Question 1

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts has a normal debit balance?

Accepted Answer

A)  Accounts Payable
B)  Prepaid Rent
C)  Retained Earnings
D)  Common StockE) A) and C)
F) All of the above

Question 3

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 4

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A)  journalizing.
B)  analyzing.
C)  reporting.
D)  posting.E) A) and D)
F) A) and C)

Question 5

When a service has been performed, but no cash has been received, which of the following statements is true?

Accepted Answer

A)  No journal entry is made.
B)  The entry includes a debit to accounts payable.
C)  The entry includes a credit to unearned revenue.
D)  The entry includes a debit to accounts receivable.E) A) and B)
F) None of the above

Question 6

The purpose of the ledger is to

Accepted Answer

A)  record chronologically the day's transactions.
B)  keep a record of documentation to support each transaction.
C)  keep in one place all information about changes in specific account balances.
D)  make sure that all assets, liabilities, etc., have normal balances at all times.E) All of the above
F) C) and D)

Question 7

At September 1, 2017, Kern Enterprises reported a cash balance of $140,000. During the month, Kern collected cash of $60,000 and made disbursements of $100,000. At September 30, 2017, the cash balance is

Accepted Answer

A)  $40,000 credit.
B)  $100,000 credit.
C)  $200,000 debit.
D)  $100,000 debit.E) A) and D)
F) A) and C)

Question 8

Entering transactions into the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 9

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts.
B)  in two sets of books.
C)  in a journal and in a ledger.
D)  first as a revenue and then as an expense.E) None of the above
F) All of the above

Question 10

A revenue account

Accepted Answer

A)  is increased with a debit.
B)  is decreased with a credit.
C)  is increased with a credit.
D)  has a normal balance of a debit.E) A) and B)
F) None of the above

Question 11

Which of the following items has no effect on retained earnings?

Accepted Answer

A)  Expense
B)  Dividends
C)  Land purchase
D)  RevenueE) None of the above
F) All of the above

Question 12

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 13

The receipt of cash in advance from a customer

Accepted Answer

A)  increases assets and stockholders' equity.
B)  increases assets and decreases stockholders' equity.
C)  increases assets and liabilities.
D)  none of these answer choices are correct.E) B) and C)
F) A) and D)

Question 14

The Unearned Service Revenue account is classified as a(n)

Accepted Answer

A)  asset.
B)  revenue.
C)  expense.
D)  liability.E) None of the above
F) C) and D)

Question 15

When a company has performed a service but has not yet received payment, it

Accepted Answer

A)  debits accounts receivable and credits service revenue.
B)  debits revenue from services and credits accounts receivable.
C)  debits revenue from services and credits accounts payable.
D)  makes no entry until the cash is received.E) A) and B)
F) B) and C)

Question 16

A person who wants to determine the balance of a particular account should refer to the

Accepted Answer

A)  ledger.
B)  source document.
C)  chart of accounts.
D)  journal.E) A) and B)
F) All of the above

Question 17

A debit is not the normal balance for which account listed below?

Accepted Answer

A)  Dividends
B)  Cash
C)  Accounts Receivable
D)  Service RevenueE) B) and C)
F) A) and B)

Question 18

In its simplest form, an account consists of all of the following except

Accepted Answer

A)  right (credit)  side.
B)  account title.
C)  left side.
D)  explanation column.E) B) and C)
F) A) and D)

Question 19

A decrease in a liability account is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 20

The best interpretation of the word "credit" is the

Accepted Answer

A)  offset side of an account.
B)  increase side of an account.
C)  right side of an account.
D)  decrease side of an account.E) None of the above
F) All of the above

Exam 3: The Accounting Information System

A decrease in a liability account is recorded by a debit.

Correct AnswerverifiedShow Answer

In its simplest form, an account consists of all of the following except

Correct AnswerverifiedShow Answer

The best interpretation of the word "credit" is the

Correct AnswerverifiedShow Answer

A person who wants to determine the balance of a particular account should refer to the

Correct AnswerverifiedShow Answer

Entering transactions into the journal is called posting.

Correct AnswerverifiedShow Answer

The double-entry system requires that each transaction must be recorded

Correct AnswerverifiedShow Answer

The receipt of cash in advance from a customer

Correct AnswerverifiedShow Answer

The procedure of transferring journal entries to the ledger accounts is called

Correct AnswerverifiedShow Answer

The normal balance of all accounts is a debit.

Correct AnswerverifiedShow Answer

Which of the following items has no effect on retained earnings?

Correct AnswerverifiedShow Answer

When a service has been performed, but no cash has been received, which of the following statements is true?

Correct AnswerverifiedShow Answer

A debit is not the normal balance for which account listed below?

Correct AnswerverifiedShow Answer

The chart of accounts is a special ledger used in accounting systems.

Correct AnswerverifiedShow Answer

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Correct AnswerverifiedShow Answer

At September 1, 2017, Kern Enterprises reported a cash balance of $140,000. During the month, Kern collected cash of $60,000 and made disbursements of $100,000. At September 30, 2017, the cash balance is

Correct AnswerverifiedShow Answer

The purpose of the ledger is to

Correct AnswerverifiedShow Answer

When a company has performed a service but has not yet received payment, it

Correct AnswerverifiedShow Answer

Which of the following accounts has a normal debit balance?

Correct AnswerverifiedShow Answer

A revenue account

Correct AnswerverifiedShow Answer

The Unearned Service Revenue account is classified as a(n)

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified