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Accounting 1 First Semester Exam

A fiscal period may be one month, six months, or even one year, but usually it is one year. T/F
T
In accounting period that begins on July 1 and ends on June 30 is a calendar year accounting period. T/F
F
To record transactions in chronological order means to record them according to the date on which they occurred. T/F
T
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
T
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
T
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
T
Recording transactions is the second step in the accounting cycle. T/F
F
To verify a source document means to check the accuracy of the information on it. T/F
T
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
F
Dollar signs, commas, and decimals are not used when entering amounts in the journal.
T
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
T
Never erase an error in a journal entry because an erasure looks suspicious. T/F
T
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
T
The type of source document prepared depends upon the nature of the transaction. T/F
T
The purpose of posting is to show the changes that take place in the businesses accounts as a result of financial transactions. T/F
T
The ledger account form used by RoadRunner Delivery Service is a three-column account form. T/F
F
Opening an account in a ledger involves writing the account title and the account number on the account form. T/F
T
Opening an account in a computerized accounting system is entirely different from opening an account in a manual system. T/F
F
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
T
The easiest way to post is from left to right in the ledger account because there’s less chance of omitting data. T/F
T
Every posting requires the year, month, and day to be entered in the Date column of the ledger account for every transaction. T/F
F
Every amount posted will either increase or decrease the balance of a ledger account. T/F
T
The notion “G3” in the Posting Reference column of a ledger account indicates the data was posted from general journal page 3. T/F
T
Every journal entry requires a posting to at least two ledger accounts. T/F
T
A credit posting to the Office Equipment account will result in an increase to that account. T/F
F
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
T
An error discovered before posting is usually corrected with a journal entry. T/F
F
To locate a trial balance error, the first step is to check the postings from the journal to the individual ledger accounts. T/F
F
When posting a correcting entry, The phrase “correcting entry” is usually written in the Explanation column of the ledger account. T/F
T
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
F
A trial balance is prepared after posting is completed. T/F
T
A(n) ________ is an accounting period of twelve months ending on the last day of any month except December.
D. Fiscal year
A(n) ________ is often called a book of original entry.
G. Journal
The ________ is an all-purpose journal used for recording business transactions.
E. General journal
The various activities a business completes to organize its accounting records in an orderly fashion called the ________.
A. Accounting cycle
A(n) ________ is any type of business paper that verifies that a transaction occurred.
K. Source document
Another term used for “recording” a business transaction is ________.
H. Journalizing
A(n) ________ accounting period begins on January 1 and ends on December 31.
B. Calendar year
If you were to write $190 as euther $19 or $1900, this mistake would be called a(n) ________.
G. Slide
Errors discovered after posting has taken place require a(n) _________.
A. Correcting entry
Transferring data from the journal to the ledger is called _________.
E. Posting
A periodic report prepared by a business to test the equality of total debits and total credits in the ledger is called a(n) ________.
I. Trial balance
If you meant to write $27 but wrote $72, this mistake is called a(n) ________.
H. Transposition error
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) ________.
C. Ledger
Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called ________.
F. Proving the ledger
The accounting stationary used to record financial information about specific accounts is a(n) ________.
D. Ledger account form
Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n) ________.
B. General ledger
Purchased $500 worth of chemicals on account from Campbell Chemical Co.
Invoice
Received cash from a customer on account, $120.
Receipt
Purchased a new generator for use in the business, paying $550 cash.
Check
Paid the current months electric bill of $95.
Check
Billed customers for pool services performed during the past week, $2300.
Invoice
Invested a used truck in the business; the truck is valued at $3000.
Memorandom
Made a $250 payment on account to Campell Chemical Co.
Check
Record the amount of the debit.
3rd step
Record the amount of the credit.
5th step
Record the title of the account to be credited, indented from the left edge of the description column.
4th step
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.
6th step
Enter the date of the transaction in the date column.
1st step
Record the title of the account to be debited.
2nd step
Write G for general journal and the journal page number in the Posting Reference column of the ledger account.
2nd step
Write the ledger account number in the posting reference column of the journal.
5th step
Compute and record the new account balance.
4th step
Write the date of the journal entry in the date column of the ledger account.
1st period
Enter the debit or credit amount of the transaction in the appropriate column of the ledger account.
3rd step
The balance of cash in bank was incorrectly calculated and understated by $200.
Yes;No
A $200 credit to Service Fees in the general journal was posted as $2,000.
Yes;No
A check for $400 received from a charge customer was not journalized.
No;No
A $210 payment for the electric bill was credited to cash in the bank as $120.
Yes;Yes
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.
Yes;No

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