A NEW ACCOUNT IS OPENED FOR EACH TRANSACTION ENTERED INTO BY A BUSINESS FIRM
(true or false) |
|
FALSE |
| |
THE RECORDING PROCESS BECOMES MORE EFFICIENT & INFORMATIVE IF ALL TRANSACTIONS ARE RECORDED IN ONE ACCOUNT.
(true or false) |
|
FALSE |
| |
WHEN THE VOLUME OF TRANSACTIONS IS LARGE, RECORDING THEM IN TABULAR FORM IS MORE EFFICIENT THAN USING JOURNALS & LEDGERS
(true or false) |
|
FALSE |
| |
AN ACCOUNT IS OFTEN REFERRED TO AS A T-ACCOUNT BECAUSE OF THE WAY IT IS CONSTRUCTED.
(true or false) |
|
TRUE |
| |
A DEBIT TO AN ACCOUTN ALWAYS INDICATES AN INCREASE IN THAT ACCOUNT.
(true or false) |
|
FALSE |
| |
IF A REVENUE ACOUNT IS CREDITED, THE REVENUE ACCOUNT IS INCREASED.
(true or false) |
|
TRUE |
| |
THE NORMAL BALANCE OF ALL ACCOUNT IS DEBT.
(true or false) |
|
FALSE |
| |
DEBIT & CREDIT CAN BE INTERPRETED TO MEAN "BAD" & "GOOD" RESPECTIVELY.
(true or false) |
|
FALSE |
| |
THE DOUBLE-ENTRY SYSTEM OF ACCOUNTING REFERS TO THE PLACEMENT OF A DOUBLE LINE AT THE END OF A COLUMN OF FIGURES. (true or false) |
|
FALSE |
| |
A CREDIT BALANCE IN A LIABILITY ACCOUNT INDICATES THAT AN ERROR IN RECORDING HAS OCCURRED. (true or false) |
|
FALSE |
| |
THE DIVIDENDS ACCT IS A SUBDIVISION OF THE RETAINED EARNINGS ACCT & APPEARS AS AN EXPENSE ON THE INCOME STATEMENT. (true or false) |
|
FALSE |
| |
REVENUE ARE A SUBDIVISION OF STOCKHOLDERS' EQUITY.
(true or false) |
|
TRUE |
| |
UNDER THE DOUBLE-ENTRY SYSTEM, REVENUES MUST ALWAYS EQUAL EXPENSES.
(true or false) |
|
FALSE |
| |
TRANSACTIONS ARE ENTERED IN THE LEDGER FIRST & THEN THEY ARE ANALYZED IN TERMS OF THEIR EFFECT ON THE ACCOUNT.
(true or false) |
|
FALSE |
| |
BUSINESS DOCUMENTS CAN PROVIDE EVIDENCE THAT A TRANSACTION HAS OCCURRED.
(true or false) |
|
TRUE |
| |
EACH TRANSACTION MUST BE ANALYZED IN TERMS OF ITS EFFECT ON THE ACCT BEFORE IT CAN BE RECORDED IN A JOURNAL.
(true or false) |
|
TRUE |
| |
TRANSACTIONS ARE ENTERED IN THE LEDGER ACCT & THEN TRANSFERRED TO JOURNALS.
(true or false) |
|
TRUE |
| |
ALL BUSINESS TRANSACTIONS MUST BE ENTERED FIRT IN THE GENERAL LEDGER.
(true or false) |
|
FALSE |
| |
A SIMPLE JOURNAL ENTRY REQUIRES ONLY ONE DEBIT TO AN ACCOUNT & ONE CREDIT TO AN ACCOUNT. (true or false) |
|
TRUE |
| |
A COMPOUND JOURNAL ENTRY REQUIRES SEVERAL DEBITS TO ONE ACCOUNT & SEVERAL CREDITS TO ONE ACCOUNT. (true or false) |
|
FALSE |
| |
TRANSACTIONS ARE RECORDED IN ALPHABETICAL ORDER IN A JOURNAL. (true or false) |
|
FALSE |
| |
A JOURNAL IS ALSO KNOWN AS A BOOK OF ORIGNAL ENTRIES.
(true or false) |
|
TRUE |
| |
A COMPLETE EFFECT OF A TRANSACTION ON THE ACCOUNTS IS DISCLOSED IN THE JOURNAL.
