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Ch 2 [Www.jamaa Bzu.com]

Ch 2 [Www.jamaa Bzu.com]

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Published by Bayan Sharif

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Published by: Bayan Sharif on Oct 04, 2010
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38.The left side of an account is
c.the debit side.
39.Which one of the following is not a part of an account?
b.Trial balance
40.An account is a part of the financial information system and is described by allexcept which one of the following?
b.An account is a source document.
41.The right side of an account
d.is the credit side.
42.An account consists o
c.a title, a debit side, and a credit side.
43.A T-account is
a.a way of depicting the basic form of an account.
44.A debit to an asset account indicates
d.an increase in the asset.
45.The normal balance of any account is the
c.side which increases that account.
 46.The double-entry system requires that each transaction must be recorded
a.in at least two different accounts.
47.A credit is not the normal balance for which account listed below?
d.Drawing account
48.Which one of the following represents the expanded basic accountingequation?
b.Assets + Owner's Drawings + Expenses = Liabilities + Owner'sCapital + Revenues.
49.Which of the following correctly identifies normal balances of accounts? 
d.AssetsDebitLiabilitiesCreditOwner's EquityCreditRevenuesCreditExpensesDebit
50.The best interpretation of the word credit is the
c.right side of an account.
51.In recording an accounting transaction in a double-entry system
c.the amount of the debits must equal the amount of the credits.
]52.An accounting convention is best described as
b.an accounting custom.
53.A debit is not the normal balance for which account listed below?
d.Service Revenue
54.An accountant has debited an asset account for $1,000 and credited a liabilityaccount for $500. What can be done to complete the recording of thetransaction?
d.Credit a different asset account for $500.
55.An accountant has debited an asset account for $1,000 and credited a liabilityaccount for $500. Which of the following would be an incorrect way tocomplete the recording of the transaction?
d.Debit an owner's equity account for $500.
56.Which of the following is not true of the terms debit and credit?
b.They can be interpreted to mean increase and decrease.
57.An account will have a credit balance if the
a.credits exceed the debits.
58.For the basic accounting equation to stay in balance, each transactionrecorded must
b.affect two or more accounts.
.59.Which of the following statements is true?
c.Credits decrease assets and increase liabilities.
60.Assets normally show
b.debit balances.
.61.An awareness of the normal balances of accounts would help you spot whichof the following as an error in recording?
b.A credit balance in an expense account
62.If a company has overdrawn its bank balance, then
b.its cash account will show a credit balance.
.53.Which account below is not a subdivision of owner's equity?
64.When an owner makes a withdrawal
a.it doesn't have to be cash, it could be another asset.
.65.The drawing account
c.is increased with debits and decreased with credits.
66.Which of the following statements is not true?
a.Expenses increase owner's equity.
.67.A credit to a liability account
a.indicates an increase in the amount owed to creditors.
68.In the first month of operations, the total of the debit entries to the cashaccount amounted to $800 and the total of the credit entries to the cashaccount amounted to $800. The cash account has a(n)
c.$200 debit balance.
69.The usual sequence of steps in the transaction recording process is:
70.In recording business transactions, evidence that an accounting transactionhas taken place is obtained from
a.business documents.
71.After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to
c.ledger accounts.
72.The first step in the recording process is to
b.analyze each transaction for its effect on the accounts.
.73.Evidence that would not help with determining the effects of a transaction onthe accounts would be
c.an advertising brochure.
74.After transaction information has been recorded in the journal, it is transferredto the
75.The usual sequence of steps in the recording process is to analyze eachtransaction, enter the transaction in the
a.journal, and transfer the information to the ledger accounts.
76.The final step in the recording process is to transfer the journal information tothe
77.The recording process occurs
c.repeatedly during the accounting period.
78.A journal provides
d.a chronological record of transactions.
79.When three or more accounts are required in one journal entry, the entry isreferred to as a
a.compound entry.
80.When two accounts are required in one journal entry, the entry is referred toas a
b.simple entry.
81.Another name for journal is
b.book of original entry.
82.The standard format of a journal would not include
c.a T-account.

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