4-1

Chapter 4, TEST 4B

Name ______

Date ______

SCORING RECORD

Section / Total Possible / Deductions / Student
Score
A / 30
B / 30
C / 10
D / 30
Total / 100

Section A

DIRECTIONS: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. (2 points for each correct answer)

For

Answers Scoring

  1. The flow of data through the accounting information

system includes analyzing transactions,

journalizing, posting and preparing a trial

balance. ______

  1. The accounts in the chart of accounts are arranged

in alphabetical order. ______

  1. An invoice is an example of a source document. ______
  2. The purpose of a journal is to provide a

chronological record of all transactions completed

by the business. ______

  1. A journal is commonly called the book of

transactions because it is where a business

records all of its business transactions. ______

  1. Each entry in the journal can never affect more

than two accounts. ______

  1. A two-column general journal has a column for

debit amounts and a column for credit amounts. ______

  1. To determine the current balance of specific

accounts, the information in the journal is

transferred to the general ledger. ______

  1. In the general ledger all accounts are listed

alphabetically regardless of classification. ______

  1. The purchase of delivery equipment on account

will cause an increase in assets and a decrease

in owner's equity. ______

  1. The heading for the four-column account has the

account title and an account number. ______

  1. Account numbers are not needed in the general

ledger. ______

  1. The process of copying debits and credits from the

journal to the ledger accounts is known as

journalizing. ______

  1. Financial statements are prepared directly from

the general journal. ______

  1. It is not acceptable to erase accounting

information because it suggests you are trying

to hide something. ______

Section B

Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each) For Answers Scoring

  1. The order of the flow of financial data

through the accounting information systems

is:(A) journalize, analyze, post; (B) post,

journalize, analyze; (C) analyze, journalize,

post; (D) analyze, post, journalize;

(E) none of the above. ______

  1. A chart of accounts includes: (A) assets;

(B) liabilities; (C) owner's equity; (D)

revenue and expenses; (E)all of the above. ______

  1. Check stubs, receipt stubs, and copies of

sales tickets can be called: (A) invoices,

(B) ledgers, (C) source documents, (D)

accounts, (E) revenue support. ______

  1. Compound entries are entries containing:

(A) only one debit and one credit; (B) cash;

(C) more than one debit and/or credit;

(D) a revenue account and an expense account;

(E) an entry posted to a ledger. ______

  1. For EVERY transaction, the accountant enters:

(A)the year, month, and day; (B) the month

and the day; (C)the day; (D) the year and the

day; (E) the calculations. ______

  1. A four-column account contains columns for

the debit or credit transaction and columns

for the debit or credit running balance, in

addition, there are columns for (A) the date;

(B)description of the item; (C) posting

references; (D) all of these; (E) (A) and (C). ______

  1. Posting from the journal to the ledger is

done; (A) daily; (B) infrequently;

(C) monthly; (D) weekly; (E) yearly. ______

  1. A trial balance should only be prepared:

(A) daily; (B) weekly; (C)monthly; (D) yearly;

(E) whenever desired. ______

  1. To find an error, you should do all of the

following EXCEPT: (A) double-check every entry;

(B) find the difference between the debits

and the credits; (C) erase questionable entries;

(D) retrace any math computation; (E) trace all

postings. ______

  1. A slide error occurs when: (A) you copy

a debit when it should have been a credit; (B)

when the difference is equal to the amount of

a specific transaction; (C) you add incorrectly;

(D) when debit or credit amounts are moved

a digit or two to the left or right when

entered; (E) the entry is reversed. ______

Section C

DIRECTIONS: Post the general journal transaction listed below to the general ledger. (10 points total)



Section D

In the following list of transactions for Chavez Service Co., indicate the names of the accounts to be debited and credited. Place an X in either the plus (+) or the minus (-) column to indicate whether the account has been increased or decreased. (30 points total)

TransactionAccount (+) (-)

1. Justin Chavez invested cash in Debit:______

a business enterprise. Credit:______

2. Paid cash for rent. Debit:______

Credit:______

3. Purchased office supplies Debit:______

with cash. Credit:______

4. Paid cash for telephone bill Debit:______

Credit:______

5. Received cash for services Debit:______

rendered. Credit:______

6. Purchased office equipment Debit:______

on account. Credit:______

7. Withdrew cash for personal use. Debit:______

Credit:______

8. Earned fees for services rendered, Debit:______

on account. Credit:______

9. Received cash for services Debit:______

previously rendered. Credit:______

10.Paid on account for office Debit:______

equipment purchased in (6). Credit:______