MCQ Questions
Q.1.
-Borrowing money-Buying equipment-Issuing shares of stock
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    Three primary types of the financing activity
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    What all is recorded in the accounting records?
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    A complete journal entry does not show
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    What is the correct sequence of events?
Q.2.
balance sheet only.
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    If a company receives cash from a customer before performing services for the customer, then what will happen?
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    In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
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    Genesis Company buys a $900 machine on credit. This transaction will immediately affect the
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    An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
Q.3.
Decreases assets and decreases liabilities
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    The effect on the basic accounting equation of performing services for cash are to:
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    What is the correct sequence of events?
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    What do debits do?
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    What effects occur when an account payable is paid with cash?
Q.4.
Assets, liabilities, stockholders' equity, revenues, expenses
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    What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
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    What is the appropriate order for a company's chart of accounts?
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    What is the process of transferring entries from the journal to the ledger called?
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    A ledger is a what?
Q.5.
Assets, dividends, and expenses
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    Accounts with normal credit balances include:
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    Which accounts normally have debit balances?
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    Which accounts normally have credit balances?
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    If an account is debited in the journal entry, then:
Q.6.
Liabilities will increase
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    What all is recorded in the accounting records?
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    If cash is received in advance from a customer
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    Accounts with normal credit balances include:
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    What type of account is unearned revenue?
Q.7.
Source document
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    If cash is received in advance from a customer
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    What type of account is unearned revenue?
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    What is the evidence that a transaction has occurred?
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    What is the process of transferring entries from the journal to the ledger called?
Q.8.
-It discloses the complete effect of a transaction in one place.-It provides a chronological record of transactions.-It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
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    What do debits do?
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    what does a journal do?
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    Parts of the complete journal entry
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    A trial balance does what?
Q.9.
Investing activities
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    In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
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    If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
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    An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
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    What transaction is recorded as a result of issuing stock to investors for cash?
Q.10.
is a list of accounts with their balances at a given time.
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    Receipt of an unearned revenue does what?
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    Payment of a dividend does what?
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    A trial balance does what?
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    If an expense is paid with cash
Q.11.
Journal
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    What is the process of transferring entries from the journal to the ledger called?
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    An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
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    Transactions are initially recorded in chronological order in a __________ before they are transferred to the accounts.
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    Where is the first place every transaction is recorded?
Q.12.
collection of the entire group of accounts maintained by a company.
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    What is the appropriate order for a company's chart of accounts?
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    Posting does what?
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    What is the entire group of accounts maintained by a company collectively called?
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    A ledger is a what?
Q.13.
Increase assets and decrease liabilities.
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    Receipt of an unearned revenue does what?
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    What effects occur when an account payable is paid with cash?
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    The effect on the basic accounting equation of performing services for cash are to:
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    What do debits do?
Q.14.
expenses and assets.
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    Accounts with normal credit balances include:
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    Which accounts normally have credit balances?
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    Accounts with normal debit balances include:
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    Retained earnings is decreased by
Q.15.
-A cash investment is made into the business.-Equipment is purchased on account.-The owner withdraws cash for personal use.
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    What type of account is unearned revenue?
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    Parts of the complete journal entry
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    What all is recorded in the accounting records?
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    If cash is received in advance from a customer
Q.16.
Credits
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    A revenue account Is increased by what?
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    A complete journal entry does not show
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    Receipt of an unearned revenue does what?
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    Retained earnings is decreased by
Q.17.
All the asset, liability, stockholders' equity, revenue, and expense accounts
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    State the correct sequence of events
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    What does a general ledger of a company contain?
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    Accounts are listed on the trial balance in what order?
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    What is the entire group of accounts maintained by a company collectively called?
Q.18.
Journalize; post; prepare a trial balance
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    Receipt of an unearned revenue does what?
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    What is the evidence that a transaction has occurred?
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    What effects occur when an account payable is paid with cash?
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    What is the correct sequence of events?
Q.19.
increased $40,000.