(true or false) |
|
TRUE |
| |
THE ACCOUNT TITLES USED IN JOURNALIZING TRANSACTIONS NEED NOT BE IDENTICAL TO THE ACCOUNT TITLES IN THE LEDGER.
(true or false) |
|
FALSE |
| |
THE CHART OF ACCOUNTS IS A SPECIAL LEDGER USED IN ACCOUNTING SYSTEMS.
(true or false) |
|
FALSE |
| |
A GENERAL LEDGER SHOULD BE ARRANGED IN STATEMENT ORDER BEGINNING WITH THE BALANCE SHEET ACCOUNTS. (true or false) |
|
TRUE |
| |
THE # & TYPES OF ACCTS USED BY DIFFERENT COMPANYIES ARE THE SAME IF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ARE BEING FOLLOWED BY THE COMPANY |
|
FALSE |
| |
POSTING IS THE PROCESS OF PROVING THE EQUALITY OF DEBITS & CREDITS IN THE TRIAL BALANCE. (true or false) |
|
FALSE |
| |
AFTER A TRANSACTION HAS BEEN POSTED, THE REFERENCE OLUMN IN THE JOURNAL SHOULD NOT BE BLANK. (true or false) |
|
TRUE |
| |
A TRIAL BALANCE DOES NOT PROVE THAT ALL TRANSACTIONS HAVE BEEN RECORDED OR THAT THE LEDGER IS CORRECT. (true or false) |
|
TRUE |
| |
THE LEFT SIDE OF AN ACCOUNT IS? |
|
THE DEBIT SIDE |
| |
WHICH ONE OF THE FOLLOWING IS NOT A PART OF AN ACCOUNT? |
|
TRIAL BALANCE |
| |
AN ACCOUNT IS PART OF THE FINANCIAL INFORMATION SYSTEM & IS DESCRIBED AS WHAT TYPE OF ACCOUNT? |
|
AN ACCOUNT IS A SOURCE DOCUMENT |
| |
THE RIGHT SIDE OF AN ACCOUNT IS? |
|
THE CREDIT SIDE |
| |
AN ACCOUNT CONSISTS OF |
|
A TITLE, A DEBIT SIDE, & A CREDIT SIDE |
| |
A T-ACCOUNT IS |
|
A WAY OF DEPICTING THE BASIC FORM OF AN ACCOUNT. |
| |
A DEBIT TO AN ASSET ACCOUNT INDICATES |
|
AN INCREASE IN THE ASSET |
| |
THE NORMAL BALANCE OF ANY ACCOUNT IS THE |
|
SIDE WHICH INCREASES THAT ACCOUNT |
| |
THE DOUBLE-ENTRY SYSTEMS REQUIRES THAT EACH TRANSACTION MUST BE RECORDED IN... |
|
IN AT LEAST TWO DIFFERENT ACCOUNTS |
| |
WHAT IS THE EXPANDED BASIC ACCOUNTING EQUATION? |
|
ASSET + DIVIDENDS + EXPENSES = LIABILITIES + COMMON STOCK + REVENUE |
| |
IDENTIFY THE NORMAL BALANCE OF ACCOUNTING. |
|
ASSETS -->DEBITS
LIABILITIES --> CREDIT
COMMON STOCK --> CREDIT
REVENUES --> CREDIT
EXPENSES --> DEBIT |
| |
THE BEST INTERPRETATION OF THE WORD CREDIT IS THE |
|
RIGHT SIDE OF AN ACCOUNT |
| |
IN RECORDING AN ACCOUNTING TRANSACTION IN A DOUBLE-ENTRY SYSTEM THE AMOUNT... |
|
OF THE DEBITS MUST EQUAL THE AMOUNT OF THE CREDITS |
| |
AN ACCOUNTING CONVENTION IS BEST DESCRIBED AS |
|
AN ACCOUNTING CUSTOM |
| |
AN ACCOUNTANT HAS DEBITED AN ASSET ACCT FOR $1000 & CREDITED A LIABILITY ACCT FOR $500. WHAT CAN BE DONE TO COMPLETE THE RECORDING |
|
CREDIT A DIFFERENT ASSET ACCOUNT FOR $500 |
| |
