74.Refer to the information above. On January 6, 2015, total assets are:
A. $1,350,000.
B. $1,399,000.
C. $1,560,000.
D. $1,574,000.
75.Which of the following accounts normally has a debit balance?
A. Accounts payable.
B. Retained earnings.
C. Accounts receivable.
D. Service revenue.
76.The rules of debit and credit may be summarized as follows:
A. Asset accounts are increased by debits, whereas, liabilities and owners' equity are increased by credits.
B. The balance of a ledger account is increased by debit entries and is decreased by credit entries.
C. Accounts on the left side of the balance sheet are increased by credits, whereas accounts on the right side of the balance sheet are increased by debits.
D. The balance of a ledger account is increased by credit entries and is decreased by debit entries.
77.The essential point of a double-entry system of accounting is that every transaction:
A. Affects accounts on both sides of the balance sheet.
B. Is recorded in both the journal and the ledger.
C. Increases one ledger account and decreases another.
D. Affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits.
78.Double-entry accounting is characterized by which of the following?
A. Every transaction affects both an asset account and either a liability account or an owners' equity account.
B. The number of general ledger accounts with debit balances is equal to the number with credit balances.
C. The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
D. The number of debit entries posted to the general ledger equals the number of credit entries.
79.All of the following statements are true of double-entry accounting
except:
A. There is a need for both debit and credit entries for each and every transaction.
B. Double-entry accounting can only be used with computer-based accounting systems.
C. The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
D. Double-entry accounting allows us to measure net income at the same time we record the effect of transactions on the balance sheet accounts.
80.The process of originally recording a business transaction in the accounting records is termed:
A. Journalizing.
B. Footing.
C. Posting.
D. Balancing.
81.Brett Tarek, a manager at D&J Landscaping, Inc. needs information regarding the amount of accounts payable currently owed by the company. This information would most easily be found in the:
A. General ledger.
B. General journal.
C. Income statement.
D. Notes to the financial statements.
82.Transactions are recorded in the general journal in:
A. Numerical order.
B. Chronological order.
C. Account number order.
D. Financial statement order.
83.A transaction is first recorded in which of the following accounting records?
A. Trial balance.
B. Ledger.
C. General journal.
D. Balance sheet.