On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. The entry to record this transaction would include

a. a debit to Service Revenue of $1,900.

b. a credit to Accounts Receivable of $1,900.

d. a credit to Accounts Payable of $1,900.

Which one of the following could represent the expanded basic accounting equation?

b. Assets + Owner’s Drawings + Expenses = Liabilities + Owner’s Capital + Revenues.

a. Assets = Liabilities + Owner’s Capital + Owner’s Drawings – Revenue – Expenses.

c. Assets – Liabilities – Owner’s Drawings = Owner’s Capital + Revenues – Expenses.

d. Assets = Revenues + Expenses – Liabilities.

A trial balance will not balance if

d. a journal entry is only partially posted.

a. a journal entry is posted twice.

b. a wrong amount is used in journalizing.

c. incorrect account titles are used in journalizing.

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

a. credit to Owner’s Capital.

c. debit to Accounts Receivable.

Haselhof Limited purchases equipment for £ 2,400 and supplies for £ 700 from Behrman Co. for £ 3,100 cash. The entry for this transaction will include a

d. debit to Equipment £2,400 and a debit to Supplies £700 for Haselhof

a. debit to Equipment £2,400 and a debit to Supplies Expense £700 for Behrman.

A trial balance may balance even when each of the following occurs except when

d. a transposition error is made.

a. a transaction is not journalized.

b. a journal entry is posted twice.

c. incorrect accounts are used in journalizing.

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

a. credit to Owner’s Capital.

c. debit to Accounts Receivable.

The chart of accounts is a

c. listing of the accounts and the account numbers which identify their location in the ledger.

a. list of accounts and their balances at a given time.

b. device used to prove the mathematical accuracy of the ledger.

d. required step in the recording process.

Which of the following is false about a journal?

d. It keeps in one place all the information about changes in specific account balances.

a. It discloses in one place the complete effects of a transaction.

b. It provides a chronological record of transactions.

c. It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared.

Which of the following is the correct sequence of steps in the recording process?

d. Analyzing, journalizing, posting

a. Posting, journalizing, analyzing

b. Journalizing, analyzing, posting

c. Analyzing, posting, journalizing

Which of the following statements is false?

d. Revenues are increased by debits.

a. Revenues increase owner’s equity.

b. Revenues have normal credit balances.

c. Revenues are a positive factor in the computation of net income.

The steps in preparing a trial balance include all of the following except

d. transferring journal amounts to ledger accounts.

a. listing the account titles and their balances.

b. totaling the debit and credit columns.

c. proving the equality of the two columns

After journal entries are posted, the reference column

b. of the general ledger will show journal page numbers.

a. of the general journal will be blank.

c. of the general journal will show "Dr" or "Cr".

d. of the general ledger will show account numbers.

b. accumulates the effects of journalized transactions in the individual accounts.

a. should be performed in account number order.

c. involves transferring all debits and credits on a journal page to the trial balance.

d. is accomplished by examining ledger accounts and seeing which ones need updating

Beethoven Company provided consulting services and billed the client $3,600. As a result of this event,

d. assets and owner’s equity both increased by $3,600 .

c. owner’s equity increased by $3,600.

MGolito purchased equipment for R$2,300 cash. As a result of this event,

c. total assets remained unchanged.

a. owner’s equity decreased by R$2,300.

b. total assets increased by R$2,300.

d. owner’s equity decreased and total assets increased by R$2,300.

Able2 Company received a cash advance of $800 from a customer. As a result of this event,

b. owner’s equity increased by $800

c. liabilities decreased by $800

d. assets and owner’s equity both increased by $800.

