Question 1

The ledger accounts are typically arranged in

Accepted Answer

A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal. 
A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal.

Question 2

The Dividends account

Accepted Answer

A) appears on the income statement along with the expenses of the business. 
B) must show transactions every accounting period. 
C) is increased with debits and decreased with credits. 
D) is not a proper subdivision of stockholders' equity. 
A) appears on the income statement along with the expenses of the business. 
B) must show transactions every accounting period. 
C) is increased with debits and decreased with credits. 
D) is not a proper subdivision of stockholders' equity.

Question 3

Which statement is incorrect?

Accepted Answer

A) Dividends represent a distribution by a corporation to its stockholders. 
B) Dividends are shown on the income statement. 
C) Dividends reduce stockholders' equity, thus the Dividends account increases on the left side. 
D) The Dividends account has a normal debit balance. 
A) Dividends represent a distribution by a corporation to its stockholders. 
B) Dividends are shown on the income statement. 
C) Dividends reduce stockholders' equity, thus the Dividends account increases on the left side. 
D) The Dividends account has a normal debit balance.

Question 4

A debit to an asset account indicates a(n)

Accepted Answer

A) error. 
B) credit was made to a liability account. 
C) decrease in the asset. 
D) increase in the asset. 
A) error. 
B) credit was made to a liability account. 
C) decrease in the asset. 
D) increase in the asset.

Question 5

Transactions are entered in the ledger accounts and then transferred to journals.

Accepted Answer

A) True 
 B)False

Question 6

A trial balance will not balance if

Accepted Answer

A) a correcting journal entry is posted twice. 
B) a $50 cash dividend is debited to dividends for $500 and credited to cash for $50. 
C) a $300 payment on accounts payable is debited to accounts payable for $30 and credited to cash for $30. 
D) a transaction is not posted at all. 
A) a correcting journal entry is posted twice. 
B) a $50 cash dividend is debited to dividends for $500 and credited to cash for $50. 
C) a $300 payment on accounts payable is debited to accounts payable for $30 and credited to cash for $30. 
D) a transaction is not posted at all.

Question 7

The entire group of accounts maintained by a company is referred to collectively as the journal.

Accepted Answer

A) True 
 B)False

Question 8

The normal balance of an asset is a credit.

Accepted Answer

A) True 
 B)False

Question 9

A debit means that an account has been decreased.

Accepted Answer

A) True 
 B)False

Question 10

If services are rendered on account, then

Accepted Answer

A) assets will decrease. 
B) liabilities will increase. 
C) stockholders' equity will increase. 
D) liabilities will decrease. 
A) assets will decrease. 
B) liabilities will increase. 
C) stockholders' equity will increase. 
D) liabilities will decrease.

Question 11

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

The answer of Which of the following correctly identifies normal...

Question 12

An accountant has debited an asset account for $900 and credited a liability account for $600.What can be done to complete the recording of the transaction?

Accepted Answer

A)  Debit a stockholders' equity account for $300. 
B) Debit another asset account for $300. 
C) Credit a different asset account for $300. 
D) Nothing further must be done. 
A)  Debit a stockholders' equity account for $300. 
B) Debit another asset account for $300. 
C) Credit a different asset account for $300. 
D) Nothing further must be done.

Question 13

If expenses are paid in cash, then

Accepted Answer

A) assets will increase. 
B) liabilities will decrease. 
C) stockholders' equity will increase. 
D) assets will decrease. 
A) assets will increase. 
B) liabilities will decrease. 
C) stockholders' equity will increase. 
D) assets will decrease.

Question 14

Winrow Company's trial balance at the end of its first month of operations reported the following accounts and amounts:   Total credits on Winrow Company's trial balance are

Accepted Answer

A) $32,500. 
B) $32,000. 
C) $31,500. 
D) $33,000. 
A) $32,500. 
B) $32,000. 
C) $31,500. 
D) $33,000.

Question 15

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A) no errors have been made. 
B) no errors can be discovered. 
C) that all accounts reflect correct balances. 
D) the mathematical equality of the accounting equation. 
A) no errors have been made. 
B) no errors can be discovered. 
C) that all accounts reflect correct balances. 
D) the mathematical equality of the accounting equation.

Question 16

Customarily, a trial balance is prepared

Accepted Answer

A) at the end of each day. 
B) after each journal entry is posted. 
C) at the end of an accounting period. 
D) only at the inception of the business. 
A) at the end of each day. 
B) after each journal entry is posted. 
C) at the end of an accounting period. 
D) only at the inception of the business.

Question 17

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 18

A debit is not the normal balance for which account listed below?

Accepted Answer

A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue 
A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue

Question 19

Operating activities are the types of activities the company performs to generate profits.

Accepted Answer

A) True 
 B)False

Question 20

If services are rendered for cash, then

Accepted Answer

A) assets will increase. 
B) liabilities will increase. 
C) stockholders' equity will decrease. 
D) liabilities will decrease. 
A) assets will increase. 
B) liabilities will increase. 
C) stockholders' equity will decrease. 
D) liabilities will decrease.

The ledger accounts are typically arranged in

The Dividends account

Which statement is incorrect?

A debit to an asset account indicates a(n)

Transactions are entered in the ledger accounts and then transferred to journals.

A trial balance will not balance if

The entire group of accounts maintained by a company is referred to collectively as the journal.

The normal balance of an asset is a credit.

A debit means that an account has been decreased.

If services are rendered on account, then

Which of the following correctly identifies normal balances of accounts?

An accountant has debited an asset account for $900 and credited a liability account for $600.What can be done to complete the recording of the transaction?

If expenses are paid in cash, then

Winrow Company's trial balance at the end of its first month of operations reported the following accounts and amounts: Total credits on Winrow Company's trial balance are

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Customarily, a trial balance is prepared

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

A debit is not the normal balance for which account listed below?

Operating activities are the types of activities the company performs to generate profits.

If services are rendered for cash, then

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

Exam 3: The Accounting Information System

The ledger accounts are typically arranged in

The Dividends account

Which statement is incorrect?

A debit to an asset account indicates a(n)

Transactions are entered in the ledger accounts and then transferred to journals.

A trial balance will not balance if

The entire group of accounts maintained by a company is referred to collectively as the journal.

The normal balance of an asset is a credit.

A debit means that an account has been decreased.

If services are rendered on account, then

Which of the following correctly identifies normal balances of accounts?

An accountant has debited an asset account for $900 and credited a liability account for $600.What can be done to complete the recording of the transaction?

If expenses are paid in cash, then

Winrow Company's trial balance at the end of its first month of operations reported the following accounts and amounts: Total credits on Winrow Company's trial balance are

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Customarily, a trial balance is prepared

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

A debit is not the normal balance for which account listed below?

Operating activities are the types of activities the company performs to generate profits.

If services are rendered for cash, then

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