Font size
WorksheetsAccounting: Cycle 1 Review
Total questions: 40
Worksheet time: 40mins
The usual sequence of steps in the transaction recording process is
journal --> analyze --> ledger.
analyze --> journal --> ledger.
journal --> ledger --> analyze.
ledger --> journal --> analyze.
The journalizing process occurs
once a year.
once a month.
repeatedly during the accounting period.
infrequently in a manual accounting system.
A debit is not the normal balance for which of the following?
Asset account
Drawings account
Expense account
Capital account
A transaction recorded in a journal is not considered a permanent record.
True
False
The source document for an electronic funds transfer is a memorandum.
True
False
A transaction for the sale of goods or services results in a decrease in owner's equity.
True
False
The formula for calculating net income is total revenue minus total expenses.
True
False
If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.
True
False
Information needed to prepare an income statement's Revenue section is obtained from a work sheet's Account Title column and
Income Statement Debit column
Income Statement Credit column
Balance Sheet Debit column
Balance Sheet Credit column
Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept
(a)
The first step in the posting procedure is writing the
entry date in the Date column of the account
journal page number in the Post Ref. column of the journal
account number in the Post Ref. column of the account
entry amount in the Debit or Credit column of the account
The formula for calculating the net income ratio is
net income divided by total sales
total sales divided by total expenses
total sales minus total expenses divided by net income
none of these
If an error is recorded in a journal entry,
cancel the error by drawing a neat line through the error
correct the entry by writing the correct item above the canceled error
do not erase the incorrect item
all of these
Concept: A business's records should never be mixed with an owner's personal records and reports
(a)
Concept: When a source document is prepared for each transaction
going concern
materiality
realization of revenue
objective evidence
Concept: When a business activity is large enough to impact business decisions, it should be recorded clearly in the financial statements
(a)
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
(a)
Concept: The same accounting procedures must be followed in the same way each accounting period
(a)
Concept: Revenue is recorded at the same time goods or services are sold.
(a)
Concept: Business transactions are reported in numbers that have common values. Meaning all reporting should be done in terms of money
(a)
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
After each transaction, the accounting equation must remain in balance.
True
False
A checkmark in the account title column when journalizing a transaction indicates
the transaction is to be voided
there is not an account title to be used; both amounts have been placed in special amount columns
nothing will be posted individually
that the source document needs to be checked for accuracy
Which is not part of a journal entry?
Date
Debit
Credit
Account Title
Proving a journal means that
the debit and credit columns of a journal equal
the general ledger debits and credits equal
the cash in the check register equals the amount stated in the general ledger
each journal entry has a debit and credit
Which type of endorsement limits how a check can be used?
blank
special
full
restrictive
The account Cash Short and Over is shown with what type of accounts on a chart of accounts?
Owner's Equity
Liabilities
Expenses
Assets
