logistic_guy
Senior Member
- Joined
- Apr 17, 2024
- Messages
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\(\displaystyle \bold{1.}\) Which of the following statements about an account is true?
\(\displaystyle \bold{(a)}\) The right side of an account is the debit or increase side.
\(\displaystyle \bold{(b)}\) An account is an individual accounting record of increases and decreases in specific asset, liability, and owner’s equity items.
\(\displaystyle \bold{(c)}\) There are separate accounts for specific assets and liabilities but only one account for owner’s equity items.
\(\displaystyle \bold{(d)}\) The left side of an account is the credit or decrease side.
\(\displaystyle \bold{2.}\) Debits:
\(\displaystyle \bold{(a)}\) increase both assets and liabilities.
\(\displaystyle \bold{(b)}\) decrease both assets and liabilities.
\(\displaystyle \bold{(c)}\) increase assets and decrease liabilities.
\(\displaystyle \bold{(d)}\) decrease assets and increase liabilities.
\(\displaystyle \bold{3.}\) A revenue account:
\(\displaystyle \bold{(a)}\) is increased by debits.
\(\displaystyle \bold{(b)}\) is decreased by credits.
\(\displaystyle \bold{(c)}\) has a normal balance of a debit.
\(\displaystyle \bold{(d)}\) is increased by credits.
\(\displaystyle \bold{4.}\) Accounts that normally have debit balances are:
\(\displaystyle \bold{(a)}\) assets, expenses, and revenues.
\(\displaystyle \bold{(b)}\) assets, expenses, and owner’s capital.
\(\displaystyle \bold{(c)}\) assets, liabilities, and owner’s drawings.
\(\displaystyle \bold{(d)}\) assets, owner’s drawings, and expenses.
\(\displaystyle \bold{5.}\) The expanded accounting equation is:
\(\displaystyle \bold{(a)}\) Assets \(\displaystyle +\) Liabilities \(\displaystyle =\) Owner’s Capital \(\displaystyle +\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle +\) Expenses.
\(\displaystyle \bold{(b)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle +\) Owner’s Capital \(\displaystyle +\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{(c)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle -\) Owner’s Capital \(\displaystyle -\) Owner’s Drawings \(\displaystyle -\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{(d)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle +\) Owner’s Capital \(\displaystyle -\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{6.}\) Which of the following is not part of the recording process?
\(\displaystyle \bold{(a)}\) Analyzing transactions.
\(\displaystyle \bold{(b)}\) Preparing a trial balance.
\(\displaystyle \bold{(c)}\) Entering transactions in a journal.
\(\displaystyle \bold{(d)}\) Posting transactions.
\(\displaystyle \bold{7.}\) Which of the following statements about a journal is false?
\(\displaystyle \bold{(a)}\) It is not a book of original entry.
\(\displaystyle \bold{(b)}\) It provides a chronological record of transactions.
\(\displaystyle \bold{(c)}\) It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
\(\displaystyle \bold{(d)}\) It discloses in one place the complete effect of a transaction.
\(\displaystyle \bold{8.}\) The purchase of supplies on account should result in:
\(\displaystyle \bold{(a)}\) a debit to Supplies Expense and a credit to Cash.
\(\displaystyle \bold{(b)}\) a debit to Supplies Expense and a credit to Accounts Payable.
\(\displaystyle \bold{(c)}\) a debit to Supplies and a credit to Accounts Payable.
\(\displaystyle \bold{(d)}\) a debit to Supplies and a credit to Accounts Receivable.
\(\displaystyle \bold{9.}\) The order of the accounts in the ledger is:
\(\displaystyle \bold{(a)}\) assets, revenues, expenses, liabilities, owner’s capital, owner’s drawings.
\(\displaystyle \bold{(b)}\) assets, liabilities, owner’s capital, owner’s drawings, revenues, expenses.
\(\displaystyle \bold{(c)}\) owner’s capital, assets, revenues, expenses, liabilities, owner’s drawings.
\(\displaystyle \bold{(d)}\) revenues, assets, expenses, liabilities, owner’s capital, owner’s drawings.
\(\displaystyle \bold{10.}\) A ledger:
\(\displaystyle \bold{(a)}\) contains only asset and liability accounts.
\(\displaystyle \bold{(b)}\) should show accounts in alphabetical order.
