Question 1

Revenue is traditionally recognized in the accounting records when:

Accepted Answer

A)  cash is received.
B)  services are rendered.
C)  it is incurred.
D)  None of the answers are correct.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Transactions are listed in chronological order in the journal.

Accepted Answer

A) True 
 B)False

Question 5

If Cash has been debited, it is likely that:

Accepted Answer

A)  the owner made an investment.
B)  a charge customer made a payment.
C)  the business borrowed cash from the bank.
D)  All of these are possible.

Question 6

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Accepted Answer

A)  Cash, debit; Wages Expense, credit
B)  Wages Payable, debit; Wages Expense, credit
C)  Wages Expense, debit; Cash, credit
D)  Wages Expense, debit; Wages Payable, credit

Question 7

The journal entry to record an exchange of assets would include:

Accepted Answer

A)  a debit to Cash and a credit to Fees Earned.
B)  a debit to Supplies and a credit to Accounts Payable.
C)  a debit to Cash and a credit to Accounts Receivable.
D)  a debit to Fees Earned and a credit to Accounts Receivable.

Question 8

The first step of the accounting cycle is:

Accepted Answer

A)  recording journal entries.
B)  posting to the ledger.
C)  preparing a trial balance.
D)  analyzing business transactions.

Question 9

Conner Sales' total assets and total liabilities increased $400. The transaction could have been:

Accepted Answer

A)  purchase of supplies for cash, $400.
B)  purchase of supplies for $600 with a down payment of $200 and the remainder on account.
C)  paid the rent for the month, $700.
D)  None of these answers are correct.

Question 10

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)  All of these are possible

Question 11

A credit to a liability account was posted to an owner's equity account. This would cause:

Accepted Answer

A)  assets to be overstated.
B)  liabilities to be understated.
C)  owner's equity to be understated.
D)  net income to be overstated.

Question 12

The proper sequence used in recording a business transaction is:

Accepted Answer

A)  analyze, post, journalize, record the account balance, and complete the reference column in the journal.
B)  analyze, journalize, post, record the account balance, and complete the reference column in the journal.
C)  analyze, journalize, post, complete the reference column in the journal, and record the account balance.
D)  journalize, analyze, post, record the account balance, and complete the reference column in the journal.

Question 13

Describe the difference in information contained in the general journal vs. the general ledger.

Accepted Answer

The general journal provides a listing o...

Question 14

A debit to the Capital account was posted to an expense account. This would cause:

Accepted Answer

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

Question 15

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
(a)Earned $7,000 fees; customer will pay later.
(b)Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c)Paid $3,000 for rent for January.
(d)Purchased $2,500 of supplies on account.
(e)A. Allen $1,000 investment in the company.
(f)Received $7,000 in cash for fees earned previously.
(g)Paid $1,200 to creditors on account.
(h)Paid wages of $6,250.
(i)Received $7,150 from customers on account.
(j)A. Allen withdrawal of $1,750.

Accepted Answer

The answer of Record the following selected transactions for January...

Question 16

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is:

Accepted Answer

A)   
B)   
C)   
D)

Question 17

If Fees Earned has been credited, it is most likely that:

Accepted Answer

A)  services were provided.
B)  the owner made an investment.
C)  a correcting entry for the overstatement of revenue was recorded.
D)  All of these are possible.

Question 18

If you debit Prepaid Insurance, you most likely will:

Accepted Answer

A)  credit Fees Earned.
B)  debit Cash.
C)  credit Insurance Expense.
D)  credit Cash.

Question 19

A debit to the Capital account was posted to a revenue account. This would cause:

Accepted Answer

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

Question 20

BNL completed a performance and collected revenue of $8,000 not previously billed or recorded. The journal entry to record the collection would be:

Accepted Answer

A)   
B)   
C)   
D)

Exam 3: Beginning the Accounting Cycle

Describe the difference in information contained in the general journal vs. the general ledger.

Correct Answer
verified
The general journal provides a listing o...
View Answer

Correct Answer
verified

If Fees Earned has been credited, it is most likely that:

Correct Answer
verified

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

Correct Answer
verified

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Correct Answer
verified

A credit to a liability account was posted to an owner's equity account. This would cause:

Correct Answer
verified

If Cash has been debited, it is likely that:

Correct Answer
verified

Transactions are listed in chronological order in the journal.

Correct Answer
verified

A debit to the Capital account was posted to a revenue account. This would cause:

Correct Answer
verified

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

Correct Answer
verified

Revenue is traditionally recognized in the accounting records when:

Correct Answer
verified

The proper sequence used in recording a business transaction is:

Correct Answer
verified

Conner Sales' total assets and total liabilities increased $400. The transaction could have been:

Correct Answer
verified

If Capital has been credited, it is likely that:

Correct Answer
verified

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is:

Correct Answer
verified

BNL completed a performance and collected revenue of $8,000 not previously billed or recorded. The journal entry to record the collection would be:

Correct Answer
verified

A debit to the Capital account was posted to an expense account. This would cause:

Correct Answer
verified

The first step of the accounting cycle is:

Correct Answer
verified

The journal entry to record an exchange of assets would include:

Correct Answer
verified

If you debit Prepaid Insurance, you most likely will:

Correct Answer
verified

Exam 3: Beginning the Accounting Cycle

Describe the difference in information contained in the general journal vs. the general ledger.

Correct AnswerverifiedThe general journal provides a listing o...View AnswerShow Answer

Correct AnswerverifiedShow Answer

If Fees Earned has been credited, it is most likely that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Correct AnswerverifiedShow Answer

A credit to a liability account was posted to an owner's equity account. This would cause:

Correct AnswerverifiedShow Answer

If Cash has been debited, it is likely that:

Correct AnswerverifiedShow Answer

Transactions are listed in chronological order in the journal.

Correct AnswerverifiedShow Answer

A debit to the Capital account was posted to a revenue account. This would cause:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue is traditionally recognized in the accounting records when:

Correct AnswerverifiedShow Answer

The proper sequence used in recording a business transaction is:

Correct AnswerverifiedShow Answer

Conner Sales' total assets and total liabilities increased $400. The transaction could have been:

Correct AnswerverifiedShow Answer

If Capital has been credited, it is likely that:

Correct AnswerverifiedShow Answer

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is:

Correct AnswerverifiedShow Answer

BNL completed a performance and collected revenue of $8,000 not previously billed or recorded. The journal entry to record the collection would be:

Correct AnswerverifiedShow Answer

A debit to the Capital account was posted to an expense account. This would cause:

Correct AnswerverifiedShow Answer

The first step of the accounting cycle is:

Correct AnswerverifiedShow Answer

The journal entry to record an exchange of assets would include:

Correct AnswerverifiedShow Answer

If you debit Prepaid Insurance, you most likely will:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The general journal provides a listing o...
View 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
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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
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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
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