121.A journal is
not
useful for
a.disclosing in one place the complete effect of a transaction.
b.preparing financial statements.
c.providing a record of transactions.
d.locating and preventing errors.
122 A complete journal entry does
not
show
a.the date of the transaction.
b.the new balance in the accounts affected by the transaction.
c.a brief explanation of the transaction.
d.the accounts and amounts to be debited and credited.
123.The name given to entering transaction data in the journal is
a.chronicling.
b.listing.
c.posting.
d.journalizing.
124.The standard form of a journal entry has the
a.debit account entered first and indented.
b.credit account entered first and indented.
c.debit account entered first at the extreme left margin.
d.credit account entered first at the extreme left margin.
125 When journalizing, the reference column is
a.left blank.
b.used to reference the source document.
c.used to reference the journal page.
d.used to reference the financial statements.
126.On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will
a.use two journal entries.
b.make a compound entry.
c.make a simple entry.
d.list the credit entries first, which is proper form for this type of transaction.
127.Which of the following journal entries is recorded correctly and in the standard format?
a.Salaries and Wages Expense ..........................600
Cash ............................................1,500
Rent Expense .............................................900
b.Salaries and Wages Expense ...........................600
Rent Expense .............................................900
Cash 1,500
c.Cash ...........................................1,500
Salaries and Wages Expense ...................................600
Rent Expense ............................................900
d.Salaries and Wages Expense ..........................600
Rent Expense ............................................900
Cash .............................................1,500
128.Which of the following statements is true regarding simple and compound entries?
a.Simple entries can be prepared by anyone whereas compound entries need to be prepared by a skilled accountant.
b.Simple entries are recorded on the income statement whereas compound entries are recorded on the statement of financial position.
c.Simple entries involve one account, whereas compound entries involved 2 or more accounts.
d.An example of a compound entry would be the purchase of a machine for $400 cash and a $2,000 note payable.
129.Compound entries
a.would include an entry to record the purchase of a computer for cash.
b.include at least two debits or two credits.
c.require that all credits be listed before the debits for entries affecting the statement of financial position.
d.should be broken into their component parts and recorded as simple entries.
130.Accounts maintained within the ledger that appear on the statement of financial position include all of the following except
a.Salaries and Wages Expense.
b.Interest Payable.
c.Supplies.
d.Share Capital-Ordinary.