Question 1

The process of initially recording business transactions in a journal is:

Accepted Answer

A)   sliding.
B)   posting.
C)   journalizing.
D)   kiting.

Question 2

Business transactions are first recorded in the:

Accepted Answer

A)   ledger.
B)   journal.
C)   trial balance.
D)   interim statement.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The general journal entry to record a payment to a creditor would most commonly include:

Accepted Answer

A)   a debit to Accounts Payable and a credit to Cash.
B)   a debit to Capital and a credit to Cash.
C)   a debit to Supplies and a credit to Cash.
D)   a debit to Cash and a credit to Accounts Payable.

Question 5

If Capital has been credited, it is likely that:

Accepted Answer

A)   services were provided to a cash customer.
B)   services were provided to a charge customer.
C)   the owner made an investment.
D)   the owner withdrew cash.

Question 6

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.

Question 7

A credit to a Liability account was posted to a Revenue account. This would cause:

Accepted Answer

A)   assets to be overstated.
B)   liabilities to be understated.
C)   capital to be overstated.
D)   revenue to be understated.

Question 8

The debit is indented in a journal entry.

Accepted Answer

A) True 
 B)False

Question 9

Define and discuss a calendar year, accounting period, and fiscal year.

Accepted Answer

A calendar year runs from January 1 to D...

Question 10

The general ledger:

Accepted Answer

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

Question 11

If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error:

Accepted Answer

A)   Failure to record a transaction
B)   Recording the same erroneous amount for both the debit and the credit sides of a transaction
C)   Incorrectly calculating the debit side total of the trial balance
D)   Recording the same transaction more than once

Question 12

The entry to record the payment of office salaries would be:

Accepted Answer

A)   Debit Cash; Credit Salaries Payable
B)   Debit Cash; Credit Salaries Expense
C)   Debit Salaries Expense; Credit Accounts Payable
D)   Debit Salaries Expense; Credit Cash

Question 13

The journal entry to record a withdrawal by the owner would most commonly include:

Accepted Answer

A)   a debit to Wage Expense and a credit to Cash.
B)   a debit to Capital and a credit to Cash.
C)   a debit to Withdrawals and a credit to Cash.
D)   a debit to Cash and a credit to Wage Expense.

Question 14

The process of transferring the data from the journal to the ledger accounts is called posting.

Accepted Answer

A) True 
 B)False

Question 15

When the trial balance includes a debit column total of $10,390 and a credit column total of $10,910, it is probable that:

Accepted Answer

A)   a transposition error occurred.
B)   a $260 debit was recorded twice.
C)   a $260 credit was recorded twice.
D)   a $260 debit was recorded as a credit.

Question 16

A credit to an asset account was posted to a liability account. This would cause:

Accepted Answer

A)   assets to be overstated.
B)   liabilities to be understated.
C)   capital to be overstated.
D)   revenue to be overstated.

Question 17

The twelve-month period a business chooses for its accounting period is a(n) :

Accepted Answer

A)   calendar year.
B)   accounting period.
C)   fiscal year.
D)   accounting cycle.

Question 18

Posting is the process of transferring information from the ledger to the trial balance.

Accepted Answer

A) True 
 B)False

Question 19

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 20

If the business records a number as 971 and it should be 179, this error would be called:

Accepted Answer

A)   a rearrangement.
B)   a slide.
C)   a transposition.
D)   None of the above

Exam 3: Beginning the Accounting Cycle

The entry to record the payment of office salaries would be:

Correct AnswerverifiedShow Answer

Define and discuss a calendar year, accounting period, and fiscal year.

Correct AnswerverifiedA calendar year runs from January 1 to D...View AnswerShow Answer

The general ledger:

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If Capital has been credited, it is likely that:

Correct AnswerverifiedShow Answer

The process of initially recording business transactions in a journal is:

Correct AnswerverifiedShow Answer

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error:

Correct AnswerverifiedShow Answer

The debit is indented in a journal entry.

Correct AnswerverifiedShow Answer

The twelve-month period a business chooses for its accounting period is a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the business records a number as 971 and it should be 179, this error would be called:

Correct AnswerverifiedShow Answer

A credit to an asset account was posted to a liability account. This would cause:

Correct AnswerverifiedShow Answer

When the trial balance includes a debit column total of $10,390 and a credit column total of $10,910, it is probable that:

Correct AnswerverifiedShow Answer

Business transactions are first recorded in the:

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A credit to a Liability account was posted to a Revenue account. This would cause:

Correct AnswerverifiedShow Answer

The journal entry to record a withdrawal by the owner would most commonly include:

Correct AnswerverifiedShow Answer

The general journal entry to record a payment to a creditor would most commonly include:

Correct AnswerverifiedShow Answer

The process of transferring the data from the journal to the ledger accounts is called posting.

Correct AnswerverifiedShow Answer

Posting is the process of transferring information from the ledger to the trial balance.

Correct AnswerverifiedShow Answer

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A calendar year runs from January 1 to D...
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