Question 1

A chart of accounts for a business firm

Accepted Answer

A) is a graph. 
B) indicates the amount of profit or loss for the period. 
C) lists the accounts in the ledger. 
D) shows the balance of each account in the general ledger. 
A) is a graph. 
B) indicates the amount of profit or loss for the period. 
C) lists the accounts in the ledger. 
D) shows the balance of each account in the general ledger.

Question 2

During January 2022, its first month of operation, Osborn Enterprises earned net income of $6,800 and paid dividends to the owners of $2,000.At January 31, the balance in Retained Earnings will be

Accepted Answer

A) $0. 
B) $6,800 credit. 
C) $4,800 credit. 
D) $2,000 debit. 
A) $0. 
B) $6,800 credit. 
C) $4,800 credit. 
D) $2,000 debit.

Question 3

The right side of an account

Accepted Answer

A) is the correct side. 
B) reflects all transactions for the accounting period. 
C) shows all the balances of the accounts in the system. 
D) is the credit side. 
A) is the correct side. 
B) reflects all transactions for the accounting period. 
C) shows all the balances of the accounts in the system. 
D) is the credit side.

Question 4

Franklin Company purchased equipment for $45,000, paying cash of $5,000 and signing a note payable for the balance due.This transaction

Accepted Answer

A) increases assets, liabilities and stockholder's equity. 
B) increases assets and liabilities; decreases stockholders' equity. 
C) increases assets and liabilities. 
D) has no effect on the basic accounting equation. 
A) increases assets, liabilities and stockholder's equity. 
B) increases assets and liabilities; decreases stockholders' equity. 
C) increases assets and liabilities. 
D) has no effect on the basic accounting equation.

Question 5

Receiving payment of a portion of an accounts receivable will

Accepted Answer

A) not affect total assets. 
B) increase liabilities. 
C) increase stockholders' equity. 
D) decrease net income. 
A) not affect total assets. 
B) increase liabilities. 
C) increase stockholders' equity. 
D) decrease net income.

Question 6

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 7

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

Accepted Answer

A) credit to Notes Payable. 
B) debit to Cash. 
C) credit to Notes Receivable. 
D) credit to Equipment. 
A) credit to Notes Payable. 
B) debit to Cash. 
C) credit to Notes Receivable. 
D) credit to Equipment.

Question 8

An accounting record that includes a list of accounts and their balances at a given time is called a

Accepted Answer

A) trial balance. 
B) general journal. 
C) general ledger. 
D) chart of accounts. 
A) trial balance. 
B) general journal. 
C) general ledger. 
D) chart of accounts.

Question 9

Ibsen Company rendered services and collected half of the invoice in cash.The remaining balance is due at the end of the month.This transaction

Accepted Answer

A) increases assets, liabilities and stockholder's equity. 
B) increases assets and liabilities; decreases stockholders' equity. 
C) increases assets and stockholders' equity. 
D) has no effect on the basic accounting equation. 
A) increases assets, liabilities and stockholder's equity. 
B) increases assets and liabilities; decreases stockholders' equity. 
C) increases assets and stockholders' equity. 
D) has no effect on the basic accounting equation.

Question 10

Which of the following is not true of the terms debit and credit?

Accepted Answer

A) They can be abbreviated as Dr.and Cr. 
B) They can be interpreted to mean increase and decrease. 
C) They can be used to describe the balance of an account. 
D) They can be interpreted to mean left and right. 
A) They can be abbreviated as Dr.and Cr. 
B) They can be interpreted to mean increase and decrease. 
C) They can be used to describe the balance of an account. 
D) They can be interpreted to mean left and right.

Question 11

After a business transaction has been analyzed and entered in the journal, the next step in the recording process is to transfer the information to

Accepted Answer

A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements. 
A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements.

Question 12

Which of the following is not an example of a source document that provides evidence of a transaction?

