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Module 3 Quiz With Answersss

The document contains a 12 question multiple choice quiz about accounting concepts like the general ledger, trial balance, and financial statements. It tests understanding of accounting terms like debits, credits, journal entries, and how transactions affect accounts. It also includes examples of journal entries and a trial balance with account balances.

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Shahd Okasha
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166 views

Module 3 Quiz With Answersss

The document contains a 12 question multiple choice quiz about accounting concepts like the general ledger, trial balance, and financial statements. It tests understanding of accounting terms like debits, credits, journal entries, and how transactions affect accounts. It also includes examples of journal entries and a trial balance with account balances.

Uploaded by

Shahd Okasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Module 3 Quiz

Multiple Choice

1. The general ledger

a. should always have a credit balance.


b. is a collection of accounts that support the financial statements.
c. is the book of original entry.
d. compiles all source documents.

2. Which of the following is a group of accounts that all normally have a debit balance?

a. Cash, Mortgage Payable, and Inventory


b. Land, Cost of Goods Sold, and Paid-in Capital
c. Accounts Receivable, Salaries Expense, and Inventory
d. Prepaid Rent, Building, and Notes Payable

3. The term credit means

a. to increase.
b. to decrease.
c. the left side of an account.
d. the right side of an account.

4. Source documents are

a. supporting original records of financial transactions.


b. journal entries.
c. ledger accounts.
d. increases on the left side of an account.

5. What is the correct order of the accounting process?

a. Ledger, journal, trial balance, balance sheet, income statement


b. Journal, trial balance, ledger, balance sheet, income statement
c. Trial balance, journal, ledger, income statement, balance sheet
d. Journal, ledger, trial balance, income statement, balance sheet

6. To find an explanation of a transaction, one would look at the

a. journal.
b. ledger.
c. chart of accounts.
d. trial balance

7. The trial balance is

a. the listing of all accounts.


b. a listing of all accounts with their balances.
c. a place where a running balance of an account is kept.
d. the book of original entry.

8. The trial balance makes sure that

a. the proper accounts are affected.


b. each account has the appropriate dollar amount balance.
c. the debits equal the credits in the journal.
d. the debits equal the credits in the ledger.
e. None of the above

9. When the financial statements are completed, the Income Summary account is found on which
financial statement?

a. Balance sheet
b. Income statement
c. Statement of cash flows
d. None of the above

10. If the company ends the year with a net income, the balance in the Income Summary account
immediately preceding its closing will have a

Rent Expense

Dr Cr.

10,000

Salaries Expense

Dr. Cr.

7,000

Revenues

Dr. Cr.

100,000

Dr. Revenues 100,000

Cr. Income Summary Account 100,000

Dr. Income Summary Account 10,000

Cr. Rent Expense 10,000

Dr. Salaries Expense 7,000

Cr. Salaries Expense 7,000


Income Summary Account

Dr. Cr.

10,000 100,000

7,000

83,000Cr.

Dr. Income Summary Account 83,000

Cr. Retained Earnings 83,000

a. debit balance.
b. credit balance (usually).
c. both a and b
d. credit balance (always).

11. If the bookkeeper (in 20X2) expenses the entire cost of a truck that normally would be used for
three years, then

a. net income will be understated for 20X2 and overstated for the years 20X3 and 20X4.
b. total assets will not equal liabilities plus owners’ equity.
c. net income will be overstated for 20X2 and understated for the years 20X3 and 20X4.
d. assets will be overstated for 20X2.

12. If the bookkeeper fails to make a revenue entry for 20X2,

a. both 20X2’s and 20X3’s net income will be overstated.


b. only 20X2’s net income will be overstated.
c. net income for 20X2 would be understated.
d. assets will be overstated for 20X2 and 20X3.

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