1.

After journal entries are posted, the reference column

a. of the general ledger will show journal page numbers
b. of the general ledger will show account numbers
c. of the general journal will be blank
d. of the general journal will show "Dr" or "Cr"
2. Able Company pays its employees twice a month, on the 7th and the 21st.
On June 21, Able Company paid employee salaries of $4,000. This
transaction would
a. be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to
Salaries Expense
b. decrease net income for the month by $4,000
c. decrease the balance in Salaries Expense by $4,000
d. increase owner’s equity by $4,000
3. A company which sells and services medical insurance policies received
one payment of $14,000 cash from a customer for insurance coverage for
the next two years. Recording the receipt of this cash when it is received
will require which of the following?
a. An asset to be debited, a liability to be credited
b. An asset to be debited, capital to be credited
c. A liability to be debited, an asset to be credited
d. Withdrawals to be debited, an asset to be credited
4. Grayton Industries purchased supplies for $1,000. They paid $500 in cash
and agreed to pay the balance in 30 days. The journal entry to record this
transaction would include a debit to an asset account for $1,000, a credit
to a liability account for $500. Which of the following would be the
correct way to complete the recording of the transaction?
a. Credit another asset account for $500
b. Credit the Grayton, Capital account for $500
c. Debit the Grayton, Capital account for $500
d. Credit another liability account for $500
5. A chart of accounts usually starts with
a. liability accounts
b. expense accounts
c. revenue accounts
d. asset accounts
6. On March 1, 2011, a company collects a $500 deposit from a customer
for the installation of a home-theater system. The installation is scheduled
for May 5, 2011. How should the company record this entry on March 1,
2011?
a. The Cash account is credited for $500
b. The Unearned Sales Revenue account is debited for $500
c. The Sales Revenue account is credited for $500
d. The Unearned Sales Revenue account is credited for $500
7. Which of the following is incorrect regarding a trial balance?
a. A trial balance uncovers errors in journalizing and posting
b. It proves that the company has recorded all transactions
c. It proves that the debits equal the credits after posting
d. A trial balance is useful in the preparation of financial statements
8. Which of the following statements is true?
a. Debit entries are entries involving the right-hand side on an account
b. Revenue accounts are increased by debit entries
c. Journalizing entries occurs after posting entries
d. An account shows increases and decreases and an account balance
9. Meenen Company purchases equipment for $1,200 and supplies for $400
from Sanders Co. for $1,600 cash. The entry for this transaction will
include a
a. credit to Cash for Sanders
b. debit to Equipment $1,200 and a debit to Supplies Expense $400 for
Sanders
c. debit to Equipment $1,200 and a debit to Supplies $400 for Meenen
d. credit to Accounts Payable for Meenen
10.The usual sequence of steps in the transaction recording process is
a. ledger → journal → analyze
b. journal → analyze → ledger
c. analyze → journal → ledger
d. journal → ledger → analyze
11. In the first month of operations, the total of the debit entries to the cash
account amounted to $900 and the total of the credit entries to the cash
account amounted to $500. The cash account has a
a. $800 debit balance
b. $500 credit balance
c. $400 debit balance
d. $400 credit balance
12. Amelia Company received its telephone bill on February 15, 2011 in the
amount of $325. This bill covered the period from January 1, 2011
through January 31, 2011. Amelia paid this bill immediately. The
company uses a calendar year accounting period and prepares its financial
statements only once a year at the end of the year. The general journal
entry to record this transaction includes:
a. A debit to the Telephone Expense account for $325
b. A credit to Accounts Payable for $325
c. A debit to the Cash account for $325
d. A credit to the Telephone Expense account for $325
13.Which of the following statements is false?
a. Revenues are a positive factor in the computation of net income
b. Revenues increase owner's equity
c. Revenues have normal credit balances
d. Revenues are increased by debits
14. The procedure of transferring journal entries to the ledger accounts is
called
a. reporting
b. posting
c. analyzing
d. journalizing
15. Posting of journal entries should be done in
a. dollar amount order
b. chronological order
c. account number order
d. alphabetical order
1A B A A D D B D
9C C C A D B B