Accepted Answer

A) A cancelled check 
B) A sales slip 
C) A trial balance 
D) A cash register tape 
A) A cancelled check 
B) A sales slip 
C) A trial balance 
D) A cash register tape

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not part of the recording process?

Accepted Answer

A) Analyzing transactions 
B) Preparing a trial balance 
C) Entering transactions in a journal 
D) Posting journal entries 
A) Analyzing transactions 
B) Preparing a trial balance 
C) Entering transactions in a journal 
D) Posting journal entries

Question 15

Which account below is not a subdivision of stockholders' equity?

Accepted Answer

A) Dividends 
B) Revenues 
C) Expenses 
D) Liabilities 
A) Dividends 
B) Revenues 
C) Expenses 
D) Liabilities

Question 16

A general ledger should be arranged in financial statement order beginning with the balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 17

Typically the chart of accounts begins with

Accepted Answer

A) asset accounts. 
B) liability accounts. 
C) revenue accounts. 
D) expense accounts. 
A) asset accounts. 
B) liability accounts. 
C) revenue accounts. 
D) expense accounts.

Question 18

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

Question 19

Posting

Accepted Answer

A) transfers journal entries to ledger accounts. 
B) transfers ledger transaction data to the journal. 
C) involves transferring all debits and credits on a journal page to the trial balance. 
D) provides a chronological record of transactions. 
A) transfers journal entries to ledger accounts. 
B) transfers ledger transaction data to the journal. 
C) involves transferring all debits and credits on a journal page to the trial balance. 
D) provides a chronological record of transactions.

Question 20

The recording process occurs

Accepted Answer

A) once a year. 
B) once a month. 
C) repeatedly during the accounting period. 
D) infrequently in a manual accounting system. 
A) once a year. 
B) once a month. 
C) repeatedly during the accounting period. 
D) infrequently in a manual accounting system.

A chart of accounts for a business firm

During January 2022, its first month of operation, Osborn Enterprises earned net income of $6,800 and paid dividends to the owners of $2,000.At January 31, the balance in Retained Earnings will be

The right side of an account

Franklin Company purchased equipment for $45,000, paying cash of $5,000 and signing a note payable for the balance due.This transaction

Receiving payment of a portion of an accounts receivable will

A trial balance is a listing of

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

An accounting record that includes a list of accounts and their balances at a given time is called a

Ibsen Company rendered services and collected half of the invoice in cash.The remaining balance is due at the end of the month.This transaction

Which of the following is not true of the terms debit and credit?

After a business transaction has been analyzed and entered in the journal, the next step in the recording process is to transfer the information to

Which of the following is not an example of a source document that provides evidence of a transaction?

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

Which of the following is not part of the recording process?

Which account below is not a subdivision of stockholders' equity?

A general ledger should be arranged in financial statement order beginning with the balance sheet accounts.

Typically the chart of accounts begins with

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Posting

The recording process occurs

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

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Exam 3: The Accounting Information System

A chart of accounts for a business firm

During January 2022, its first month of operation, Osborn Enterprises earned net income of $6,800 and paid dividends to the owners of $2,000.At January 31, the balance in Retained Earnings will be

The right side of an account

Franklin Company purchased equipment for $45,000, paying cash of $5,000 and signing a note payable for the balance due.This transaction

Receiving payment of a portion of an accounts receivable will

A trial balance is a listing of

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

An accounting record that includes a list of accounts and their balances at a given time is called a

Ibsen Company rendered services and collected half of the invoice in cash.The remaining balance is due at the end of the month.This transaction

Which of the following is not true of the terms debit and credit?

After a business transaction has been analyzed and entered in the journal, the next step in the recording process is to transfer the information to

Which of the following is not an example of a source document that provides evidence of a transaction?

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

Which of the following is not part of the recording process?

Which account below is not a subdivision of stockholders' equity?

A general ledger should be arranged in financial statement order beginning with the balance sheet accounts.

Typically the chart of accounts begins with

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Posting

The recording process occurs

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters