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Business, Life Skills, Other
7th -
8thgrade
Chapter 3 : Accounting Cycle
15 questions
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- 1. Multiple Choice
The final step in the recording process is to
enter the transaction in a journal.
prepare a trial balance
transfer journal information to ledger accounts
analyze each transaction.
- 2. Multiple Choice
The left side of an account is
the debit side.
a description of the account.
the balance of the account.
receipt from customer
- 3. Multiple Choice
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
nothing further must be done.
credited another asset account for $500.
debited the Capital account for $1,500.
credited a liability account for $1,500.
- 4. Multiple Choice
Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)
bill
advertising brochure.
cash register sales tape.
check
- 5. Multiple Choice
On January 14, Mafro Industries purchased supplies of $800 on account. The entry to record the purchase will include
a debit to Accounts Receivable and a credit to Supplies.
a debit to Supplies and a credit to Cash
a debit to Supplies and a credit to Accounts Payable.
a debit to Supplies Expense and a credit to Accounts Receivable.
- 6. Multiple Choice
The usual sequence of steps in the transaction recording process is:
analyze- journal - ledger.
journal - analyze - ledger.
journal -ledger -analyze.
ledger - journal - analyze.
- 7. Multiple Choice
The recording process occurs
once a month.
once a year.
infrequently in a manual accounting system
repeatedly during the accounting period.
- 8. Multiple Choice
The procedure of transferring journal entries to the ledger accounts is called
analyzing
posting
reporting
journalizing
- 9. Multiple Choice
An account is a part of the financial information system and is described by all except which one of the following?
An account may be part of a manual or a computerized accounting system
An account has a debit and credit side.
An account is a source document
An account has a title
- 10. Multiple Choice
A trial balance is a listing of
general ledger accounts and balances
transactions in a journal
the chart of accounts
the totals from the journal pages
- 11. Multiple Choice
A business can use any 12-month period for reporting its financial performance.
True
False
- 12. Multiple Choice
Expense accounts are closed by crediting them.
False
True
- 13. Multiple Choice
What is the effect of providing for depriciation?
It increases profit
It increases the cash balance
It reduces profit
It extends the life of non-current assets
- 14. Multiple Choice
A return of merchandise to the vendor results in
credit to Purchases Returns and Allowances
credit to Purchases
debit to Purchases Returns and Allowances.
debit to Purchases
- 15. Multiple Choice
What is the meaning of Credit Note ?
Provide evidence for receipts and payments of items that have been made
To inform the seller that his account been reduced by the buyer
To inform the buyer that his account been credited by the seller
Internal document to creditor
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