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Quiz 2

  1. Deciding whether to record a sale when the order for services is received or when the services are performed is an example of a:

    1. recognition
    2. valuation issue
    3. classification issue
    4. communication issue

  2. Which of the following statements is true?

    1. The chart of accounts usually is presented in alphabetical order
    2. The general ledger contains all the accounts found in the chart of accounts
    3. The general journal contains a list of the chart of accounts
    4. Most companies use the same chart of accounts

  3. Which of the following is a liability account?

    1. Accounts Receivable
    2. Withdrawals
    3. Rent Expense
    4. Account Payable

  4. The left side of an account is referred to as:

    1. the balance
    2. a debit
    3. a credit
    4. a footing

  5. Although debits increase assets, they also:

    1. decrease assets
    2. increase owner’s equity
    3. increase expenses
    4. increase liabilities

  6. Payment for a two-year insurance policy is a debit to:

    1. Prepaid Insurance
    2. Insurance Expense
    3. Cash
    4. Accounts Payable

  7. An agreement to spend $100 a month on advertising beginning next month requires:

    1. a debit to Advertising Expense
    2. a debit to Prepaid Advertising
    3. no entry
    4. a credit to Cash

  8. Transactions initially are recorded in the:

    1. trial balance
    2. T account
    3. journal
    4. ledger

  9. In posting from the general journal to the general ledger, the page number on which the transaction is recorded appears in the:

    1. Post. Ref. column of the general ledger
    2. Item column of the general ledger
    3. Post. Ref. column of the general journal
    4. Description column of the general journal

  10. To test that the total of debits and the total of credits are equal, the accountant periodically prepares a:

    1. trial balance
    2. T account
    3. general journal
    4. ledger

 

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