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Question(s) / Instruction(s):

98. A chart of accounts for a business firm a. is a graph. b. indicates the amount of profit or loss for the period. c. lists the accounts and account numbers that identify their location in the ledger. d. shows the balance of each account in the general ledger.

99. Posting a. should be performed in account number order. b. accumulates the effects of journalized transactions in the individual accounts. c. involves transferring all debits and credits on a journal page to the trial balance. d. is accomplished by examining ledger accounts and seeing which ones need updating.

100. After journal entries are posted, the reference column a. of the general journal will be blank. b. of the general ledger will show journal page numbers. c. of the general journal will show "Dr" or "Cr". d. of the general ledger will show account numbers. 101. The explanation column of the general ledger a. is completed without exception. b. is nonexistent. c. is used infrequently. d. shows account titles.

102. A numbering system for a chart of accounts a. is prescribed by GAAP. b. is uniform for all businesses. c. usually starts with income statement accounts. d. usually starts with balance sheet accounts.

103. The first step in designing a computerized accounting system is the creation of the a. general ledger. b. general journal. c. trial balance. d. chart of accounts.

104. A list of accounts and their balances at a given time is called a. a journal. b. a posting. c. a trial balance. d. an income statement.

105. If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates a. no errors have been made. b. no errors can be discovered. c. that all accounts reflect correct balances. d. the mathematical equality of the accounting equation.

106. A trial balance is a listing of a. transactions in a journal. b. the chart of accounts. c. general ledger accounts and balances. d. the totals from the journal pages.

107. Customarily, a trial balance is prepared a. at the end of each day. b. after each journal entry is posted. c. at the end of an accounting period. d. only at the inception of the business.

108. A trial balance would only help in detecting which one of the following errors? a. A transaction that is not journalized b. A journal entry that is posted twice c. Offsetting errors are made in recording the transaction d. A transposition error when transferring the debit side of journal entry to the ledger.

The following questions are from the Study Guide.

s109. An account is an individual accounting record of increases and decreases in specific a. liabilities. b. assets. c. expenses. d. assets, liabilities, and owner's equity items. s110. Which of the following rules is incorrect? a. Credits decrease the drawing account. b. Debits increase the capital account. c. Credits increase revenue accounts. d. Debits decrease liability accounts.

s111. Which of the following is the correct sequence of steps in the recording process? a. Posting, journalizing, analyzing b. Journalizing, analyzing, posting c. Analyzing, posting, journalizing d. Analyzing, journalizing, posting

s112. McClory Company purchases equipment for $900 and supplies for $300 from Rudnicky Co. for $1,200 cash. The entry for this transaction will include a a. debit to Equipment $900 and a debit to Supplies Expense $300 for Rudnicky. b. credit to Cash for Rudnicky. c. credit to Accounts Payable for McClory. d. debit to Equipment $900 and a debit to Supplies $300 for McClory.

s113. Kevin Walsh withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to a. Kevin Walsh, Drawing. b. Kevin Walsh, Capital. c. Owner's Salary Expense. d. Salaries Expense.

s114. On October 3, Mike Baker, a carpenter, received a cash payment for services previously billed to a client. Mike paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a a. credit to Mike Baker, Capital. b. credit to Notes Payable. c. debit to Accounts Receivable. d. credit to Accounts Payable.

s115. The chart of accounts is a a. list of accounts and their balances at a given time. b. device used to prove the mathematical accuracy of the ledger. c. listing of the accounts and the account numbers which identify their location in the ledger. d. required step in the recording process.

s116. A trial balance will not balance if a. a journal entry is posted twice. b. a wrong amount is used in journalizing. c. incorrect account titles are used in journalizing. d. a journal entry is only partially posted.

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