Professional Documents
Culture Documents
40. An account is a part of the financial information system and is described by all
except which one of the following?
b. An account is a source document.
43. A T-account is
a. a way of depicting the basic form of an account.
46. The double-entry system requires that each transaction must be recorded
a. in at least two different accounts.
47. A credit is not the normal balance for which account listed below?
d. Drawing account
48. Which one of the following represents the expanded basic accounting
equation?
b. Assets + Owner's Drawings + Expenses = Liabilities + Owner's
Capital + Revenues.
54. 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?
55. An accountant has debited an asset account for $1,000 and credited a liability
account for $500. Which of the following would be an incorrect way to
complete the recording of the transaction?
56. Which of the following is not true of the terms debit and credit?
b. They can be interpreted to mean increase and decrease.
58. For the basic accounting equation to stay in balance, each transaction
recorded must
b. affect two or more accounts.
.
69. The usual sequence of steps in the transaction recording process is:
b. analyze journal ledger.
71. After a business transaction has been analyzed and entered in the book of
original entry, the next step in the recording process is to transfer the information to
c. ledger accounts.
74. After transaction information has been recorded in the journal, it is transferred
to the
d. ledger.
75. The usual sequence of steps in the recording process is to analyze each
transaction, enter the transaction in the
a. journal, and transfer the information to the ledger accounts.
76. The final step in the recording process is to transfer the journal information to
the
c. ledger.
79. When three or more accounts are required in one journal entry, the entry is
referred to as a
a. compound entry.
80. When two accounts are required in one journal entry, the entry is referred to
as a
b. simple entry.
89. On June 1, 2002 Diane Leno buys a copier machine for her business and
finances this purchase with cash and a note. When journalizing this transaction, she
will
b. make a compound entry.
.
90. Which of the following journal entries is recorded correctly and in the standard
format?
d. Wages Expense ........................................................... 400
Advertising Expense ........................................................ 600
Cash .............................................................................
1,000
91. An accounting record of the balances of all assets, liabilities, and owner's
equity accounts is called a
c. general ledger.
93. Management could determine the amounts due from customers by examining
which ledger account?
c. Accounts Receivable
95. A three column form of account is so named because it has columns for
c. debit, credit, and balance.
96. The procedure of transferring journal entries to the ledger accounts is called
d. posting.
99. Posting
b. accumulates the effects of journalized transactions in the individual
accounts.
s
114. On October 3, Mike Baker, a carpenter, received a cash payment for services
previously billed to a client. Mike paid his telephone bill, and he also bought
equipment on credit. For the three transactions, at least one of the entries will
include a
c. listing of the accounts and the account numbers which identify their
location in the ledger.
s
116. A trial balance will not balance if