Question Details

ACCT 105 CHAPTER 2 THE RECORDING PROCESS 121-140 PART 8


121.	The first step in posting involves
a.	entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.
b.	writing in the journal the account number to which the debit amount was posted.
c.	writing in the journal the account number to which the credit amount was posted.
d.	entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.


122.	A chart of accounts usually starts with
a.	asset accounts.
b.	expense accounts.
c.	liability accounts.
d.	revenue accounts.


123.	The procedure of transferring journal entries to the ledger accounts is called
a.	journalizing.
b.	analyzing.
c.	reporting.
d.	posting.


124.	A number in the reference column in a general journal indicates
a.	that the entry has been posted to a particular account.
b.	the page number of the journal.
c.	the dollar amount of the transaction.
d.	the date of the transaction.


 
125.	A chart of accounts for a business firm
a.	is a graph.
b.	indicates the amount of profit or loss for the period.
c.	lists the accounts and account numbers that identify their location in the ledger.
d.	shows the balance of each account in the general ledger.


126.	Posting
a.	should be performed in account number order.
b.	accumulates the effects of journalized transactions in the individual accounts.
c.	involves transferring all debits and credits on a journal page to the trial balance.
d.	is accomplished by examining ledger accounts and seeing which ones need updating.


127.	After journal entries are posted, the reference column
a.	of the general journal will be blank.
b.	of the general ledger will show journal page numbers.
c.	of the general journal will show "Dr" or "Cr".
d.	of the general ledger will show account numbers.

	128.	The explanation column of the general ledger
a.	is completed without exception.
b.	is nonexistent.
c.	is used infrequently.
d.	shows account titles.


	129.	A numbering system for a chart of accounts
a.	is prescribed by GAAP.
b.	is uniform for all businesses.
c.	usually starts with income statement accounts.
d.	usually starts with balance sheet accounts.


130.	The steps in preparing a trial balance include all of the following except
a.	listing the account titles and their balances.
b.	totaling the debit and credit columns.
c.	proving the equality of the two columns.
d.	transferring journal amounts to ledger accounts.

131.	A trial balance may balance even when each of the following occurs except when
a.	a transaction is not journalized.
b.	a journal entry is posted twice.
c.	incorrect accounts are used in journalizing.
d.	a transposition error is made.


	132.	A list of accounts and their balances at a given time is called a(n)
a.	 journal.
b.	 posting.
c.	 trial balance.
d.	income statement.


	133.	If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates
a.	no errors have been made.
b.	no errors can be discovered.
c.	that all accounts reflect correct balances.
d.	the mathematical equality of the accounting equation.



134.	A trial balance is a listing of
a.	transactions in a journal.
b.	the chart of accounts.
c.	general ledger accounts and balances.
d.	the totals from the journal pages.


	135.	Customarily, a trial balance is prepared
a.	at the end of each day.
b.	after each journal entry is posted.
c.	at the end of an accounting period.
d.	only at the inception of the business.


	136.	A trial balance would only help in detecting which one of the following errors?
a.	A transaction that is not journalized
b.	A journal entry that is posted twice
c.	Offsetting errors are made in recording the transaction
d.	A transposition error when transferring the debit side of journal entry to the ledger

 
	137.	An account is an individual accounting record of increases and decreases in specific
a.	liabilities.
b.	assets.
c.	expenses.
d.	assets, liabilities, and stockholders’ equity items.


	138.	A debit is not the normal balance for which of the following?
a.	Asset account
b.	Dividends account
c.	Expense account
d.	Common stock account


	139.	Which of the following rules is incorrect?
a.	Credits decrease the dividends account.
b.	Debits increase the common stock account.
c.	Credits increase revenue accounts.
d.	Debits decrease liability accounts.


	140.	Which of the following statements is false?
a.	Revenues increase stockholders’ equity.
b.	Revenues have normal credit balances.
c.	Revenues are a positive factor in the computation of net income.
d.	Revenues are increased by debits.