Exam Results
08 July 2024 14:51
1.
Question 1
A schedule that contains all accounts needed to prepare financial statements is
known as:
1 / 1 point
An Income Statement
A Journal Entry
The General Ledger
Correct
Correct! The General Ledger provides a record of each financial transaction that
takes place during the life of an operating company.
2.
Question 2
Reorganizing journal entries and grouping them by account is known as:
1 / 1 point
File maintenance
Posting to the ledger
Balancing the journal
Correct
Correct. Reorganizing all the journal entries and grouping them by account is called
posting to the ledger.
3.
Question 3
A listing of the names of the accounts that a company has identified and made
available for recording transactions in its general ledger is known as a:
1 / 1 point
Journal Entry
Chart of Accounts
Financial Statement
Correct
Correct! A listing of the names of the accounts that a company has identified and
made available for recording transactions in its general ledger is known as a Chart
of Accounts.
4.
Question 4
To find the balance of the account types that increase with a debit (asset and
expense accounts), bookkeepers will:
1 / 1 point
Subtract total debits from total credits (Credits - Debits)
Subtract total credits from total debits (Debits - Credits)
Correct
Correct! To find the balance of the account types that increase with a debit, you
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Correct! To find the balance of the account types that increase with a debit, you
would subtract total credits from total debits (Debits - Credits).
5.
Question 5
The accounting cycle starts with the:
1 / 1 point
Preparation of adjusting entries
Preparation of a trial balance
Preparation of ledger accounts
Analysis of business transactions
Correct
Correct! The accounting cycle starts with the analysis of business transactions.
6.
Question 6
After analysis, the business transaction is recorded in the journal in:
1 / 1 point
Chronological order
Random order
Correct
Correct! After analysis, the business transaction is recorded in the journal in
chronological order.
7.
Question 7
A form or statement that lists the titles and balances of all ledger accounts at a given
date is known as:
1 / 1 point
Statement of retained earnings
Balance sheet
Trial balance
Income statement
Correct
Correct! A form or statement that lists the titles and balances of ALL ledger accounts
at a given date is known as a trial balance.
8.
Question 8
Sydney is entering a transaction in QuickBooks. What are the two steps of manual
accounting that will happen simultaneously as she does this?
1 / 1 point
Creating a journal entry and producing a profit and loss statement
Creating a journal entry and posting to the ledger
Entering an expense and entering revenue
Correct
Correct! Creating a journal entry and posting to the ledger happen
simultaneously when entering a transaction with QuickBooks software.
9.
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9.
Question 9
The digits of the account numbers assigned to general ledger accounts often have
significance. For example, an account number beginning with a "1" might signify that
the account is an asset account, a "6" might signify an operating expense, etc.
1 / 1 point
True
False
Correct
Correct! Generally, the larger and more sophisticated the company, the more digits
in the account numbers. For sorting the accounts into meaningful reports the various
digits do signify a specific category.
10.
Question 10
A trial balance where total debits equal total credits indicates:
1 / 1 point
One or more transactions have been incorrectly analyzed and recorded in the ledger
accounts.
The ledger is in balance.
The company made a profit during the accounting period.
Correct
Correct! The ledger is in balance when the total debits equal total credits.
11.
Question 11
Zach needs to determine what his company’s financial position was on March 31st of
last year. Which of the following would be the best report to look at?
1 / 1 point
The general ledger
Statement of equity
Statement of retained earnings
Balance sheet
Correct
Correct! The balance sheet reports a company's assets, liabilities, and equity at a
specific point in time. Zach can use this to determine the financial position on the day
he needs.
12.
Question 12
Which of the following financial statements reports the sources and uses of cash by
a business?
1 / 1 point
The Balance Sheet
Statement of Equity
Statement of Cash Flow
The Income Statement
Correct
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Correct
Correct! The Statement of Cash Flow summarizes the amount of cash and cash
equivalents entering and leaving a company.
13.
Question 13
Which of the following lists general ledger account balances at the end of a reporting
period, before any adjusting entries are made?
1 / 1 point
Unadjusted Trial Balance
The Balance Sheet
Statement of Equity
Adjusted Trial Balance
Correct
Correct! The Unadjusted Trial Balance lists the general ledger account balances at
the end of a reporting period before any adjusting entries are made to the balances
to create financial statements. It is used as the starting point for analyzing account
balances and making adjusting entries.
14.
Question 14
A trial balance that is prepared after taking into account all the adjusting entries is
known as:
1 / 1 point
Cash Flow Statement
Adjusted Trial Balance
Unadjusted Trial Balance
Correct
Correct! An Adjusted Trial Balance is a listing of the ending balances in all
accounts after adjusting entries have been prepared.
15.
Question 15
The preparation of financial statements and closing the books is the ______ step of
the accounting cycle.
1 / 1 point
third
last
fourth
second
Correct
Correct! The preparation of financial statements and closing the books is the last
step in the accounting cycle.
16.
Question 16
Rudiger has just recorded and posted his business transactions to the ledger. His
next step in the accounting cycle is to _______.
1 / 1 point
collect all receipts and invoices
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collect all receipts and invoices
prepare an unadjusted trial balance
prepare the income statement
analyze transactions
Correct
Correct! Preparing an unadjusted trial balance is the third step of the accounting
cycle after recording/posting transactions.
17.
Question 17
Francis enters a $100 check received from a customer into QuickBooks online. If she
views the Transaction Journal, which account would show as being debited $100?
1 / 1 point
Revenue
Expenses
Business bank account
Accounts receivable
Correct
Correct! The $100 check from the customer will increase the bank account balance
by $100, in other words, the account is debited $100.
18.
Question 18
The double-entry system of bookkeeping normally results in which of the following
balances in the ledger accounts?
1 / 1 point
Debit: Assets and revenue
Credit: Liabilities, equity, and expenses
Debit: revenue, capital, and liabilities
Credit: Assets and expenses
Debit: Assets and expenses
Credit: Liabilities, equity, and revenue
Debit: Assets, expenses, and capital
Credit: Liabilities and revenue
Correct
Correct! The double-entry system of bookkeeping normally results in:
• Debit: Assets and expenses
• Credit: Liabilities, equity, and revenue
19.
Question 19
In the first month of operations, Pepper Consulting’s total debit entries to the cash
account amounted to $900, and the total credit entries to the cash account amounted
to $600. The cash account has a:
1 / 1 point
$300 debit balance
$900 debit balance
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$600 credit balance
$300 credit balance
Correct
Correct! Pepper Consulting has a $300 debit balance because total debits ($900) -
total credits($600) = $300 positive (debit) balance.
20.
Question 20
Pepper Consulting bought computers with credit from PYO Suppliers and entered
the purchase into QuickBooks. The transaction journal for Pepper Consulting would
show the following entry:
1 / 1 point
Debit: PYO Credit Payable
Credit: Computers
Debit: Sales
Credit: computers
Debit: Computers
Credit: Sales
Debit: Computers
Credit: PYO Credit Payable
Correct
Correct! When you enter a transaction that involves buying something on credit, you
will debit the asset account (computers) and credit the payable account (PYO
Credit Payable).
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