Question 1

A credit to an asset account was posted to a revenue account.This would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be understated. 
C) capital to be understated. 
D) revenue to be overstated 
A) assets to be understated. 
B) liabilities to be understated. 
C) capital to be understated. 
D) revenue to be overstated

Question 2

Insurance paid in advance is a liability.

Accepted Answer

A) True 
 B)False

Question 3

A journal is called the book of final entry.

Accepted Answer

A) True 
 B)False

Question 4

The twelve-month period a business chooses for its accounting period is a(n):

Accepted Answer

A) calendar year. 
B) accounting period. 
C) fiscal year. 
D) accounting cycle. 
A) calendar year. 
B) accounting period. 
C) fiscal year. 
D) accounting cycle.

Question 5

If the business records a number as 179 and it should be 197,this error would be called:

Accepted Answer

A) rearrangement. 
B) transposition. 
C) slide. 
D) None of the above 
A) rearrangement. 
B) transposition. 
C) slide. 
D) None of the above

Question 6

Transactions are listed in chronological order in the journal.

Accepted Answer

A) True 
 B)False

Question 7

Record the following selected transactions for January in a two-column journal,identifying each entry by letter:
(a)Earned $7,000 fees; customer will pay later.
(b)Purchased equipment for $45,000,paying $20,000 in cash and the remainder on credit
(c)Paid $3,000 for rent for January.
(d)Purchased $2,500 of supplies on account.
(e)A.Allen $1,000 investment in the company.
(f)Received $7,000 in cash for fees earned previously.
(g)Paid $1,200 to creditors on account.
(h)Paid wages of $6,250.
(i)Received $7,150 from customers on account.
(j)A.Allen withdrawal of $1,750.

Accepted Answer

The answer of Record the following selected transactions for January...

Question 8

How are credits distinguished from debits in the journal?

Accepted Answer

A) A line separation 
B) A different color 
C) Indenting 
D) There is no distinction. 
A) A line separation 
B) A different color 
C) Indenting 
D) There is no distinction.

Question 9

Complete the following questions based on the journal entry below:
$$\begin{array}{l}
\quad\quad\text { GENERAL JOURNAL}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \quad\quad\text {Page 1 }\
\begin{array} { | l | l | l | l | l | r | r | r | } \hline\text { Date } && \text { Acct. Titles and Description } & \text { PR } & \text { Debit } & \text { Credit }  \
\hline \text { May } & 1 & \text { Cash } &  110 &  11,000 \
\hline&& \text { Capital}&300&&11,000\
\hline
\end{array}
\end{array}$$
a) Date of Journal entry:	$\quad$$\quad$$\quad$$\quad$$\quad$  _______________

b) Name of account debited:	$\quad$$\quad$$\quad$ $\quad$_______________

c) Name of account credited:	$\quad$ $\quad$$\quad$$\quad$ _______________

d) Provide an explanation for this entry:	$\quad$_______________

e) Page of Journal:$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ _______________

f) Account number for Cash:$\quad$$\quad$$\quad$$\quad$_______________

g) Account number for Capital:$\quad$$\quad$$\quad$_______________

Accepted Answer

a)May 1 
b)Cash 
c)C

Question 10

To correct an error made in the journal (prior to posting in the ledger):

Accepted Answer

A) erase the error and write the correct entry. 
B) line out the incorrect portion of the entry and write in the correction. 
C) ignore the error,it will correct itself in the next accounting period. 
D) write a new journal entry correcting the original entry. 
A) erase the error and write the correct entry. 
B) line out the incorrect portion of the entry and write in the correction. 
C) ignore the error,it will correct itself in the next accounting period. 
D) write a new journal entry correcting the original entry.

Question 11

If Cash has been debited,it is likely that:

Accepted Answer

A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible. 
A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible.

Question 12

Which of the following entries would record the payment of a utility bill?

