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

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

When journalizing, the reference column is

At September 1, 2015, Promise Ring Co. reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders' equity at September 30, 2015?

The journal provides a chronological record of transactions.

An account consists of

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: The Recording Process

Another name for journal is

The final step in the recording process is to transfer the journal information to the

Which of the following statements is true?

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

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

The usual order of accounts in the general ledger is

An accounting convention is best described as

A three column form of account is so named because it has columns for

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

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

The double-entry system requires that each transaction must be recorded

Transactions are recorded in alphabetic order in a journal.

The explanation column of the general ledger

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

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

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

When journalizing, the reference column is

The journal provides a chronological record of transactions.

An account consists of

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters