Quiz No. 16 (Page 429)

Question 1

A tool that is used to classify and summarize effects of transactions on the accounting values.

Answer 1

Account

Question 2

Table of contents listing the titles and numbers of the accounts found in the general ledger.

Answer 2

Chart of Accounts

Question 3

The normal balance of accounts payable.

Answer 3

Credit Balance

Question 4

A document used as evidence that cash was collected from the client/customer.

Answer 4

Official Receipt

Question 5

The left side of an account.

Answer 5

Debit

Question 6

The record processing step in accounting when transactions are entered in a journal.

Answer 6

Journalizing

Question 7

A record showing the details and running balance of a customer’s account.

Answer 7

Subsidiary Ledger

Question 8

The book of original entry where transactions are entered.

Answer 8

General Journal

Question 9

The book of final entry which shows a compilation of accounts wherein the debits and credits of each account is entered in one place so that the balance may be determine at anytime.

Answer 9

General Ledger

Question 10

The process of transferring information from the journal to the ledger.

Answer 10

Posting

Question 11

A form listing the ledger accounts with their corresponding debit or credit balances.

Answer 11

Trial Balance

Question 12

A simple accounting device showing the increase side and the decrease side of an account.

Answer 12

T Account

Question 13

An accounting requirement that an entry must have an equal debit and credit amount.

Answer 13

Double Entry Procedure

Question 14

Number of days it takes for cash to be used and converted back to cash.

Answer 14

Operating Cycle

Question 15

Series of steps and procedures performed in one accounting period.

Answer 15

Accounting Cycle

Question 16

An entry made up of more than one debit and more than one credit.

Answer 16

Compound Entry

Question 17

Classification of obligations that are to be paid within a year.

Answer 17

Current Liabilities

Question 18

Classification of assets which includes items that are used within a year or the operating cycle whichever is longer.

Answer 18

Current Assets

Question 19

Document supporting cash disbursements.

Answer 19

Cash Voucher

Question 20

Column reference indicating source of posting or entry.

Answer 20

Folio

Question 21

Transactions are initially recorded in the?

Answer 21

Journal

Question 22

A credit is either an increase or decrease. It ______.

(+Expenses, +Income, -Liabilities, -Capital)

Answer 22

Increases Income

Question 23

The right side of an account is referred to as a

Answer 23

Credit

Question 24

To test the equality of the debits and the credits, the accountant prepared periodically a?

Answer 24

Trial Balance

Question 25

An agreement to advertise the company next month requires

Answer 25

No entry

Question 26

A debit to P1,000 accounts receivable posted to the debit side of the general ledger as P100 will

Answer 26

understate the accounts receivable by P900

Question 27

A debit entry for P6,750 was posted as P7,650. This error is called a

Answer 27

Transposition

Question 28

The following accounts are likely to be debited only except one.

(Owner’s Drawing, Rent Expense, Supplies, Taxes & Licenses)

Answer 28

Supplies

Question 29

Collected cash on the note issued by the customer for the professional service rendered. You will

Answer 29

Credit notes receivable

Question 30

Amalia Industries received a utility bill of P700 and immediately paid it. The journal entry to record this includes a

Answer 30

Debit to utility expense P700