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    On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
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    In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
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    Transactions are initially recorded in chronological order in a __________ before they are transferred to the accounts.
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    During 2010, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity:
Q.20.
assets will decrease.
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    If an expense is paid with cash
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    Which accounts normally have debit balances?
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    Retained earnings is decreased by
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    If cash is received in advance from a customer
Q.21.
a $100 cash dividend is debited to Dividends for $1,000 and credited to Cash for $100.
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    Payment of a dividend does what?
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    A trial balance will not balance if
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    Parts of the complete journal entry
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    Parts of the recording process
Q.22.
the order that they appear in the ledger.
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    Which accounts normally have credit balances?
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    What effects occur when an account payable is paid with cash?
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    Where is the first place every transaction is recorded?
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    Accounts are listed on the trial balance in what order?
Q.23.
Expenses
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    Retained earnings is decreased by
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    A revenue account Is increased by what?
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    Receipt of an unearned revenue does what?
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    A trial balance will not balance if
Q.24.
the new balance in the accounts affected by the transaction.
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    A trial balance will not balance if
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    A complete journal entry does not show
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    A trial balance does what?
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    Receipt of an unearned revenue does what?
Q.25.
increases an asset; increases a liability.
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    Receipt of an unearned revenue does what?
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    Accounts with normal credit balances include:
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    Which accounts normally have credit balances?
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    Payment of a dividend does what?
Q.26.
the mathematical equality of the accounting equation.
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    If a company receives cash from a customer before performing services for the customer, then what will happen?
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    In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
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    What transaction is recorded as a result of issuing stock to investors for cash?
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    If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
Q.27.
Analyze a transaction; record it in the journal; post it to the ledger.
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    What is the correct sequence of events?
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    A ledger is a what?
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    What is the appropriate order for a company's chart of accounts?
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    State the correct sequence of events
Q.28.
-Posting transactions-Analyzing transactions-Entering transactions in a journal
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    A trial balance does what?
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    What is the correct sequence of events?
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    Three primary types of the financing activity
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    Parts of the recording process
Q.29.
Liability
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    What is the correct sequence of events?
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    A revenue account Is increased by what?
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    Accounts with normal credit balances include:
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    What type of account is unearned revenue?
Q.30.
Ledger
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    What does a general ledger of a company contain?
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    A ledger is a what?
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    What is the appropriate order for a company's chart of accounts?
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    What is the entire group of accounts maintained by a company collectively called?
Q.31.
individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items.
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    Accounts with normal credit balances include:
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    An account is a part of the financial information system and is described as?
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    What do debits do?
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    An account is an...
Q.32.
Investing
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    If a company receives cash from a customer before performing services for the customer, then what will happen?
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    On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
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    In what section of the statement of cash flows would the purchase of office equipment for $10,000 appear?
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    What is the process of transferring entries from the journal to the ledger called?
Q.33.
Posting
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    Where is the first place every transaction is recorded?
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    What is the process of transferring entries from the journal to the ledger called?
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    On. Jan. 10, Novis Company purchased manufacturing equipment for $80,000 cash. What kind of activity is this?
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    What is the evidence that a transaction has occurred?
Q.34.
Assets increase by $5,000, or stockholders' equity decrease by $5,000.
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    If a company receives cash from a customer before performing services for the customer, then what will happen?
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    What all is recorded in the accounting records?
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    What transaction is recorded as a result of issuing stock to investors for cash?
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    What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
Q.35.
assets increase and liabilities increase.
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    If a company receives cash from a customer before performing services for the customer, then what will happen?
  • 0%
    Genesis Company buys a $900 machine on credit. This transaction will immediately affect the
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    If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates what?
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    What is an acceptable effect if total liabilities increase by $5,000 as a result of a transaction?
Q.36.
-The date of the transaction.-A brief explanation of the transaction.-The accounts and amounts to be debited and credited.
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    A trial balance will not balance if
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    Parts of the complete journal entry
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    What all is recorded in the accounting records?
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    Payment of a dividend does what?