Accounting Cycle Exam Part 1

Question 1

A schedule that contains all accounts needed to prepare financial statements is known as:

Answer 1

The General Ledger

Question 2

Reorganizing journal entries and grouping them by account is known as:

Answer 2

Posting to the ledger

Question 3

A listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger is known as a:

Answer 3

Chart of Accounts

Question 4

To find the balance of the account types that increase with a debit (asset and expense accounts), bookkeepers will:

Answer 4

Subtract total credits from total debits (Debits - Credits)

Question 5

The accounting cycle starts with the:

Answer 5

Analysis of business transactions

Question 6

After analysis, the business transaction is recorded in the journal in:

Answer 6

Chronological order

Question 7

A form or statement that lists the titles and balances of all ledger accounts at a given date is known as:

Answer 7

Trial balance

Question 8

Sydney is entering a transaction in QuickBooks. What are the two steps of manual accounting that will happen simultaneously as she does this?

Answer 8

Creating a journal entry and posting to the ledger

Question 9

True or False: The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a “1” might signify that the account is an asset account, a “6” might signify an operating expense, etc.

Answer 9

True

Question 10

A trial balance where total debits equal total credits indicates:

Answer 10

The ledger is in balance.

Question 11

Zach needs to determine what his company’s financial position was on March 31st of last year. Which of the following would be the best report to look at?

Answer 11

Balance sheet

Question 12

Which of the following financial statements reports the sources and uses of cash by a business?

Answer 12

Statement of Cash Flow

Question 13

Which of the following lists general ledger account balances at the end of a reporting period, before any adjusting entries are made?

Answer 13

Unadjusted Trial Balance

Question 14

A trial balance that is prepared after taking into account all the adjusting entries is known as:

Answer 14

Adjusted Trial Balance

Question 15

The preparation of financial statements and closing the books is the ______ step of the accounting cycle.

Answer 15

last

Question 16

Rudiger has just recorded and posted his business transactions to the ledger.
His next step in the accounting cycle is to _______.

Answer 16

prepare an unadjusted trial balance

Question 17

Francis enters a $100 check received from a customer into QuickBooks online. If she views the Transaction Journal, which account would show as being
debited $100?

Answer 17

Business bank account

Question 18

The double-entry system of bookkeeping normally results in what balance in the ledger accounts?

Answer 18

Assets and expenses/Liabilities, equity, and revenue

Question 19

In the first month of operations, Pepper Consulting’s total debit entries to the cash account amounted to $900, and the total credit entries to the cash account amounted to $600. The cash account has a:

Answer 19

$300 debit balance

Question 20

Pepper Consulting bought computers with credit from PYO Suppliers and entered the purchase into QuickBooks. The transaction journal for Pepper Consulting would show the following entry

Answer 20

Debit: Computers

Credit: PYO Credit Payable