Question 1

A journal is an accounting record in which transactions are initially recorded.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not an example of a source document that provides evidence of a transaction?

Accepted Answer

A)  A cancelled check 
B)  A sales slip 
C)  A trial balance 
D)  A cash register tape 
A)  A cancelled check 
B)  A sales slip 
C)  A trial balance 
D)  A cash register tape

Question 3

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

Question 4

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

Accepted Answer

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

Question 5

The double-entry accounting system is the basis of accounting systems

Accepted Answer

A)  worldwide. 
B)  worldwide, except for the U.S. 
C)  in the U.S. only 
D)  neither internationally nor in the U.S. 
A)  worldwide. 
B)  worldwide, except for the U.S. 
C)  in the U.S. only 
D)  neither internationally nor in the U.S.

Question 6

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account. 
B)  a special account used instead of a journal. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance. 
A)  a way of depicting the basic form of an account. 
B)  a special account used instead of a journal. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance.

Question 7

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A)  trial balance. 
B)  income statement. 
C)  general journal. 
D)  ledger. 
A)  trial balance. 
B)  income statement. 
C)  general journal. 
D)  ledger.

Question 8

A ledger

Accepted Answer

A)  contains only asset and liability accounts. 
B)  is a collection of the entire group of accounts maintained by a company. 
C)  provides a chronological record of transactions. 
D)  should show accounts in alphabetical order. 
A)  contains only asset and liability accounts. 
B)  is a collection of the entire group of accounts maintained by a company. 
C)  provides a chronological record of transactions. 
D)  should show accounts in alphabetical order.

Question 9

On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

Accepted Answer

A)  $5,000 credit balance 
B)  $29,000 debit balance 
C)  $5,000 debit balance 
D)  $3,000 credit balance 
A)  $5,000 credit balance 
B)  $29,000 debit balance 
C)  $5,000 debit balance 
D)  $3,000 credit balance

Question 10

Which of the following accounts probably would be listed before the others in a chart of accounts?

Accepted Answer

A)  Accumulated Depreciation-Buildings 
B)  Insurance Expense 
C)  Dividends 
D)  Notes Payable 
A)  Accumulated Depreciation-Buildings 
B)  Insurance Expense 
C)  Dividends 
D)  Notes Payable

Question 11

Prepare a trial balance from the ledger accounts of Swisher Company as of January 31, 2014. $$\begin{array} { l l l } 
\text { Accounts Payable } & 1,500 & \text { Rent Expense } \
\text { Accounts Receivable } & 2,500 & \text { Service Revenue } \
\text { Cash } & 1,600 & \text { Supplies } \
\text { Common Stock } & 2,200 & \text { Salaries and Wages Expense } \
\text { Dividends } & 1,400 &
\end{array}$$

Accepted Answer

The answer of Prepare a trial balance from the ledger...

Question 12

For each of the following transactions of Woods Inc., identify the account to be debited and the account to be credited.
1. Purchased 18-month insurance policy for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to be paid at later date.

Accepted Answer

The answer of For each of the following transactions of...

Question 13

Eight transactions are recorded in the following T-accounts:   Indicate for each debit and each credit: (a) whether an asset, liability, common stock, dividends, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

Accepted Answer

The answer of Eight transactions are recorded in the following...

Question 14

The normal balance of any account is the

Accepted Answer

A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account. 
A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account.

Question 15

Revenues are a subdivision of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 16

All of the following statements regarding the double-entry system are true except

Accepted Answer

A)  a two-sided effect of each transaction is recorded in appropriate accounts when using the double-entry system. 
B)  the double-entry system provides a logical method for recording transactions. 
C)  both sides of the accounting equation must be affected when recording a transaction using the double-entry system. 
D)  when using the double-entry system, the sum of all debits to the accounts must equal the sum of all credits. 
A)  a two-sided effect of each transaction is recorded in appropriate accounts when using the double-entry system. 
B)  the double-entry system provides a logical method for recording transactions. 
C)  both sides of the accounting equation must be affected when recording a transaction using the double-entry system. 
D)  when using the double-entry system, the sum of all debits to the accounts must equal the sum of all credits.

Question 17

Posting

Accepted Answer

A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating. 
A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating.

Question 18

The payment of a liability decreases both cash and accounts payable.

Accepted Answer

A) True 
 B)False

Question 19

Match between columns
                        Premises: A list of accounts and their balances at a given time.
Let side of an account.
Evidence that a transaction has taken place.
Shows the debit and credit effects of specific transactions.
The side which increases an account.
An accounting record of increases and decreases in specific assets, liabilities, and stockholders’ equity items.
Transferring journal entries to ledger accounts.
Has a credit normal balance
A lst of all the accounts used by a company.
The entire group of accounts maintained by a company.

Accepted Answer

The Answer of Trial balance and Journal and Account and is...

Question 20

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500 
D)  Both assets and equity increased by $2,500. 
A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500 
D)  Both assets and equity increased by $2,500.

A journal is an accounting record in which transactions are initially recorded.

Which of the following is not an example of a source document that provides evidence of a transaction?

Customarily, a trial balance is prepared

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

The double-entry accounting system is the basis of accounting systems

A T-account is

After transaction information has been recorded in the journal, it is transferred to the

A ledger

On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

Which of the following accounts probably would be listed before the others in a chart of accounts?

Prepare a trial balance from the ledger accounts of Swisher Company as of January 31, 2014. Accounts Payable 1,500 Rent Expense Accounts Receivable 2,500 Service Revenue Cash 1,600 Supplies Common Stock 2,200 Salaries and Wages Expense Dividends 1,400

For each of the following transactions of Woods Inc., identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

The normal balance of any account is the

Revenues are a subdivision of stockholders' equity.

All of the following statements regarding the double-entry system are true except

Posting

The payment of a liability decreases both cash and accounts payable.

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

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

A journal is an accounting record in which transactions are initially recorded.

Which of the following is not an example of a source document that provides evidence of a transaction?

Customarily, a trial balance is prepared

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

The double-entry accounting system is the basis of accounting systems

A T-account is

After transaction information has been recorded in the journal, it is transferred to the

A ledger

On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

Which of the following accounts probably would be listed before the others in a chart of accounts?

Prepare a trial balance from the ledger accounts of Swisher Company as of January 31, 2014. Accounts Payable 1,500 Rent Expense Accounts Receivable 2,500 Service Revenue Cash 1,600 Supplies Common Stock 2,200 Salaries and Wages Expense Dividends 1,400

For each of the following transactions of Woods Inc., identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

The normal balance of any account is the

Revenues are a subdivision of stockholders' equity.

All of the following statements regarding the double-entry system are true except

Posting

The payment of a liability decreases both cash and accounts payable.

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

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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