Question 1

The most important source documents used in analyzing transactions are a firm's general journal and general ledger.

Accepted Answer

The general journal and general ledger are not source documents. Source documents are printed forms or computer records that are generated when a firm engages in a business transaction. The source document usually specifies the dollar amount involved, the date of the transaction, and possibly the party dealing with the firm. The source document serves as the basis of analysis for an underlying business event.

Question 2

Two examples of source documents are a seller's invoice and a bank deposit slip.

Accepted Answer

Source documents are printed forms or computer records that are generated when a firm engages in a business transaction. The source document usually specifies the dollar amount involved, the date of the transaction, and possibly the party dealing with the firm. The source document serves as the basis of analysis for an underlying business event. A seller's invoice and a bank deposit slip are source documents.

Question 3

A general journal has three amount columns: a debit column, a credit column, and a balance column.

Accepted Answer

A general journal just has two amount columns: a debit column and a credit column.

Question 4

A journal is a record of original entry which presents chronologically, and in one place, the total effect of a business transaction.

Accepted Answer

A journal, or book of original entry, is a tabular record in which a business's activities are reflected in terms of debits and credits and recorded in chronological order. A journal organizes information by date.

Question 5

A compound journal entry involves at least three accounts.

Accepted Answer

A journal entry that involves more than two accounts is called a compound journal entry.

Question 6

Posting is the process of transferring the debits and credits of each journal entry to the appropriate general ledger accounts.

Accepted Answer

After an accounting transaction is journalized in the general journal, the debits and credits of each journal entry are immediately transferred (posted) to the general ledger.

Question 7

Posting is the process of formally recording a business transaction in the appropriate journal.

Accepted Answer

Posting is the process of transferring the debits and credits of each journal entry to the appropriate general ledger accounts.

Question 8

Which of the following is one effect of a purchase of $600 of supplies on credit?
A) It would decrease liabilities by $600
B) It would decrease cash assets by $600
C) It would increase liabilities by $600
D) It would decrease retained earnings $600

Accepted Answer

The purchase on credit creates an account payable. It would increase liabilities by $600. In addition, the supplies account in the asset section of the balance sheet would also increase.

Question 9

The Cash T-account of Rainbow, Inc. has a beginning balance of $52,000. During the year, $244,000 was debited and $241,000 was credited to the account. What is the ending balance of cash?
A) $55,000
B) $37,000
C) ($ 5,000)
D) Cannot be determined from the information given

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($52,000 + $244,000 - $241,000) = $55,000

Question 10

The Cash T-account of Firefly, Inc. has a beginning balance of $156,000. During the year, $732,000 was debited and $723,000 was credited to the account. What is the ending balance of cash?
A) $111,000
B) ($ 15,000)
C) $165,000
D) Cannot be determined from the information given

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($156,000 + $732,000 - $723,000) = $165,000

Question 11

If the beginning Cash account balance of Crossbow, Inc. was $36,800, the ending balance was $20,400, and total cash received during the period was $88,000, what amount of cash was paid out during the period?
A) $ 3,600
B) $ 84,800
C) $104,400
D) $ 71,600

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($36,800 + $88,000 - X = $20,400)
(X = $ 36,800 + $88,000 - $20,400) = $104,400

Question 12

If the beginning Cash account balance of Firefly, Inc. was $110,400, the ending balance was $61,200, and total cash received during the period was $264,000, what amount of cash was paid out during the period?
A) $ 313,200
B) $ 214,800
C) $ 25,800
D) $ 254,850

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($110,400 + $264,000 - X = $61,200)
(X = $110,400 + $264,000 - $61,200) = $313,200

Question 13

If the beginning Cash account balance of Crossbow, Inc. was $20,000, the ending balance was $33,600, and the total cash paid out during the period was $64,000, what amount of cash was received during the period?
A) $ 74,400
B) $ 77,600
C) $ 9,600
D) $ 93,600

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($20,000 + X - $64,000 = $33,600)
(X = $33,600 + $64,000 - $20,000) = $77,600

Question 14

If the beginning Cash account balance of Firefly, Inc. was $60,000, the ending balance was $100,800, and the total cash paid out during the period was $192,000, what amount of cash was received during the period?
A) $280,800
B) $223,200
C) $232,800
D) $ 28,800

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($60,000 + X - $192,000 = $100,800)
(X = $100,800 + $192,000 - $60,000) = $232,800

Question 15

Beginning and ending Cash account balances of Crossbow, Inc. were $19,000 and $8,000, respectively. If total cash received during the period was $37,000, what amount of cash was paid out during the period?
A) $ 48,000
B) $ 30,000
C) $ 46,000
D) $ 53,000

