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Chapter 3
Beginning the Accounting Cycle
© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
1. Transactions are entered into a journal:
A.
B.
C.
D.
By dollar amount
In chronological order
In alphabetical order
By company name
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
1. Transactions are entered into a journal:
A.
B.
C.
D.
By dollar amount
In chronological order
In alphabetical order
By company name
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
2. The General Journal is also called the:
A.
B.
C.
D.
Book of final entry
General ledger
Book of original entry
All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
2. The General Journal is also called the:
A. Book of final entry
B. General Ledger
C. Book of original entry
D. All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
3. When a journal entry affects more than
two accounts, it is known as a(n):
A.
B.
C.
D.
Compound entry
Complex entry
Triple entry
Abbreviated entry
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
3. When a journal entry affects more than
two accounts, it is known as a(n):
A.
B.
C.
D.
Compound entry
Complex entry
Triple entry
Abbreviated entry
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
4. The upper-right corner of the General
Journal contains the:
A.
B.
C.
D.
Date
Page number
Company name
Accounting period
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
4. The upper-right corner of the General
Journal contains the:
A.
B.
C.
D.
Date
Page number
Company name
Accounting period
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
5. Transferring information from the General
Journal to the General Ledger is known as:
A.
B.
C.
D.
Referencing
Journalizing
Crediting
Posting
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
5. Transferring information from the General
Journal to the General Ledger is known as:
A.
B.
C.
D.
Referencing
Journalizing
Crediting
Posting
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
6. An appropriate ledger account number
for Accounts Payable would be:
A.
B.
C.
D.
101
201
301
501
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
6. An appropriate ledger account number
for Accounts Payable would be:
A.
B.
C.
D.
101
201
301
501
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
7. A posting reference in the General
Ledger would appear as:
A. Journal 1
B. Ledger 1
C. GJ1
D. The account number to which the
posting was made
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
7. A posting reference in the General
Ledger would appear as:
A. Journal 1
B. Ledger 1
C. GJ1
D. The account number to which the
posting was made
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
8. Recording the account number in the posting
reference column of the general journal is
known as:
A.
B.
C.
D.
Posting
Cross referencing
Journalizing
Debiting
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
8. Recording the account number in the posting
reference column of the general journal is
known as:
A.
B.
C.
D.
Posting
Cross referencing
Journalizing
Debiting
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
9. All of the following are true of the Trial
Balance except:
A. The Debit and Credit column must
balance
B. Assets will normally appear on the
Debit side
C. Revenue will normally appear on the
Credit side
D. The capital balance should always be
the beginning capital figure
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
9. All of the following are true of the Trial
Balance except:
A. The Debit and Credit column must
balance
B. Assets will normally appear on the
Debit side
C. Revenue will normally appear on the
Credit side
D. The capital balance should always
be the beginning capital figure
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
10.
If a correction is made before posting:
A. Draw a line through the incorrect
entry
B. Write the correct information above
the line
C. Write initials near change
D. All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
10.
If a correction is made before posting:
A. Draw a line through the incorrect
entry
B. Write the correct information above
the line
C. Write initials near change
D. All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
11. To correct an entry posted to the
wrong account:
A. Draw a line through the error
B. A correcting entry along with an
explanation must be done when the error
is found
C. Erase the error
D. Initial the error and correct it at the
end of the month
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
11. To correct an entry posted to the
wrong account:
A. Draw a line through the error
B. A correcting entry along with an
explanation must be done when the
error is found
C. Erase the error
D. Initial the error and correct it at the
end of the month
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
12.
If the trial balance does not balance:
A. Look for transposition errors
B. Recompute balances in each ledger
account
C. Trace all postings from the journal to
the ledger
D. All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
12.
If the trial balance does not balance:
A. Look for transposition errors
B. Recompute balances in each ledger
account
C. Trace all postings from the journal to
the ledger
D. All of the above
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
13. If the cash account had a starting Debit
balance of $15,000 and Salaries of $3,500 were
paid, what would be the ending balance of the
cash account?
A. The Cash balance would be $11,500Debit
B. The Cash balance would be $18,500Debit
C. The Cash balance would be -$11,500Credit
D. The Cash balance would be $18,500Credit
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
13. If the cash account had a starting Debit
balance of $15,000 and Salaries of $3,500 were
paid, what would be the ending balance of the
cash account?
A. The Cash balance would be
$11,500- Debit
B. The Cash balance would be $18,500Debit
C. The Cash balance would be -$11,500Credit
D. The Cash balance would be $18,500Credit
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
14. If a company purchased equipment for
$50,000, paid $20,000 in cash, and financed the
rest, what would occur?
A.
Cash would be credited for $20,000; Equipment
would be debited for $30,000; and Accounts Payable
would be debited for $50,000
B.
Cash would be debited for $20,000; Equipment
would be credited for $50,000; and Accounts Payable
would be debited for $30,000
C.
Cash would be credited for $20,000; Equipment
would be credited for $30,000; and Accounts Payable
would be debited for $50,000
D.
Cash would be credited for $20,000; Equipment
would be debited for $50,000; and Accounts Payable
would be credited for $30,000
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© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
14. If a company purchased equipment for
$50,000, paid $20,000 in cash, and financed the
rest, what would occur?
A.
Cash would be credited for $20,000; Equipment
would be debited for $30,000; and Accounts Payable
would be debited for $50,000
B.
Cash would be debited for $20,000; Equipment
would be credited for $50,000; and Accounts Payable
would be debited for $30,000
C.
Cash would be credited for $20,000; Equipment
would be credited for $30,000; and Accounts Payable
would be debited for $50,000
D.
Cash would be credited for $20,000;
Equipment would be debited for $50,000; and
Accounts Payable would be credited for $30,000
© 2010 Prentice Hall Business
Publishing, College Accounting: A
Practical Approach, 11e by Slater
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