Question Details

ACCT 105 CHAPTER 2 THE RECORDING PROCESS 81-100 PART 6

81.	At December 1, 2015, Cursive  Company- accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is
a.	$600 debit.
b.	$3,000 debit.
c.	$600 credit.
d.	$3,000 credit.


	82.	At October 1, 2015, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2015, the accounts payable balance is
a.	$25,000.
b.	$41,000.
c.	$55,000.
d.	$121,000.


	83.	During 2015, its first year of operations, Neko- Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders’ equity at December 31, 2015?
a.	$0
b.	$5,000 credit
c.	$25,000 credit
d.	$20,000 debit


	84.	On July 7, 2015, Hidden Camera Enterprises performed cash services of $1,700. The entry to record this transaction would include
a.	a debit to Service Revenue of $1,700.
b.	a credit to Accounts Receivable of $1,700.
c.	a debit to Cash of $1,700.
d.	a credit to Accounts Payable of $1,700.

 
	85.	At September 1, 2015, Promise Ring Co. reported stockholders’ equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders’ equity at September 30, 2015?
a.	$166,000 
b.	$171,000
c.	$173,000 
d.	$176,000 


	86.	The final step in the recording process is to
a.	analyze each transaction.
b.	enter the transaction in a journal.
c.	prepare a trial balance.
d.	transfer journal information to ledger accounts.


	87.	The usual sequence of steps in the transaction recording process is:
a.	journal  âž”  analyze  âž”  ledger.
b.	analyze  âž”  journal  âž”  ledger.
c.	journal  âž”  ledger  âž”  analyze.
d.	ledger  âž”  journal  âž”  analyze.


	88.	In recording business transactions, evidence that an accounting transaction has taken place is obtained from
a.	business documents.
b.	the Internal Revenue Service.
c.	the public relations department.
d.	the SEC.


	89.	After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to
a.	the company's bank.
b.	stockholders’ equity.
c.	ledger accounts.
d.	financial statements.


	90.	The first step in the recording process is to
a.	prepare financial statements.
b.	analyze each transaction for its effect on the accounts.
c.	post to a journal.
d.	prepare a trial balance.

 
	91.	Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)
a.	cash register sales tape.
b.	bill.
c.	advertising brochure.
d.	check.



	92.	After transaction information has been recorded in the journal, it is transferred to the
a.	trial balance.
b.	income statement.
c.	book of original entry.
d.	ledger.


	93.	The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the
a.	journal, and transfer the information to the ledger accounts.
b.	ledger, and transfer the information to the journal.
c.	book of accounts, and transfer the information to the journal.
d.	book of original entry, and transfer the information to the journal.


	94.	The final step in the recording process is to transfer the journal information to the
a.	trial balance.
b.	financial statements.
c.	ledger.
d.	file cabinets.


	95.	The recording process occurs
a.	once a year.
b.	once a month.
c.	repeatedly during the accounting period.
d.	infrequently in a manual accounting system.



	96.	A compound journal entry involves
a.	two accounts.
b.	three accounts.
c.	three or more accounts.
d.	four or more accounts.


 
	97.	A journal provides
a.	the balances for each account.
b.	information about a transaction in several different places.
c.	a list of all accounts used in the business.
d.	a chronological record of transactions.


	98.	When three or more accounts are required in one journal entry, the entry is referred to as a
a.	compound entry.
b.	triple entry.
c.	multiple entry.
d.	simple entry.


	99.	When two accounts are required in one journal entry, the entry is referred to as a
a.	balanced entry.
b.	simple entry.
c.	posting.
d.	nominal entry.


	100.	Another name for journal is
a.	listing.
b.	book of original entry.
c.	book of accounts.
d.	book of source documents.