AN ACCOUNTANT HAS DEBITED AN ASSET ACCT FOR $1000 & CREDITED A LIABILITY ACCT FOR $500. WHAT WOULD BE AN INCORRECT WAY OF RECORDING TRANSACTION? |
|
DEBIT A STOCKHOLDERS' EQUITY ACCOUNT FOR $500 |
| |
CAN DEBIT & CREDIT BE INTERPRETED TO MEAN INCREASE & DECREASE? (true or false) |
|
FALSE |
| |
AN ACCOUNT WILL HAVE A CREDIT BALANCE IF THE |
|
CREDITS EXCEED THE DEBITS |
| |
FOR THE BASIC ACCOUNTING EQUATION TO STAY IN BALANCE, EACH TRANSACTION RECORDED MUST |
|
AFFECT TWO OR MORE ACCOUNTS |
| |
CREDITS DECREASE ASSETS & INCREASE LIABILITIES (true and false) |
|
TRUE |
| |
ASSETS NORMALLY SHOW |
|
DEBIT BALANCES |
| |
AN AWARENESS OF THE NORMAL BALANCES OF ACCOUNTS WOULD HELP YOU SPOT WHICH ERROR IN RECORDINGS. |
|
A CREDIT BALANCE IN AN EXPENSE ACCOUNT |
| |
IF A COMPANY HAS OVERDRAWN ITS BANK BALANCE, THEN |
|
ITS CASH ACCOUNT WILL SHOW A CREDIT BALANCE |
| |
WHAT ACCOUNT IS NOT A STOCKHOLDERS' EQUITY? |
|
LIABILITIES |
| |
WHEN A CORPORATION DISTRIBUTES A DIVIDEND... |
|
IT DOESN'T HAVE TO BE CASH, IT COULD BE ANOTHER ASSET |
| |
EXPLAIN HOW DIVIDENEDS INCREASES OR DECREASES WITH DEBIT & CREDIT |
|
INCREASED WITH DEBITS AND DECREASED WITH CREDITS. |
| |
EXPENSES INCREASES STOCKHOLDERS' EQUTY (true or false) |
|
FALSE |
| |
A CREDIT TO A LIABILITY ACCOUNT |
|
INDICATES AN INCREASE IN THE AMOUNT OWED TO CREDITORS |
| |
1ST MONTH OF OPERATIONS, TOTAL DEBIT ENTRIES TO CASH ACCT AMOUNT TO $800 TOTAL CREDIT ENTRIES TO CASH AMOUNT TO$600. CASH ACCT HAS A... |
|
$200 DEBIT BALANCE |
| |
THE USUAL SEQUENCE OF STEPS IN THE TRANSACTION RECORDING PROCESS IS. |
|
ANALYZE --> JOURNAL --> LEDGER |
| |
IN RECORDING BUSINESS TRANSACTIONS, EVIDENCE THAT AN ACCOUNTING TRANSACTION HAS TAKEN PLACE IS OBTAINED FROM |
|
BUSINESS DOCUMENTS |
| |
AFTER A BUSINESS TRANSACTIONS HAS BEEN ANALYZED & ENTERED IN THE BOOK OF ORIGINAL ENTRY, THE NEXT STEP IN RECORDING PROCESS IS... |
|
LEDGER ACCOUNTS |
| |
THE FIRST STEP IN THE RECORDING PROCESS IS TO |
|
ANALYZE THE TRANSACTION IN TERMS OF ITS EFFECT ON THE ACCOUNT |
| |
EVIDENCE THAT WOULD NOT HELP WITH DETERMING THE EFFECTS OF A TRANSACTION ON THE ACCOUNT WOULD BE... |
|
AN ADVERTISING BROCHURE |
| |
AFTER TRANSACTION INFORMATION HAS BEEN RECORDED IN THE JOURNAL, IT IS TRANSFERRED TO THE |
|
LEDGER |
| |
THE USUAL SEQUENCE OF STEPS IN THE RECORDING PROCESS IS TO |
|
ANALYZE EACH TRANSACTION, ENTER THE TRANSACTION IN THE JOURNAL, & TRANSFER THE INFORMATION TO THE LEDGER ACCOUNTS. |
| |
THE FINAL STEP IN THE RECORDING PROCESS IS TO TRANSFER THE JOURNAL INFORMATION TO THE |
|
LEDGER |
