Directions: Complete each ofthe following statements by writing in the correct letter for the best answer.

2. A chart of accounts doesn't include (A) account balances; (B) liabilities; (C) owner's equity; (D) revenue and expenses; (E) assets.

3. An example of a source document would be (A) a trial balance; (B) cash; (C) an invoice; (D) a general journal; (E) a general ledger.

4. A journal is commonly called (A) an account; (B) a ledger, (C) the book of original entry; (D) the balance sheet; (E) the cross-reference record.

5. The journal entry consists of (A) the owner's name; (B) the accounts to be debited and credited; (C) the difference between the debit and credit amounts; (D) a tax number; (E) the calculation.

6. In the ledger, the month is recorded (A) with every transaction; (B) by the first entry on the page; (C) for the first and last transactions ofthe month; (D) at year end; (E) on the first page only.

In a two-column general journal, the Description column contains (A) a list of all accounts from the chart of accounts; (B) a complete, detailed description of each transaction; (C) an explanation ofthe posting reference; (D) an analysis of the effect ofthe transactions on the financial status of the company; (E) none of these. Entries requiring more than one debit and/or more than one credit are called (A) compound entries; (B) dual entries; (C) combination entries; (D) double entries; (E) complex entries. Which if the following is true about source documents? (A) They provide objective evidence of business transactions; (B) They provide verifiable evidence of the accuracy of the accounting records; (C) They should be filed for possible future reference; (D) They serve as input for transaction analysis; (E) All of the statements are true. To find an error on the trial balance, you should (A) redo all of your journal entries; (B) double check your addition; (C) trace all dates; (D) have someone else redo the work; (E) add all of the journal entries. Learning.

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