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TOPIC 3 ACCOUNTING CYCLE

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The left side of an account is

a)

blank.

b)

a description of the account.

c)

the debit side.

d)

the balance of the account.

2.

An account is a part of the financial information system and is described by all except which one of the following?

a)

An account has a debit and credit side.

b)

An account is a source document.

c)

An account may be part of a manual or a computerized accounting system.

d)

An account has a title.

3.

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

a)

nothing further must be done.

b)

debited the Capital account for $1,500.

c)

credited another asset account for $500.

d)

credited a liability account for $1,500.

4.

On January 14, Maxine Industries purchased supplies of $900 on account. The entry to record the purchase will include

a)

a debit to Supplies and a credit to Accounts Payable.

b)

a debit to Supplies Expense and a credit to Accounts Receivable.

c)

a debit to Supplies and a credit to Cash

d)

a debit to Accounts Receivable and a credit to Supplies.

5.

The final step in the recording process is to

a)

analyze each transaction.

b)

enter the transaction in a journal.

c)

prepare a trial balance

d)

transfer journal information to ledger accounts

6.

The usual sequence of steps in the transaction recording process is:

a)

journal - analyze - ledger.

b)

analyze- journal - ledger.

c)

journal -ledger -analyze.

d)

ledger - journal - analyze.

7.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

a)

cash register sales tape.

b)

bill.

c)

advertising brochure.

d)

check.

8.

The recording process occurs

a)

once a year.

b)

once a month.

c)

repeatedly during the accounting period.

d)

infrequently in a manual accounting system

9.

The procedure of transferring journal entries to the ledger accounts is called

a)

journalizing.

b)

analyzing.

c)

reporting.

d)

posting.

10.

A trial balance is a listing of

a)

transactions in a journal.

b)

the chart of accounts.

c)

general ledger accounts and balances.

d)

the totals from the journal pages.