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In its simplest form, an account consists of all of the following except


A) right (credit) side.
B) account title.
C) left side.
D) explanation column.

E) B) and C)
F) All of the above

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Which of the following is not part of the recording process?


A) Analyzing transactions
B) Preparing a trial balance
C) Entering transactions in a journal
D) Posting journal entries

E) A) and D)
F) All of the above

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Posting


A) transfers journal entries to ledger accounts.
B) transfers ledger transaction data to the journal.
C) involves transferring all debits and credits on a journal page to the trial balance.
D) provides a chronological record of transactions.

E) B) and C)
F) A) and D)

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When a company receives a utility bill but will not pay it right away, it should


A) debit Utilities Expense and credit Accounts Receivable.
B) debit Utilities Expense and credit Accounts Payable.
C) debit Accounts Payable and credit Utilities Expense.
D) make no entry until the bill is paid.

E) None of the above
F) B) and C)

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Which account below is not a subdivision of stockholders' equity?


A) Dividends
B) Revenues
C) Expenses
D) Liabilities

E) A) and D)
F) B) and C)

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The left side of an account is


A) blank.
B) a description of the account.
C) the debit side.
D) the balance of the account.

E) A) and D)
F) B) and C)

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The recording process becomes more efficient and informative if all transactions are recorded in one account.

A) True
B) False

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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.

E) A) and B)
F) A) and C)

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Why are expenses increased with a debit?


A) They are always paid by cash, which is credited. Thus expenses are debited.
B) They decrease stockholders' equity thus they increase with a debit.
C) They have the same rules of debits and credits as the retained earnings account.
D) None of the statements are correct.

E) A) and D)
F) B) and C)

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A credit is not the normal balance for which account listed below?


A) Common Stock account
B) Revenue account
C) Liability account
D) Dividends account

E) None of the above
F) A) and C)

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The chart of accounts is a special ledger used in accounting systems.

A) True
B) False

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Debit and credit can be interpreted to mean "bad" and "good", respectively.

A) True
B) False

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A journal


A) contains only asset and liability accounts.
B) is a collection of the entire group of accounts maintained by a company.
C) provides a chronological record of transactions.
D) should show accounts in alphabetical order.

E) C) and D)
F) A) and C)

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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 answer choices are correct.

E) A) and B)
F) A) and C)

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The journal is a chronological record of all transactions.

A) True
B) False

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Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity. Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity.

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Sue Sloan and Associates is a financial planning service. The account balances at December 31, 2014 are shown by the following alphabetical list:  Accounts Payable $34,000 Accounts Receivable 16,000 Buildings 120,000 Cash 24,500 Common Stock 167,700 Equipment 79,300 Land 47,000 Notes Payable 95,000 Notes Receivable 9,100 Supplies 800\begin{array} { l r } \text { Accounts Payable } & \$ 34,000 \\\text { Accounts Receivable } & 16,000 \\\text { Buildings } & 120,000 \\\text { Cash } & 24,500 \\\text { Common Stock } & 167,700 \\\text { Equipment } & 79,300 \\\text { Land } & 47,000 \\\text { Notes Payable } & 95,000 \\\text { Notes Receivable } & 9,100 \\\text { Supplies } & 800\end{array} Instructions Prepare a trial balance with the accounts arranged in financial statement order.

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Which accounts normally have debit balances?


A) Assets, expenses, and revenues
B) Assets, expense, and retained earnings
C) Assets, liabilities, and dividends
D) Assets, expenses, and dividends

E) All of the above
F) B) and C)

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Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here. Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31, 2014. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31, 2014.

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Which of the following correctly identifies normal balances of accounts?


A)  Assets  Debit  Liabilities  Credit  Common Stock  Credit  Revenues  Debit  Expenses  Credit \begin{array} { l l } \text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Debit } \\\text { Expenses } & \text { Credit }\end{array}
B)  Assets  Debit  Liabilities  Credit  Common Stock  Credit  Revenues  Credit  Expenses  Credit \begin{array} { l l } \text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Credit }\end{array}
C)  Assets  Credit  Liabilities  Debit  Common Stock  Debit  Revenues  Credit  Expenses  Debit \begin{array} { l l } \text { Assets } & \text { Credit } \\\text { Liabilities } & \text { Debit } \\\text { Common Stock } & \text { Debit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}
D)  Assets  Debit  Liabilities  Credit  Common Stock  Credit  Revenues  Credit  Expenses  Debit \begin{array} { l l } \text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}

E) B) and C)
F) C) and D)

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