Question 1

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.

Accepted Answer

The answer of Prepare a corrected trial balance for Luzon...

Question 2

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Question 3

A number in the reference column in a general journal indicates

Accepted Answer

A)   that the entry has been posted to a particular account.
B)   the page number of the journal.
C)   the dollar amount of the transaction.
D)   the date of the transaction.

Question 4

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A)   journal, and transfer the information to the ledger accounts.
B)   ledger, and transfer the information to the journal.
C)   book of accounts, and transfer the information to the journal.
D)   book of original entry, and transfer the information to the journal.

Question 5

An account is a part of the financial information system and is described by all except which one of the following?

Accepted Answer

A)   An account has a debit and credit side.
B)   An account is a source document.
C)   An account may be part of a manual or a computerized accounting system.
D)   An account has a title.

Question 6

The usual sequence of steps in the transaction recording process is:

Accepted Answer

A)   journal  →\rightarrow→  analyze  →\rightarrow→  ledger.
B)   analyze  →\rightarrow→  journal  →\rightarrow→ ledger.
C)   journal  →\rightarrow→ ledger  →\rightarrow→ analyze.
D)   ledger  →\rightarrow→  journal  →\rightarrow→ analyze.

Question 7

A trial balance is a listing of

Accepted Answer

A)   transactions in a journal.
B)   the chart of accounts.
C)   general ledger accounts and balances.
D)   the totals from the journal pages.

Question 8

The standard format of a journal would not include

Accepted Answer

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

Question 9

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Accepted Answer

The answer of A sales slip, a check, and a...

Question 10

An account consists of

Accepted Answer

A)   one part.
B)   two parts.
C)   three parts.
D)   four parts.

Question 11

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Accepted Answer

A)   Nothing further must be done.
B)   Debit an owner's equity account for $500.
C)   Debit another asset account for $500.
D)   Credit a different asset account for $500.

Question 12

At June 1, 2010, Estrada Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $25,000 and collected accounts receivable of $27,000. What is the balance in accounts receivable at June 30, 2008?

Accepted Answer

The balance at the e...

Question 13

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

Question 14

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

Accepted Answer

A)   $500 credit balance.
B)   $800 debit balance.
C)   $400 debit balance.
D)   $400 credit balance.

Question 15

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 16

Which of the following statements is false?

Accepted Answer

A)   Revenues increase owner's equity.
B)   Revenues have normal credit balances.
C)   Revenues are a positive factor in the computation of net income.
D)   Revenues are increased by debits.

Question 17

Assets normally show

Accepted Answer

A)   credit balances.
B)   debit balances.
C)   debit and credit balances.
D)   debit or credit balances.

Question 18

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 19

Glynn Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:  
Instructions
Organize the accounts into the order in which they should appear in the ledger of Glynn Company and assign account numbers. Use the following system to assign account numbers.

Accepted Answer

There are several possible correct accou...

Question 20

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

Exam 2: The Recording Process

An account is a part of the financial information system and is described by all except which one of the following?

Correct Answer
verified

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Correct Answer
verified

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

Correct Answer
verified

A number in the reference column in a general journal indicates

Correct Answer
verified

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Correct Answer
verified

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Posting is the process of proving the equality of debits and credits in the trial balance.

Correct Answer
verified

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Correct Answer
verified

The usual sequence of steps in the transaction recording process is:

Correct Answer
verified

Assets normally show

Correct Answer
verified

Under the double-entry system, revenues must always equal expenses.

Correct Answer
verified

Correct Answer
verified
There are several possible correct accou...
View Answer

An account consists of

Correct Answer
verified

The standard format of a journal would not include

Correct Answer
verified

At June 1, 2010, Estrada Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $25,000 and collected accounts receivable of $27,000. What is the balance in accounts receivable at June 30, 2008?

Correct Answer
verified
The balance at the e...
View Answer

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

Correct Answer
verified

A trial balance is a listing of

Correct Answer
verified

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Correct Answer
verified

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.

Correct Answer
verified

Exam 2: The Recording Process

An account is a part of the financial information system and is described by all except which one of the following?

Correct AnswerverifiedShow Answer

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Correct AnswerverifiedShow Answer

In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a(n)

Correct AnswerverifiedShow Answer

A number in the reference column in a general journal indicates

Correct AnswerverifiedShow Answer

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Correct AnswerverifiedShow Answer

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Posting is the process of proving the equality of debits and credits in the trial balance.

Correct AnswerverifiedShow Answer

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Correct AnswerverifiedShow Answer

The usual sequence of steps in the transaction recording process is:

Correct AnswerverifiedShow Answer

Assets normally show

Correct AnswerverifiedShow Answer

Under the double-entry system, revenues must always equal expenses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere are several possible correct accou...View AnswerShow Answer

An account consists of

Correct AnswerverifiedShow Answer

The standard format of a journal would not include

Correct AnswerverifiedShow Answer

At June 1, 2010, Estrada Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $25,000 and collected accounts receivable of $27,000. What is the balance in accounts receivable at June 30, 2008?

Correct AnswerverifiedThe balance at the e...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A trial balance is a listing of

Correct AnswerverifiedShow Answer

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Correct AnswerverifiedShow Answer

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are several possible correct accou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The balance at the e...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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