Question 1

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A)  A transaction that is not journalized
B)  A journal entry that is posted twice
C)  Offsetting errors made in recording the transaction
D)  A transposition error when transferring the debit side of journal entry to the ledger

Question 2

Which one of the following represents the expanded basic accounting equation?

Accepted Answer

A)  Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses
B)  Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues
C)  Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses
D)  Assets = Revenues + Expenses - Liabilities

Question 3

Source documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account.
B)  a special account used instead of a journal.
C)  a special account used instead of a trial balance.
D)  used for accounts that have both a debit and credit balance.

Question 6

Which one of the following is not a part of an account?

Accepted Answer

A)  Credit side
B)  Trial balance
C)  Debit side
D)  Title

Question 7

In the first month of operations, the total of the debit entries to the Cash account amounted to $3,000 and the total of the credit entries to the Cash account amounted to $1,800. The Cash account has a

Accepted Answer

A)  $1,800 credit balance.
B)  $3,000 debit balance.
C)  $1,200 debit balance.
D)  $1,800 credit balance

Question 8

In recording an accounting transaction in a double-entry system

Accepted Answer

A)  the number of debit accounts must equal the number of credit accounts.
B)  there must always be entries made on both sides of the accounting equation.
C)  the amount of the debits must equal the amount of the credits.
D)  there must only be two accounts affected by any transaction.

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 in the ledger.
D)  shows the balance of each account in the general ledger.

Question 10

The recording process occurs

Accepted Answer

A)  once a year.
B)  once a month.
C)  repeatedly during the accounting period.
D)  infrequently in a manual accounting system.

Question 11

A revenue account

Accepted Answer

A)  is increased by debits.
B)  is decreased by credits.
C)  has a normal balance of a debit.
D)  is increased by credits.

Question 12

The right side of an account

Accepted Answer

A)  is the correct side.
B)  reflects all transactions for the accounting period.
C)  shows all the balances of the accounts in the system.
D)  is the credit side.

Question 13

The normal balance of the dividend account is a credit.

Accepted Answer

A) True 
 B)False

Question 14

The usual sequence of steps in the transaction recording process is

Accepted Answer

A)  journalize, analyze, post to the ledger.
B)  analyze, journalize, post to the ledger.
C)  journalize, post to the ledger, analyze.
D)  post to the ledger, journalize, analyze.

Question 15

When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions.

Accepted Answer

A) True 
 B)False

Question 16

Prepaid expenses are assets.

Accepted Answer

A) True 
 B)False

Question 17

The first step in the recording process is to

Accepted Answer

A)  prepare financial statements.
B)  analyze the transaction in terms of its effect on the accounts.
C)  post to a journal.
D)  prepare a trial balance.

Question 18

A journal is an accounting record in which transactions are initially recorded.

Accepted Answer

A) True 
 B)False

Question 19

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 20

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

Accepted Answer

A)  assets remained unchanged.
B)  assets increased by $2,500.
C)  equity increased by $2,500
D)  Both assets and equity increased by $2,500.

Exam 3: The Accounting Information System

When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions.

Correct AnswerverifiedShow Answer

The recording process occurs

Correct AnswerverifiedShow Answer

The first step in the recording process is to

Correct AnswerverifiedShow Answer

Which one of the following represents the expanded basic accounting equation?

Correct AnswerverifiedShow Answer

Source documents can provide evidence that a transaction has occurred.

Correct AnswerverifiedShow Answer

A trial balance would only help in detecting which one of the following errors?

Correct AnswerverifiedShow Answer

A T-account is

Correct AnswerverifiedShow Answer

In recording an accounting transaction in a double-entry system

Correct AnswerverifiedShow Answer

Prepaid expenses are assets.

Correct AnswerverifiedShow Answer

If a revenue account is credited, the revenue account is increased.

Correct AnswerverifiedShow Answer

The right side of an account

Correct AnswerverifiedShow Answer

The usual sequence of steps in the transaction recording process is

Correct AnswerverifiedShow Answer

A revenue account

Correct AnswerverifiedShow Answer

In the first month of operations, the total of the debit entries to the Cash account amounted to $3,000 and the total of the credit entries to the Cash account amounted to $1,800. The Cash account has a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

Correct AnswerverifiedShow Answer

A journal is an accounting record in which transactions are initially recorded.

Correct AnswerverifiedShow Answer

The normal balance of the dividend account is a credit.

Correct AnswerverifiedShow Answer

Which one of the following is not a part of an account?

Correct AnswerverifiedShow Answer

A chart of accounts for a business firm

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified