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Which of the following would not be found in a general journal?


A) The ending balance in an account
B) Separate columns for debits and credits
C) The date of the transaction
D) The account names in a transaction
E) A posting reference

F) B) and E)
G) C) and E)

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Selected accounts from Taylor Company as of March 31,2012,follow:  Cash $5,300 Inventory 10,250 Prepaid rent 100 Plant 40,500 Accumulated depreciation, plant 10,000 Accounts payable 6,300 Paid in capital 20,000 Retained earnings ?\begin{array}{|l|rl|}\hline\text { Cash } & \$ 5,300 \\\hline \text { Inventory } & 10,250 \\\hline \text { Prepaid rent } & 100 \\\hline \text { Plant } & 40,500 \\\hline \text { Accumulated depreciation, plant } & 10,000 \\\hline \text { Accounts payable } & 6,300 \\\hline \text { Paid in capital } & 20,000 \\\hline \text { Retained earnings } & ?\\\hline\end{array} In addition, the following transactions occurred in the month of March. 1. Depreciation for the month amounted to $700 \$ 700 2. Purchased inventory on account for $3,000 \$ 3,000 3. Returned a portion of the inventory deemed defective for $200 \$ 200 4. Paid creditors $2,200 \$ 2,200 for inventory purchased in #2 \# 2 5. Paid 6 months' rent of $600 \$ 600 in advance, covering April 1, 2012 through September 30 , 2012. The contract price did not increase from the previous 6 months' period and covered October 1,2011 through March 31,2012 6. Sold inventory for $4,100 \$ 4,100 cash that cost Taylor Company $2,600 \$ 2,600 Required: 1.Journalize the transactions for Taylor Company. 2.Prepare an analysis of the transactions using the balance sheet equation. 3.Prepare an income statement for the month ending March 31. 4.Prepare a balance sheet at March 31.

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None...

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Posting is the transferring of amounts from the journal to the appropriate accounts in the ledger.

A) True
B) False

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The recording process has a sequence of five steps.What is the specific order of the steps?


A) Journal,trial balance,financial statements,ledger,transaction documentation
B) Transaction documentation,journal,ledger,trial balance,financial statements
C) Transaction documentation,ledger,journal,trial balance,financial statements
D) Ledger,journal,transaction documentation,trial balance,financial statements
E) Trial balance,financial statements,ledger,journal,transaction documentation

F) B) and D)
G) B) and C)

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Accumulated depreciation is classified as a(n)


A) asset account.
B) liability account.
C) contra asset account.
D) contra liability account.
E) equity account.

F) D) and E)
G) A) and B)

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If an entry involving only two assets is not posted,the trial balance will be out of balance.

A) True
B) False

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If depreciation expense is not recorded for the current accounting period,total assets will be understated.

A) True
B) False

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Liabilities are known as contra assets.

A) True
B) False

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Whitestone Remodeling,Inc.journalized a $600 repair to the Supplies account in error.Which of the following is the correcting entry to be made?


A)
Dr.Cr.Accounts Payable 600 Supplies 600\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Accounts Payable } & 600 & \\\text { Supplies } & &600\\\end{array}
B)
Dr.Cr.Repair Expense 600 Cash 600\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Repair Expense } & 600 & \\\text { Cash } & &600\\\end{array}

C)
Dr.Cr.Repair Expense 600 Supplies 600\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Repair Expense } & 600 & \\\text { Supplies } & &600\\\end{array}

D)
Dr.Cr.Supplies 600 Repair Expense 600\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Supplies } & 600 & \\\text { Repair Expense } & &600\\\end{array}

E)
Dr.Cr.Cash600 Accounts Payable 600\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Cash} & 600 & \\\text { Accounts Payable } & &600\\\end{array}

F) B) and D)
G) A) and B)

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Altoon Manufacturing's records were partially destroyed in a flood.The company does not know what sales have been for the year,but it does know all sales were on account.Also,the beginning accounts receivable balance was $19,000,and its accounts receivable balance at the time of the flood was $25,000.From the beginning of the year until the flood,cash collections from credit customers were $158,000.Given this information,what are Altoon Manufacturing's sales for the year until the flood?


A) $164,000
B) $114,000
C) $202,000
D) $209,000
E) $189,000

F) B) and D)
G) C) and D)

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After all the revenue and expense accounts are closed,the Income Summary account will have a credit balance if the entity has net income.

A) True
B) False

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Florings Company purchased merchandise costing $900,one-fourth of which was acquired on open account,and the rest was paid in cash.Which set of T-accounts best describes this transaction?


A)  Cash  Accounts Payable  Merchandise Inventory −−−−−−−−−−−−−−−∣657∣225900∣∣∣∣\begin{array}{cc}\text { Cash } & \text { Accounts Payable } & \text { Merchandise Inventory } \\-----&-----&-----\\\mid 657 & \mid225 & 900 \mid\\\mid&\mid&\mid\end{array}

B)  Cash  Accounts Payable  Merchandise Inventory−−−−−−−−−−−−−−−∣657900∣∣225∣∣∣\begin{array}{cc}\text { Cash } & \text { Accounts Payable } & \text { Merchandise Inventory} \\-----&-----&-----\\\mid 657& 900\mid & \mid225 \\\mid&\mid&\mid\end{array}

C)  Cash  Accounts Receivable  Merchandise Inventory −−−−−−−−−−−−−−−657∣225∣∣900∣∣∣\begin{array}{cc}\text { Cash } & \text { Accounts Receivable } & \text { Merchandise Inventory } \\-----&-----&-----\\657\mid & 225\mid & \mid900 \\\mid&\mid&\mid\end{array}

D)  Cash  Accounts Payable  Merchandise Inventory −−−−−−−−−−−−−−−657∣∣900225∣∣∣∣\begin{array}{cc}\text { Cash } & \text { Accounts Payable } & \text { Merchandise Inventory } \\-----&-----&-----\\657\mid & \mid 900 & 225 \mid\\\mid&\mid&\mid\end{array}

E)  Cash  Notes Payable  Merchandise Inventory−−−−−−−−−−−−−−−∣657∣900225∣∣∣∣\begin{array}{cc}\text { Cash } & \text { Notes Payable } & \text { Merchandise Inventory} \\-----&-----&-----\\\mid 657 & \mid900 & 225\mid \\\mid&\mid&\mid\end{array}

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

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All Handles,Inc.began operations on February 1,2012,and purchased $4,000 of supplies.On December 31,2012,$1,200 were still on hand.The December 31,2012,entry would include a


A) debit to Supplies Expense for $1,200.
B) debit to Supplies for $4,000.
C) credit to Supplies Expense for $1,200.
D) credit to Supplies Expense for $2,800.
E) debit to Supplies Expense for $2,800.

F) A) and D)
G) B) and E)

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Listed below are several accounts from Process Improvements,Inc.for the year ended December 31,2012.Next to each account indicate its normal balance and whether you would need to debit or credit the account to decrease it.Use DR for debit and CR for credit.  Normal Balance  To Decrease  Prepaid rent  Notes payable  Retained earnings  Sales revenue  Cash  Store equipment  Paid in capital  Wage expense  Accounts receivable  Cost of goods sold  Accounts payable  Unventilities expense  Depreciation expense  Accumulated depreciation \begin{array}{ | l | c | c | } \hline & \text { Normal Balance } & \text { To Decrease } \\\hline \text { Prepaid rent } & & \\\hline \text { Notes payable } & & \\\hline \text { Retained earnings } & & \\\hline \text { Sales revenue } & & \\\hline \text { Cash } & & \\\hline \text { Store equipment } & & \\\hline \text { Paid in capital } & & \\\hline \text { Wage expense } & & \\\hline \text { Accounts receivable } & & \\\hline \text { Cost of goods sold } & & \\\hline \text { Accounts payable } & & \\\hline \text { Unventilities expense } & & \\\hline \text { Depreciation expense } & & \\\hline \text { Accumulated depreciation } & & \\\hline\end{array}

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\[\begin{array} { | l | c | c | }
\hlin...

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The entry to close net income at the end of the accounting period involves a


A) debit to Retained Earnings and a credit to Income Summary.
B) debit to Income Summary and a credit to Retained Earnings.
C) debit to Accounts Receivable and a credit to Retained Earnings.
D) debit to Retained Earnings and a credit to Accounts Receivable.
E) debit to Income Summary and a credit to Accounts Receivable.

F) B) and C)
G) C) and D)

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Marc's Cleaning Services purchased merchandise inventory on account for $500.This transaction was properly recorded.A week later,Marc's Cleaning Services discovered a defect in the merchandise inventory and returned the merchandise inventory to the supplier for credit.As the accountant,you would tell the bookkeeper to record the return of the merchandise inventory by


A) debiting Merchandise Inventory and crediting Accounts Payable for $500.
B) debiting Accounts Payable and crediting Merchandise Inventory for $500.
C) debiting Merchandise Inventory and crediting Cash for $500.
D) debiting Cash and crediting Merchandise Inventory for $500.
E) debiting Cash and crediting Accounts Payable for $500.

F) A) and B)
G) C) and D)

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A credit customer paid $200 to Iron Works Company to reduce the customer's outstanding balance.However,Iron Works Company erroneously increased sales.Which of the following is the correcting entry to be made?


A)
Dr.Cr.Accounts Receivable 200 Sales 200\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Accounts Receivable } & 200 & \\\text { Sales } & &200\\\end{array}
B)
Dr.Cr.Cash 200Accounts Receivable 200\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Cash } & 200 & \\\text {Accounts Receivable } & &200\\\end{array}

C)
Dr.Cr.Cash 200 Accounts Receivable 200\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Cash } & 200 & \\\text { Accounts Receivable } & &200\\\end{array}

D)
Dr.Cr.Sales 200 Accounts Receivable 200\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Sales } & 200 & \\\text { Accounts Receivable } & &200\\\end{array}

E)
Dr.Cr.Sales200 Cash 200\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Sales} & 200 & \\\text { Cash } & &200\\\end{array}

F) C) and D)
G) B) and D)

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XBRL


A) is only used in the United States.
B) requires ERP programs.
C) is used to compare different companies.
D) is not an XML-based computer language.
E) does not work with accounting data.

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

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Two of the largest developers of ERP systems are ________ and ________.


A) Microsoft and Oracle
B) Microsoft and Apple
C) Windows and SAP
D) QuickBooks and NetSuite
E) SAP and Oracle

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

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The trial balance serves two purposes.It verifies the clerical accuracy of the posting process and assists in preparing the financial statements.

A) True
B) False

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