Question 1

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Accepted Answer

A) True 
 B)False

Question 2

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 3

Posting of journal entries should be done in

Accepted Answer

A) account number order. 
B) alphabetical order. 
C) chronological order. 
D) dollar amount order. 
A) account number order. 
B) alphabetical order. 
C) chronological order. 
D) dollar amount order.

Question 4

A numbering system for a chart of accounts

Accepted Answer

A) is prescribed by GAAP. 
B) is uniform for all businesses. 
C) usually starts with income statement accounts. 
D) usually starts with balance sheet accounts. 
A) is prescribed by GAAP. 
B) is uniform for all businesses. 
C) usually starts with income statement accounts. 
D) usually starts with balance sheet accounts.

Question 5

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A) balanced entry. 
B) simple entry. 
C) posting. 
D) nominal entry. 
A) balanced entry. 
B) simple entry. 
C) posting. 
D) nominal entry.

Question 8

A trial balance will not balance if

Accepted Answer

A) a journal entry is posted twice. 
B) a wrong amount is used in journalizing. 
C) incorrect account titles are used in journalizing. 
D) a journal entry is only partially posted. 
A) a journal entry is posted twice. 
B) a wrong amount is used in journalizing. 
C) incorrect account titles are used in journalizing. 
D) a journal entry is only partially posted.

Question 9

Which of the following statements is false?

Accepted Answer

A) Revenues increase stockholders' equity. 
B) Revenues have normal credit balances. 
C) Revenues are a positive factor in the computation of net income. 
D) Revenues are increased by debits. 
A) Revenues increase stockholders' equity. 
B) Revenues have normal credit balances. 
C) Revenues are a positive factor in the computation of net income. 
D) Revenues are increased by debits.

Question 10

The name given to entering transaction data in the journal is

Accepted Answer

A) chronicling. 
B) listing. 
C) posting. 
D) journalizing. 
A) chronicling. 
B) listing. 
C) posting. 
D) journalizing.

Question 11

A list of accounts and their balances at a given time is called a(n)

Accepted Answer

A) journal. 
B) posting. 
C) trial balance. 
D) income statement. 
A) journal. 
B) posting. 
C) trial balance. 
D) income statement.

Question 12

A trial balance is a listing of

Accepted Answer

A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages. 
A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages.

Question 13

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A) journalizing. 
B) analyzing. 
C) reporting. 
D) posting. 
A) journalizing. 
B) analyzing. 
C) reporting. 
D) posting.

Question 14

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A) affect two or less accounts. 
B) affect two or more accounts. 
C) always affect exactly two accounts. 
D) affect the same number of asset and liability accounts. 
A) affect two or less accounts. 
B) affect two or more accounts. 
C) always affect exactly two accounts. 
D) affect the same number of asset and liability accounts.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The steps in preparing a trial balance include all of the following except

Accepted Answer

A) listing the account titles and their balances. 
B) totaling the debit and credit columns. 
C) proving the equality of the two columns. 
D) transferring journal amounts to ledger accounts. 
A) listing the account titles and their balances. 
B) totaling the debit and credit columns. 
C) proving the equality of the two columns. 
D) transferring journal amounts to ledger accounts.

Question 18

A credit balance in a liability account indicates that an error in recording has occurred.

Accepted Answer

A) True 
 B)False

Question 19

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Accepted Answer

A) credit to Retained Earnings. 
B) credit to Notes Payable. 
C) debit to Accounts Receivable. 
D) credit to Accounts Payable. 
A) credit to Retained Earnings. 
B) credit to Notes Payable. 
C) debit to Accounts Receivable. 
D) credit to Accounts Payable.

Question 20

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Business documents can provide evidence that a transaction has occurred.

Posting of journal entries should be done in

A numbering system for a chart of accounts

The left side of an account is

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

When two accounts are required in one journal entry, the entry is referred to as a

A trial balance will not balance if

Which of the following statements is false?

The name given to entering transaction data in the journal is

A list of accounts and their balances at a given time is called a(n)

A trial balance is a listing of

The procedure of transferring journal entries to the ledger accounts is called

For the basic accounting equation to stay in balance, each transaction recorded must

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

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

The steps in preparing a trial balance include all of the following except

A credit balance in a liability account indicates that an error in recording has occurred.

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Posting is the process of proving the equality of debits and credits in the trial balance.

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

Exam 2: The Recording Process

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Business documents can provide evidence that a transaction has occurred.

Posting of journal entries should be done in

A numbering system for a chart of accounts

The left side of an account is

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

When two accounts are required in one journal entry, the entry is referred to as a

A trial balance will not balance if

Which of the following statements is false?

The name given to entering transaction data in the journal is

A list of accounts and their balances at a given time is called a(n)

A trial balance is a listing of

The procedure of transferring journal entries to the ledger accounts is called

For the basic accounting equation to stay in balance, each transaction recorded must

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

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

The steps in preparing a trial balance include all of the following except

A credit balance in a liability account indicates that an error in recording has occurred.

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Posting is the process of proving the equality of debits and credits in the trial balance.

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