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7. A journal entry that contains more than two accounts is called a. a posted journal entry. b, a compound journal entry. an adjusting journal entry. d. an erroneous journal entry. 8. When accounting information is accumulated in individual accounts, a chart of accounts is a. limited to those accounts that will appear in the balance sheet. b. changed each year by an entity depending on th: results of operations. c. a listing of each account that will be used to accumulate information. d. used to determine whether a debit or credit balance will appear in each of the accounts at the end of the accounting period. 9. Which of the following events would not be considered an accounting transaction? a. Payment of fees to a tax consultant b. Purchase of print advertising space for a new service. c. Sales of a new product during the first month of operations. d. Tabulation of the results of a customer satisfaction survey. 10. The term footing refers to the a. process of obtaining the top number in an account. b. process of obtaining the bottom number in an account. C. process of posting d. addition of a column of figures. 11. What function do general ledgers serve in the accounting process? a. Summarizing b. Recording c. Classifying d. Reporting 12. A chart of accounts is a (an) a. journal. b. flowchart of all transactions. c list of names of all account titles. d. accounting procedure manual. 13. The purpose of the ledger is to a. record chronologically the day's transactions. b. keep a record of documentation to support each transaction. b. cash indows may represent the result of activities completed in a 144 / Basic Financial Accounting and Red accounts balances at all times. 19. maintain a separate account for each balance sheet and income d. make sure that all balance sheet and income statement accounts a 14. Which of the following does not directly or indirectly affect the owner's 15. Which of the following transactions correctly maintains the equat a. To record collections on account, cash and accounts receivable are increa 20. b. To record the purchase of computer equipment, computer equipe 18. The amount of cash received or paid during a period is not an adequate me the economic consequences of an organization's activities because increased and cash is decreased by P46,000. To record payment of notes, notes payable is decreased and cash is in by P70,000 d. To record payment of rent, rent expense and cash are increased by P8,000 account? Paying an accounts payable 5. Withdrawals by the owner Earning of revenues d. Incurring of expenses accounting equation? P160,000 Us bal 16. Which of the following combinations of trial balance totals suggest the prese either a transposition error or a number slide? a. P65,470 debit and P68,170 credit b. P33,220 debit and P35,420 credit P25,670 debit and P26,670 credit d. P14.517 debit and P15,477 credit 17. The first financial statement that is prepared from the trial balance is the a statement of cash flows. b. statement of changes in equity. cincome statement d. balance sheet. AL 2. many activities may not involve the use of cash. period. c cash outflows may precede or follow the activities with which they are associated. d. All of the above reasons are correct. At the end of an accounting period, the equation Assets = Liabilities + Owner's Equity does not necessarily balance. Which of the following actions balances the equation? a. Subtract revenues and add expenses to owners equity. b. Subtract revenues from owners' equity and add expenses to assets. c. Add the difference between revenues and expenses to owner's equity. d. Add revenues and subtract expenses from assets. Which of the following steps in the accounting cycle are listed in logical order? a. Prepare the income statement, prepare the statement of financial position and then prepare a worksheet. b. Post the journal entries to the ledger accounts, prepare a worksheet, and then take a trial balance. c. Journalize the closing entries, post the closing entries, and then take a post- closing trial balance. d. Post the closing entries, take a post-closing trial balance, then journalize the closing entries. se the following information to answer the questions below. The following is the trial alance for Jennifer Perez Ads: Jennifer Perez Ads Trial Balance Jan. 31, 2020 Cash Accounts Receivable Art Supplies Office Supplies Prepaid Rent Prepaid Insurance Art Equipment Office Equipment Accounts Payable Perez, Capital Perez, Withdrawals Advertising Revenues Salaries Expense Utilities Expense Telephone Expense P30,000 20,000 30,000 50,000 70,000 50,000 50,000 30,000 P 50,000 150,000 ? ? ? 50,000 30,000 P P B