\(\displaystyle \bold{(c)}\) is a collection of the entire group of accounts maintained by a company.
\(\displaystyle \bold{(d)}\) is a book of original entry
\(\displaystyle \bold{11.}\) Posting:
\(\displaystyle \bold{(a)}\) normally occurs before journalizing.
\(\displaystyle \bold{(b)}\) transfers ledger transaction data to the journal.
\(\displaystyle \bold{(c)}\) is an optional step in the recording process.
\(\displaystyle \bold{(d)}\) transfers journal entries to ledger accounts.
\(\displaystyle \bold{12.}\) 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:
\(\displaystyle \bold{(a)}\) $21,000.
\(\displaystyle \bold{(b)}\) $5,000.
\(\displaystyle \bold{(c)}\) $11,000.
\(\displaystyle \bold{(d)}\) Cannot be determined.
\(\displaystyle \bold{13.}\) A trial balance:
\(\displaystyle \bold{(a)}\) is a list of accounts with their balances at a given time.
\(\displaystyle \bold{(b)}\) proves the journalized transactions are correct.
\(\displaystyle \bold{(c)}\) will not balance if a correct journal entry is posted twice.
\(\displaystyle \bold{(d)}\) proves that all transactions have been recorded.
\(\displaystyle \bold{14.}\) A trial balance will not balance if:
\(\displaystyle \bold{(a)}\) a correct journal entry is posted twice.
\(\displaystyle \bold{(b)}\) the purchase of supplies on account is debited to Supplies and credited to Cash.
\(\displaystyle \bold{(c)}\) a $100 cash drawing by the owner is debited to Owner’s Drawings for $1,000 and credited to Cash for $100.
\(\displaystyle \bold{(d)}\) a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.
\(\displaystyle \bold{15.}\) The trial balance of Jeong Company 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, Owner’s Capital $42,000, Owner’s Drawings $15,000, and Equipment $61,000. In preparing a trial balance, the total in the debit column is:
\(\displaystyle \bold{(a)}\) $131,000.
\(\displaystyle \bold{(b)}\) $216,000.
\(\displaystyle \bold{(c)}\) $91,000.
\(\displaystyle \bold{(d)}\) $116,000.
\(\displaystyle \bold{(a)}\) The right side of an account is the debit or increase side.
\(\displaystyle \bold{(b)}\) An account is an individual accounting record of increases and decreases in specific asset, liability, and owner’s equity items.
\(\displaystyle \bold{(c)}\) There are separate accounts for specific assets and liabilities but only one account for owner’s equity items.
\(\displaystyle \bold{(d)}\) The left side of an account is the credit or decrease side.
\(\displaystyle \bold{2.}\) Debits:
\(\displaystyle \bold{(a)}\) increase both assets and liabilities.
\(\displaystyle \bold{(b)}\) decrease both assets and liabilities.
\(\displaystyle \bold{(c)}\) increase assets and decrease liabilities.
\(\displaystyle \bold{(d)}\) decrease assets and increase liabilities.
\(\displaystyle \bold{3.}\) A revenue account:
\(\displaystyle \bold{(a)}\) is increased by debits.
\(\displaystyle \bold{(b)}\) is decreased by credits.
\(\displaystyle \bold{(c)}\) has a normal balance of a debit.
\(\displaystyle \bold{(d)}\) is increased by credits.
\(\displaystyle \bold{4.}\) Accounts that normally have debit balances are:
\(\displaystyle \bold{(a)}\) assets, expenses, and revenues.
\(\displaystyle \bold{(b)}\) assets, expenses, and owner’s capital.
\(\displaystyle \bold{(c)}\) assets, liabilities, and owner’s drawings.
\(\displaystyle \bold{(d)}\) assets, owner’s drawings, and expenses.
\(\displaystyle \bold{5.}\) The expanded accounting equation is:
\(\displaystyle \bold{(a)}\) Assets \(\displaystyle +\) Liabilities \(\displaystyle =\) Owner’s Capital \(\displaystyle +\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle +\) Expenses.
\(\displaystyle \bold{(b)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle +\) Owner’s Capital \(\displaystyle +\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{(c)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle -\) Owner’s Capital \(\displaystyle -\) Owner’s Drawings \(\displaystyle -\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{(d)}\) Assets \(\displaystyle =\) Liabilities \(\displaystyle +\) Owner’s Capital \(\displaystyle -\) Owner’s Drawings \(\displaystyle +\) Revenues \(\displaystyle -\) Expenses.
