Ch.3 Quiz

Instructions
Read the questions carefully.

This assessment is worth 100 points.

  1. Internal transactions often include cash.   (5 points)

      
      

  2. Items such as sales slips, invoices, checks, and purchase orders are source documents.   (5 points)

      
      

  3. Credits to accounts are always increases.   (5 points)

      
      

  4. To credit an expense account means to decrease it.   (5 points)

      
      

  5. A revenue account normally has a debit balance.   (5 points)

      
      

  6. Debits to accounts are normally decreases.   (5 points)

      
      

  7. Stride Rite has liabilities of $115 million and total assets of $350 million. Its debt ratio is 30.4%.   (5 points)

      
      

  8. Posting is the transfer of debit and credit amounts from a journal to the ledger accounts.   (5 points)

      
      

  9. The journal is known as a book of original entry.   (5 points)

      
      

  10. A trial balance that balances is not proof of complete accuracy in recording transactions.   (5 points)

      
      

  11. With regard to the accounting process, business events consist of:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  12. Exchanges between an entity and some other entity are:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  13. Unearned revenues are:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  14. A written promise to pay a definite sum of money on demand or on a specific future date (or dates) is a(n):   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  15. Which of the following statements is correct?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  16. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  17. Which of the following statements is incorrect?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  18. The general journal provides a place for recording:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  19. A compound journal entry is:   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  20. A $130 credit to Office Equipment was credited to Sales by mistake. By what amounts are the accounts under- or overstated as a result of this error?   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  



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