MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) The process that begins with recording business transactions and includes the completion of the financial statements is the

A) natural business years. B) calendar year.

C) fiscal year. D) accounting cycle.

2) Financial statements that are prepared for a period shorter than a year are called

A) interim statements. B) fiscal year statements.

C) accounting period statements. D) journal statements.

3) The first step of the accounting cycle is

A) preparing a trial balance. B) analyzing business transactions.

C) posting to the ledger. D) recording journal entries.

4) "PR" in the general journal and general ledger stands for

A) posting reference. B) prior receipt.

C) per reviewer. D) None of the above are correct.

5) The proper format for a journal entry includes all of the following EXCEPT

A) the credit portion of the transaction is always first.

B) skip a line between transactions.

C) the total amounts of debits must equal the total amount of credits.

D) listed in chronological order.

6) The book of original entry is the:

A) general journal B) general ledger

C) Staples book D) interim reports

7) If an error in a journal entry is detected after posting, you should

A) make a correcting entry. B) erase the incorrect entry.

C) do nothing in hopes it will go away. D) initial where the error was made.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

8) The credit part of the transaction is recorded first in the journal entry. 8) _______

9) The process of transferring the data from the journal to the ledger accounts is called posting. 9) _______

10) A running balance is maintained in the ledger after each transaction is posted. 10) _______

11) Prepaid Rent is an expense 11) ______