Need help with the pretest, just answer it and I'll see how the answers came about.

Chapter 4, Mock TEST A Name _________________________ Date _________________________ Section Total Possible A B C D P 4-10A Total 30 30 10 30 25 125 SCORING RECORD Deductions Student Score Section A Directions: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. (2 points for each correct answer) For Answers Scoring 1. The chart of accounts is a list of all accounts used by a business. ____ _____ 2. Almost any document that provides information about a business transaction can be called a journal. ____ _____ 3. After source documents are used to record a transaction, they should be destroyed. _____ ____ 4. A day-by-day listing of the transactions of a business is called a journal. ____ _____ 5. Only entries that affect cash may be recorded directly in the general ledger. ____ _____ 6. Entering the transactions in a journal is called journalizing. ____ _____ 7. A posting reference indicates a journal entry has been posted to the general ledger. _____ ____ 8. The general ledger is used to keep track of the current balance in each account. ____ _____ 9. When every transaction is entered into a journal, it is important to include the month, the day, and the year as part of the entry. ____ _____ 10. When making a journal entry, all debited accounts must be listed before credited accounts are listed. ____ any _____ 11. It is easier to maintain a running balance with a T account than it is with a ledger account. ____ _____ 12. The account number used in the heading of the four-column ledger account is taken from the chart of accounts and is used in the posting process. ____ _____ 13. It is necessary to post journal entries to the general ledger before preparing a trial balance. ____ _____ 14. A trial balance must be prepared weekly. ____ _____ 15. If an incorrect entry has been journalized and posted to the wrong account, you should erase the incorrect information and replace it with the correct information. ____ _____ 4-2 Section B Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement or answers the question. (3 points each) 1. 2. 3. 4. 5. 6. 7. 8. 9. For Answers Scoring The order of the flow of financial data accounting information systems is (A) journalize, post, analyze; (B) analyze, journalize, post; (C) journalize, analyze, post; (D) analyze, post, journalize; (E) analyze, journalize, analyze, post. ____ _____ A chart of accounts doesn't include (A) account balances; (B) liabilities; (C) owner's equity; (D) revenue and expenses; (E) assets. ____ _____ An example of a source document would be (A) a trial balance; (B) cash; (C) an invoice; (D) a general journal; (E) a general ledger. ____ _____ A journal is commonly called (A) an account; (B) a ledger; (C) the book of original entry; (D) the balance sheet; (E) the cross-reference record. ____ _____ The journal entry consists of (A) the owner's name; (B) the accounts to be debited and credited; (C) the difference between the debit and credit amounts; (D) a tax number; (E) the calculation. ____ _____ In the ledger, the month is recorded (A) with every transaction; (B) by the first entry on the page; (C) for the first and last transactions of the month; (D) at year end; (E) on the first page only. ____ _____ In a two-column general journal, the Description column contains (A) a list of all accounts from the chart of accounts; (B) a complete, detailed description of each transaction; (C) an explanation of the posting reference; (D) an analysis of the effect of the transactions on the financial status of the company; (E) none of these. ____ _____ Entries requiring more than one debit and/or more than one credit are called (A) compound entries; (B) dual entries; (C) combination entries; (D) double entries; (E) complex entries. ____ _____ Which if the following is true about source documents? (A) They provide objective evidence of business transactions; (B) They provide verifiable evidence of the accuracy of the accounting records; (C) They should be for possible future reference; (D) They serve as input for transaction All of the statements are true. 10. To find an error on the trial balance, you should (A) redo all of your journal entries; (B) double check your addition; (C) trace all dates; (D) have someone else redo the work; (E) add all of the journal entries. ____ ____ filed analysis; (E) _____ _____ 4-3 Section C Directions: In the two-column general journal page below, each capital letter represents a part of a journal entry. Indicate with the proper letter next to the item in the list below where that part of the journal entry belongs. (1 point each) GENERAL JOURNAL G HI J O P K M N L ____ ____ ____ ____ ____ ____ __G_ ____ ____ ____ 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Explanation Ledger account number of account debited Amount of debit Day of the month Ledger account number of account credited Title of account debited Year Title of account credited Amount of credit Month Section D Esther Chai owns Chai's Accounting Services. She provides accounting services for small businesses and charges her clients consulting fees for the services she performs for them. Esther has a part-time accounting clerk who enters the information into the computerized general ledger. The company's chart of accounts is as follows. The account numbers are not needed for this problem. Assets 100 Cash 120 Accounts Receivable 130 Office Supplies 140 Computer Equipment 145 Computer Software Liabilities 200 Accounts Payable Revenue 400 Consulting Fees Expenses 510 Wages Expense 520 Rent Expense 530 Utilities Expense Owner's Equity 300 E. Chai, Capital 310 E. Chai, Drawing Directions: Enter the following transactions in the general journal provided on the next page. (30 points total) March 1 Because the company's cash was getting low, Esther Chai invested $4,500 additional cash in her business. 6 Purchased office supplies on account, $750. 7 Paid office rent for the month, $900. 14 Completed consulting work for a client, who agreed to pay the $2,750 fee by the end of the month. 4-4 March 17 20 23 28 30 31 Purchased new computer software, $825. Paid wages to the accounting clerk for part-time work, $700. Paid utilities for the month, $180. Owner withdrew cash for personal use, $200. Received cash for consulting fees recorded on March 14, $2,750. Purchased a new computer for $400 cash and $600 on account. GENERAL JOURNAL DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 DESCRIPTION POST REF DEBIT CREDIT