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Question 17

A three column form of account is so named because it has columns for

		debit, credit, and balance.
		debit, credit, and date.
		debit, credit, and account name.
		debit, credit, and reference.

3 points

Question 18

The first step in designing a computerized accounting system is the creation of the

		general ledger.
		general journal.
		trial balance.
		chart of accounts.

3 points

Question 19

Chik Chik Company showed the following balances at the end of its first year:

Cash	$ 6,000
Prepaid insurance	$ 9,400
Accounts receivable	$ 7,000
Accounts payable	$ 5,600
Notes payable	$ 8,400
Common stock	$ 2,800
Dividends	$ 1,400
Revenues	$ 44,000
Expenses	$ 35,000

What did Chik Chik Company show as total credits on its trial balance?

		$51,400
		$60,800
		$62,200
		$70,200

3 points

Question 20

Which of the following time periods would not be referred to as an interim period?

		Monthly
		Quarterly
		Semi-annually
		Annually

3 points

Question 21

Crue Company had the following transactions during the calendar year: Sales of $4,800 on account Collected $2,000 for services to be performed in the following year Paid $1,625 cash in salaries Purchased airline tickets for $250 in December for a trip to take place in the following year What is Crue's current net income using accrual accounting?

		$2,925.
		$3,175.
		$4,925.
		$5,175.

3 points

Question 22

If an adjusting entry is not made for an accrued revenue,

		revenues will be overstated.
		assets will be overstated.
		stockholders' equity will be understated.
		expenses will be understated

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