BASIC ACCOUNTING OM EDITION

1.) The left side of a T-account

• Debit

• Credit

• None of the above

2.) The process of recording the business

transactions in a journal

• footing

• journalizing

• posting

• none of the above

3.) An example of a current asset

• land

• accounts payable

• accounts receivable

• salary expense

4.) Is a twelve-month period which starts from January 1 to December 31 of the accounting period.

• Interim period

• Fiscal year

• Calendar year

• Through the years

5.) These are the formal reports prepared by accountants. It shows the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics.

• Financial Accounting

• Financial Problems

• Financial Planning

• Financial Statements

6.) An accounting record where a transaction is initially recorded in

• Ledger

• Account

• Trial balance

• Journal

7.) Which of the following is a nominal account?

• Unearned revenue

• Salary expense

• Inventory

• Retained earnings

8.) A chart of accounts is

• A flowchart of all transactions

• An accounting procedure manual

• A journal

• A list of all account titles in the ledger

9.) This business converts raw materials into finished goods that are to be sold at selling price

• Manufacturing

• Service

• Merchandising

• All of the above

10.) Which of the following is not a common time period chosen by businesses as their accounting period?

• Monthly

• Quarterly

• Daily

• Annually