Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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The recording of debit and credit parts of a transaction is ____.
a. | checking equality | c. | single-entry accounting | b. | double-entry
accounting | d. | transaction
analysis |
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2.
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Preparing source documents for each transaction is an application of the
accounting concept ____.
a. | Business Entity | c. | Objective Evidence | b. | Unit of Measurement | d. | Going Concern |
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3.
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A business form ordering a bank to pay cash from a bank account is a
____.
a. | check | c. | receipt | b. | memorandum | d. | all of the
above |
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4.
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A journal entry includes ____.
a. | the debit part of a transaction recorded under one date and credit part recorded
under a later date | b. | the debit and credit parts of a transaction
recorded in one place | c. | more debits than credits | d. | none of the
above |
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5.
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On each journal page, the year is written ____.
a. | for each entry | c. | only for the first entry | b. | on the first line of
each column | d. | none of the
above |
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6.
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On each journal page, the month is written ____.
a. | for each entry | c. | only for the first entry | b. | on the first line of
each column | d. | none of the
above |
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7.
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The entry to record receipt of cash from the owner as an investment is
____.
a. | debit Capital, credit Cash | c. | debit Cash, credit Accounts
Payable | b. | debit Cash, credit Capital | d. | none of the above |
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8.
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The account debited when cash is paid for supplies is ____.
a. | Supplies | c. | Supplies Expense | b. | Cash | d. | none of the
above |
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9.
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When cash is paid for insurance, ____.
a. | the Prepaid Insurance account is decreased | b. | the Prepaid
Insurance account is credited | c. | the balance of the Prepaid Insurance account is
increased | d. | none of the above |
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10.
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When supplies are bought on account, the account debited is ____.
a. | Cash | c. | Accounts Payable | b. | Supplies | d. | none of the
above |
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11.
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A single line ruled across the journal's amount columns indicates
____.
a. | the date is the last day of the month | b. | the totals have been verified as
correct | c. | a cash sales transaction is to be recorded | d. | none of the
above |
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12.
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At the end of a month, even if the journal page is not filled, ____.
a. | cash is paid to the owner for personal use | b. | cash is paid on
account for a liability | c. | the journal page is proved and
ruled | d. | none of the above |
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13.
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Determining that the amount of cash agrees with the accounting records is
____.
a. | proving a journal | b. | proving that debits equal
credits | c. | forwarding totals to a new journal page | d. | proving
cash |
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14.
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At the end of a month, if the amount of cash is the same as the balance shown on
the next check stub, ____.
a. | the journal is proved | c. | debits equal credits | b. | cash is proved | d. | none of the
above |
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15.
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If an error is recorded in a journal entry, ____.
a. | cancel the error by drawing a neat line through the error | b. | correct the entry by
writing the correct item above the canceled error | c. | do not erase the incorrect
item | d. | all of the above |
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16.
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When cash is paid on account, the amount is recorded in the ____.
a. | Sales Credit column and Cash Debit column | b. | General Debit column
and Cash Credit column | c. | General Credit column and Cash Debit
column | d. | General Debit column and Accounts Payable Debit
column |
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17.
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When cash is paid for utilities, the amount is recorded in the ____.
a. | Cash Credit column and General Debit column | b. | Sales Credit column
and General Debit column | c. | General Credit column and Cash Debit
column | d. | General Credit column and Sales Credit column |
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18.
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When cash is received on account, the amount is recorded in the ____.
a. | Accounts Receivable Debit column and Cash Credit column | b. | Sales Credit column
and Cash Debit column | c. | General Debit column and Cash Credit
column | d. | Cash Debit column and General Credit column |
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19.
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The first digit in the account number 120 means that the account is in the ____
division of the general ledger.
a. | expense | c. | liability | b. | revenue | d. | asset |
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20.
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When accounts are arranged in a general ledger, account numbers are assigned,
and the chart of accounts is kept up to date, the accounting personnel are ____.
a. | posting | c. | journalizing | b. | doing file maintenance | d. | none of the
above |
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21.
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A new account to be added between accounts 530 and 540 will be assigned the
number ____.
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22.
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A business has the following expense accounts: 510, Advertising Expense; 520,
Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The
account number for this new account is ____.
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23.
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The procedure for transferring information from a journal entry to a ledger
account is ____.
a. | posting | c. | file maintenance | b. | journalizing | d. | none of the
above |
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24.
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The first step in the posting procedure is writing ____.
a. | the entry date in the Date column of the account | b. | the journal page
number in the Post. Ref. column of the account | c. | the entry amount in the Debit or Credit column
of the account | d. | none of the above |
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25.
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The last step in the posting procedure is writing ____.
a. | the entry date in the Date column of the account | b. | the journal page
number in the Post. Ref. column of the account | c. | the entry amount in the Debit or Credit column
of the account | d. | none of the above |
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26.
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An account number in the journal's Post. Ref. column shows ____.
a. | the account to which an amount is posted | b. | the date of the
entry | c. | that work on that journal page is completed | d. | none of the
above |
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27.
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Posting references in a journal are ____.
a. | not necessary | b. | the first item recorded when
posting | c. | always placed in an account's Post. Ref. column | d. | none of the
above |
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28.
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If posting is interrupted, the accounting personnel know to resume posting
____.
a. | on the line with a blank Post. Ref. column in the journal | b. | at the beginning of
the journal page | c. | the next day | d. | all of the
above |
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29.
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Separate amounts in the General Debit and General Credit amount columns of a
journal are ____.
a. | rounded to the nearest dollar | c. | posted
infrequently | b. | posted individually | d. | none of the above |
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30.
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Check marks are placed in parentheses below the General Debit and Credit column
totals to show that ____.
a. | posting of the totals has been completed | b. | the totals are not
posted | c. | the column totals are equal | d. | all of the
above |
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31.
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If all separate amounts on a journal line are recorded in special amount
columns, ____.
a. | all amounts are posted individually | b. | only one of the amounts is posted
individually | c. | neither amount is posted individually | d. | all of the
above |
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32.
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Separate amounts in the Sales Credit column of a journal are ____.
a. | rounded to the nearest dollar | c. | posted
frequently | b. | posted individually | d. | none of the above |
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33.
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Separate amounts in the Cash Debit column of a journal are ____.
a. | posted frequently | c. | sometimes posted individually | b. | not
posted | d. | all of the
above |
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