Question Details

ACCT 105 CHAPTER 2 THE RECORDING PROCESS 141-155 PART 9


141.	Which of the following is the correct sequence of steps in the recording process?
a.	Posting, journalizing, analyzing
b.	Journalizing, analyzing, posting
c.	Analyzing, posting, journalizing
d.	Analyzing, journalizing, posting


	142.	Which of the following is false about a journal?
a.	It discloses in one place the complete effects of a transaction.
b.	It provides a chronological record of transactions.
c.	It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared.
d.	It keeps in one place all the information about changes in specific account balances.

143. Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman        Co. for $3,100 cash. The entry for this transaction will include a
a.	debit to Equipment $2,700 and a debit to Supplies Expense $400 for Milkman.
b.	credit to Cash for Milkman.
c.	credit to Accounts Payable for Deerhoof.
d.	debit to Equipment $2,700 and a debit to Supplies $400 for Deerhoof.


	144.	Devendra Company pays cash dividends of $600. The entry for this transaction will include a debit of $600 to
a.	Dividends
b.	Retained Earnings.
c.	Owner's Salaries Expense.
d.	Salaries and Wages Expense.


	145.	On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a
a.	credit to Retained Earnings.
b.	credit to Notes Payable.
c.	debit to Accounts Receivable.
d.	credit to Accounts Payable.


	146.	Posting of journal entries should be done in
a.	account number order.
b.	alphabetical order.
c.	chronological order.
d.	dollar amount order.


	147.	The chart of accounts is a
a.	list of accounts and their balances at a given time.
b.	device used to prove the mathematical accuracy of the ledger.
c.	listing of the accounts and the account numbers which identify their location in the ledger.
d.	required step in the recording process.


	148.	Which of the following is incorrect regarding a trial balance?
a.	It proves that the debits equal the credits after posting.
b.	It proves that the company has recorded all transactions.
c.	A trial balance uncovers errors in journalizing and posting.
d.	A trial balance is useful in the preparation of financial statements.


 
	149.	A trial balance will not balance if
a.	a journal entry is posted twice.
b.	a wrong amount is used in journalizing.
c.	incorrect account titles are used in journalizing.
d.	a journal entry is only partially posted.


	150.	Which of the following are the same under both GAAP and IFRS?
a.	The account.
b.	Debit and credit rules.
c.	Steps in the recording process.
d.	All of these answers are correct.


	151.	Which of the following are the same under both GAAP and IFRS?
a.	The journal.
b.	The ledger.
c.	The chart of accounts.
d.	All of these answers are correct.


	152.	Which of the following is true?
a.	Transaction analysis is completely different under IFRS and GAAP.
b.	Most transactions are recorded differently under IFRS and GAAP.
c.	Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently.
d.	All transactions are recorded the same under IFRS and GAAP.


	153.	European companies rely
a.	less on historical cost and more on fair values than U.S. companies.
b.	less on fair values and more on historical cost than U.S. companies.
c.	completely on fair values for financial reporting.
d.	completely on historical cost for financial reporting.


	154.	The double-entry accounting system is the basis of accounting systems
a.	worldwide.
b.	worldwide, except for the U.S.
c.	in the U.S. only
d.	neither internationally nor in the U.S.


	155.	Under IFRS, the trial balance
a.	follows the same format as under GAAP.
b.	shows credits on the left and debits on the right.
c.	includes less accounts than under GAAP.
d.	includes more accounts than under GAAP.