Multiple Choice Questions

On January 14, Welsford Agency purchased supplies of $500 on account. The entry to record the purchase will include a debit to
  • on the line following each journal entry
  • Supplies and a credit to Accounts Payable.
  • a $1,000 increase in a different asset
  • transferring journal amounts to ledger accounts
Which of the following is true in journalizing?
  • Credits decrease assets and increase liabilities.
  • transferring journal amounts to ledger accounts
  • Titles of accounts must appropriately describe the content of the account.
  • The debit account is entered first at the extreme left margin.
What is a T-account?
  • Titles of accounts must appropriately describe the content of the account.
  • The title is capitalized to indicate that it is a specific account name.
  • The debit account is entered first at the extreme left margin.
  • the basic form of an account that aligns information in three parts
The first step in transferring journal entry amounts to ledger accounts involves
  • The title is capitalized to indicate that it is a specific account name.
  • analyze the transaction
  • The debit account is entered first at the extreme left margin.
  • entering in the appropriate ledger account the date and debit amount shown in the journal.
Which of the following steps is NOT included in preparing a trial balance?
  • transferring journal amounts to ledger accounts
  • Credits decrease assets and increase liabilities.
  • the purchase of new computers
  • The debit account is entered first at the extreme left margin.
After conducting a financial transaction, a company's accounting staff records a $1,000 decrease in a particular asset. In order for the accounting equation to balance, the accounting staff must also record which of the following things?
  • on the line following each journal entry
  • Credits decrease assets and increase liabilities.
  • Supplies and a credit to Accounts Payable.
  • a $1,000 increase in a different asset
Which of the following statements about credits is true?
  • Titles of accounts must appropriately describe the content of the account.
  • The debit account is entered first at the extreme left margin.
  • transferring journal amounts to ledger accounts
  • Credits decrease assets and increase liabilities.
If the trial balance has total debits unequal to total credits, then
  • it is possible the wrong accounts were used in the journal entry.
  • Titles of accounts must appropriately describe the content of the account.
  • The debit account is entered first at the extreme left margin.
  • The title is capitalized to indicate that it is a specific account name.
What is the usual order of accounts in the general ledger?
  • Credits decrease assets and increase liabilities.
  • on the line following each journal entry
  • assets, liabilities, revenues, and expenses
  • general ledger
Irregular entries represent
  • an unethical misstatement.
  • analyze the transaction
  • in at least two different accounts
  • on the line following each journal entry
Which of the following would be considered an economic event that requires an accounting transaction?
  • The debit account is entered first at the extreme left margin.
  • the purchase of new computers
  • transferring journal amounts to ledger accounts
  • Credits decrease assets and increase liabilities.
When writing the title of an account, how is it formatted? Why?
  • The title is capitalized to indicate that it is a specific account name.
  • on the line following each journal entry
  • Titles of accounts must appropriately describe the content of the account.
  • The debit account is entered first at the extreme left margin.
How must each transaction be recorded in the double-entry system?
  • on the line following each journal entry
  • analyze the transaction
  • the purchase of new computers
  • in at least two different accounts
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Multiple Choice Questions
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