Question<\/p>\n
1. Of the following account types, which would be increased by a debit?<\/p>\n
a. Liabilities and expenses.<\/p>\n
b. Assets and equity.<\/p>\n
c. Assets and expenses.<\/p>\n
d. Equity and revenues.<\/p>\n
2. The following comments all relate to the recording process. Which of these statements is correct?<\/p>\n
a. The general ledger is a chronological record of transactions.<\/p>\n
b. The general ledger is posted from transactions recorded in the general journal.<\/p>\n
c. The trial balance provides the primary source document for recording transactions into the general journal.<\/p>\n
d. Transposition is the transfer of information from the general journal to the general ledger.<\/p>\n
3. The following comments each relate to the recording of journal entries. Which statement is true?<\/p>\n
a. For any given journal entry, debits must exceed credits.<\/p>\n
b. It is customary to record credits on the left and debits on the right.<\/p>\n
c. The chart of accounts reveals the amount to debit and credit to the affected accounts.<\/p>\n
d. Journalization is the process of converting transactions and events into debit\/credit format.<\/p>\n
4. Failure to record the receipt of a utility bill for services already received will result in:<\/p>\n
a. An overstatement of assets.<\/p>\n
b. An overstatement of liabilities.<\/p>\n
c. An overstatement of equity.<\/p>\n
d. An understatement of assets.<\/p>\n
5. The proper journal entry to record Ransom Company’s billing of clients for $500 of services rendered is:<\/p>\n
a. Cash 500<\/p>\n
Accounts Receivable 500<\/p>\n
b. Accounts Receivable 500<\/p>\n
Capital Stock 500<\/p>\n
c. Accounts Receivable 500<\/p>\n
Service Revenue 500<\/p>\n
d. Cash 500<\/p>\n
Service Revenue 500<\/p>\n
6. The proper journal entry to record $1,000 of Dividends paid by Myer’s Corporation is:<\/p>\n
a. Dividends 1,000<\/p>\n
Cash 1,000<\/p>\n
b. Accounts Payable 1,000<\/p>\n
Cash 1,000<\/p>\n
c. Dividends Expense 1,000<\/p>\n
Cash 1,000<\/p>\n
d. Dividends Expense 1,000<\/p>\n
Service Revenue 1,000<\/p>\n
7. Lynn Lipincott invested land valued at $5,000 in her business. This transaction would be recorded by:<\/p>\n
a. Cash 5,000<\/p>\n
Capital Stock 5,000<\/p>\n
b. Land 5,000<\/p>\n
Capital Stock 5,000<\/p>\n
c. Land 5,000<\/p>\n
Service Revenue 5,000<\/p>\n
d. Capital Stock 5,000<\/p>\n
Land 5,000<\/p>\n
8. The trial balance:<\/p>\n
a. Is a formal financial statement.<\/p>\n
b. Is used to prove that there are no errors in the journal or ledger.<\/p>\n
c. Provides a listing of every account in the chart of accounts.<\/p>\n
d. Provides a listing of the balance of each account in active use.<\/p>\n
9. Which of the following errors will be disclosed in the preparation of a trial balance?<\/p>\n
a. Recording transactions in the wrong account.<\/p>\n
b. Duplication of a transaction in the accounting records.<\/p>\n
c. Posting only the debit portion of a particular journal entry.<\/p>\n
d. Recording the wrong amount for a transaction to both the account debited and the account credited.<\/p>\n
10. The basic sequence in the accounting process can best be described as:<\/p>\n
a. Transaction, journal entry, source document, ledger account, trial balance.<\/p>\n
b. Source document, transaction, ledger account, journal entry, trial balance.<\/p>\n
c. Transaction, source document, journal entry, trial balance, ledger account.<\/p>\n
d. Transaction, source document, journal entry, ledger account, trial balance.<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1. Of the following account types, which would be increased by a debit? a. Liabilities and expenses. b. Assets and equity. c. Assets and expenses. d. Equity and revenues. 2. The following comments all relate to the recording process. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50163","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50163"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50163\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}