Question 1

Bright Services pays wages of a part-time employee. The transaction would involve a

Accepted Answer

A)  debit to Wages Expense.
B)  debit to Cash.
C)  credit to Wages Payable.
D)  credit to Prepaid Expenses.E) B) and D)
F) A) and B)

Question 2

What determines the method you would use to correct an error in the accounting records?

Accepted Answer

The method for correcting errors depends on how and when the error was made. You can use the manual ruling method to correct errors before or after an entry has been posted. You should use the correcting entry method when amounts have been posted to the incorrect account.

Question 3

Match the terms below with the correct definitions.
 
-Process of transferring accounts and amounts from journal to ledger

Accepted Answer

G

Question 4

Match the terms below with the correct definitions.
 
-Business papers supporting transactions

Accepted Answer

The answer of Match the terms below with the correct...

Question 5

In the general journal, all liability accounts and owner's equity accounts must be indented.

Accepted Answer

A) True 
 B)False

Question 6

Juan Company purchased $15,000 in equipment on account. The transaction would involve a

Accepted Answer

A)  credit to Cash.
B)  debit to Accounts Payable.
C)  debit to Equipment Expense.
D)  credit to Accounts Payable.E) All of the above
F) None of the above

Question 7

Use the manual ruling method when amounts have been posted to the wrong account.

Accepted Answer

A) True 
 B)False

Question 8

A $500 payment for Wages Expense was incorrectly journalized and posted as a debit to Rent Expense for $500 and a credit to Cash for $500. The correcting entry, using the one-step method, would include a

Accepted Answer

A)  debit to Cash for $500.
B)  credit to Rent Expense for $500.
C)  credit to Supplies Expense for $500.
D)  credit to Cash for $500.E) B) and C)
F) A) and D)

Question 9

Shower Flower Company bought equipment, paying cash, $2,500. The accountant would record the following journal entry:

Accepted Answer

B

Question 10

Which of the following is true?

Accepted Answer

A)  The ledger account form maintains a running balance of the account.
B)  When recording business transactions, it is not important that one use the exact account titles as listed in the chart of accounts.
C)  The process of transferring information from the journal to the ledger is called journalizing.
D)  All of the answers listed are correct.E) A) and B)
F) B) and D)

Question 11

Which of the following is correct?

Accepted Answer

A)  The manual ruling method can only be used to correct an error in the journal before posting.
B)  The correcting entry method can only be completed in two steps.
C)  The manual ruling method can be used to correct an error in the ledger after an entry has been posted.
D)  All of the answers listed are correct.E) B) and C)
F) A) and D)

Question 12

R. Dexter withdraws cash for personal use from the business. The transaction would involve a

Accepted Answer

A)  debit to Wages Expense.
B)  debit to Cash.
C)  credit to R.Dexter, Drawing.
D)  debit to R.Dexter, Drawing.E) A) and B)
F) B) and D)

Question 13

The official list of all the accounts is called the chart of accounts.

Accepted Answer

A) True 
 B)False

Question 14

A book of original entry is known as a

Accepted Answer

A)  ledger account.
B)  general ledger.
C)  trial balance.
D)  journal.
E)  T account.F) All of the above
G) A) and B)

Question 15

There are two methods for correcting errors, the

Accepted Answer

A)  ruling method and the manual method.
B)  manual method and the correcting entry method.
C)  ruling method and the correcting entry method.
D)  the ruling method and the deletion method.E) A) and B)
F) A) and C)

Question 16

In a manual system, it is not proper to split a journal entry at the bottom of a page.

Accepted Answer

A) True 
 B)False

Question 17

When an entry is posted, the last step in the process is

Accepted Answer

A)  recording the explanation.
B)  placing the account number in the Post.Ref.column of the journal.
C)  placing the journal page number in the Post.Ref.column of the ledger.
D)  placing the account number in the Post.Ref.column of the ledger.
E)  placing the balance of the account in either the debit or credit column in the ledger.F) C) and D)
G) A) and E)

Question 18

The process of subtotaling both sides of an account and recording the amount on that side is known as

Accepted Answer

A)  footing.
B)  taking a trial balance.
C)  posting.
D)  balancing the accounts.
E)  journalizing.F) All of the above
G) B) and D)

Question 19

The ledger of Alex Advertising and Publicity contained the following account balances as of October 31:
  Instructions:
Prepare a trial balance dated October 31 of the present year.

Accepted Answer

The answer of The ledger of Alex Advertising and Publicity...

Question 20

To keep the fundamental accounting equation in balance, debits and credits must be in balance and equal amounts must be on each side of the equation.

Accepted Answer

A) True 
 B)False

Exam 3: The General Journal and the General Ledger

Bright Services pays wages of a part-time employee. The transaction would involve a

Correct AnswerverifiedShow Answer

What determines the method you would use to correct an error in the accounting records?

Correct AnswerverifiedThe method for correcting errors depends on how and when the error was made. You can use the manual ruling method to correct errors before or after an entry has been posted. You should use the correcting entry method when amounts have been posted to the incorrect account.

Match the terms below with the correct definitions. -Process of transferring accounts and amounts from journal to ledger

Correct AnswerverifiedG

Match the terms below with the correct definitions. -Business papers supporting transactions

Correct AnswerverifiedShow Answer

In the general journal, all liability accounts and owner's equity accounts must be indented.

Correct AnswerverifiedShow Answer

Juan Company purchased $15,000 in equipment on account. The transaction would involve a

Correct AnswerverifiedShow Answer

Use the manual ruling method when amounts have been posted to the wrong account.

Correct AnswerverifiedShow Answer

A $500 payment for Wages Expense was incorrectly journalized and posted as a debit to Rent Expense for $500 and a credit to Cash for $500. The correcting entry, using the one-step method, would include a

Correct AnswerverifiedShow Answer

Shower Flower Company bought equipment, paying cash, $2,500. The accountant would record the following journal entry:

Correct AnswerverifiedB

Which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

R. Dexter withdraws cash for personal use from the business. The transaction would involve a

Correct AnswerverifiedShow Answer

The official list of all the accounts is called the chart of accounts.

Correct AnswerverifiedShow Answer

A book of original entry is known as a

Correct AnswerverifiedShow Answer

There are two methods for correcting errors, the

Correct AnswerverifiedShow Answer

In a manual system, it is not proper to split a journal entry at the bottom of a page.

Correct AnswerverifiedShow Answer

When an entry is posted, the last step in the process is

Correct AnswerverifiedShow Answer

The process of subtotaling both sides of an account and recording the amount on that side is known as

Correct AnswerverifiedShow Answer

The ledger of Alex Advertising and Publicity contained the following account balances as of October 31: Instructions: Prepare a trial balance dated October 31 of the present year.

Correct AnswerverifiedShow Answer

To keep the fundamental accounting equation in balance, debits and credits must be in balance and equal amounts must be on each side of the equation.

Correct AnswerverifiedShow Answer

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The method for correcting errors depends on how and when the error was made. You can use the manual ruling method to correct errors before or after an entry has been posted. You should use the correcting entry method when amounts have been posted to the incorrect account.

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G

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B

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