| |
THE RECORDING PROCESS OCCURS |
|
REPEATEDLY DURING THE ACCOUNTING PERIOD |
| |
A JOURNAL PROVIDES |
|
A CHRONOLOGICAL RECORD OF TRANSACTIONS |
| |
WHEN THREE OR MORE ACCOUNTS ARE REQUIRED IN ONE JOURNAL ENTRY, THE ENTRY IS REFERRED TO AS A |
|
COMPOUND ENTRY |
| |
WHEN TWO ACCOUNTS ARE REQUIRED IN ONE JOURNAL ENTRY, THE ENTRY IS REFERRED TO AS A |
|
SIMPLE ENTRY |
| |
ANOTHER NAME FOR JOURNAL IS |
|
BOOK OF ORIGINAL ENTRY |
| |
THE STANDARD FORMAT OF A JOURNAL WOULD NOT INCLUDE |
|
A T-ACCOUNT |
| |
TRANSACTIONS IN A JOURNAL ARE INITIALLY RECORDED IN |
|
CHRONOLOGICAL ORDER |
| |
A JOURNAL IS NOT USEFUL FOR |
|
PREPARING FINANCIAL STATEMENTS |
| |
A COMPLETE JOURNAL ENTRY DOES NOT SHOW |
|
THE NEW BALANCE IN THE ACCOUNTS AFFECTED BY THE TRANSACTION |
| |
THE NAME GIVEN TO ENTERING TRANSACTION DATA IN THE JOURNAL IS |
|
JOURNALIZING |
| |
THE STANDARD FORM OF A JOURNAL ENTRY HAS THE |
|
DEBIT ACCOUNT ENTERED FIRST AT THE EXTREME LEFT MARGIN |
| |
WHEN JOURNALIZING, THE REFERENCE COLUMN IS |
|
LEFT BLANK |
| |
ON 03/01/03 DONNA BUYS A COPIER FOR HER BUSINESS & FINANCES THIS PURCHASE ON CASH & A NOTE. HOW DO YOU JOURNALIZE |
|
MAKE A COMPOUND ENTRY |
| |
A RECORD OF INCREASES & DECREASES IN SPECIFIC ASSET, LIABILITY, & STOCKHOLDERS' EQUITY ITEMS IS CALLED A |
|
GENERAL LEDGER |
| |
THE USUAL ORDERING OF ACCOUNTS IN THE GENERAL LEDGER IS |
|
ASSETS, LIABILITIES, STOCKHOLDERS' EQUITY, REVENUES, AND EXPENSES |
| |
MANAGEMENT COULD DETERMINE THE AMOUNTS DUE FROM CUSTOMERS BY EXAMING WHICH LEDGER ACCOUNT? |
|
ACCOUNTS RECEIVABLE |
| |
THE LEDGER ACCOUNTS SHOULD BE ARRANGED IN |
|
STATEMENT ORDER |
| |
A THREE COLUMN FORM OF ACCOUNT IS SO NAMED BECAUSE IT HAS COLUMNS FOR |
|
DEBIT, CREDIT AND BALANCE |
| |
THE PROCEDURE OF TRANSFERRING JOURNAL ENTRIES TO THE LEDGER ACCOUNTS IS CALLED |
|
POSTING |
| |
A NUMBER IN THE REFERENCE COLUMN IN A GENERAL JOURNAL INDICATES |
|
THAT THE ENTRY HAS BEEN POSTED TO A PARTICULAR ACCOUNT |
| |
A CHART OF ACCOUNT FOR A BUSINESS FIRM LIST WHAT ACCOUNTS? |
|
LISTS ACCOUNTS & ACCOUNT NUMBERS THAT IDENTIFY THEIR LOCATION IN THE LEDGER |
| |
POSTING |
|
ACCUMULATES THE EFFECTS OF JOURNALIZED TRANSACTIONS IN THE INDIVIDUAL ACCOUNTS |
| |
AFTER JOURNAL ENTRIES ARE POSTED, THE REFERENCE COLUMN WILL SHOW... |
|
OF THE GENERAL LEDGER WILL SHOW JOURNAL PAGE NUMBERS |
| |
THE EXPLANATION COLUMN OF THE GENERAL LEDGER |
|
IS USED INFREQUENTLY |
| |
A NUMBERING SYSTEM FOR A CHART OF ACCOUNTS |
|
USUALLY STARTS WITH BALANCE SHEET ACCOUNTS |
| |
