Question 1
Which entry would record the payment of a utility bill?
A. Debit Utilities Expense; credit Cash
B. Debit Cash; credit Utilities Expense
C. Debit Utilities Expense; credit Accounts Payable
D. Debit Accounts Receivable; credit Utilities Expense
Question 2
A business incurred an expense and paid it immediately. To record this transaction,
A. an expense is debited, and a liability is credited.
B. an expense is debited, and an asset is credited.
C. an expense is debited, and Capital is credited.
D. None of the above
Question 3
The purpose of posting is to
A. list the transactions in chronological order in the journal.
B. provide an explanation of the transaction.
C. update the account balances in the ledger.
D. correct a previous entry.
Question 4
The general journal
A. is the book of original entry.
B. is the book of final entry.
C. contains account balances.
D. is completed after the general ledger.
Question 5
The first step of the accounting cycle is to
A. record journal entries.
B. post to the ledger.
C. prepare a trial balance.
D. analyze business transactions.
Question 6
A business provided services to a cash customer. To record this transaction,
A. an asset is debited, and a liability is credited.
B. an asset is debited, and a revenue is credited.
C. an expense is debited, and Capital is credited.
D. None of the above
Question 7
Business transactions are first recorded in the
A. ledger.
B. journal.
C. trial balance.
D. balance sheet.
Question 8
Which of the following is not a financial statement?
A. Balance sheet
B. Income statement
C. Statement of owner's equity
D. Trial balance
Question 9
Which entry records the owner's taking cash for personal use?
A. Debit Wage Expense; credit Cash
B. Debit Capital; credit Cash
C. No entry is necessary because the owner owns the cash and the entire business.
D. Debit Withdrawals; credit Cash
Question 10
Posting is performed by transferring information from the journal to the
A. ledger.
B. trial balance.
C. balance sheet.
D. income statement.
Question 11
The posting reference column in the ledger is
A. used to record the journal and page number the transactions originated.
B. used to record the ledger number.
C. used to record the date.
D. not used.
Question 12
An account that would be increased by a debit is
A. cash.
B. fees earned.
C. capital.
D. accounts payable.
Question 13
Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?
|
Cash
|
$1,000
|
|
Equipment
|
500
|
|
Accounts Payable
|
350
|
|
Capital
|
900
|
|
Service Fees
|
1,000
|
|
Salaries Expense
|
750
|
A. $3,250 debit, $3,250 credit
B. $1,125 debit, $1,125 credit
C. $4,500 debit, $4,500 credit
D. $2,250 debit, $2,250 credit
Question 14
The process that begins with recording business transactions and includes the completion of the financial statements is the
A. calendar year.
B. natural business year.
C. fiscal year.
D. accounting cycle.
Question 15
Which of the following groups of accounts have a normal credit balance?
A. Revenue, liabilities, and capital
B. Assets, capital, and withdrawals
C. Liabilities, expenses, and assets
D. Assets, expenses, and withdrawals
Question 16
During the month of January, Katelyn invested $11,000 in starting her legal practice. Which of the following would be the proper journal entry?
A. Cash, debit $11,000; Katelyn's Capital, credit $11,000
B. Accounts Payable, debit $11,000; Cash, credit $11,000
C. Cash, debit $11,000; Revenue, credit $11,000
D. Katelyn's Capital, debit $11,000; Cash, credit $11,000
Question 17
Which error would cause the trial balance to be out of balance?
A. An entry is posted twice.
B. An entry isn't posted at all.
C. A debit is entered as $200, and a credit is entered at $2,000.
D. None of the above
Question 18
Which of the following is prepared first?
A. Balance sheet
B. Income statement
C. Statement of owner's equity
D. Trial balance
Question 19
Revenue is traditionally recognized in the accounting records when
A. cash is received.
B. services are rendered.
C. it's incurred.
D. None of the above
Question 20
A list of all the accounts from the ledger with their ending balances is called a
A. normal balance.
B. trial balance.
C. chart of accounts.
D. footing.