Question 1

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 assets 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 assets first.

Question 2

The trial balance listing is in the same order as the chart of accounts.

Accepted Answer

A) True 
 B)False

Question 3

During the month of October,Ford advertised on the Internet.Ford received the bill for $600 in October,but waited until November to pay the advertising expense.The journal entry to record the payment in November is:

Accepted Answer

A) Accounts Payable debit; Cash credit 
B) Advertising Expense debit; Accounts Payable credit 
C) Advertising Expense debit; Cash credit 
D) The journal entry is not made in November. 
A) Accounts Payable debit; Cash credit 
B) Advertising Expense debit; Accounts Payable credit 
C) Advertising Expense debit; Cash credit 
D) The journal entry is not made in November.

Question 4

A compound journal entry affects more than two accounts in the transaction.

Accepted Answer

A) True 
 B)False

Question 5

Riley's Book Review billed customers $450.The journal entry to record this transaction is:

Accepted Answer

A) Accounts Receivable debit $450; Editing Fees credit $450 
B) Editing Fees debit $450; Riley,Capital credit $450 
C) Accounts Payable debit $450; Editing Fees credit $450 
D) Accounts Payable debit $450; Riley,Capital credit $450 
A) Accounts Receivable debit $450; Editing Fees credit $450 
B) Editing Fees debit $450; Riley,Capital credit $450 
C) Accounts Payable debit $450; Editing Fees credit $450 
D) Accounts Payable debit $450; Riley,Capital credit $450

Question 6

A business's fiscal year that ends at the same time as a slow seasonal period begins is the natural business year.

Accepted Answer

A) True 
 B)False

Question 7

If the trial balance is in balance,it proves that all transactions were properly recorded.

Accepted Answer

A) True 
 B)False

Question 8

A credit to a liability account was posted to an owner's equity account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be understated. 
D) net income to be overstated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be understated. 
D) net income to be overstated.

Question 9

The posting reference column in the journal is used for:

Accepted Answer

A) recording the source documents identification number. 
B) recording the account number to which the entry was posted. 
C) recording the time when the entry was posted. 
D) recording the initials of the person who did the posting. 
A) recording the source documents identification number. 
B) recording the account number to which the entry was posted. 
C) recording the time when the entry was posted. 
D) recording the initials of the person who did the posting.

Question 10

The trial balance:

Accepted Answer

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

Question 11

The process of transferring the data from the journal to the ledger accounts is called posting.

Accepted Answer

A) True 
 B)False

Question 12

Define and discuss a calendar year,accounting period,and fiscal year.

Accepted Answer

A calendar year runs from January 1 to D

Question 13

The debit part of the transaction is recorded first in the journal entry.

Accepted Answer

A) True 
 B)False

Question 14

If you debit Prepaid Insurance,you most likely will:

Accepted Answer

A) credit Fees Earned. 
B) debit Cash. 
C) credit Insurance Expense. 
D) credit Cash. 
A) credit Fees Earned. 
B) debit Cash. 
C) credit Insurance Expense. 
D) credit Cash.

Question 15

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 16

A debit to a liability account was posted to a revenue account.This would cause:

Accepted Answer

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

Question 17

The general journal entry to record the earning of revenue would most commonly include:

Accepted Answer

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

Question 18

The general journal entry to record the purchase of an asset on account would include:

Accepted Answer

A) a debit to Accounts Receivable and a credit to Fees Earned. 
B) a debit to Equipment and a credit to Accounts Payable. 
C) a debit to Accounts Payable and a credit to Equipment. 
D) a debit to Supplies and a credit to Cash. 
A) a debit to Accounts Receivable and a credit to Fees Earned. 
B) a debit to Equipment and a credit to Accounts Payable. 
C) a debit to Accounts Payable and a credit to Equipment. 
D) a debit to Supplies and a credit to Cash.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The general journal entry to record a payment to a creditor would most commonly include:

Accepted Answer

A) a debit to Accounts Payable and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Cash and a credit to Accounts Payable. 
A) a debit to Accounts Payable and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Cash and a credit to Accounts Payable.

Exam 3: Beginning the Accounting Cycle

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

The trial balance listing is in the same order as the chart of accounts.

During the month of October,Ford advertised on the Internet.Ford received the bill for $600 in October,but waited until November to pay the advertising expense.The journal entry to record the payment in November is:

A compound journal entry affects more than two accounts in the transaction.

Riley's Book Review billed customers $450.The journal entry to record this transaction is:

A business's fiscal year that ends at the same time as a slow seasonal period begins is the natural business year.

If the trial balance is in balance,it proves that all transactions were properly recorded.

A credit to a liability account was posted to an owner's equity account.This would cause:

The posting reference column in the journal is used for:

The trial balance:

The process of transferring the data from the journal to the ledger accounts is called posting.

Define and discuss a calendar year,accounting period,and fiscal year.

The debit part of the transaction is recorded first in the journal entry.

If you debit Prepaid Insurance,you most likely will:

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

A debit to a liability account was posted to a revenue account.This would cause:

The general journal entry to record the earning of revenue would most commonly include:

The general journal entry to record the purchase of an asset on account would include:

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

The general journal entry to record a payment to a creditor would most commonly include:

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

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