Question : 71. A ledger is: A. A record containing all accounts (with amounts) for : 1256661

 

 

71. A ledger is: 

A. A record containing all accounts (with amounts) for a business.

B. A journal in which transactions are first recorded.

C. A collection of documents that describe transactions and events during the accounting process.

D. A list of all accounts with their debit balances at a point in time.

E. A list of all accounts a company uses and includes an identification number assigned to each account.

 

 

72. Which of the following statements about the Cash account are true? 

A. Because most companies earn their fees in cash, the Cash account is categorized as revenue.

B. For any given transaction, Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash.

C. TheCash account includes the value of any medium of exchange that a bank accepts for deposit.

D. Cash is the same thing as Retained Earnings.

E. Cash is a liability account.

 

 

73. A list of all accounts used by a company and the identification number assigned to each account is called a: 

A. Ledger

B. Journal

C. Trial balance

D. Chart of accounts

E. General Journal

 

 

74. The general ledger of a business 

A. Is a collection of all accounts used in a company’s information system.

B. Must be kept in a computer file.

C. Is also called the book of original entry.

D. Is not affected by a company’s size and diversity.

E. Is one of the four financial statements.

 

 

75. A debit is: 

A. An increase in an account.

B. The right-hand side of a T-account.

C. A decrease in an account.

D The left-hand side of a T-account.

E. An increase to a liability account.

 

 

76. The right side of a T-account is a(n): 

A. Debit

B. Increase

C. Credit

D. Decrease

E. Account balance

 

 

77. Which of the following statements is incorrect? 

A. The normal balance of accounts receivable is a debit.

B. The normal balance of dividends is a debit.

C. The normal balance of unearned revenues is a credit.

D. The normal balance of an expense account is a credit.

E. The normal balance of common stock is a credit.

 

 

78. A credit is used to record: 

A. An increase in an expense account.

B. An increase in an asset account.

C. An increase in an unearned revenue account.

D. A decrease in a revenue account.

E. A decrease to retained earnings.

 

79. A simple account form widely used in accounting to illustrate how debits and credits work is called a: 

A. Dividend account

B. Common stock account

C. Drawing account

D. T-account

E. Balance column sheet

 

80. Which of the following statements is correct? 

A. The left side of a T-account is the credit side.

B. Debits decrease asset and expense accounts and increase liability, equity, and revenue accounts.

C. The left side of a T-account is the debit side.

D. Credits increase asset and expense accounts and decrease liability, equity, and revenue accounts.

E. In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.