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($19,000 + $37,000 - X = $8,000)
(X = $19,000 + $37,000 - $8,000) = $48,000

Question 16

Beginning and ending Cash account balances of Firefly, Inc. were $57,000 and 24,000, respectively. If total cash received during the period was $111,000, what amount of cash was paid out during the period?
A) $159,000
B) $144,000
C) $ 90,000
D) $138,000

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($57,000 + $111,000 - X = 24,000)
(X = 57,000 + $111,000 - $24,000) = $144,000

Question 17

Beginning and ending Cash account balances of Crossbow, Inc. were $14,000 and $32,000 respectively. If total cash paid out during the period was $30,000, what amount of cash was received during the period?
A) $ 24,000
B) $ 48,000
C) $ 40,000
D) $ 36,000

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($14,000 + X - $30,000 = $32,000)
(X = $32,000 + $30,000 - $14,000) = $48,000

Question 18

Beginning and ending Cash account balances of Firefly, Inc. were $42,000 and $96,000 respectively. If total cash paid out during the period was $90,000, what amount of cash was received during the period?
A) $ 108,000
B) $ 72,000
C) $ 144,000
D) $ 120,000

Accepted Answer

Beginning cash + Cash receipts - Cash payments = Ending Cash
($42,000 + X - $90,000 = $96,000)
(X = $96,000 + $90,000 - $42,000) = $144,000

Question 19

Which of the following is not true of the general journal?
A) It is a record of original entry
B) It reflects the entire effect of a transaction in one place
C) It receives postings of dollar amounts from the general ledger
D) It shows transactions recorded in chronological order

Accepted Answer

After an accounting transaction is journalized in the general journal, the debits and credits of each journal entry are immediately transferred (posted) to the general ledger, not vice versa.

Question 20

Which of the following is true of a chart of accounts?
A) It is the same thing as a trial balance
B) It shows the account title and numerical code of all general ledger accounts
C) It lists accounts in alphabetical order
D) The first accounts listed are the revenue accounts

Accepted Answer

A chart of accounts is a list of the titles of all the accounts in a business's accounting system. Account titles are grouped by, and in order of, assets, liabilities, stockholders' equity, revenue, and expenses.

Quiz 2: Processing Accounting Information

The most important source documents used in analyzing transactions are a firm's general journal and general ledger.

Two examples of source documents are a seller's invoice and a bank deposit slip.

A general journal has three amount columns: a debit column, a credit column, and a balance column.

A journal is a record of original entry which presents chronologically, and in one place, the total effect of a business transaction.

A compound journal entry involves at least three accounts.

Posting is the process of transferring the debits and credits of each journal entry to the appropriate general ledger accounts.

Posting is the process of formally recording a business transaction in the appropriate journal.

Which of the following is one effect of a purchase of $600 of supplies on credit?

The Cash T-account of Rainbow, Inc. has a beginning balance of $52,000. During the year, $244,000 was debited and $241,000 was credited to the account. What is the ending balance of cash?

The Cash T-account of Firefly, Inc. has a beginning balance of $156,000. During the year, $732,000 was debited and $723,000 was credited to the account. What is the ending balance of cash?

If the beginning Cash account balance of Crossbow, Inc. was $36,800, the ending balance was $20,400, and total cash received during the period was $88,000, what amount of cash was paid out during the period?

If the beginning Cash account balance of Firefly, Inc. was $110,400, the ending balance was $61,200, and total cash received during the period was $264,000, what amount of cash was paid out during the period?

If the beginning Cash account balance of Crossbow, Inc. was $20,000, the ending balance was $33,600, and the total cash paid out during the period was $64,000, what amount of cash was received during the period?

If the beginning Cash account balance of Firefly, Inc. was $60,000, the ending balance was $100,800, and the total cash paid out during the period was $192,000, what amount of cash was received during the period?

Beginning and ending Cash account balances of Crossbow, Inc. were $19,000 and $8,000, respectively. If total cash received during the period was $37,000, what amount of cash was paid out during the period?

Beginning and ending Cash account balances of Firefly, Inc. were $57,000 and 24,000, respectively. If total cash received during the period was $111,000, what amount of cash was paid out during the period?

Beginning and ending Cash account balances of Crossbow, Inc. were $14,000 and $32,000 respectively. If total cash paid out during the period was $30,000, what amount of cash was received during the period?

Beginning and ending Cash account balances of Firefly, Inc. were $42,000 and $96,000 respectively. If total cash paid out during the period was $90,000, what amount of cash was received during the period?

Which of the following is not true of the general journal?

Which of the following is true of a chart of accounts?