1. When considering accounting information systems, which of the following is false?
a. Accounting information systems vary in size across companies
b. An accounting information system records and summarizes economic events
c. All accounting information systems use the same basic procedures to identify, record, and communicate the effects of economic events
d. Accounting information systems record all economic events
2. Which of the following would be considered an accounting transaction?
a. Hiring a new CEO
b. Selling an in-house developed patent
c. Establishing a new company dress code
d. Posting journal entries to the general ledger
3. Which of the following would not be an account found in the financial statements?
a. Equipment
b. Salaries Payable
c. Employees' Personal Data
d. Dividends
4. Which of the following is false regarding a chart of accounts?
a. The total number of asset accounts must equal the total number of liability accounts
b. A chart of accounts is a listing of all the accounts that a company uses to record accounting information
c. Each account listing contains an account name and a numerical reference
d. Charts of accounts will vary across companies
5. Which of the following is false?
a. A company can have a transaction that affects only the left side of the fundamental accounting equation
b. In each accounting transaction, total debits to assets must equal total credits to liabilities
c. The fundamental accounting equation will always balance after each correctly recorded accounting transaction
d. All of the above are true
6. Which of the following is true?
i. In the double-entry system, each accounting transaction is recorded twice
ii. Each journal entry will at least affect two accounts.
a. i. only
b. ii. only
c. Both i. and ii.
d. Neither i. nor ii.
7. Which of the following groups of accounts shows only accounts that are increased with a debit?
a. Assets, Liabilities, Dividends
b. Assets, Equity, Dividends
c. Assets, Expenses, Dividends
d. Assets, Equity, Expenses
8. Which of the following is true?
i. Paying out a dividend of $1,000 would result in a debit to the Dividends account.
ii. In the general ledger, this $1,000 would be entered on the right side of the Dividends T-account.
a. i. only
b. ii. only
c. Both i. and ii.
b. Neither i. nor ii.