Question 1

A chart of accounts

Accepted Answer

A) is a chart created in Excel. 
B) indicates the amount of net income 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 chart created in Excel. 
B) indicates the amount of net income 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

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

Accepted Answer

A) the number of accounts to be debited must equal the number of accounts to be credited. 
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 accounts to be debited must equal the number of accounts to be credited. 
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 principal purpose of posting is to

Accepted Answer

A) help identify errors made in the journal. 
B) accumulate the effects of journalized transactions in the individual accounts. 
C) enter transactions directly into the general ledger. 
D) help determine if the financial statements are ready to be prepared. 
A) help identify errors made in the journal. 
B) accumulate the effects of journalized transactions in the individual accounts. 
C) enter transactions directly into the general ledger. 
D) help determine if the financial statements are ready to be prepared.

Question 4

Which of the following items has no effect on retained earnings?

Accepted Answer

A) expenses 
B) dividends declared 
C) revenues 
D) hiring a new employee 
A) expenses 
B) dividends declared 
C) revenues 
D) hiring a new employee

Question 5

In the first month of operations, the total of the debit entries to the cash account amounted to $1,900 and the total of the credit entries to the cash account amounted to $1,500.Therefore, at the end of the month, the cash account has a

Accepted Answer

A) $500 credit balance. 
B) $900 debit balance. 
C) $400 debit balance. 
D) $400 credit balance. 
A) $500 credit balance. 
B) $900 debit balance. 
C) $400 debit balance. 
D) $400 credit balance.

Question 6

A general ledger should be arranged in financial statement order beginning with the statement of financial position accounts.

Accepted Answer

A) True 
 B)False

Question 7

When a company has performed a service but has not yet received payment, it

Accepted Answer

A) debits Accounts Receivable and credits Service Revenue. 
B) debits Service Revenue and credits Accounts Receivable. 
C) debits Service Revenue and credits Accounts Payable. 
D) makes no entry until the cash is received. 
A) debits Accounts Receivable and credits Service Revenue. 
B) debits Service Revenue and credits Accounts Receivable. 
C) debits Service Revenue and credits Accounts Payable. 
D) makes no entry until the cash is received.

Question 8

If an individual asset is increased, then

Accepted Answer

A) there could be an equal decrease in a specific liability. 
B) there could be an equal decrease in shareholders' equity. 
C) there could be an equal decrease in another asset. 
D) none of these is possible. 
A) there could be an equal decrease in a specific liability. 
B) there could be an equal decrease in shareholders' equity. 
C) there could be an equal decrease in another asset. 
D) none of these is possible.

Question 9

The payment of a liability

Accepted Answer

A) decreases assets and shareholders' equity. 
B) increases assets and decreases liabilities. 
C) decreases assets and increases liabilities. 
D) decreases assets and liabilities. 
A) decreases assets and shareholders' equity. 
B) increases assets and decreases liabilities. 
C) decreases assets and increases liabilities. 
D) decreases assets and liabilities.

Question 10

A trial balance can still balance even if an entry is posted to the wrong account.

Accepted Answer

A) True 
 B)False

Question 11

Entering transactions into the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 12

Posting is performed by transferring information from the

Accepted Answer

A) source documents to the journal. 
B) ledger to the journal. 
C) source documents to the ledger. 
D) journal to the ledger. 
A) source documents to the journal. 
B) ledger to the journal. 
C) source documents to the ledger. 
D) journal to the ledger.

Question 13

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 14

The payment of an account payable

Accepted Answer

A) decreases total assets. 
B) increases total assets. 
C) has no effect on total assets. 
D) increases total liabilities. 
A) decreases total assets. 
B) increases total assets. 
C) has no effect on total assets. 
D) increases total liabilities.

Question 15

Which of the following is not true regarding the chart of accounts?

Accepted Answer

A) It lists the account names that are in the ledger. 
B) It lists the account numbers that identify where the accounts are in the ledger. 
C) It is a standard listing of accounts that are in the ledger. 
D) It is the framework for the accounting information system. 
A) It lists the account names that are in the ledger. 
B) It lists the account numbers that identify where the accounts are in the ledger. 
C) It is a standard listing of accounts that are in the ledger. 
D) It is the framework for the accounting information system.

Question 16

The best interpretation of the word credit is the

Accepted Answer

A) left side of an account. 
B) increase side of an account. 
C) right side of an account. 
D) decrease side of an account. 
A) left side of an account. 
B) increase side of an account. 
C) right side of an account. 
D) decrease side of an account.

Question 17

A payment of a portion of accounts payable will

Accepted Answer

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

Question 18

The trial balance will not balance when

Accepted Answer

A) a transaction is not journalized. 
B) a correction journal entry is not posted. 
C) a debit and a credit amount are unequal in a journal entry. 
D) a journal entry is posted twice. 
A) a transaction is not journalized. 
B) a correction journal entry is not posted. 
C) a debit and a credit amount are unequal in a journal entry. 
D) a journal entry is posted twice.

Question 19

Collection of an account receivable will increase total assets.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

A chart of accounts

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

The principal purpose of posting is to

Which of the following items has no effect on retained earnings?

In the first month of operations, the total of the debit entries to the cash account amounted to $1,900 and the total of the credit entries to the cash account amounted to $1,500.Therefore, at the end of the month, the cash account has a

A general ledger should be arranged in financial statement order beginning with the statement of financial position accounts.

When a company has performed a service but has not yet received payment, it

If an individual asset is increased, then

The payment of a liability

A trial balance can still balance even if an entry is posted to the wrong account.

Entering transactions into the journal is called posting.

Posting is performed by transferring information from the

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

The payment of an account payable

Which of the following is not true regarding the chart of accounts?

The best interpretation of the word credit is the

A payment of a portion of accounts payable will

The trial balance will not balance when

Collection of an account receivable will increase total assets.

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

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

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Exam 3: The Accounting Information System

A chart of accounts

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

The principal purpose of posting is to

Which of the following items has no effect on retained earnings?

In the first month of operations, the total of the debit entries to the cash account amounted to $1,900 and the total of the credit entries to the cash account amounted to $1,500.Therefore, at the end of the month, the cash account has a

A general ledger should be arranged in financial statement order beginning with the statement of financial position accounts.

When a company has performed a service but has not yet received payment, it

If an individual asset is increased, then

The payment of a liability

A trial balance can still balance even if an entry is posted to the wrong account.

Entering transactions into the journal is called posting.

Posting is performed by transferring information from the

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

The payment of an account payable

Which of the following is not true regarding the chart of accounts?

The best interpretation of the word credit is the

A payment of a portion of accounts payable will

The trial balance will not balance when

Collection of an account receivable will increase total assets.

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

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters