Question 1

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 2

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 3

The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ______________, and transfer the _______________ information to appropriate accounts in the ________________.

Accepted Answer

analyze jo

Question 4

A chart of accounts for a business firm

Accepted Answer

A)  is a graph. 
B)  indicates the amount of profit 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 graph. 
B)  indicates the amount of profit or loss for the period. 
C)  lists the accounts in the ledger. 
D)  shows the balance of each account in the general ledger.

Question 5

The act of entering an amount on the left side of an account is called _______________ the account, and making an entry on the right side is called _________________ the account.

Accepted Answer

The answer of The act of entering an amount on...

Question 6

Which accounts normally have credit balances?

Accepted Answer

A)  Revenues, liabilities, and dividends 
B)  Revenues, liabilities, and assets 
C)  Revenues, liabilities, and retained earnings 
D)  Revenues, liabilities, and expenses 
A)  Revenues, liabilities, and dividends 
B)  Revenues, liabilities, and assets 
C)  Revenues, liabilities, and retained earnings 
D)  Revenues, liabilities, and expenses

Question 7

For each item below, indicate whether a debit or credit applies.

Accepted Answer

The answer of For each item below, indicate whether a...

Question 8

_____________, ______________, and _______________ have debit normal account balances whereas _______________, ______________, ______________, and ________________ have credit normal account balances.

Accepted Answer

assets expenses divi

Question 9

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance. 
A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance.

Question 10

The right side of an account

Accepted Answer

A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side. 
A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side.

Question 11

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include a

Accepted Answer

A)  debit to Notes Payable. 
B)  credit to Cash. 
C)  credit to Notes Receivable. 
D)  credit to Equipment. 
A)  debit to Notes Payable. 
B)  credit to Cash. 
C)  credit to Notes Receivable. 
D)  credit to Equipment.

Question 12

Typically the chart of accounts begins with

Accepted Answer

A)  asset accounts. 
B)  liability accounts. 
C)  revenue accounts. 
D)  expense accounts. 
A)  asset accounts. 
B)  liability accounts. 
C)  revenue accounts. 
D)  expense accounts.

Question 13

A trial balance proves

Accepted Answer

A)  the mathematical equality of debits and credits after the posting process. 
B)  the ledger is posted correctly. 
C)  that all transactions have been recorded correctly. 
D)  that all transactions have been posted. 
A)  the mathematical equality of debits and credits after the posting process. 
B)  the ledger is posted correctly. 
C)  that all transactions have been recorded correctly. 
D)  that all transactions have been posted.

Question 14

At January 1, 2014, Troyer Industries reported Retained Earnings of $280,000. During 2014, Troyer had a net loss of $60,000 and paid dividends to the stockholders of $40,000. At December 31, 2014, the balance in Retained Earnings is

Accepted Answer

A)  $280,000 debit. 
B)  $240,000 credit. 
C)  $220,000 debit. 
D)  $180,000 credit. 
A)  $280,000 debit. 
B)  $240,000 credit. 
C)  $220,000 debit. 
D)  $180,000 credit.

Question 15

The normal balance of an asset is a credit.

Accepted Answer

A) True 
 B)False

Question 16

The entire group of accounts and their balances maintained by a company is called the ________________.

Accepted Answer

The answer of The entire group of accounts and their...

Question 17

Which statement about an account is true?

Accepted Answer

A)  In its simplest form, an account consists of two parts. 
B)  An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items. 
C)  There are separate account for specific assets and liabilities but only one account for stockholders' equity items. 
D)  The left side of an account is the credit or decrease side. 
A)  In its simplest form, an account consists of two parts. 
B)  An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items. 
C)  There are separate account for specific assets and liabilities but only one account for stockholders' equity items. 
D)  The left side of an account is the credit or decrease side.

Question 18

All business transactions must be entered first in the general ledger.

Accepted Answer

A) True 
 B)False

Question 19

When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions.

Accepted Answer

A) True 
 B)False

Question 20

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

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

The ledger accounts are typically arranged in

The basic steps in the recording process are: _______ each transaction, enter the transaction in a , and transfer the _ information to appropriate accounts in the ________.

A chart of accounts for a business firm

The act of entering an amount on the left side of an account is called _ the account, and making an entry on the right side is called ___ the account.

Which accounts normally have credit balances?

For each item below, indicate whether a debit or credit applies.

_____, , and _ have debit normal account balances whereas _, , , and __________ have credit normal account balances.

An account consists of

The right side of an account

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include a

Typically the chart of accounts begins with

A trial balance proves

At January 1, 2014, Troyer Industries reported Retained Earnings of $280,000. During 2014, Troyer had a net loss of $60,000 and paid dividends to the stockholders of $40,000. At December 31, 2014, the balance in Retained Earnings is

The normal balance of an asset is a credit.

The entire group of accounts and their balances maintained by a company is called the ________________.

Which statement about an account is true?

All business transactions must be entered first in the general ledger.

When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions.

The normal balance of all accounts is a debit.

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 and Acquisitions in Accounting

Filters

Exam 3: The Accounting Information System

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

The ledger accounts are typically arranged in

The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ______________, and transfer the _______________ information to appropriate accounts in the ________________.

A chart of accounts for a business firm

The act of entering an amount on the left side of an account is called _______________ the account, and making an entry on the right side is called _________________ the account.

Which accounts normally have credit balances?

For each item below, indicate whether a debit or credit applies.

_____________, ______________, and _______________ have debit normal account balances whereas _______________, ______________, ______________, and ________________ have credit normal account balances.

An account consists of

The right side of an account

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include a

Typically the chart of accounts begins with

A trial balance proves

At January 1, 2014, Troyer Industries reported Retained Earnings of $280,000. During 2014, Troyer had a net loss of $60,000 and paid dividends to the stockholders of $40,000. At December 31, 2014, the balance in Retained Earnings is

The normal balance of an asset is a credit.

The entire group of accounts and their balances maintained by a company is called the ________________.

Which statement about an account is true?

All business transactions must be entered first in the general ledger.

When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions.

The normal balance of all accounts is a debit.

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 and Acquisitions in Accounting

Filters

The basic steps in the recording process are: _______ each transaction, enter the transaction in a , and transfer the _ information to appropriate accounts in the ________.

The act of entering an amount on the left side of an account is called _ the account, and making an entry on the right side is called ___ the account.

_____, , and _ have debit normal account balances whereas _, , , and __________ have credit normal account balances.