38. 39. 40.

The left side of an account is c. the debit side. Which one of the following is not a part of an account? b. Trial balance An account is a part of the financial information system and is described by all except which one of the followi ng? b. An account is a source document. The right side of an account d. is the credit side. An account consists of c. a title, a debit side, and a credit side. A T-account is a. a way of depicting the basic form of an a ccount. A debit to an asset account indicates d. an increase in the asset. The normal balance of any account is the side which increases that account. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. A credit is not the normal balance for which account listed below? d. Drawing account Which one of the following represents the expanded basic accounting equation? b. Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. Which of the following correctly identifies normal balances of accounts? d. Assets Debit Liabilities Credit Owner's Equity Credit Revenues Credit Expenses Debit The best interpretation of the word credit is the c. right side of an account. In recording an accounting transaction in a double -entry system c. the amount of the debits must equal the amount of the credits. An accounting convention is be st described as b. an accounting custom.

41. 42. 43.

44. 45. c. 46. 47. 48.

49.

50. 51. ] 52.

is increased with debits and decreased with credits. Credit a different asset account for $500. 59. debit balances. 66. 58. An awareness of the normal balances of accounts would help you spot which of the following as an error in recording? b. Assets normally show b. An accountant has debited an asset account for $1. Which account below is not a subdivision of owner's equity? d. The drawing account c. Which of the following statements is not true? a. its cash account will show a credit balance. it doesn't have to be cash . A debit is not the normal balance for which account listed below? d. affect two or more accounts. 64. Which of the following statements is true? c. Debit an owner's equity account for $500. A credit balance in an expense account 62.000 and credited a liability account for $500. They can be interpreted to mean increase and decrease. Service Revenue An accountant has debited an asset account for $1. then b. Which of the following is not true of the terms debit and credit? b. . 57. a. 67. 65. 60. it could be another asset. . Credits decrease ass ets and increase liabilities. . Liabilities When an owner makes a withdrawal a. A credit to a liability account a. 56. 54. 55.000 and credited a liability account for $500. indicates an increase in the amount owed to creditors. . For the basic accounting equation to stay in balance. . Which of the following would be an incorrect way to complete the recording of the transaction? d. . 53. each transaction recorded must b. An account will have a cr edit balance if the credits exceed the debits.53. If a company has overdrawn its bank balance. Expenses increase owner's equity. 61. What can be do ne to complete the recording of the transaction? d.

When three or more accounts are required in one journal entry. The recording process occurs c. 82. the entry is referred to as a a. book of original entry.68. The final step in the recording process is to transfer the journal information to the c. In the first month of operations. ledger accounts. repeatedly during the accounting period. Another name for jour nal is b. Evidence that would not help with determining the effects of a transaction on the accounts would be c. journal. analyze each transaction for its effect on the accounts. a chronological record of transactions. as a b. 75. The standard format of a journal would not include c. enter the transaction in the a. evidence that an accounting transaction has taken place is obtained f rom a. 77. The cash account ha s a(n) c. After a business transaction has been analyzed and entered in the book of original entry. the entry is referred to simple entry. 78. 72. an advertising brochure. a T-account. In recording business transactions. 80. . 81. After transaction information ha s been recorded in the journal. The first step in the record ing process is to b. 79. business documents. and transfer the information to the ledger accounts. the next step in the recording process is to transfer the information to c. it is transferred to the d. 70. compound entry. 69. ledger. 74. . 76. A journal provides d. The usual sequence of steps in the transaction recording process is: b. 73. ledger. the total of the debit entries to the cash account amounted to $800 and the total of the credit entries to the cash account amounted to $800. When two accounts are required in one journal entry. $200 debit balance. The usual sequence of steps in the recording process is to analyze each transaction. analyze journal ledger. 71.

. The usual ordering of accounts in the general ledger is a..83.... 2002 Diane Leno buys a copier machine for her business and finances this purchase with cash and a not e................ A number in the reference column in a general journal indicates a.. Which of the following journal entries is recorded correctly and in the standard format? d..... The name given to entering transaction data in the journal is d. drawings.. liabilities.... 87. 96... debit... When journalizing.. 600 Cash .. 400 Advertising Expense .. .. liabilities.. owner's capital... 91............ Wages Expense . preparing financial statements. A three column form of account is so named because it has columns for c..... 94........ 98.. 84... the reference column is a....... . ....... 86... ... An accounting record of the balances of all assets.. debit account entered first at the extreme left margin. that the entry has be en posted to a particular account.... On June 1.. 95. she will b... A chart of accounts for a business firm 1..... ......... journalizing.. left blank.. assets... and expens es Management could determine the amounts due from customers by examining which ledger account? c.. general ledger.. Transactions in a journal are initially recorded in d... The standard form of a journal entry has the c. Accounts Receivable The ledger accounts should be arranged in c.. A journal is not useful for b...... 90.... . credit.......... 89.. and balance. 85. When journalizing this transaction................... 93... revenues..000 92....... financial statement order..... The procedure of transferring journal entries to the ledger accounts is called d... the new balance in the accounts affected by the transaction... and owner's equity accounts is called a c. A complete journal entry does not show b..... posting..... . make a compound entry... chronological order..... 97. 88..... ..

a trial balance. is used infrequently. a trial balance is prepared c. at the end of an accounting period. liabilities.200 cash. Analyzing. process? d. The first step in designing a computerized accounting system is the creation of the d. accumulates the effects of journalized transactions in the individ ual accounts. Which of the following rules is incorrect? b. A trial balance would only help in detecting which one of the following errors? d. and owner's equity items. journalizing. The explanation column of the general ledger c. Which of the following is the correct sequence of steps in the recording s 110. 102. s 109. 99. ] 106. A numbering system for a chart of accounts d. A list of accounts and their balances at a given time is called c. 105. The entry for this transaction will include a d. An account is an individual accounting record of increases and decreases in specific d. A trial balance is a listing of c.c. After journal entries are posted. 104. chart of accounts. If the sum of the debit column equals the sum of the credit column in a trial balance. 107. Posting b. Debits increase the capital account. McClory Company purchases equipment for $900 and supplies for $300 from Rudnicky Co. The following questions are from the Study Guide. . Customarily. of the general ledger will show journal page numbers. debit to Equipment $900 and a debit to Supplies $300 for McClory. 103. posting s 112. the mathematical equality of the accounting equation. 100. general ledger accounts and balanc es. for $1. A transposition error when transferring the debit side of journal entry to the ledger. s 111. assets. the reference column b. 108. lists the accounts and account numbers that identify their location in the ledger. usually starts with balance sheet accounts. it indicates d. 101.

Drawing. and he also bought equipment on credit. On October 3. credit to Accounts Payable. The chart of accounts is a c. Kevin Walsh withdraws $300 cash from his business for personal use. received a cash payment for services previously billed to a client. Mike paid his telephone bill. For the th ree transactions. A trial balance will not balance if d. Mike Baker. a carpenter. at least one of the entries will include a d. Kevin Walsh. a journal entry is only partially posted. . s 116. s 115.s 113. s 114. listing of the accounts and the account numbers which identify their location in the ledger. The entry for this transaction will include a debit of $300 to a.

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