9:46 Class Test Reviewer.docx 6) An account had a starting debit balance of $350. There were debit postings of $400 and credit postings of $200 during the month. The ending balance is A) $550 debit B) $450 credit C) $950 debit D) $200 debit 7) A chart of accounts A) is set up in alphabetical order. B) includes account balances. C) is a listing of all the accounts used by a company. D) All of the above are correct. 8) A compound entry is A) a transaction involving more than one debit and/or credit. B) used to prepare the trial balance. C) the same as the chart of accounts. D) found on the income statement. 9) A ledger A) is a group of accounts and their balances. B) can replace the financial statements. C) is the same as a chart of accounts. D) None of these answers are correct. 10) The left side of any account is the A) debit side. B) credit side. C) ending balance D) footings. 11) The Accounts Receivable account is A) a revenue, and it has a normal debit balance. B) an expense, and it has a normal credit balance. C) an asset, and it has a normal debit balance. D) a liability, and it has a normal credit balance. TI 9:47 Class Test Reviewer.docx 11) The Accounts Receivable account is A) a revenue, and it has a normal debit balance. B) an expense, and it has a normal credit balance. C) an asset, and it has a normal debit balance. D) a liability, and it has a normal credit balance. 12) The normal balance of an account is A) debit. B) credit. C) the side that decreases. D) the side that increases. 13) Accounts Payable had a normal starting balance of $600. There were debit postings of $350 and credit postings of $200 during the month. The ending balance is A) $750 credit. B) $750 debit. C) $450 debit D) $450 credit 14) Net income appears on which of the following financial reports? A) Balance sheet B) Income statement and statement of owner's equity C) Trial balance D) Balance sheet and income statement 15) What is the James Long Company's net income or net loss if it had revenue of $1,200, salary expense of $300, utility expense of $500, and withdrawals of $500 during May? A) $400 B) ($100) C) $100 D) $900 16) The process that being w cording business 9:47 Class Test Reviewer.docx TV B) ($100) C) $100 D) $900 16)The process that begins with recording business transactions and includes the completion of the financial statements is the A) calendar year. B) natural business year. C) fiscal year. D) accounting cycle. 17) Business transactions are first recorded in the A) ledger B) journal. C) T account D) balance sheet 18) "PR" in the general journal and general ledger stands for A) peer reviewer B) posting reference. C) prior receipt. D) None of the above are correct. 19) Which of the following entries would record the payment of a utility bill? A) Utilities Expense, debit; Cash, credit. B) Cash, debit; Utilities Expense, credit. C) Utilities Expense, debit; Accounts Payable, credit. D) Accounts Payable, debit; Utilities Expense, credit. 20) As Withdrawals increase, A) Owner's Equity decreases. B) Owner's Equity increases. C) Cash increases. D) Expense increases. 21) Posting is performed by mansiering information 9:48 Class Test Reviewer.docx 21) Posting is performed by transferring information from the journal to the A) ledger B) trial balance. C) balance sheet. D) income statement 22) The trial balance A) includes all accounts with a balance in the ledger. B) includes assets, liabilities, capital, withdrawals, revenues and expenses. C) ensures that debits equal credits. D) All of the above are correct. 23) Revenue is traditionally recognized in the accounting records when A) cash is received B) services are provided to the customer. C) it is incurred. D) None of the answers are correct. 24) The process of initially recording business transactions in a journal is called A) sliding B) posting. C) journalizing. D) transposing. 25) The journal entry debiting Cash and crediting Capital would be a result of a(n) A) withdrawal. B) expense. C) investment D) revenue. 9:48 Class Test Reviewer.docx 26) If Fees Earned has been credited, it is most likely that A) services were provided. B) the owner made an investment. C) a correcting entry for the overstatement of revenue was recorded. D) All of these are possible. 27) The type of business organization that can continue indefinitely is known as a A) sole proprietorship. B) partnership C) corporation. D) None of the above. 28) Bookkeeping is primarily A) preparing financial reports. B) analyzing the company's financial position. C) record-keeping. D) preparing tax reports. 29) Accounting provides information to A) managers. B) government C) investors. D) All of these answers are correct 30) Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process. TRUE FALSE