Filters
Question type
Study Flashcards

Notations that allow transactions to be quickly and easily traced from the journal to the ledger or from the ledger to the journal are called ____________________ references.

Correct Answer

verifed

verified

posting

The journal entry to record the receipt of cash from credit clients on account would include


A) a debit to Cash and a credit to Fees Income.
B) a debit to Fees Income and a credit to Cash.
C) a debit to Cash and a credit to Accounts Receivable.
D) a debit to Accounts Receivable and a credit to Cash.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The journal entry to record the payment of a monthly utility bill would include


A) a debit to Utilities Expense and a credit to Capital.
B) a debit to Capital and a credit to Cash.
C) a debit to Utilities Expense and a credit to Cash.
D) a debit to Utilities Expense and a credit to Accounts Payable.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Maria Sanchez operates a typing service. During the month of July, the first month of operations, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions. Maria Sanchez operates a typing service. During the month of July, the first month of operations, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions.

Correct Answer

verifed

verified

When a transaction is entered in the general journal, the account to be _________________ is always recorded first in the Description column.

Correct Answer

verifed

verified

debited

Posting is the ____________________ step in the accounting cycle.

Correct Answer

verifed

verified

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?


A) Debit Office Equipment $4,500; credit Shop Equipment $4,500
B) Debit Shop Equipment $4,500; credit Office Equipment $4,500
C) Debit Cash $4,500; credit Shop Equipment $4,500
D) Debit Office Equipment $4,500; credit Cash $4,500

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

When an entry is made in the general journal,


A) assets should be listed first.
B) accounts to be debited should be listed first.
C) accounts to be increased should be listed first.
D) accounts may be listed in any order.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

The journal entry to record the performance of services for cash would include


A) a debit to Cash and a credit to Fees Income.
B) a debit to Fees Income and a credit to Cash.
C) a debit to Cash and a credit to Accounts Receivable.
D) a debit to Accounts Receivable and a credit to Cash.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry is


A) debit Cash, $865; credit Income from Services, $865
B) debit Cash, $865; credit Accounts Payable, $865
C) debit Accounts Receivable, $865; credit Cash, $865
D) debit Cash, $865; credit Accounts Receivable, $865

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

D

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include


A) a debit to Sue Snow, Capital, and a credit to Cash.
B) a debit to Utilities Expense and a credit to Cash.
C) a debit to Sue Snow, Drawing and a credit to Cash.
D) a debit to Sue Snow, Drawing and a credit to Utilities Expense.

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

The journal entry to record the payment of salaries should include


A) a debit to Salaries Expense and a credit to Cash.
B) a debit to Capital and a credit to Cash.
C) a debit to Cash and a credit to Salaries Expense.
D) a debit to Salaries Expense and a credit to Accounts Payable.

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

When a transaction is entered in a general journal, the first account title is indented about half an inch from the left margin of the Description column.

A) True
B) False

Correct Answer

verifed

verified

When an entry is made in the general journal,


A) the accounts to be credited should be indented.
B) the first account entered should be indented.
C) liability, capital, and revenue accounts should be indented.
D) asset accounts should be indented.

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Posting references are part of the audit trail.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements is correct?


A) All transactions require compound entries.
B) Compound entries include only debits.
C) Accounts being debited should always follow the accounts being credited in a compound entry.
D) Compound entries affect more than one debit and/or more than one credit.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Determine the accounts and amounts to be debited and credited for the following transactions for Monroe's Auto Repair. A. Marilyn Monroe invested $50,000 in cash to start the firm B. Issued check for $4,000 to pay the rent for current month C. Purchased an automobile that will be used to visit clients; issued check for $32,500 in full payment D. Purchased supplies for $800; paid immediately by check E. Purchased office equipment for $18,500 on credit from Denton, Inc.; received invoice, payable in 30 days F. Performed services for $2,580 in cash G. Returned damaged supplies for a cash refund of $50 H. Issued check for $15,600 to Denton, Inc., as payment on account I. Paid $120 for monthly telephone bill by check J. Withdrew $500 in cash for personal expenses

Correct Answer

verifed

verified

A. Cash (dr. $50,000); Marilyn Monroe, C...

View Answer

Transactions are entered in the journal in chronological order.

A) True
B) False

Correct Answer

verifed

verified

Antonio Baldez operates a delivery service. During the month of April, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions. Antonio Baldez operates a delivery service. During the month of April, the firm had the following transactions. Record these transactions on page 5 of a general journal. Omit the descriptions.

Correct Answer

verifed

verified

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:


A) Debit Utilities Expense; Credit Accounts Payable
B) Debit Cash; Credit Utilities Expense
C) Debit Utilities Expense; Credit Cash
D) Debit Accounts Payable; Credit Cash

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Showing 1 - 20 of 85

Related Exams

Exam 1

Accounting: the Language of Business

77 Questions

Exam 2

Analyzing Business Transactions

90 Questions

Exam 3

Analyzing Business Transactions Using T Accounts

105 Questions

Exam 5

Adjustments and the Worksheet

85 Questions

Exam 6

Closing Entries and the Postclosing Trial Balance

83 Questions

Exam 7

Accounting for Sales and Accounts Receivable

83 Questions

Exam 8

Accounting for Purchases and Accounts Payable

85 Questions

Exam 9

Cash Receipts, Cash Payments, and Banking Procedures

85 Questions

Exam 10

Payroll Computations, Records, and Payment

82 Questions

Exam 11

Payroll Taxes, Deposits, and Reports

82 Questions

Exam 12

Accruals, Deferrals, and the Worksheet

85 Questions

Exam 13

Financial Statements and Closing Procedures

84 Questions

Exam 14

Accounting Principles and Reporting Standards

85 Questions

Exam 15

Accounts Receivable and Uncollectible Accounts

85 Questions

Show Answer