question

A fiscal period may be one month, six months, or even one year, but usually it is one year. T/F

answer

T

question

In accounting period that begins on July 1 and ends on June 30 is a calendar year accounting period. T/F

answer

F

question

To record transactions in chronological order means to record them according to the date on which they occurred. T/F

answer

T

question

A journal is like a diary of a business because it is the only place where complete details of the transaction are recorded. T/F

answer

T

question

For every transaction record recorded in the general journal, these items are always written: date, account titles, amount, and source document or brief explanation. T/F

answer

T

question

It's an error is discovered immediately after journalizing, a single ruling should be placed through the incorrect data and the correct information should be written above it. T/F

answer

T

question

Recording transactions is the second step in the accounting cycle. T/F

answer

F

question

To verify a source document means to check the accuracy of the information on it. T/F

answer

T

question

Since the debit and credit amounts in a business transaction are the same, the order in which the account titles are recorded in the general journal does not matter. T/F

answer

F

question

Dollar signs, commas, and decimals are not used when entering amounts in the journal.

answer

T

question

The title of the account to be credited is indented from the left edge of the Description column so it can be easily distinguished from the debit part of the transaction. T/F

answer

T

question

Never erase an error in a journal entry because an erasure looks suspicious. T/F

answer

T

question

In order to help in owner/manager know the financial condition of a business, accounting records are kept and reported for a certain period of time called an accounting period. T/F

answer

T

question

The type of source document prepared depends upon the nature of the transaction. T/F

answer

T

question

The purpose of posting is to show the changes that take place in the businesses accounts as a result of financial transactions. T/F

answer

T

question

The ledger account form used by RoadRunner Delivery Service is a three-column account form. T/F

answer

F

question

Opening an account in a ledger involves writing the account title and the account number on the account form. T/F

answer

T

question

Opening an account in a computerized accounting system is entirely different from opening an account in a manual system. T/F

answer

F

question

How often posting occurs depends on the size of the business, the number of transactions, and whether posting is done manually or electronically. T/F

answer

T

question

The easiest way to post is from left to right in the ledger account because there's less chance of omitting data. T/F

answer

T

question

Every posting requires the year, month, and day to be entered in the Date column of the ledger account for every transaction. T/F

answer

F

question

Every amount posted will either increase or decrease the balance of a ledger account. T/F

answer

T

question

The notion "G3" in the Posting Reference column of a ledger account indicates the data was posted from general journal page 3. T/F

answer

T

question

Every journal entry requires a posting to at least two ledger accounts. T/F

answer

T

question

A credit posting to the Office Equipment account will result in an increase to that account. T/F

answer

F

question

In the preparation of a trial balance, all accounts are listed in the order in which they appear on the chart of accounts, including those accounts with a zero balance. T/F

answer

T

question

An error discovered before posting is usually corrected with a journal entry. T/F

answer

F

question

To locate a trial balance error, the first step is to check the postings from the journal to the individual ledger accounts. T/F

answer

F

question

When posting a correcting entry, The phrase "correcting entry" is usually written in the Explanation column of the ledger account. T/F

answer

T

question

If the transaction is journalized on the 8th is posted on the 10th, the date entered it in the Date column of the ledger account is the 10th. T/F

answer

F

question

A trial balance is prepared after posting is completed. T/F

answer

T

question

A(n) ________ is an accounting period of twelve months ending on the last day of any month except December.

answer

D. Fiscal year

question

A(n) ________ is often called a book of original entry.

answer

G. Journal

question

The ________ is an all-purpose journal used for recording business transactions.

answer

E. General journal

question

The various activities a business completes to organize its accounting records in an orderly fashion called the ________.

answer

A. Accounting cycle

question

A(n) ________ is any type of business paper that verifies that a transaction occurred.

answer

K. Source document

question

Another term used for "recording" a business transaction is ________.

answer

H. Journalizing

question

A(n) ________ accounting period begins on January 1 and ends on December 31.

answer

B. Calendar year

question

If you were to write $190 as euther $19 or $1900, this mistake would be called a(n) ________.

answer

G. Slide

question

Errors discovered after posting has taken place require a(n) _________.

answer

A. Correcting entry

question

Transferring data from the journal to the ledger is called _________.

answer

E. Posting

question

A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a(n) ________.

answer

I. Trial balance

question

If you meant to write $27 but wrote $72, this mistake is called a(n) ________.

answer

H. Transposition error

question

The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ________.

answer

C. Ledger

question

Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called ________.

answer

F. Proving the ledger

question

The accounting stationary used to record financial information about specific accounts is a(n) ________.

answer

D. Ledger account form

question

Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n) ________.

answer

B. General ledger

question

Purchased $500 worth of chemicals on account from Campbell Chemical Co.

answer

Invoice

question

Received cash from a customer on account, $120.

answer

Receipt

question

Purchased a new generator for use in the business, paying $550 cash.

answer

Check

question

Paid the current months electric bill of $95.

answer

Check

question

Billed customers for pool services performed during the past week, $2300.

answer

Invoice

question

Invested a used truck in the business; the truck is valued at $3000.

answer

Memorandom

question

Made a $250 payment on account to Campell Chemical Co.

answer

Check

question

Record the amount of the debit.

answer

3rd step

question

Record the amount of the credit.

answer

5th step

question

Record the title of the account to be credited, indented from the left edge of the description column.

answer

4th step

question

Write a brief reference to the source document or description of the entry in the description column, indented from the title of the account credited.

answer

6th step

question

Enter the date of the transaction in the date column.

answer

1st step

question

Record the title of the account to be debited.

answer

2nd step

question

Write G for general journal and the journal page number in the Posting Reference column of the ledger account.

answer

2nd step

question

Write the ledger account number in the posting reference column of the journal.

answer

5th step

question

Compute and record the new account balance.

answer

4th step

question

Write the date of the journal entry in the date column of the ledger account.

answer

1st period

question

Enter the debit or credit amount of the transaction in the appropriate column of the ledger account.

answer

3rd step

question

The balance of cash in bank was incorrectly calculated and understated by $200.

answer

Yes;No

question

A $200 credit to Service Fees in the general journal was posted as $2,000.

answer

Yes;No

question

A check for $400 received from a charge customer was not journalized.

answer

No;No

question

A $210 payment for the electric bill was credited to cash in the bank as $120.

answer

Yes;Yes

question

A $100 check received from a customer was journalized as a debit to cash in bank but was not posted to the cash in bank account.

answer

Yes;No

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