Exam (elaborations)
ACG TEST 1 QUESTIONS AND ANSWERS
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ACG TEST 1 QUESTIONS AND ANSWERS
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Name: Score:23 Multiple choice questions
Term 1 of 23
A trial balance
proves that debits and credits are equal in the ledger
supplies a listing of open accounts and their balances that are used in preparing
financial statements
is normally prepared three times in the accounting cycle
all of these answers are correct.
Term 2 of 23
Which of the following statements is associated with the accrual basis of accounting?
Revenues are recognized in the period they are earned, regardless of the time period
the cash is received.
a minimum amount of record keeping is required
this method is used less frequently by businesses than the cash method of accounting.
the timing of cash receipts and disbursements is emphasized
Term 3 of 23
(T/F) Adjusting entries for prepayments record the portion of the prepayment that represents
the expense incurred or the revenue earned in the current accounting period.
True
False
,Term 4 of 23
The trial balance may prove that debits and credits are equal, but
all of the answers are correct
a transaction could have been entered twice
a transaction could have been omitted
an amount could be entered in the wrong account
Term 5 of 23
(T/F) The accrual basis recognizes revenue when earned and expenses in the period when
cash is paid.
True
False
Term 6 of 23
(T/F) A general journal chronologically lists transactions and other events, expressed in terms
of debits and credits to accounts
True
False
Term 7 of 23
Stockholder's equity is not affected by all
dividends
cash receipts
expenses
revenues
, Term 8 of 23
Recording the adjusting entry for depreciation has the same effect on the accounting equation
as recording the adjusting entry for
an unearned revenue
an accrued revenue
an accrued expense
a prepaid expense
Term 9 of 23
(T/F) All revenues, expenses, and the dividends account are closed through the Income
Summary account.
True
False
Term 10 of 23
(T/F) The ending retained earnings balance is reported on both the retained earnings
statement and the balance sheet.
True
False
Term 11 of 23
(T/F) An adjustment for wages expense, earned but unpaid at year end, is an example of an
accrued expense
True
False
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