Reference no: EM132908787

Problem 1: Which of the statements of the rules of debit and credit is TRUE?

A) Decrease Accounts Receivable with a credit and the normal balance is a credit.

B) Increase Accounts Payable with a credit and the normal balance is a credit.

C) Increase Capital with a debit and the normal balance is a debit.

D) Decrease Cash with a debit and the normal balance is a debit.

Problem 2: The process that begins with recording business transactions and includes the completion of the financial statements is the

A) calendar year.

B) natural business year.

C) fiscal year.

D) accounting cycle.

Problem 3: Transactions are entered in a journal by

A) company name in alphabetical order.

B) order of importance of company to our business.

C) the order they appear on the accountant's desk.

D) chronological order.

Problem 4: "PR" in the general journal and general ledger stands for

A) peer reviewer.

B) posting reference.

C) prior receipt.

D) None of the above are correct.

Problem 5: The general journal

A) is the book of original entry.

B) is the book of final entry.

C) contains account balances.

D) is completed after the general ledger.