MCQ Questions
Q.1.
On January 14, Welsford Agency purchased supplies of $500 on account. The entry to record the purchase will include a debit to
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    on the line following each journal entry
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    Supplies and a credit to Accounts Payable.
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    a $1,000 increase in a different asset
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    transferring journal amounts to ledger accounts
Q.2.
Which of the following is true in journalizing?
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    Credits decrease assets and increase liabilities.
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    transferring journal amounts to ledger accounts
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    Titles of accounts must appropriately describe the content of the account.
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    The debit account is entered first at the extreme left margin.
Q.3.
What is a T-account?
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    Titles of accounts must appropriately describe the content of the account.
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    The title is capitalized to indicate that it is a specific account name.
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    The debit account is entered first at the extreme left margin.
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    the basic form of an account that aligns information in three parts
Q.4.
The first step in transferring journal entry amounts to ledger accounts involves
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    The title is capitalized to indicate that it is a specific account name.
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    analyze the transaction
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    The debit account is entered first at the extreme left margin.
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    entering in the appropriate ledger account the date and debit amount shown in the journal.
Q.5.
Which of the following steps is NOT included in preparing a trial balance?
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    transferring journal amounts to ledger accounts
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    Credits decrease assets and increase liabilities.
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    the purchase of new computers
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    The debit account is entered first at the extreme left margin.
Q.6.
After conducting a financial transaction, a company's accounting staff records a $1,000 decrease in a particular asset. In order for the accounting equation to balance, the accounting staff must also record which of the following things?
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    on the line following each journal entry
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    Credits decrease assets and increase liabilities.
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    Supplies and a credit to Accounts Payable.
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    a $1,000 increase in a different asset
Q.7.
Which of the following statements about credits is true?
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    Titles of accounts must appropriately describe the content of the account.
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    The debit account is entered first at the extreme left margin.
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    transferring journal amounts to ledger accounts
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    Credits decrease assets and increase liabilities.
Q.8.
If the trial balance has total debits unequal to total credits, then
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    it is possible the wrong accounts were used in the journal entry.
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    Titles of accounts must appropriately describe the content of the account.
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    The debit account is entered first at the extreme left margin.
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    The title is capitalized to indicate that it is a specific account name.
Q.9.
What is the usual order of accounts in the general ledger?
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    Credits decrease assets and increase liabilities.
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    on the line following each journal entry
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    assets, liabilities, revenues, and expenses
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    general ledger
Q.10.
Irregular entries represent
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    an unethical misstatement.
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    analyze the transaction
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    in at least two different accounts
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    on the line following each journal entry
Q.11.
Which of the following would be considered an economic event that requires an accounting transaction?
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    The debit account is entered first at the extreme left margin.
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    the purchase of new computers
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    transferring journal amounts to ledger accounts
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    Credits decrease assets and increase liabilities.
Q.12.
When writing the title of an account, how is it formatted? Why?
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    The title is capitalized to indicate that it is a specific account name.
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    on the line following each journal entry
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    Titles of accounts must appropriately describe the content of the account.
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    The debit account is entered first at the extreme left margin.
Q.13.
How must each transaction be recorded in the double-entry system?
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    on the line following each journal entry
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    analyze the transaction
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    the purchase of new computers
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    in at least two different accounts