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Unformatted text preview: 3. The Accounting Information System 21. Factors that shape an accounting information system include the a. nature of the business. b. size of the firm. c. volume of data to be handled. d. all of these. 22. Maintaining a set of accounting records is a. optional. b. required by the Internal Revenue Service. c. required by the Foreign Corrupt Practices Act. d. required by the Internal Revenue Service and the Foreign Corrupt Practices Act. 23. Debit always means a. right side of an account. b. increase. c. decrease. d. none of these. 23. left or left-side 24. An accounting record into which the essential facts and figures in connection with all transactions are initially recorded is called the a. ledger. b. account. c. trial balance. d. none of these. 24. journal 25.A trial balance a. proves that debits and credits are equal in the ledger. b. supplies a listing of open accounts and their balances that are used in preparing financial statements. c. is normally prepared three times in the accounting cycle. d. all of these. 26. Which of the following is a real (permanent) account? a. Goodwill b. Sales c. Accounts Receivable d. Both Goodwill and Accounts Receivable 27. Which of the following is a nominal (temporary) account? a. Unearned Revenue b. Salary Expense c. Inventory d. Retained Earnings 28. Nominal accounts are also called a. temporary accounts. b. permanent accounts. c. real accounts. d. none of these. 29. The double-entry accounting system means a. Each transaction is recorded with two journal entries. b. Each item is recorded in a journal entry, then in a general ledger account. c. The dual effect of each transaction is recorded with a debit and a credit. d. More than one of the above. 30. When a corporation pays a note payable and interest, a. the account notes payable will be increased. b. the account interest expense will be decreased. c. they will debit notes payable and interest expense. d. they will debit cash. 31. Stockholders' equity is not affected by all a. cash receipts. b. dividends. c. revenues. d. expenses. 32. The debit and credit analysis of a transaction normally takes place a. before an entry is recorded in a journal. b. when the entry is posted to the ledger. c. when the trial balance is prepared. d. at some other point in the accounting cycle. 33. The accounting equation must remain in balance a. throughout each step in the accounting cycle....
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- Spring '12
- Balance Sheet, ........., Generally Accepted Accounting Principles, Double-entry bookkeeping system, Internal Revenue Service.