Question 1

The normal balance of any account is the

Accepted Answer

A) left side. 
B) right side. 
C) side which increases that account. 
D) side which decreases that account. 
A) left side. 
B) right side. 
C) side which increases that account. 
D) side which decreases that account.

Question 2

In recording an accounting transaction in a double-entry system,

Accepted Answer

A) the number of debit accounts must equal the number of credit accounts. 
B) there must always be entries made on both sides of the accounting equation. 
C) the amount of the debits must equal the amount of the credits. 
D) there must only be two accounts affected by any transaction. 
A) the number of debit accounts must equal the number of credit accounts. 
B) there must always be entries made on both sides of the accounting equation. 
C) the amount of the debits must equal the amount of the credits. 
D) there must only be two accounts affected by any transaction.

Question 3

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 4

An accountant has debited an asset account for $800 and credited a liability account for $700.Which of the following would be an incorrect way to complete the recording of the transaction?

Accepted Answer

A) Credit an asset account for $100. 
B) Credit another liability account for $100. 
C) Credit a stockholders' equity account for $100. 
D) Debit a stockholders' equity account for $100. 
A) Credit an asset account for $100. 
B) Credit another liability account for $100. 
C) Credit a stockholders' equity account for $100. 
D) Debit a stockholders' equity account for $100.

Question 5

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 6

If a company buys a $700 machine on account, this transaction will affect the

Accepted Answer

A) income statement and retained earnings statement only. 
B) income statement only. 
C) income statement, retained earnings statement, and balance sheet. 
D) balance sheet only. 
A) income statement and retained earnings statement only. 
B) income statement only. 
C) income statement, retained earnings statement, and balance sheet. 
D) balance sheet only.

Question 7

Entering transactions into the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in a liability account is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 9

The basic format of a journal would not include a(n)

Accepted Answer

A) brief explanation. 
B) account title column. 
C) T-account. 
D) date column. 
A) brief explanation. 
B) account title column. 
C) T-account. 
D) date column.

Question 10

Which of the following statements is incorrect?

Accepted Answer

A) A chart of accounts is a listing of the accounts used by a business. 
B) New accounts can be added to the chart of accounts. 
C) Stockholders' Equity is an account that is included in the chart of accounts. 
D) Account titles for the chart of accounts are used in general journal entries. 
A) A chart of accounts is a listing of the accounts used by a business. 
B) New accounts can be added to the chart of accounts. 
C) Stockholders' Equity is an account that is included in the chart of accounts. 
D) Account titles for the chart of accounts are used in general journal entries.

Question 11

The ledger account balances for Greely Corporation at December 31, 2022 are as follows:   If all accounts have normal balances, what would be total debits on the trial balance at December 31, 2022?

Accepted Answer

A) $6,584. 
B) $6,556. 
C) $6,940. 
D) $7,200. 
A) $6,584. 
B) $6,556. 
C) $6,940. 
D) $7,200.

Question 12

On June 1, 2022, England Inc.reported a cash balance of $42,000.During June, England made deposits of $16,000 and made disbursements totaling $48,000.What is the cash balance at the end of June?

Accepted Answer

A) $10,000 credit balance 
B) $58,000 debit balance 
C) $10,000 debit balance 
D) $6,000 credit balance 
A) $10,000 credit balance 
B) $58,000 debit balance 
C) $10,000 debit balance 
D) $6,000 credit balance

Question 13

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 14

A trial balance is prepared at the beginning of an accounting period.

Accepted Answer

A) True 
 B)False

Question 15

An increase in an asset is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 16

On January 14, Decker industries purchased supplies of $500 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 17

Powers Corporation received a cash advance of $500 from a customer.As a result of this event,

Accepted Answer

A) assets increased by $500. 
B) equity increased by $500. 
C) liabilities decreased by $500. 
D) Both assets and equity increased by $500. 
A) assets increased by $500. 
B) equity increased by $500. 
C) liabilities decreased by $500. 
D) Both assets and equity increased by $500.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 20

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner?

Accepted Answer

A) Salaries and Wages Expense and Notes Payable 
B) Common Stock and Unearned Rent Revenue 
C) Prepaid Rent and Advertising Expense 
D) Service Revenue and Notes Payable 
A) Salaries and Wages Expense and Notes Payable 
B) Common Stock and Unearned Rent Revenue 
C) Prepaid Rent and Advertising Expense 
D) Service Revenue and Notes Payable

The normal balance of any account is the

In recording an accounting transaction in a double-entry system,

The name given to entering transaction data in the journal is

An accountant has debited an asset account for $800 and credited a liability account for $700.Which of the following would be an incorrect way to complete the recording of the transaction?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

If a company buys a $700 machine on account, this transaction will affect the

Entering transactions into the journal is called posting.

A decrease in a liability account is recorded by a debit.

The basic format of a journal would not include a(n)

Which of the following statements is incorrect?

The ledger account balances for Greely Corporation at December 31, 2022 are as follows: If all accounts have normal balances, what would be total debits on the trial balance at December 31, 2022?

On June 1, 2022, England Inc.reported a cash balance of $42,000.During June, England made deposits of $16,000 and made disbursements totaling $48,000.What is the cash balance at the end of June?

The left side of an account is

A trial balance is prepared at the beginning of an accounting period.

An increase in an asset is recorded by a debit.

On January 14, Decker industries purchased supplies of $500 on account.The entry to record the purchase will include

Powers Corporation received a cash advance of $500 from a customer.As a result of this event,

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

The chart of accounts is a special ledger used in accounting systems.

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner?

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 normal balance of any account is the

In recording an accounting transaction in a double-entry system,

The name given to entering transaction data in the journal is

An accountant has debited an asset account for $800 and credited a liability account for $700.Which of the following would be an incorrect way to complete the recording of the transaction?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

If a company buys a $700 machine on account, this transaction will affect the

Entering transactions into the journal is called posting.

A decrease in a liability account is recorded by a debit.

The basic format of a journal would not include a(n)

Which of the following statements is incorrect?

The ledger account balances for Greely Corporation at December 31, 2022 are as follows: If all accounts have normal balances, what would be total debits on the trial balance at December 31, 2022?

On June 1, 2022, England Inc.reported a cash balance of $42,000.During June, England made deposits of $16,000 and made disbursements totaling $48,000.What is the cash balance at the end of June?

The left side of an account is

A trial balance is prepared at the beginning of an accounting period.

An increase in an asset is recorded by a debit.

On January 14, Decker industries purchased supplies of $500 on account.The entry to record the purchase will include

Powers Corporation received a cash advance of $500 from a customer.As a result of this event,

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

The chart of accounts is a special ledger used in accounting systems.

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner?

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