PRE-OSK-SMAGA

The accounting cycle starts with the:

• preparation of ledger accounts

• preparation of trial balance

• analysis of business transaction

• preparation of adjusting entries

After proper analysis, the business transaction is recorded in journal in a:

• chronological order

• reverse chronological order

• random order

• none of the above

In accounting/bookkeeping, the term posting refers to:

• transfer of information from ledger to trial balance

• transfer of entries from journal to ledger

• preparation of financial statements from trial balance

• none of the above

The Fast Company purchases land for $12,000. The payment is made by issuing 1,200 shares of common stock of $10 each. The proper journal entry for this transaction would be:

• Land 12,000 Dr. & Cash 12,000 Cr.

• Land 12,000 Dr. & Accounts payable 12,000 Cr.

• Common stock 12,000 Dr. & Land 12,000 Cr.

• Land 12,000 Dr. & Common stock 12,000 Cr.

The collection or group of accounts in an organization is known as:

• general journal

• general ledger

• trial balance

• balance sheet

The right hand side of a T-account is termed as:

• debit side

• credit side

• income side

• expense side

A credit may signify:

• an increase in a liability account

• a decrease in a liability account

• an increase in an asset account

• an increase in an expense account

A form or statement that lists the titles and balances of ledger accounts at a given date is known as:

• balance sheet

• income statement

• trial balance

• statement of retained earnings

The receipt of cash from customers to whom the goods have already been sold on credit would be recorded by a:

• debit to cash account & credit to accounts payable account

• debit to cash account & credit to accounts receivable account

• debit to accounts payable account & credit to cash account

• debit to accounts receivable account and credit to cash account

Which of the following is used to compute the net income for a specific period?

• balance sheet

• statement of retained earnings

• income statement

• cash account