Question 1

Under IFRS, the trial balance

Accepted Answer

A)  follow the same format as under GAAP. 
B)  shows credits on the left and debits on the right. 
C)  include less accounts than under GAAP. 
D)  include more accounts than under GAAP. 
A)  follow the same format as under GAAP. 
B)  shows credits on the left and debits on the right. 
C)  include less accounts than under GAAP. 
D)  include more accounts than under GAAP.

Question 2

A decrease in a liability is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 3

At December 1, 2014, Orear Company's Accounts Receivable balance was $5,600. During December, Orear had credit sales of $15,000 and collected accounts receivable of $12,000. At December 31, 2014, the Accounts Receivable balance is

Accepted Answer

A)  $5,600 debit 
B)  $8,600 debit 
C)  $20,600 debit 
D)  $8,600 credit 
A)  $5,600 debit 
B)  $8,600 debit 
C)  $20,600 debit 
D)  $8,600 credit

Question 4

A company that receives money in advance of performing a service

Accepted Answer

A)  debits Cash and credits Unearned Service Revenue. 
B)  debits Unearned Service Revenue and credits Accounts Payable 
C)  debits Cash and credits Prepaid Insurance. 
D)  debits Cash and credits Accounts Receivable. 
A)  debits Cash and credits Unearned Service Revenue. 
B)  debits Unearned Service Revenue and credits Accounts Payable 
C)  debits Cash and credits Prepaid Insurance. 
D)  debits Cash and credits Accounts Receivable.

Question 5

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.
(1) Advertising Expense (6) Dividends
(2) Service Revenue (7) Cash
(3) Accounts Payable (8) Salaries and wages Expense
(4) Accounts Receivable (9) Notes Payable
(5) Common Stock (10) Insurance Expense

Accepted Answer

(1) (a) (6) (a)
(2)

Question 6

A debit means that an account has been decreased.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A credit balance in a liability account indicates that an error in recording has occurred.

Accepted Answer

A) True 
 B)False

Question 9

The basic form of a journal entry has the

Accepted Answer

A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin. 
A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin.

Question 10

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 11

Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease.

Accepted Answer

The answer of Analyze the transactions of a business organized...

Question 12

A credit means that an account has been increased.

Accepted Answer

A) True 
 B)False

Question 13

A person who wants to determine the balance of a particular account should refer to the

Accepted Answer

A)  ledger. 
B)  source document. 
C)  chart of accounts. 
D)  journal. 
A)  ledger. 
B)  source document. 
C)  chart of accounts. 
D)  journal.

Question 14

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

Question 15

The payment of a liability

Accepted Answer

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

Question 16

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets. 
A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets.

Question 17

Which of the following statements is true regarding the recording process?

Accepted Answer

A)  Because IFRS (International Financial Reporting Standards) rely more on fair value and less on historical cost than U.S. GAAP, the double-entry accounting system is not widely used by companies who use IFRS. 
B)  Both IFRS (International Financial Reporting Standards) and U.S. GAAP use the same general rules of debits and credits and the steps in the recording process. 
C)  A trial balance using IFRS (International Financial Reporting Standards) is organized by first showing the accounts from the statement of financial position followed by accounts from the income statement; a trial balance using U.S. GAAP is organized using the opposite order. 
D)  All of these answer choices are correct. 
A)  Because IFRS (International Financial Reporting Standards) rely more on fair value and less on historical cost than U.S. GAAP, the double-entry accounting system is not widely used by companies who use IFRS. 
B)  Both IFRS (International Financial Reporting Standards) and U.S. GAAP use the same general rules of debits and credits and the steps in the recording process. 
C)  A trial balance using IFRS (International Financial Reporting Standards) is organized by first showing the accounts from the statement of financial position followed by accounts from the income statement; a trial balance using U.S. GAAP is organized using the opposite order. 
D)  All of these answer choices are correct.

Question 18

An accounting record where transactions are initially recorded in chronological order is called a ________________.

Accepted Answer

The answer of An accounting record where transactions are initially...

Question 19

An increase in an asset is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 20

The transactions of the Speedy Delivery Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.     General Ledger

Accepted Answer

The answer of The transactions of the Speedy Delivery Service...

Under IFRS, the trial balance

A decrease in a liability is recorded by a debit.

At December 1, 2014, Orear Company's Accounts Receivable balance was $5,600. During December, Orear had credit sales of $15,000 and collected accounts receivable of $12,000. At December 31, 2014, the Accounts Receivable balance is

A company that receives money in advance of performing a service

A debit means that an account has been decreased.

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

A credit balance in a liability account indicates that an error in recording has occurred.

The basic form of a journal entry has the

If a revenue account is credited, the revenue account is increased.

Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease.

A credit means that an account has been increased.

A person who wants to determine the balance of a particular account should refer to the

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

The payment of a liability

The final step in the recording process is to transfer the journal information to the

Which of the following statements is true regarding the recording process?

An accounting record where transactions are initially recorded in chronological order is called a ________________.

An increase in an asset is recorded by a debit.

The transactions of the Speedy Delivery Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided. General Ledger

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

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Exam 3: The Accounting Information System

Under IFRS, the trial balance

A decrease in a liability is recorded by a debit.

At December 1, 2014, Orear Company's Accounts Receivable balance was $5,600. During December, Orear had credit sales of $15,000 and collected accounts receivable of $12,000. At December 31, 2014, the Accounts Receivable balance is

A company that receives money in advance of performing a service

A debit means that an account has been decreased.

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

A credit balance in a liability account indicates that an error in recording has occurred.

The basic form of a journal entry has the

If a revenue account is credited, the revenue account is increased.

Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease.

A credit means that an account has been increased.

A person who wants to determine the balance of a particular account should refer to the

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

The payment of a liability

The final step in the recording process is to transfer the journal information to the

Which of the following statements is true regarding the recording process?

An accounting record where transactions are initially recorded in chronological order is called a ________________.

An increase in an asset is recorded by a debit.

The transactions of the Speedy Delivery Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided. General Ledger

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