© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Beginning the Accounting Cycle Chapter 3

1. Transactions are entered into a journal: A.By dollar amount B.In chronological order C.In alphabetical order D.By company name © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

1. Transactions are entered into a journal: A.By dollar amount B.In chronological order C.In alphabetical order D.By company name © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

3. When a journal entry affects more than two accounts, it is known as a(n): A.Compound entry B.Complex entry C.Triple entry D.Abbreviated entry © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

3. When a journal entry affects more than two accounts, it is known as a(n): A.Compound entry B.Complex entry C.Triple entry D.Abbreviated entry © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

4. The upper-right corner of the General Journal contains the: A.Date B.Page number C.Company name D. Accounting period © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

4. The upper-right corner of the General Journal contains the: A.Date B.Page number C.Company name D. Accounting period © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

5. Transferring information from the General Journal to the General Ledger is known as: A.Referencing B.Journalizing C.Crediting D.Posting © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

5. Transferring information from the General Journal to the General Ledger is known as: A.Referencing B.Journalizing C.Crediting D.Posting © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

6. An appropriate ledger account number for Accounts Payable would be: A.101 B.201 C.301 D.501 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

6. An appropriate ledger account number for Accounts Payable would be: A.101 B.201 C.301 D.501 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

7. A posting reference in the General Ledger would appear as: © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater A.Journal 1 B.Ledger 1 C. GJ1 D.The account number to which the posting was made LO-2

7. A posting reference in the General Ledger would appear as: © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater A.Journal 1 B.Ledger 1 C. GJ1 D.The account number to which the posting was made LO-2

8. Recording the account number in the posting reference column of the general journal is known as: A.Posting B.Cross referencing C.Journalizing D.Debiting © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

8. Recording the account number in the posting reference column of the general journal is known as: A.Posting B.Cross referencing C.Journalizing D.Debiting © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 $18,500- Debit C. The Cash balance would be -$11,500- Credit D. The Cash balance would be $18,500- Credit © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 $18,500- Debit C. The Cash balance would be -$11,500- Credit D. The Cash balance would be $18,500- Credit © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

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 LO-1

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 LO-1