\(\displaystyle \bold{6.}\) Which of the following is not part of the recording process?
\(\displaystyle \bold{(a)}\) Analyzing transactions.
\(\displaystyle \bold{(b)}\) Preparing a trial balance.
\(\displaystyle \bold{(c)}\) Entering transactions in a journal.
\(\displaystyle \bold{(d)}\) Posting transactions.
\(\displaystyle \bold{7.}\) Which of the following statements about a journal is false?
\(\displaystyle \bold{(a)}\) It is not a book of original entry.
\(\displaystyle \bold{(b)}\) It provides a chronological record of transactions.
\(\displaystyle \bold{(c)}\) It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
\(\displaystyle \bold{(d)}\) It discloses in one place the complete effect of a transaction.
\(\displaystyle \bold{8.}\) The purchase of supplies on account should result in:
\(\displaystyle \bold{(a)}\) a debit to Supplies Expense and a credit to Cash.
\(\displaystyle \bold{(b)}\) a debit to Supplies Expense and a credit to Accounts Payable.
\(\displaystyle \bold{(c)}\) a debit to Supplies and a credit to Accounts Payable.
\(\displaystyle \bold{(d)}\) a debit to Supplies and a credit to Accounts Receivable.
\(\displaystyle \bold{9.}\) The order of the accounts in the ledger is:
\(\displaystyle \bold{(a)}\) assets, revenues, expenses, liabilities, owner’s capital, owner’s drawings.
\(\displaystyle \bold{(b)}\) assets, liabilities, owner’s capital, owner’s drawings, revenues, expenses.
\(\displaystyle \bold{(c)}\) owner’s capital, assets, revenues, expenses, liabilities, owner’s drawings.
\(\displaystyle \bold{(d)}\) revenues, assets, expenses, liabilities, owner’s capital, owner’s drawings.
\(\displaystyle \bold{10.}\) A ledger:
\(\displaystyle \bold{(a)}\) contains only asset and liability accounts.
\(\displaystyle \bold{(b)}\) should show accounts in alphabetical order.
\(\displaystyle \bold{(c)}\) is a collection of the entire group of accounts maintained by a company.
\(\displaystyle \bold{(d)}\) is a book of original entry
\(\displaystyle \bold{11.}\) Posting:
\(\displaystyle \bold{(a)}\) normally occurs before journalizing.
\(\displaystyle \bold{(b)}\) transfers ledger transaction data to the journal.
\(\displaystyle \bold{(c)}\) is an optional step in the recording process.
\(\displaystyle \bold{(d)}\) transfers journal entries to ledger accounts.
\(\displaystyle \bold{12.}\) 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:
\(\displaystyle \bold{(a)}\) $21,000.
\(\displaystyle \bold{(b)}\) $5,000.
\(\displaystyle \bold{(c)}\) $11,000.
\(\displaystyle \bold{(d)}\) Cannot be determined.
\(\displaystyle \bold{13.}\) A trial balance:
\(\displaystyle \bold{(a)}\) is a list of accounts with their balances at a given time.
\(\displaystyle \bold{(b)}\) proves the journalized transactions are correct.
\(\displaystyle \bold{(c)}\) will not balance if a correct journal entry is posted twice.
\(\displaystyle \bold{(d)}\) proves that all transactions have been recorded.
\(\displaystyle \bold{14.}\) A trial balance will not balance if:
\(\displaystyle \bold{(a)}\) a correct journal entry is posted twice.
\(\displaystyle \bold{(b)}\) the purchase of supplies on account is debited to Supplies and credited to Cash.
\(\displaystyle \bold{(c)}\) a $100 cash drawing by the owner is debited to Owner’s Drawings for $1,000 and credited to Cash for $100.
\(\displaystyle \bold{(d)}\) a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.
\(\displaystyle \bold{15.}\) The trial balance of Jeong Company 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, Owner’s Capital $42,000, Owner’s Drawings $15,000, and Equipment $61,000. In preparing a trial balance, the total in the debit column is:
\(\displaystyle \bold{(a)}\) $131,000.
\(\displaystyle \bold{(b)}\) $216,000.
\(\displaystyle \bold{(c)}\) $91,000.
\(\displaystyle \bold{(d)}\) $116,000.
