Question 1

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.

Question 2

An accountant has debited an asset account for $2,000 and credited a liability account for $1,000.What can be done to complete the recording of the transaction?

Accepted Answer

A)  Nothing further must be done.
B)  Debit a stockholders' equity account for $1,000.
C)  Debit another asset account for $1,000.
D)  Credit a different asset account for $1,000.

Question 3

A compound journal entry requires several debits to one account and several credits to one account.

Accepted Answer

A) True 
 B)False

Question 4

The account titles used in journalizing transactions should be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

Question 5

When two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  balanced entry.
B)  simple entry.
C)  posting.
D)  nominal entry.

Question 6

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Accepted Answer

A) True 
 B)False

Question 7

The standard format of a journal would not include a(n)

Accepted Answer

A)  reference column.
B)  account title column.
C)  T-account.
D)  date column. A

Question 8

On February 1, 2008 Sofia Sedgebush buys a oven for her bed & breakfast and finances this purchase with cash and a note.When journalizing this transaction, she will

Accepted Answer

A)  use two journal entries.
B)  make a compound entry.
C)  make a simple entry.
D)  list the credit entries first, which is proper form for this type of transaction. B

Question 9

A chart of accounts for a business firm

Accepted Answer

A)  is a graph.
B)  indicates the amount of profit or loss for the period.
C)  lists the accounts and account numbers that identify their location in the ledger.
D)  shows the balance of each account in the general ledger.

Question 10

When three or more accounts are required in one journal entry, the entry is referred to as a ________________ entry.

Accepted Answer

The answer of When three or more accounts are required...

Question 11

A general ledger should be arranged in statement order beginning with the balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 12

The usual sequence of steps in the recording process is to

Accepted Answer

A)  analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts.
B)  analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal.
C)  analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal.
D)  analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal.

Question 13

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts.
B)  in two sets of books.
C)  in a journal and in a ledger.
D)  first as a revenue and then as an expense.

Question 14

A journal provides

Accepted Answer

A)  the balances for each account.
B)  information about a transaction in several different places.
C)  a list of all accounts used in the business.
D)  a chronological record of transactions.

Question 15

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account.
B)  what the computer uses to organize bytes of information.
C)  a special account used instead of a trial balance.
D)  used for accounts that have both a debit and credit balance.

Question 16

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance.
B)  a title, a left side, and a debit balance.
C)  a title, a debit side, and a credit side.
D)  a title, a right side, and a debit balance.

Question 17

Which of the following statements is not true?

Accepted Answer

A)  Expenses increase stockholders' equity.
B)  Expenses have normal debit balances.
C)  Expenses decrease stockholders' equity.
D)  Expenses are a negative factor in the calculation of net income.

Question 18

The best interpretation of the word credit is the

Accepted Answer

A)  offset side of an account.
B)  increase side of an account.
C)  right side of an account.
D)  decrease side of an account.

Question 19

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

A)     Assets  Debit Liabilities Credit Common Stock Credit Revenues  Debit Expenses  Credit\begin{array}{llcc}  	ext { Assets  } &	ext { Debit}  \ 	ext {  Liabilities} &	ext {  Credit}\ 	ext { Common Stock } &	ext {Credit} \ 	ext { Revenues  } &	ext { Debit}\ 	ext { Expenses } &	ext {  Credit}\\end{array} Assets  Liabilities Common Stock  Revenues  Expenses ​ Debit CreditCredit Debit Credit​ 
B)  .   Assets  Debit Liabilities Credit Common Stock Credit Revenues Credit Expenses  Credit\begin{array}{llcc}  	ext { Assets  } &	ext { Debit}  \ 	ext {  Liabilities} &	ext {  Credit}\ 	ext { Common Stock } &	ext {Credit} \ 	ext { Revenues  } &	ext {Credit}\ 	ext { Expenses } &	ext {  Credit}\\end{array} Assets  Liabilities Common Stock  Revenues  Expenses ​ Debit CreditCreditCredit Credit​ 
C)    Assets  Credit Liabilities Debit Common Stock Debit Revenues Credit Expenses  Debit\begin{array}{llcc}  	ext { Assets  } &	ext { Credit}  \ 	ext {  Liabilities} &	ext {  Debit}\ 	ext { Common Stock } &	ext {Debit} \ 	ext { Revenues  } &	ext {Credit}\ 	ext { Expenses } &	ext { Debit}\\end{array} Assets  Liabilities Common Stock  Revenues  Expenses ​ Credit DebitDebitCredit Debit​ 
D)    Assets Debit Liabilities Credit  Common Stock Credit Revenues Credit Expenses  Debit\begin{array}{llcc}  	ext { Assets  } &	ext {Debit}  \ 	ext {  Liabilities} &	ext { Credit }\ 	ext { Common Stock } &	ext {Credit} \ 	ext { Revenues  } &	ext {Credit}\ 	ext { Expenses } &	ext { Debit}\\end{array} Assets  Liabilities Common Stock  Revenues  Expenses ​Debit Credit CreditCredit Debit​   C

Exam 3: The Recording Process

Posting

Correct AnswerverifiedShow Answer

An accountant has debited an asset account for $2,000 and credited a liability account for $1,000.What can be done to complete the recording of the transaction?

Correct AnswerverifiedShow Answer

A compound journal entry requires several debits to one account and several credits to one account.

Correct AnswerverifiedShow Answer

The account titles used in journalizing transactions should be identical to the account titles in the ledger.

Correct AnswerverifiedShow Answer

When two accounts are required in one journal entry, the entry is referred to as a

Correct AnswerverifiedShow Answer

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Correct AnswerverifiedShow Answer

The standard format of a journal would not include a(n)

Correct AnswerverifiedA

On February 1, 2008 Sofia Sedgebush buys a oven for her bed & breakfast and finances this purchase with cash and a note.When journalizing this transaction, she will

Correct AnswerverifiedB

A chart of accounts for a business firm

Correct AnswerverifiedShow Answer

When three or more accounts are required in one journal entry, the entry is referred to as a ________________ entry.

Correct AnswerverifiedShow Answer

A general ledger should be arranged in statement order beginning with the balance sheet accounts.

Correct AnswerverifiedShow Answer

The usual sequence of steps in the recording process is to

Correct AnswerverifiedShow Answer

The double-entry system requires that each transaction must be recorded

Correct AnswerverifiedShow Answer

A journal provides

Correct AnswerverifiedShow Answer

A T-account is

Correct AnswerverifiedShow Answer

An account consists of

Correct AnswerverifiedShow Answer

Which of the following statements is not true?

Correct AnswerverifiedShow Answer

The best interpretation of the word credit is the

Correct AnswerverifiedShow Answer

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Correct AnswerverifiedShow Answer

Which of the following correctly identifies normal balances of accounts?

Correct AnswerverifiedC

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C