Penn Foster 039001400

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1. Which of the following statements best describes journalizing transactions?
A. Journalizing occurs after posting to the ledger.
B. Journalizing must be done daily.
C. Journalizing is the process where events of business are recorded in the journal.
D. Journalizing can’t be completed until the ledger accounts have been opened.

2. Which of the following describes the ledger?
A. The ledger is known as the book of original entry.
B. The ledger contains the accounts of the business, categorized by account classification.
C. The ledger will determine the accuracy of information recorded in the journal.
D. The ledger contains a list of business transactions, arranged by date.

3. Opening a ledger account involves
A. recording the account title on the ledger page.
B. recording the account title and account number on the ledger page.
C. recording the account title, account number, and account balance on the ledger page.
D. posting the debit amount, credit amount, and source explanation to the ledger page.

4. The first and most important step in the posting procedure is
A. posting the amount.
B. posting the date.
C. posting the explanation.
D. recording the posting reference information.

5. Which of the following statements best describes a chart of accounts?
A. It can contain only 39 accounts.
B. It assures the equality of debits and credits.
C. It contains the beginning balance for each account in the ledger.
D. It’s a list of account titles in the order in which they can be found in the ledger.

6. The source document should be written in the
A. Date column.
B. Account Title column.
C. Doc. No. column.
D. Post. Ref. column.

Use the following information to answer questions 7-10.
The following activity for J. C. Breneman Management Services took place on June 1, 20-.
Record these transactions on the journal form provided on the next page.
Received $3,290 in cash from the owner as an investment (receipt no. 1).
Borrowed $900 cash from Inland Bank for business expenses (memo 1).
Paid cash for supplies, $290 (check no. 1).
Paid cash for insurance, $1,000 (check no. 2).
Paid cash for equipment, $2,100 (memo 2).

7. The correct entry in the date column is for all the transactions is
A. June 1.
B. Dec. 31.
C. Jan. 31.
D. Dec. 1.

8. The entries for the debit account titles in the “Account Title” column are written
A. about one-half inch away from the left side.
B. in pencil so they may be changed later.
C. at the far left side.
D. about one inch away from the left side.

9. The amounts that increase the Cash account are entered in
A. the Debit column.
B. the Credit column.
C. both Debit and Credit columns.
D. either Debits or Credit columns.

10. The totals of the entries in the Debit and Credit columns are
A. 12,345.00 in the Debit and 8,220.00 in the Credit columns.
B. 7,580.00 in both the Debit and Credit columns.
C. 8,220.00 in the Debit and 6,290.00 in the Credit columns.
D. 6,290 in both the Debit and Credit columns.

11. What is the first account number used in the Breneman Management Service Chart of
Accounts?
A. 1
B. 21
C. 11
D. 10

12. What is the first account number used in the liabilities division?
A. 20
B. 21
C. 2
D. 02

13. What is the account title used for owner’s equity?
A. J. C. Breneman, Capital
B. J. C. Breneman, Owner
C. Breneman Management Service, Capital
D. Capital

14. The account number 13 tells you that the account
A. is the 13th account in the ledger.
B. is the first account in the third division.
C. is the third account in the first division.
D. was posted on the 13th day of the month.

15. The correct entry in the date column of each ledger account for the Breneman Management Service entries is
A. Dec. 31.
B. Jan. 31.
C. June 1.
D. Dec. 1.

16. The Item column of the ledger account for the opening first entry for the ledger accounts
should contain the
A. word Cash.
B. words Opening Entry.
C. account title.
D. word Balance.

17. The Posting Reference entry in the ledger account for the Breneman Management Service entries is
A. J1.
B. J.
C. 1.
D. 1J.

18. The first step in posting either a debit or a credit entry from the journal to the ledger is to
transfer the
A. amount.
B. explanation.
C. account number.
D. date.

19. After posting the entries from the journal, the Breneman Management Service edger should have at least one debit entry in how many accounts?
A. 4
B. 5
C. 6
D. 9

20. After posting the entries from the journal, the Breneman Management Service edger should have at least one credit entry in how many accounts?
A. 2
B. 3
C. 4
D. 5