Recording Process
 
  1. Question: Which of following statements about an account is true?

    A
    In its simple form, an account consists of two parts.

    B
    An account is an individual accounting record of increases and decreases in specific asset, liability and owner's equity items.

    C
    There are separate accounts for specific assets and liabilities but only one account for owner's equity items.

    D
    The left side of an account is the credit or decrease side.

    Note: Not available
    1. Report
  2. Question: Debits:

    A
    Increase both assets and liabilities.

    B
    Decrease both assets and liabilities.

    C
    Increase assets and decrease liabilities.

    D
    Decrease assets and increase liabilities.

    Note: Not available
    1. Report
  3. Question: A revenue account:

    A
    is increased by debits

    B
    is decrease by credits.

    C
    has a normal balance of a debit.

    D
    is increased by credits.

    Note: Not available
    1. Report
  4. Question: Accounts that normally have debit balance are:

    A
    Assets, expense and revenues.

    B
    Assets, expense and owner's capital.

    C
    Assets, liabilities and owner's drawings.

    D
    Assets, owner's drawing and expenses.

    Note: Not available
    1. Report
  5. Question: Which of the following statement is not part of the recording process?

    A
    Analyzing transactions.

    B
    Preparing a trial balance.

    C
    Entering transactions in a journal.

    D
    Posting transaction.

    Note: Not available
    1. Report
  6. Question: Which of the following statement about a journal is false?

    A
    It is not a book of original entry.

    B
    It provides a chronological record of transaction.

    C
    It helps to locate errors because the debit and credit amounts for each entry can be readily compared.

    D
    It discloses in one place the complete effect of a transaction.

    Note: Not available
    1. Report
  7. Question: A ledger:

    A
    contains only asset and liability accounts;

    B
    should show accounts in alphabetical order.

    C
    is a collection of the entire group of accounts maintained by a company.

    D
    is a book of original entry.

    Note: Not available
    1. Report
  8. Question: Posting:

    A
    normally occurs before journalizing.

    B
    transfer ledger transaction data to the journal.

    C
    is an optional step in the recording process.

    D
    transfers journal entries to ledger accounts.

    Note: Not available
    1. Report
  9. Question: A trial balance:

    A
    is a list of accounts with their balances at a given time.

    B
    proves the mathematical accuracy of journalized transactions.

    C
    will not balance if a correct journal entry is posted twice.

    D
    proves that all transaction have been recorded.

    Note: Not available
    1. Report
  10. Question: A trial balance will not balance if:

    A
    a correct journal entry is posted twice.

    B
    the purchase of supplies on account is debited to supplies and credited to cash.

    C
    a $100 cash drawing by the owner is debited to owner's drawing for $1000 and credited to cash for $100.

    D
    a $450 payment on account is debited to accounts payable for $45 and credited to cash for $45.

    Note: Not available
    1. Report
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