Recording of accounting operations quiz

Financial Accounting Quiz

بواسطة admin في سبتمبر 3, 2023 0

Recording of accounting operations

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Which of the following is not part of the recording process ?

A) Posting transactions

B) Entering transactions in a journal

C) Analyzing transactions

D) Preparing a trial balance

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Debits :

A) increase both assets and liabilities

B) decrease assets and increase liabilities

C) decrease both assets and liabilities

D) increase assets and decrease liabilities

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A trial balance :

A) proves that all transactions have been recorded

B) will not balance if a correct journal entry is posted twice

C) proves the mathematical accuracy of journalized transactions

D) is a list of accounts with their balances at a given time

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Accounts that normally have debit balances are :

A) assets, expenses, and owner’s capital

B) assets, expenses, and revenues

C) assets, liabilities, and owner’s drawings

D) assets, owner’s drawings, and expenses

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Which of the following statements about an account is true?

A) In its simplest form, an account consists of two parts

B) The left side of an account is the credit or decrease side

C) There are separate accounts for specifc assets and liabilities but only one account for owner’s equity items

D) An account is an individual accounting record of increases and decreases in specific asset, liability, and owner’s equity items

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Which of the following statements about a journal is false ?

A) It helps to locate errors because the debit and credit amounts for each entry can be readily compared

B) It discloses in one place the complete effect of a transaction

C) It provides a chronological record of transactions

D) It is not a book of original entry

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A trial balance will not balance if :

A) a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45

B) a correct journal entry is posted twice

C) the purchase of supplies on account is debited to Supplies and credited to Cash

D) a $10 cash drawing by the owner is debited to Owner’s Drawings for $100 and credited to Cash for $10

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Posting :

A) transfers journal entries to ledger accounts

B) is an optional step in the recording process

C) transfers ledger transaction data to the journal

D) normally occurs before journalizing

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Before posting a payment of $10,000, the Accounts Payable of the Company had a normal balance of $25,000. The balance after posting this transaction was :

A) $35,000

B) Cannot be determined

C) $10,000

D) $15,000

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The order of the accounts in the ledger is :

A) owner’s capital, assets, revenues, expenses, liabilities, owner’s drawings

B) assets, liabilities, owner’s capital, owner’s drawings, revenues, expenses

C) revenues, assets, expenses, liabilities, owner’s capital, owner’s drawings

D) assets, revenues, expenses, liabilities, owner’s capital, owner’s drawings

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A revenue account :

A) is decreased by credits

B) has a normal balance of a debit

C) is increased by credits

D) is increased by debits

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The purchase of supplies on account should result in :

A) a debit to Supplies Expense and a credit to Accounts Payable

B) a debit to Supplies and a credit to Accounts Payable

C) a debit to Supplies and a credit to Accounts Receivable

D) a debit to Supplies Expense and a credit to Cash

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A ledger :

A) is a book of original entry

B) should show accounts in alphabetical order

C) is a collection of the entire group of accounts maintained by a company

D) contains only asset and liability accounts

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The expanded accounting equation is :

A) Assets = Liabilities + Owner’s Capital - Owner’s Drawings + Revenues - Expenses

B) Assets = Liabilities - Owner’s Capital - Owner’s Drawings - Revenues - Expenses

C) Assets + Liabilities = Owner’s Capital + Owner’s Drawings + Revenues + Expenses

D) Assets = Liabilities + Owner’s Capital + Owner’s Drawings + Revenues - Expenses

Your score is

Debits and credits

The Journal –The Ledger – Posting

Chart of accounts –The trial balance