QUIZ 9

GRAD 500 QUIZ 9

Question 1
1. On a trial balance, if the Debit and Credit column totals are equal, then:

All transactions have been recorded correctly.

All ledger account balances are correct.

Equal debits and credits have been recorded for transactions.

The balance sheet would be correct.
10 points
Question 2
1. The accounting principle that requires transactions be recorded at actual cash or cash equivalent is the:

Accounting equation.

Cost principle.

Going-concern assumption.

Economic entity assumption.
10 points
Question 3
1. Which of the following best describes the right side of a T-account?

Debit.

Increase.

Credit.

Decrease.
10 points
Question 4
1. All of the following require an adjusting entry at the end of the period with the exception of

Supplies used during the period.

Cash invested by owner.

Accrued wages.

Expired portion of prepaid insurance.
10 points
Question 5
1. The income statement includes a summary of all the following items for a specific period of time except

Sales

Interest Income

Owners' equity

Expenses
10 points
Question 6
1. The accounting principle that requires each business to be accounted for separately from owners and other business entities is the:

Time-period assumption.

Economic entity assumption.

Going-concern assumption.

Cost principle.

Business entity principle.
10 points
Question 7
1. The steps in the recording process include all of the following except

Analyze each transaction.

Enter the transaction in the general journal.

Post to the accounting equation

Post the transaction in the general ledger.
10 points
Question 8
1. A purchase of equipment on account affects the components of the accounting equation in the following way:

Decrease in an asset and an increase in owners' equity

Increase in an asset and an increase in a liability

Decrease in a liability and an increase in owners' equity

Increase in an asset and an increase in owners' equity
10 points
Question 9
1. An adjusting entry could be made for each of the following except:

Prepaid expenses.

Owner's investment

Unearned revenues.

Accrued expenses.
10 points
Question 10
1. Transactions are first recorded in the

General ledger.

General journal.

Trial balance.

Accounting equation