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| 1 | |
The official list of all the accounts is called the journal. |
| | A) | True |
| | B) | False |
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| 2 | |
The process of recording a transaction in a journal is called journalizing. |
| | A) | True |
| | B) | False |
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| 3 | |
The process of transferring accounts from the book of original entry to the general ledger is called journalizing. |
| | A) | True |
| | B) | False |
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| 4 | |
When journalizing, all debited accounts are listed first before any credited accounts. |
| | A) | True |
| | B) | False |
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| 5 | |
Posting to the General ledger is done at the end of the year. |
| | A) | True |
| | B) | False |
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| 6 | |
The Trial Balance has a debit column and a credit column. |
| | A) | True |
| | B) | False |
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| 7 | |
Another name for the general ledger is the book of original entry. |
| | A) | True |
| | B) | False |
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| 8 | |
In the general journal, all liability accounts and owner's equity accounts must be indented. |
| | A) | True |
| | B) | False |
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| 9 | |
Failure to post an entire transaction will show up in the trial balance. |
| | A) | True |
| | B) | False |
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| 10 | |
The general ledger is a collection of all the accounts and their balances. |
| | A) | True |
| | B) | False |
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| 11 | |
The general journal keeps a running balance of the amount of money in each of the business's accounts. |
| | A) | True |
| | B) | False |
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| 12 | |
An entry that affects three or more accounts is called a compound entry. |
| | A) | True |
| | B) | False |
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| 13 | |
If a business buys supplies for cash, the first account listed in the journal entry will be Cash. |
| | A) | True |
| | B) | False |
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| 14 | |
If a business pays its employees wages for the week, the first account listed in the journal entry will be Wages Expense. |
| | A) | True |
| | B) | False |
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| 15 | |
If a business pays $100 on account, the first account listed in the journal entry will be Cash. |
| | A) | True |
| | B) | False |
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| 16 | |
The proof that the debits and credits in the ledger are equal is called |
| | A) | the trial balance. |
| | B) | the statement of owner's equity. |
| | C) | the income statement. |
| | D) | the journal. |
| | E) | none of these. |
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| 17 | |
In the process of journalizing, the first thing to do is |
| | A) | to record the information from a source document. |
| | B) | to post the information to the ledger accounts. |
| | C) | to prepare a trial balance. |
| | D) | to record the account numbers in the journal. |
| | E) | none of these. |
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| 18 | |
Which of the following is/are not true about a proper journal entry? |
| | A) | All debits are listed before the first credit. |
| | B) | An explanation is needed immediately after each debit and immediately after each credit. |
| | C) | A debit is never indented, even if a liability or owner's equity account is involved. |
| | D) | All credits are indented. |
| | E) | None of these is true. |
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| 19 | |
Which of the following errors will probably show up in the preparation of a trial balance? |
| | A) | failure to post an entire entry in the ledger |
| | B) | posting the debit of a journal entry as a credit and the credit as a debit. |
| | C) | failure to post part of an entry |
| | D) | failure to record an entire entry in the journal |
| | E) | none of these |
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| 20 | |
A cash payment of $640 on account was recorded as a $460 debit to Accounts Payable and a $460 credit to Cash. The necessary correcting entry is |
| | A) | debit Accounts Receivable, $180; credit Cash, $180. |
| | B) | debit Accounts Payable, $180; credit Cash, $180. |
| | C) | debit Cash, $180; credit Accounts Payable, $180. |
| | D) | debit Cash, $180; credit Accounts Receivable, $180. |
| | E) | none of these. |
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| 21 | |
A payment of $260 was received from a charge customer and recorded and posted as $206. The necessary correcting entry is |
| | A) | debit Cash, $54; credit Income from Services, $54. |
| | B) | debit Cash, $54; credit Accounts Receivable, $54. |
| | C) | debit Accounts Receivable, $54; credit Cash, $54. |
| | D) | debit Cash, $54; credit Accounts Payable, $54. |
| | E) | none of these. |
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| 22 | |
A book of original entry is known as |
| | A) | a journal. |
| | B) | a general ledger. |
| | C) | a ledger account. |
| | D) | a trial balance. |
| | E) | none of these. |
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| 23 | |
A person wanting to know the balance of a particular account would refer to |
| | A) | the chart of accounts. |
| | B) | the source document. |
| | C) | the general ledger. |
| | D) | the book of original entry. |
| | E) | none of these. |
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| 24 | |
The process of analyzing a transaction to decide debits and credits, followed by the recording of the transaction in a book of original entry, is called |
| | A) | posting. |
| | B) | balancing the accounts. |
| | C) | footing. |
| | D) | taking a trial balance. |
| | E) | none of these. |
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| 25 | |
In the chart of accounts, if the number of an account is 211, this probably means that the account is |
| | A) | an account in the Revenues section. |
| | B) | an account in the Liabilities section. |
| | C) | an account in the Owner's Equity section. |
| | D) | an account in the Assets section. |
| | E) | none of these. |
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| 26 | |
Which of the following errors, considered individually, would cause the trial balance totals to be unequal? |
| | A) | A payment of $61 for supplies was posted as a debit of $67 to Supplies and a credit of $36 to Cash. |
| | B) | A payment of $472 to a creditor was posted as a debit of $472 to Accounts payable and a debit of $472 to Cash. |
| | C) | Cash received from a customer on account was posted as a debit of $220 to cash and a credit of $22 to Accounts Receivable. |
| | D) | Each of these would cause the totals to be unequal. |
| | E) | None of these would cause the totals to be unequal. |
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| 27 | |
When an entry is posted, the last step in the process is |
| | A) | placing the account number in the Post. Ref. column of the journal. |
| | B) | recording the explanation. |
| | C) | placing the journal page number in the Post. Ref. column of the ledger. |
| | D) | placing the account number in the Post. Ref. column of the ledger. |
| | E) | none of these. |
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| 28 | |
The first step in the posting process is |
| | A) | recording the explanation in the journal. |
| | B) | recording the date in the ledger account. |
| | C) | recording the ledger account number in the journal. |
| | D) | recording the journal page number in the ledger account. |
| | E) | none of these. |
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| 29 | |
In the process of posting from the journal to the ledger, the accountant failed to post a $42 debit to Cash. The effect of this error will be that |
| | A) | the trial balance will not balance. |
| | B) | the total debits in the trial balance will be larger than the total credits. |
| | C) | the Cash account balance will be overstated. |
| | D) | the amounts in the journal will be in error. |
| | E) | none of these will happen. |
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| 30 | |
Which of the following errors, each considered separately, would cause the trial balance totals to be unequal? |
| | A) | A payment of $30 for Miscellaneous Expense was recorded as a debit of $30 to cash and a credit of $30 to Miscellaneous Expense. |
| | B) | A payment of $360 to a creditor was posted as a debit of $360 to Accounts payable and a credit of $36 to Cash. |
| | C) | $482 received from customers on account was posted as a debit of $428 to cash and a credit of $428 to Accounts Receivable. |
| | D) | Each of these would cause the totals to be unequal. |
| | E) | None of these would cause the totals to be unequal. |
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