6951 Accounting Process
6951 Accounting Process
6951 Accounting Process
Manila
FINANCIAL ACCOUNTING AND REPORTING VALIX/VALIX/ESCALA/SANTOS/DELA CRUZ
ACCOUNTING PROCESS
6951
Page 2
10. A journal entry that contains more than two accounts is called
a. A posted journal entry.
b. An adjusting journal entry.
c. An erroneous journal entry.
d. A compound journal entry.
11. A chart of accounts is
a. A flowchart of all transactions.
b. An accounting manual.
c. A journal.
d. A list of all account titles in the general ledger.
12. Which of the following is a nominal or temporary account?
a. Unearned revenue
b. Salary expense
c. Inventory
d. Retained earnings
13. Real accounts include all of the following, except
a. Dividends
b. Assets
c. Liabilities
d. Equity
14. Equity is not affected by all
a. Cash receipts
b. Dividends
c. Revenue
d. Expenses
15. Posting is the process of transferring information from
a. Source document to the journal.
b. Journal to the source document.
c. Journal to the general ledger.
d. General ledger to the journal.
16. A general ledger is defined as
a. A group of transactions.
b. A group of all statement of financial accounts.
c. A group of all income statement accounts.
d. The entire group of accounts.
17. A subsidiary ledger is
a. A listing of the components of account balances.
b. A backup system to protect against record destruction.
c. A listing of accounts before closing entries.
d. A listing of accounts of a subsidiary.
18. Which statement regarding a trial balance is incorrect?
a. A trial balance is a test of the equality of the debit and credit balances in the ledger.
b. A trial balance is a list of all of the open accounts in the ledger with their balances.
c. A trial balance proves that no errors of any kind have been made in the accounts during the accounting
period.
d. A trial balance helps to localize errors within an identifiable time period.
19. An unadjusted trial balance
a. Provides information that is helpful when making adjusting entries.
b. Proves that no errors have been made.
c. Usually contains the account balances that should appear in the financial statements.
d. Is a summary taken directly from the general journal.
6951
Page 3
6951
Page 4
End
6951