1. What would be the result of a credit to these accounts?
2. The general journal:
a. pulls all information from the general ledger
b. only contains revenue and expense accounts.
c. is where transactions are recorded.
d. is a collection of all of the accounts maintained by a company.
3. The general ledger:
a. is the first place a transaction is recorded.
b. records economic events as well as accounting transactions.
c. shows the activity in, and balances for, all of the company's accounts.
d. requires adjusting entries in order for total debit balances to equal total credit balances.
4. Which of the following is false?
a. A trial balance is considered to be a financial statement
b. In a trial balance, total debit balances must equal total credit balances
c. A trial balance summarizes in one place all accounts of an entity and their respective balances
d. Preparation of a trial balance is part of the accounting cycle
5. Which of the following would cause a trial balance not to balance?
a. Recording a $350 purchase of supplies on account as a debit to Supplies and a credit to Cash
b. A $425 payment on account is unrecorded
c. A $400 purchase on account is debited to Supplies for $400 and credited to Accounts Payable for $4,000
d. A $500 purchase of supplies on account is credited to Supplies and debited to Accounts Payable
6. Which of the following is not a purpose of the trial balance?
a. To summarize in one place all accounts of an entity and their respective balances
b. To provide a chronological order of a company's transactions
c. To serve as a helpful tool in preparing financial statements
d. To prove that total debit balances equal total credit balances
7. A journal entry does not contain:
a. the date of the transaction.
b. the balance of the accounts involved.
c. an explanation of the transaction.
d. at least two accounts.
8. Incurring $500 in salaries while earning $1,500 of revenue would result in a:
a. $1,500 net increase in net income.
b. $1,000 net increase in net income.
c. $2,000 net increase in net income.
d. none of the above.
9. Which of the following properly demonstrates the flow of information through the accounting system?
a. Journal => Ledger => Trial Balance => Financial Statements
b. Ledger => Journal => Trial Balance => Financial Statements
c. Journal => Trial Balance => Ledger => Financial Statements
d. Trial Balance => Ledger => Journal => Financial Statements

  • CreatedJuly 16, 2015
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