Question 1

A journal is not useful for

Accepted Answer

A) recording in one place the complete effect of a transaction. 
B) finding account balances. 
C) providing a record of transactions. 
D) locating and preventing errors. 
A) recording in one place the complete effect of a transaction. 
B) finding account balances. 
C) providing a record of transactions. 
D) locating and preventing errors.

Question 2

Debit and credit can be interpreted to mean

Accepted Answer

A) "bad" and "good," respectively. 
B) increase and decrease, respectively. 
C) decrease and increase, respectively. 
D) either an increase or decrease depending on the account. 
A) "bad" and "good," respectively. 
B) increase and decrease, respectively. 
C) decrease and increase, respectively. 
D) either an increase or decrease depending on the account.

Question 3

Jane Doe has prepared the trial balance for Braven Corp.Total debits are $25,678 while total credits are $30,034.Which of the following errors has Jane likely made?

Accepted Answer

A) a journal entry is posted twice 
B) a transposition error 
C) a correct journal entry is not posted 
D) posted a debit as a credit 
A) a journal entry is posted twice 
B) a transposition error 
C) a correct journal entry is not posted 
D) posted a debit as a credit

Question 4

The first step in the accounting cycle involves analyzing transactions, based on this analysis, which of the following would not be recorded?

Accepted Answer

A) sales receipt 
B) rental contract 
C) cheque 
D) invoice 
A) sales receipt 
B) rental contract 
C) cheque 
D) invoice

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Prepaid expenses are recorded as

Accepted Answer

A) expenses on the statement of income. 
B) assets on the statement of financial position. 
C) revenues on the statement of income. 
D) liabilities on the statement of financial position. 
A) expenses on the statement of income. 
B) assets on the statement of financial position. 
C) revenues on the statement of income. 
D) liabilities on the statement of financial position.

Question 7

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

Accepted Answer

A) cash register sales tape. 
B) invoice. 
C) advertising brochure. 
D) cheque. 
A) cash register sales tape. 
B) invoice. 
C) advertising brochure. 
D) cheque.

Question 8

The normal balance of the Dividends Declared account is a debit.

Accepted Answer

A) True 
 B)False

Question 9

A trial balance is a listing of the

Accepted Answer

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

Question 10

In its simplest form, a T account consists of three parts: (1) its title, (2) a left or credit side and (3) a right or debit side.

Accepted Answer

A) True 
 B)False

Question 11

If the totals of a trial balance are not equal, it could be due to

Accepted Answer

A) a failure to record or post a transaction. 
B) recording the same incorrect amount for both the debit and the credit parts of a transaction. 
C) an error in calculating the account balances. 
D) recording the transaction more than once. 
A) a failure to record or post a transaction. 
B) recording the same incorrect amount for both the debit and the credit parts of a transaction. 
C) an error in calculating the account balances. 
D) recording the transaction more than once.

Question 12

An increase in an asset is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 13

The equality of debits and credits is the basis for

Accepted Answer

A) the double-entry accounting system. 
B) the single-entry accounting system. 
C) the T account. 
D) all accounting systems. 
A) the double-entry accounting system. 
B) the single-entry accounting system. 
C) the T account. 
D) all accounting systems.

Question 14

The ledger accounts should be arranged in

Accepted Answer

A) date order. 
B) order of the chart of accounts. 
C) financial statement order. 
D) order of appearance in the journal. 
A) date order. 
B) order of the chart of accounts. 
C) financial statement order. 
D) order of appearance in the journal.

Question 15

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

Question 16

The first step in the recording process is entering the transaction into the general journal.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

An account will have a credit balance if the

Accepted Answer

A) credits exceed the debits. 
B) first transaction entered was a credit. 
C) debits exceed the credits. 
D) last transaction entered was a credit. 
A) credits exceed the debits. 
B) first transaction entered was a credit. 
C) debits exceed the credits. 
D) last transaction entered was a credit.

Question 19

A trial balance usually

Accepted Answer

A) lists all the debit balances first, then all the credit balances. 
B) lists all the credit balances first, then all the debit balances. 
C) lists all the accounts in alphabetical order. 
D) lists all the accounts and balances in financial statement order. 
A) lists all the debit balances first, then all the credit balances. 
B) lists all the credit balances first, then all the debit balances. 
C) lists all the accounts in alphabetical order. 
D) lists all the accounts and balances in financial statement order.

Question 20

The retained earnings on the trial balance prepared immediately after posting represents the retained earnings at the beginning of the period.

Accepted Answer

A) True 
 B)False

A journal is not useful for

Debit and credit can be interpreted to mean

Jane Doe has prepared the trial balance for Braven Corp.Total debits are $25,678 while total credits are $30,034.Which of the following errors has Jane likely made?

The first step in the accounting cycle involves analyzing transactions, based on this analysis, which of the following would not be recorded?

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

Prepaid expenses are recorded as

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

The normal balance of the Dividends Declared account is a debit.

A trial balance is a listing of the

In its simplest form, a T account consists of three parts: (1) its title, (2) a left or credit side and (3) a right or debit side.

If the totals of a trial balance are not equal, it could be due to

An increase in an asset is recorded by a debit.

The equality of debits and credits is the basis for

The ledger accounts should be arranged in

Usually, a trial balance is prepared

The first step in the recording process is entering the transaction into the general journal.

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

An account will have a credit balance if the

A trial balance usually

The retained earnings on the trial balance prepared immediately after posting represents the retained earnings at the beginning of the period.

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

Exam 3: The Accounting Information System

A journal is not useful for

Debit and credit can be interpreted to mean

Jane Doe has prepared the trial balance for Braven Corp.Total debits are $25,678 while total credits are $30,034.Which of the following errors has Jane likely made?

The first step in the accounting cycle involves analyzing transactions, based on this analysis, which of the following would not be recorded?

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

Prepaid expenses are recorded as

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

The normal balance of the Dividends Declared account is a debit.

A trial balance is a listing of the

In its simplest form, a T account consists of three parts: (1) its title, (2) a left or credit side and (3) a right or debit side.

If the totals of a trial balance are not equal, it could be due to

An increase in an asset is recorded by a debit.

The equality of debits and credits is the basis for

The ledger accounts should be arranged in

Usually, a trial balance is prepared

The first step in the recording process is entering the transaction into the general journal.

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

An account will have a credit balance if the

A trial balance usually

The retained earnings on the trial balance prepared immediately after posting represents the retained earnings at the beginning of the period.

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