On August 13, 2020, Accounting Services Limited purchased office equipment for € 1,700 and office supplies of € 300 on account. Which of the following journal entries is recorded correctly and in the standard format?

d. Db Equipment 1,700 Db Supplies 300 Accounts Cr Payable. 2,000

a. Db Equipment 1,700 Cr Account Payable 2,000 Db Supplies 300

b. Db Equipment. 1,700 Db Supplies 300 Cr Accounts Payable 2,000

c. Db Accounts Payable 2,000 Cr Equipment 1,700 Cr Supplies 300

On June 1, 2020 Ben Caseski buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

d. list the credit entries first, which is proper form for this type of transaction.

The ledger should be arranged in

d. None of these choices are correct.

The recording process occurs

c. repeatedly during the accounting period.

d. infrequently in a manual accounting system.

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

a. journal, and transfer the information to the ledger accounts.

b. ledger, and transfer the information to the journal.

c. book of accounts, and transfer the information to the journal.

d. book of original entry, and transfer the information to the journal.

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

c. the public relations department.

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. The entry to record this transaction would include

a. a debit to Service Revenue of $1,900.

b. a credit to Accounts Receivable of $1,900.

d. a credit to Accounts Payable of $1,900.

02 THE RECORDING PROCESS - Accounting Process

Authored by Anton Kacaribu

Social Studies

Professional Development

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02 THE RECORDING PROCESS - Accounting Process

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MULTIPLE CHOICE QUESTION

1 min • 5 pts

Which of the following correctly identifies normal balances of accounts?

a. Assets Debit

Liabilities Credit

Owner’s Capital Credit

Revenues Debit

Expenses Credit

b. Assets Debit

Liabilities Credit

Owner’s Capital Credit

Revenues Credit

Expenses Credit

c. Assets Credit

Liabilities Debit

Owner’s Capital Debit

Revenues Credit

Expenses Debit

d. Assets Debit

Liabilities Credit

Owner’s Capital Credit

Revenues Credit

Expenses Debit

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

The best interpretation of the word credit is the

a. offset side of an account.

b. increase side of an account.

c. right side of an account.

d. decrease side of an account.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

In recording an accounting transaction in a double-entry system

a. the number of debit accounts must equal the number of credit accounts.

b. there must always be entries made on both sides of the accounting equation.

c. the amount of the debits must equal the amount of the credits.

d. there must only be two accounts affected by any transaction.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

Debits

a. decrease both assets and liabilities.

b. decrease liabilities and increase assets.

c. increase both assets and liabilities.

d. increase liabilities and decrease assets.

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

A debit is not the normal balance for which account listed below?

a. Owner’s Drawings

b. Cash

c. Accounts Receivable

d. Service Revenue

MULTIPLE CHOICE QUESTION

30 sec • 5 pts

An accountant has debited an asset account for $1,400 and credited a liability account for $500. What can be done to complete the recording of the transaction?

a. Nothing further must be done.

b. Debit an owner’s equity account for $900.

c. Debit another asset account for $900

d. Credit a different asset account for $900.

MULTIPLE CHOICE QUESTION

1 min • 5 pts

Liverpool Limited pays its employees twice a month, on the 7^th and the 21^st. On June 21, Liverpool Limited paid employee salaries of £6,000. This transaction would

a. increase owner’s equity by £6,000.

b. decrease the balance in Salaries and Wages Expense by £6,000.

c. decrease net income for the month by £6,000.

d. be recorded by a £6,000 debit to Salaries and Wages Payable and a £6,000 credit to Salaries and Wages Expense.

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02 THE RECORDING PROCESS - Accounting Process

Which of the following correctly identifies normal balances of accounts?

The best interpretation of the word credit is the

In recording an accounting transaction in a double-entry system

Debits

A debit is not the normal balance for which account listed below?

An accountant has debited an asset account for $1,400 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Liverpool Limited pays its employees twice a month, on the 7th and the 21st. On June 21, Liverpool Limited paid employee salaries of £6,000. This transaction would

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. The entry to record this transaction would include

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Social Studies

Liverpool Limited pays its employees twice a month, on the 7^th and the 21^st. On June 21, Liverpool Limited paid employee salaries of £6,000. This transaction would