Accepted Answer

A) Utilities Expense,debit; Cash,credit 
B) Cash,debit; Utilities Expense,credit 
C) Utilities Expense,debit; Accounts Payable,credit 
D) Accounts Receivable,debit; Utilities Expense,credit 
A) Utilities Expense,debit; Cash,credit 
B) Cash,debit; Utilities Expense,credit 
C) Utilities Expense,debit; Accounts Payable,credit 
D) Accounts Receivable,debit; Utilities Expense,credit

Question 13

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee.When the employee returns the amount of the overpayment,Plum Hollow should make which of the following entries?

Accepted Answer

A) Cash,debit; Wages Expense,credit 
B) Wages Payable,debit; Wages Expense,credit 
C) Wages Expense,debit; Cash,credit 
D) Wages Expense,debit; Wages Payable,credit 
A) Cash,debit; Wages Expense,credit 
B) Wages Payable,debit; Wages Expense,credit 
C) Wages Expense,debit; Cash,credit 
D) Wages Expense,debit; Wages Payable,credit

Question 14

Interim statements are prepared to:

Accepted Answer

A) notify management of the company's current financial position. 
B) notify investors of the company's current financial position. 
C) allow management to make changes to the business before processing year-end financial statements. 
D) All of the above are correct. 
A) notify management of the company's current financial position. 
B) notify investors of the company's current financial position. 
C) allow management to make changes to the business before processing year-end financial statements. 
D) All of the above are correct.

Question 15

The journal entry to record a withdrawal by the owner would most commonly include:

Accepted Answer

A) a debit to Wage Expense and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Withdrawals and a credit to Cash. 
D) a debit to Cash and a credit to Wage Expense. 
A) a debit to Wage Expense and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Withdrawals and a credit to Cash. 
D) a debit to Cash and a credit to Wage Expense.

Question 16

A trial balance is a list of the accounts and account numbers.

Accepted Answer

A) True 
 B)False

Question 17

The process of initially recording business transactions in a journal is:

Accepted Answer

A) sliding. 
B) posting. 
C) journalizing. 
D) transposing. 
A) sliding. 
B) posting. 
C) journalizing. 
D) transposing.

Question 18

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

Accepted Answer

A) a collection from a customer was made. 
B) a service was provided to a cash customer. 
C) the company made a purchase on account. 
D) None of these are possible. 
A) a collection from a customer was made. 
B) a service was provided to a cash customer. 
C) the company made a purchase on account. 
D) None of these are possible.

Question 19

The general journal:

Accepted Answer

A) is the book of original entry. 
B) is the book of final entry. 
C) contains account balances. 
D) is completed after the general ledger. 
A) is the book of original entry. 
B) is the book of final entry. 
C) contains account balances. 
D) is completed after the general ledger.

Question 20

The proper format for a journal entry includes all of the following,except:

Accepted Answer

A) the total amounts of debits must equal the total amount of credits. 
B) skip a line between transactions. 
C) the credit portion of the transaction is always first. 
D) listed in chronological order. 
A) the total amounts of debits must equal the total amount of credits. 
B) skip a line between transactions. 
C) the credit portion of the transaction is always first. 
D) listed in chronological order.

Exam 3: Beginning the Accounting Cycle

A credit to an asset account was posted to a revenue account.This would cause:

Insurance paid in advance is a liability.

A journal is called the book of final entry.

The twelve-month period a business chooses for its accounting period is a(n):

If the business records a number as 179 and it should be 197,this error would be called:

Transactions are listed in chronological order in the journal.

How are credits distinguished from debits in the journal?

To correct an error made in the journal (prior to posting in the ledger):

If Cash has been debited,it is likely that:

Which of the following entries would record the payment of a utility bill?

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee.When the employee returns the amount of the overpayment,Plum Hollow should make which of the following entries?

Interim statements are prepared to:

The journal entry to record a withdrawal by the owner would most commonly include:

A trial balance is a list of the accounts and account numbers.

The process of initially recording business transactions in a journal is:

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

The general journal:

The proper format for a journal entry includes all of the following,except:

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters