Multiple Choice Questions

-Borrowing money-Buying equipment-Issuing shares of stock
  • Three primary types of the financing activity
  • What all is recorded in the accounting records?
  • A complete journal entry does not show
  • What is the correct sequence of events?
balance sheet only.
  • If a company receives cash from a customer before performing services for the customer, then what will happen?
  • In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
  • Genesis Company buys a $900 machine on credit. This transaction will immediately affect the
  • An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
Decreases assets and decreases liabilities
  • The effect on the basic accounting equation of performing services for cash are to:
  • What is the correct sequence of events?
  • What do debits do?
  • What effects occur when an account payable is paid with cash?
Assets, liabilities, stockholders' equity, revenues, expenses
  • What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
  • What is the appropriate order for a company's chart of accounts?
  • What is the process of transferring entries from the journal to the ledger called?
  • A ledger is a what?
Assets, dividends, and expenses
  • Accounts with normal credit balances include:
  • Which accounts normally have debit balances?
  • Which accounts normally have credit balances?
  • If an account is debited in the journal entry, then:
Liabilities will increase
  • What all is recorded in the accounting records?
  • If cash is received in advance from a customer
  • Accounts with normal credit balances include:
  • What type of account is unearned revenue?
Source document
  • If cash is received in advance from a customer
  • What type of account is unearned revenue?
  • What is the evidence that a transaction has occurred?
  • What is the process of transferring entries from the journal to the ledger called?
-It discloses the complete effect of a transaction in one place.-It provides a chronological record of transactions.-It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
  • What do debits do?
  • what does a journal do?
  • Parts of the complete journal entry
  • A trial balance does what?
Investing activities
  • In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
  • If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
  • An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
  • What transaction is recorded as a result of issuing stock to investors for cash?
is a list of accounts with their balances at a given time.
  • Receipt of an unearned revenue does what?
  • Payment of a dividend does what?
  • A trial balance does what?
  • If an expense is paid with cash
Journal
  • What is the process of transferring entries from the journal to the ledger called?
  • An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
  • Transactions are initially recorded in chronological order in a __________ before they are transferred to the accounts.
  • Where is the first place every transaction is recorded?
collection of the entire group of accounts maintained by a company.
  • What is the appropriate order for a company's chart of accounts?
  • Posting does what?
  • What is the entire group of accounts maintained by a company collectively called?
  • A ledger is a what?
Increase assets and decrease liabilities.
  • Receipt of an unearned revenue does what?
  • What effects occur when an account payable is paid with cash?
  • The effect on the basic accounting equation of performing services for cash are to:
  • What do debits do?
expenses and assets.
  • Accounts with normal credit balances include:
  • Which accounts normally have credit balances?
  • Accounts with normal debit balances include:
  • Retained earnings is decreased by
-A cash investment is made into the business.-Equipment is purchased on account.-The owner withdraws cash for personal use.
  • What type of account is unearned revenue?
  • Parts of the complete journal entry
  • What all is recorded in the accounting records?
  • If cash is received in advance from a customer
Credits
  • A revenue account Is increased by what?
  • A complete journal entry does not show
  • Receipt of an unearned revenue does what?
  • Retained earnings is decreased by
All the asset, liability, stockholders' equity, revenue, and expense accounts
  • State the correct sequence of events
  • What does a general ledger of a company contain?
  • Accounts are listed on the trial balance in what order?
  • What is the entire group of accounts maintained by a company collectively called?
Journalize; post; prepare a trial balance
  • Receipt of an unearned revenue does what?
  • What is the evidence that a transaction has occurred?
  • What effects occur when an account payable is paid with cash?
  • What is the correct sequence of events?
increased $40,000.
  • On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
  • In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
  • Transactions are initially recorded in chronological order in a __________ before they are transferred to the accounts.
  • During 2010, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity:
assets will decrease.
  • If an expense is paid with cash
  • Which accounts normally have debit balances?
  • Retained earnings is decreased by
  • If cash is received in advance from a customer
a $100 cash dividend is debited to Dividends for $1,000 and credited to Cash for $100.
  • Payment of a dividend does what?
  • A trial balance will not balance if
  • Parts of the complete journal entry
  • Parts of the recording process
the order that they appear in the ledger.
  • Which accounts normally have credit balances?
  • What effects occur when an account payable is paid with cash?
  • Where is the first place every transaction is recorded?
  • Accounts are listed on the trial balance in what order?
Expenses
  • Retained earnings is decreased by
  • A revenue account Is increased by what?
  • Receipt of an unearned revenue does what?
  • A trial balance will not balance if
the new balance in the accounts affected by the transaction.
  • A trial balance will not balance if
  • A complete journal entry does not show
  • A trial balance does what?
  • Receipt of an unearned revenue does what?
increases an asset; increases a liability.
  • Receipt of an unearned revenue does what?
  • Accounts with normal credit balances include:
  • Which accounts normally have credit balances?
  • Payment of a dividend does what?
the mathematical equality of the accounting equation.
  • If a company receives cash from a customer before performing services for the customer, then what will happen?
  • In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
  • What transaction is recorded as a result of issuing stock to investors for cash?
  • If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
Analyze a transaction; record it in the journal; post it to the ledger.
  • What is the correct sequence of events?
  • A ledger is a what?
  • What is the appropriate order for a company's chart of accounts?
  • State the correct sequence of events
-Posting transactions-Analyzing transactions-Entering transactions in a journal
  • A trial balance does what?
  • What is the correct sequence of events?
  • Three primary types of the financing activity
  • Parts of the recording process
Liability
  • What is the correct sequence of events?
  • A revenue account Is increased by what?
  • Accounts with normal credit balances include:
  • What type of account is unearned revenue?
Ledger
  • What does a general ledger of a company contain?
  • A ledger is a what?
  • What is the appropriate order for a company's chart of accounts?
  • What is the entire group of accounts maintained by a company collectively called?
individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items.
  • Accounts with normal credit balances include:
  • An account is a part of the financial information system and is described as?
  • What do debits do?
  • An account is an...
Investing
  • If a company receives cash from a customer before performing services for the customer, then what will happen?
  • On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
  • In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
  • What is the process of transferring entries from the journal to the ledger called?
Posting
  • Where is the first place every transaction is recorded?
  • What is the process of transferring entries from the journal to the ledger called?
  • On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
  • What is the evidence that a transaction has occurred?
Assets increase by $5,000, or stockholders' equity decrease by $5,000.
  • If a company receives cash from a customer before performing services for the customer, then what will happen?
  • What all is recorded in the accounting records?
  • What transaction is recorded as a result of issuing stock to investors for cash?
  • What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
assets increase and liabilities increase.
  • If a company receives cash from a customer before performing services for the customer, then what will happen?
  • Genesis Company buys a $900 machine on credit. This transaction will immediately affect the
  • If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
  • What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
-The date of the transaction.-A brief explanation of the transaction.-The accounts and amounts to be debited and credited.
  • A trial balance will not balance if
  • Parts of the complete journal entry
  • What all is recorded in the accounting records?
  • Payment of a dividend does what?
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Multiple Choice Questions
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