THE FIRST STEP IN DESIGNING A COMPUTERIZED ACCOUNTING SYSTEM IS THE CREATION OF THE |
|
CHART OF ACCOUNTS |
| |
A LIST OF ACCOUNTS & THEIR BALANCES AT A GIVEN TIME IS CALLED |
|
A TRIAL BALANCE |
| |
IF THE SUM OF THE DEBIT COLUMN EQUALS THE SUM OF THE CREID COLUMN IN A TRIAL BALANCE, IT INDICATES |
|
THE MATHEMATICAL EQUALITY OF THE ACCOUNTING EQUATION |
| |
A TRIAL BALANCE IS A LISTING OF |
|
GENERAL LEDGER ACCOUNTS & BALANCES |
| |
CUSTOMARILY, A TRIAL BALANCE IS PREPARED |
|
AT THE END OF AN ACCOUNTING PERIOD |
| |
A TRIAL BALANCE WOULD ONLY HELP IN DETECTING WHAT ERRORS? |
|
A TRANSPOSITION ERROR WHEN TRANSFERRING THE DEBIT SIDE OF JOURNAL ENTRY TO THE LEDGER. |
| |
THE WORK SHEET IS A TYPE OF |
|
WORKING PAPER |
| |
IN PREPARING CLOSING ENTRIES, WHAT COLUMN OF THE WORKSHEET IS MOST HELPFUL |
|
THE INCOME STATEMENT COLUMNS |
| |
THE PROPER SEQUENCE FOR THE ACCOUNT CYCLE IS |
|
ANALYZE, JOURNALIZE, POST, ADJUST, PREPARE STATEMENTS, CLOSE. |
| |
AFTER ALL THE CLOSING ENTRIES HAVE BEEN POSTED, THE BALANCE OF THE INCOME SUMMARY ACCOUNT WILL BE |
|
ZERO |
| |
THE POST-CLOSING TRIAL BALANCE WILL |
|
CONTAIN ONLY BALANCE SHEET ACCOUNTS |
| |
AN IMPORTANT PURPOSE OF CLOSING ENTRIES IS TO SET PERMANENT ACCOUNT BALANCES TO ZERO IN ORDER TO BEGIN THE NEXT PERIOD (T/F) |
|
FALSE |
| |
THE PREPARATION OF REVERSING ENTRIES IS A REQUIRED STEP IN THE ACCOUNTING CYCLE (T/F) |
|
FALSE |
| |
A WORK SHEET CAN BE USED AS A BASIS FOR POSTING THE ADJUSTMENTS TO THE LEDGER (T/F) |
|
FALSE |
| |
THE CONTENTS OF THE OWNER'S EQUITY SECTION OF A PROPRIETORSHIP IS THE SAME AS THE CONTENT OF THE OWNER'S EQUITY SECTION OF A CORPORATION |
|
FALSE |
| |
ADJ. ARE JOURNALIZED & POSTED ONLY AT THE ENDING PERIOD, WHEREAS CORRECTING ENTRIES ARE JOURNALIZED & POSTED WHENEVER AN ERROR IS DISCOVERED (T/F) |
|
TRUE |
| |
CURRENT ASSETS ARE RESOURCES THAT CAN BE REALIZED IN CASH, BUT ARE NOT EXPECTED TO BE CONVERTED INTO CASH WITHIN 1 YR OF THE OPERATING CYCLE, WHICHEVER IS LONGER. (T/F) |
|
FALSE |
| |
LONG-TERM LIABILITES SUCH AS BANK NOTES PAYABLE, MORTGAGES PAYABLE, & BONDS PAYABLE ARE EXPECTED TO BE PAID FROM EXISTING CURRENT ASSETS. (T/F) |
|
FALSE |
| |
THE BALANCE OF ACCUMULATED DEPRECIATION WIL APPEAR IN THE CREDIT SIDE OF THE WORK SHEET'S BALANCE SHEET COLUMN (T/F) |
|
TRUE |
| |
THE RELATIONSHIP BETWEEN CURRENT ASSETS & CURRENT LIABILITIES IS IMPORTANT IN EVALUATING A COMPANY'S LIQUIDITY. |
|
TRUE |
| |
INTANGIBLE ASSETS ARE NOT LISTED ON THE BALANCE SHEET BECAUSE THEY DO NOT HAVE PHYSICAL SUBSTANCE |
|
FALSE |
| |