Question 1

Interim statements are statements that are prepared for a minimum of 6 months of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 2

The trial balance:

Accepted Answer

A)  includes all accounts with a ledger balance. 
B)  includes assets, liabilities, capital, withdrawals, revenues and expenses. 
C)  ensures that debits equal credits. 
D)  All of the above are correct. 
A)  includes all accounts with a ledger balance. 
B)  includes assets, liabilities, capital, withdrawals, revenues and expenses. 
C)  ensures that debits equal credits. 
D)  All of the above are correct.

Question 3

Posting is performed by transferring information from the journal to the:

Accepted Answer

A)  balance sheet. 
B)  trial balance. 
C)  ledger. 
D)  income statement. 
A)  balance sheet. 
B)  trial balance. 
C)  ledger. 
D)  income statement.

Question 4

Describe the difference in information contained in the general journal vs. the general ledger.

Accepted Answer

The general journal provides a listing o

Question 5

Which of the following accounts would be credited in a proper journal entry?

Accepted Answer

A)  Cash when it is increased 
B)  Accounts Receivable when it is increased 
C)  Expenses when it is increased 
D)  Accounts Payable when it is increased 
A)  Cash when it is increased 
B)  Accounts Receivable when it is increased 
C)  Expenses when it is increased 
D)  Accounts Payable when it is increased

Question 6

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

Accepted Answer

A)  all of the information from the journal was correctly transferred to the ledger. 
B)  all accounts have their correct balances in the ledger. 
C)  only the ledger is accurate; the journal may be incorrect. 
D)  only that the debit dollar amounts equal the credit dollar amounts. 
A)  all of the information from the journal was correctly transferred to the ledger. 
B)  all accounts have their correct balances in the ledger. 
C)  only the ledger is accurate; the journal may be incorrect. 
D)  only that the debit dollar amounts equal the credit dollar amounts.

Question 7

A debit to an Expenses account was posted to a Revenue account. This would cause:

Accepted Answer

A)  expenses to be overstated. 
B)  revenue to be overstated. 
C)  expenses to be understated. 
D)  None of the above 
A)  expenses to be overstated. 
B)  revenue to be overstated. 
C)  expenses to be understated. 
D)  None of the above

Question 8

A journal is called the book of final entry.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is false regarding a proper journal entry?

Accepted Answer

A)  Debits are always listed first in the entry. 
B)  Credits are always indented. 
C)  Skip a line between transactions. 
D)  Always list the expenses first. 
A)  Debits are always listed first in the entry. 
B)  Credits are always indented. 
C)  Skip a line between transactions. 
D)  Always list the expenses first.

Question 10

All nine transactions for Ross Realty for June, the first month of operation, are recorded in the following T accounts:   Prepare a trial balance, listing the accounts and their balance in proper order.

Accepted Answer

The answer of All nine transactions for Ross Realty for...

Question 11

The general journal does NOT have a column titled:

Accepted Answer

A)  Date. 
B)  Account Titles & Descriptions. 
C)  Dr. and Cr. 
D)  Balance. 
A)  Date. 
B)  Account Titles & Descriptions. 
C)  Dr. and Cr. 
D)  Balance.

Question 12

Which of the following errors would cause the trial balance to be out of balance?

Accepted Answer

A)  The payment of utilities expense was recorded as a debit to Rent Expense for $97 and a credit to Cash for $97. 
B)  The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100. 
C)  The collection of an account was not recorded. 
D)  The payment of an account payable for $700 was recorded as a debit to Accounts Payable for $700 and a credit to Cash for $7,000. 
A)  The payment of utilities expense was recorded as a debit to Rent Expense for $97 and a credit to Cash for $97. 
B)  The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100. 
C)  The collection of an account was not recorded. 
D)  The payment of an account payable for $700 was recorded as a debit to Accounts Payable for $700 and a credit to Cash for $7,000.

Question 13

The journal entry to record an investment by the owner would most commonly include:

Accepted Answer

A)  a debit to Cash and a credit to Fees Earned. 
B)  a debit to Capital and a credit to Cash. 
C)  a debit to Fees Earned and a credit to Capital. 
D)  a debit to Cash and a credit to Capital. 
A)  a debit to Cash and a credit to Fees Earned. 
B)  a debit to Capital and a credit to Cash. 
C)  a debit to Fees Earned and a credit to Capital. 
D)  a debit to Cash and a credit to Capital.

Question 14

The order of the flow of accounting data is to (1) post in a ledger, (2) record in a journal, (3) prepare a trial balance.

Accepted Answer

A) True 
 B)False

Question 15

To find an explanation for a transaction, look in the:

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  journal. 
D)  trial balance. 
A)  income statement. 
B)  balance sheet. 
C)  journal. 
D)  trial balance.

Question 16

In preparing the trial balance of the J&J's Bridal Service, the Withdrawals account (which had a normal balance in the general ledger) was listed as a credit for $900. What will be the difference between the debit and credit sides of the trial balance?

Accepted Answer

A)  $100 
B)  $210 
C)  $310 
D)  $1,800 
A)  $100 
B)  $210 
C)  $310 
D)  $1,800

Question 17

If Accounts Payable has been credited, it is most likely that:

Accepted Answer

A)  a sale was made on account. 
B)  a purchase was made on account. 
C)  a correcting entry was made for the overstatement of the purchase of equipment on account. 
D)  a customer paid a bill on account. 
A)  a sale was made on account. 
B)  a purchase was made on account. 
C)  a correcting entry was made for the overstatement of the purchase of equipment on account. 
D)  a customer paid a bill on account.

Question 18

When recording a transaction in a journal, the account listed first is always the:

Accepted Answer

A)  debit. 
B)  credit. 
C)  increase. 
D)  highest dollar. 
A)  debit. 
B)  credit. 
C)  increase. 
D)  highest dollar.

Question 19

James Company began business in July. Prepare the following transactions for June. Omit explanations.
July

Accepted Answer

The answer of James Company began business in July. Prepare...

Question 20

A company would review the journal if an account balance was needed.

Accepted Answer

A) True 
 B)False

Exam 3: Beginning the Accounting Cycle

Interim statements are statements that are prepared for a minimum of 6 months of the fiscal year.

The trial balance:

Posting is performed by transferring information from the journal to the:

Describe the difference in information contained in the general journal vs. the general ledger.

Which of the following accounts would be credited in a proper journal entry?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

A debit to an Expenses account was posted to a Revenue account. This would cause:

A journal is called the book of final entry.

Which of the following statements is false regarding a proper journal entry?

All nine transactions for Ross Realty for June, the first month of operation, are recorded in the following T accounts: Prepare a trial balance, listing the accounts and their balance in proper order.

The general journal does NOT have a column titled:

Which of the following errors would cause the trial balance to be out of balance?

The journal entry to record an investment by the owner would most commonly include:

The order of the flow of accounting data is to (1) post in a ledger, (2) record in a journal, (3) prepare a trial balance.

To find an explanation for a transaction, look in the:

In preparing the trial balance of the J&J's Bridal Service, the Withdrawals account (which had a normal balance in the general ledger) was listed as a credit for $900. What will be the difference between the debit and credit sides of the trial balance?

If Accounts Payable has been credited, it is most likely that:

When recording a transaction in a journal, the account listed first is always the:

James Company began business in July. Prepare the following transactions for June. Omit explanations. July

A company would review the journal if an account balance was needed.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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