Correct
1.Which of the following statements about an account is true?
In its simplest form, an account consists of two parts.
An account is an individual accounting record of increases and decreases in specific asset,
liability, and equity items.
There are separate accounts for specific assets and liabilities but only one account for equity
items.
The left side of an account is the credit or decrease side.
Correct
2.Debit
increase both assets and liabilities.
decrease both assets and liabilities.
increase assets and decrease liabilities.
decrease assets and increase liabilities.
Correct
3.A revenue account:
is increased by debits.
is decreased by credits.
has a normal balance of a debit.
is increased by credits.
Correct
4.Accounts that normally have debit balances are:
assets, expenses, and revenues.
assets, expenses, and share capital—ordinary.
assets, liabilities, and dividends.
assets, dividends, and expenses.
Correct
5.The expanded accounting equation is:
Assets + Liabilities = Share Capital + Retained Earnings + Dividends + Revenues + Expenses
Assets = Liabilities + Share Capital + Retained Earnings + Dividends + Revenues - Expenses
Assets = Liabilities - Share Capital - Retained Earnings - Dividends - Revenues - Expenses
Assets = Liabilities + Share Capital + Retained Earnings - Dividends + Revenues - Expenses
Incorrect
6.Which of the following is not part of the recording process? b
Analyzing transactions.
Preparing a trial balance.
Entering transactions in a journal.
Posting transactions.
Incorrect
7.Which of the following statements about a journal is false?a
It is not a book of original entry.
It provides a chronological record of transactions.
It helps to locate errors because the debit and credit amounts for each entry can be readily
compared.
It discloses in one place the complete effect of a transaction.
8.When entering a transaction in the journal, should the debit or credit be written
first?
DR
CR
Either DR or CR
Correct
9.The purchase of supplies on account should result in:
a debit to Supplies Expense and a credit to Cash.
a debit to Supplies Expense and a credit to Supplies.
a debit to Supplies and a credit to Accounts Payable.
a debit to Supplies and a credit to Accounts Receivable.
Correct
10.A ledger:
contains only asset and liability accounts.
should show accounts in alphabetical order.
is a collection of the entire group of accounts maintained by a company.
is a book of original entry.
Correct
11.Posting:
normally occurs before journalizing.
transfers ledger transaction data to the journal.
is an optional step in the recording process.
transfers journal entries to ledger accounts
Correct
12.Before posting a payment of €5,000, the Accounts Payable of Senator
Company had a normal balance of€16,000. The balance after posting this
transaction was:
€21,000
€5,000
€11,000
Cannot be determined.
Incorrect
13.A trial balance:
is a list of accounts with their balances at a given time.
proves the mathematical accuracy of journalized transactions
will not balance if a correct journal entry is posted twice.
proves that all transactions have been recorded.
Correct
14.A trial balance will not balance if:
a correct journal entry is posted twice.
the purchase of supplies on account is debited to Supplies and credited to Cash.
a £100 cash dividend is debited to Dividends for £1,000 and credited to Cash for £100.
a £450 payment on account is debited to Accounts Payable for £45 and credited to Cash for £45
Incorrect
15.The trial balance of Clooney Corporation had accounts with the following
normal balances: Cash$5,000, Service Revenue $85,000, Salaries and Wages
Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000,
Share Capital— Ordinary$42,000, Dividends $15,000, and Equipment $61,000. In
preparing a trial balance, the total in the debit column is:
$131,000.
$216,000.
$91,000.
$116,000.
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