FINANCIAL ACCOUNTING AND REPORTING (VALIX/SIY/VALIX/ESCALA/SANTOS/DELA CRUZ)

ACCOUNTING PROCESS 1. Which is a logical order in the accounting cycle? a. Posting, financial statements and unadjusted trial balance b. Financial statements, closing entries and reversing entries c. Financial statements, adjusting entries and recording d. Closing entries, reversing entries and adjusting entries 2. The double entry accounting system means a. Each transaction is recorded with two journal entries. b. Each item is recorded in a journal entry and then in a general ledger. c. The dual effect of each transaction is recorded with a debit and a credit. d. All of these are choices regarding double entry system. 3. In recording transactions a. The word "debit" means increase and the word "credit" means decrease b. Assets, expenses and retained earnings are debited for increases c. Liabilities, revenue and share capital are credited for increases d. Assets, revenue and share capital are debited for decreases 4. The normal balance of an account is on the a. Debit side b. Credit side c. Side represented by the increase in the account balance d. Side represented by the decrease in the account balance 5. Which is not a possible combination of a journal entry? a. Increase in asset and increase in liability b. Decrease in equity and increase in liability c. Decrease liability and decrease in asset d. Increase in asset and decrease in equity 6. A simple journal entry a. Consists of one debit and one credit b. Consists of two debits and one credit c. Consists of one debit and two credits d. Contains more than two accounts 7. Posting a. Accumulates the effects of ledger entries and transfers them to the general journal. b. Is done only for income statement activity related to the statement of financial position does not require posting. c. Is done every year. d. Transfers journal entries to the ledger accounts.