Question 1

A calendar year is:

Accepted Answer

A) any 12-month period that a business chooses for its accounting year. 
B) the 12-month period beginning with January. 
C) the period for when a interim financial statement would be completed. 
D) All of these answers are correct. 
A) any 12-month period that a business chooses for its accounting year. 
B) the 12-month period beginning with January. 
C) the period for when a interim financial statement would be completed. 
D) All of these answers are correct.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

A company would review the ledger if an account balance was needed.

Accepted Answer

A) True 
 B)False

Question 4

During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be:

Accepted Answer

A) Cash, debit $11,000; Katelyn's Capital, credit $11,000 
B) Accounts Payable, debit $11,000; Cash, credit $11,000 
C) Cash, debit $11,000; Revenue, credit $11,000 
D) Katelyn's Capital, debit $11,000; Cash, credit $11,000 
A) Cash, debit $11,000; Katelyn's Capital, credit $11,000 
B) Accounts Payable, debit $11,000; Cash, credit $11,000 
C) Cash, debit $11,000; Revenue, credit $11,000 
D) Katelyn's Capital, debit $11,000; Cash, credit $11,000

Question 5

The general ledger:

Accepted Answer

A) is the book of original entry. 
B) is the book of final entry. 
C) lists the transactions in chronological order. 
D) is before the general journal. 
A) is the book of original entry. 
B) is the book of final entry. 
C) lists the transactions in chronological order. 
D) is before the general journal.

Question 6

What are interim financial statements?

Accepted Answer

Interim financial statements are prepare

Question 7

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

Accepted Answer

A) all of the information from the journal was correctly transferred to the ledger. 
B) all accounts have their correct balances in the ledger. 
C) only the ledger is accurate; the journal may be incorrect. 
D) only that the debit dollar amounts equal the credit dollar amounts. 
A) all of the information from the journal was correctly transferred to the ledger. 
B) all accounts have their correct balances in the ledger. 
C) only the ledger is accurate; the journal may be incorrect. 
D) only that the debit dollar amounts equal the credit dollar amounts.

Question 8

Cooper Company began business in June. Prepare the following transactions for June. Omit explanations.
June

Accepted Answer

The answer of Cooper Company began business in June. Prepare...

Question 9

Posting is performed by transferring information from the journal to the:

Accepted Answer

A) ledger. 
B) trial balance. 
C) balance sheet. 
D) income statement. 
A) ledger. 
B) trial balance. 
C) balance sheet. 
D) income statement.

Question 10

Which of the following errors would cause the trial balance to be out of balance?

Accepted Answer

A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000. 
A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000.

Question 11

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 12

If Rent Expense has been debited, it is likely that:

Accepted Answer

A) the rent was paid for three months in advance. 
B) a copy of the lease was received. 
C) this month's rent was paid. 
D) All of these are possible. 
A) the rent was paid for three months in advance. 
B) a copy of the lease was received. 
C) this month's rent was paid. 
D) All of these are possible.

Question 13

If a trial balance is not equal, you should first:

Accepted Answer

A) re-compute the ledger balances. 
B) trace all postings. 
C) re-add the trial balance and calculate the difference. 
D) look for missing transactions. 
A) re-compute the ledger balances. 
B) trace all postings. 
C) re-add the trial balance and calculate the difference. 
D) look for missing transactions.

Question 14

"PR" in the general journal and general ledger stands for:

Accepted Answer

A) per reviewer. 
B) posting reference. 
C) prior receipt. 
D) None of the above are correct. 
A) per reviewer. 
B) posting reference. 
C) prior receipt. 
D) None of the above are correct.

Question 15

When recording a transaction in a journal, the account listed first is always the:

Accepted Answer

A) debit. 
B) credit. 
C) increase. 
D) decrease. 
A) debit. 
B) credit. 
C) increase. 
D) decrease.

Question 16

A slide is evenly divisible by the number 8.

Accepted Answer

A) True 
 B)False

Question 17

Julie, a new employee, is not sure of the effect the following unrelated situations would have on the accuracy of the financial statements. Identify the account(s)that are affected and if the trial balance would balance.
a. Equipment was purchased for $1,000 cash. The debit was recorded properly, but the credit was omitted.
b. A debit to Cash for $250 was posted as $2,500; the credit was posted correctly.
c. A purchase of supplies on account for $50 was posted as a debit to Supplies and a credit to Cash.

Accepted Answer

a. Cash is overstated by $1,000; the deb

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A running balance is maintained in the ledger after each transaction is posted.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) a payment was made on account. 
B) a purchase was made on account. 
C) a correcting entry was made for the overstatement of the purchase of equipment on account. 
D) None of these are possible. 
A) a payment was made on account. 
B) a purchase was made on account. 
C) a correcting entry was made for the overstatement of the purchase of equipment on account. 
D) None of these are possible.

Exam 3: Beginning the Accounting Cycle

A calendar year is:

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

A company would review the ledger if an account balance was needed.

During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be:

The general ledger:

What are interim financial statements?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

Cooper Company began business in June. Prepare the following transactions for June. Omit explanations. June

Posting is performed by transferring information from the journal to the:

Which of the following errors would cause the trial balance to be out of balance?

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

If Rent Expense has been debited, it is likely that:

If a trial balance is not equal, you should first:

"PR" in the general journal and general ledger stands for:

When recording a transaction in a journal, the account listed first is always the:

A slide is evenly divisible by the number 8.

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

A running balance is maintained in the ledger after each transaction is posted.

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

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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