Question 1

If a trial balance is not equal,you should first:

Accepted Answer

A) re-compute the ledger balances. 
B) trace all postings. 
C) re-add the trial balance and calculate the difference. 
D) look for missing transactions. 
A) re-compute the ledger balances. 
B) trace all postings. 
C) re-add the trial balance and calculate the difference. 
D) look for missing transactions.

Question 2

A slide is an error that results when zeros have been added or deleted when writing an amount.Example: 30,000 is written as 3,000.

Accepted Answer

A) True 
 B)False

Question 3

Cooper Company began business in June.Prepare the following transactions for June.Omit explanations.
June
 2 $\quad $Cooper invested $\$ 3,000$ cash and $\$ 1,000$ equipment into her new buisiness 
12 $\quad $Billed customer for services performed, $\$ 600$
16 $\quad $Purchased equipment on account, $\$ 200$
20 $\quad $Received one-half amount due from June 12
25 $\quad $Cooper withdrew cash for personal use, $\$ 200$

Accepted Answer

The answer of Cooper Company began business in June.Prepare the...

Question 4

The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the:

Accepted Answer

A) journal. 
B) ledger. 
C) income statement. 
D) trial balance. 
A) journal. 
B) ledger. 
C) income statement. 
D) trial balance.

Question 5

If Prepaid Rent has been debited,it is likely that:

Accepted Answer

A) the rent was paid for three months in advance. 
B) a bill for the past month's rent was received. 
C) this month's rent was paid. 
D) All of these are possible. 
A) the rent was paid for three months in advance. 
B) a bill for the past month's rent was received. 
C) this month's rent was paid. 
D) All of these are possible.

Question 6

Posting is the process of entering amounts in the journal.

Accepted Answer

A) True 
 B)False

Question 7

Posting is the process of transferring information from the journal to the trial balance.

Accepted Answer

A) True 
 B)False

Question 8

An $900 check written for supplies was journalized as $180.The entry to correct this error is:

Accepted Answer

A) debit Supplies,$720; credit Cash,$720. 
B) debit Cash,$720; credit Supplies,$720. 
C) debit Supplies,$180; credit Cash,$180. 
D) debit Cash,$180; credit Cash,$180. 
A) debit Supplies,$720; credit Cash,$720. 
B) debit Cash,$720; credit Supplies,$720. 
C) debit Supplies,$180; credit Cash,$180. 
D) debit Cash,$180; credit Cash,$180.

Question 9

The first step of the accounting cycle is:

Accepted Answer

A) recording journal entries. 
B) posting to the ledger. 
C) preparing a trial balance. 
D) analyzing business transactions. 
A) recording journal entries. 
B) posting to the ledger. 
C) preparing a trial balance. 
D) analyzing business transactions.

Question 10

Julie,a new employee,is not sure of the effect the following unrelated situations would have on the accuracy of the financial statements.Identify the account(s)that are affected and if the trial balance would balance.
a.Equipment was purchased for $1,000 cash.The debit was recorded properly,but the credit was omitted.
b.A debit to Cash for $250 was posted as $2,500; the credit was posted correctly.
c.A purchase of supplies on account for $50 was posted as a debit to Supplies and a credit to Cash.

Accepted Answer

a.Cash is overstated by $1,000; the debi

Question 11

A fiscal year is always January 1 through December 31.

Accepted Answer

A) True 
 B)False

Question 12

Complete the following entries by using a "debit" or "credit."
a) Received payment from a customer. Cash would have a:$\quad$________

b) Owner makes an investment of equipment. Capital would have a:________

c) Paid rent in advance. Prepaid Rent would have a:	________

d) Billed a customer for services rendered. Revenue would have a:	________

e) Paid an advertising bill received last month. Cash would have a:	________

f) Owner withdrew cash. Withdrawals would have a:	________

Accepted Answer

a)Debit
 b)Credit 
c

Question 13

The debit is indented in a journal entry.

Accepted Answer

A) True 
 B)False

Question 14

Posting is performed by transferring information from the journal to the:

Accepted Answer

A) ledger. 
B) trial balance. 
C) balance sheet. 
D) income statement. 
A) ledger. 
B) trial balance. 
C) balance sheet. 
D) income statement.

Question 15

The journal entry to record an investment by the owner would most commonly include:

Accepted Answer

A) a debit to Cash and a credit to Fees Earned. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Fees Earned and a credit to Capital. 
D) a debit to Cash and a credit to Capital. 
A) a debit to Cash and a credit to Fees Earned. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Fees Earned and a credit to Capital. 
D) a debit to Cash and a credit to Capital.

Question 16

The trial balance proves the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 17

A debit to a liability account was posted to an expense account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be overstated. 
D) expenses to be overstated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be overstated. 
D) expenses to be overstated.

Question 18

What are interim financial statements?

Accepted Answer

Interim financial statements are prepare

Question 19

Which of the following transactions would cause the trial balance to be out of balance?

Accepted Answer

A) A debit to Cash and a debit to Equipment for the same amount 
B) A credit to Cash and a debit to Supplies for the same amount 
C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount 
D) All of these answers are correct. 
A) A debit to Cash and a debit to Equipment for the same amount 
B) A credit to Cash and a debit to Supplies for the same amount 
C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount 
D) All of these answers are correct.

Question 20

Which of the following errors would cause the trial balance to be out of balance?

Accepted Answer

A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash,$100,and a credit to Accounts Payable,$100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000. 
A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash,$100,and a credit to Accounts Payable,$100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000.

Exam 3: Beginning the Accounting Cycle

If a trial balance is not equal,you should first:

A slide is an error that results when zeros have been added or deleted when writing an amount.Example: 30,000 is written as 3,000.

The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the:

If Prepaid Rent has been debited,it is likely that:

Posting is the process of entering amounts in the journal.

Posting is the process of transferring information from the journal to the trial balance.

An $900 check written for supplies was journalized as $180.The entry to correct this error is:

The first step of the accounting cycle is:

A fiscal year is always January 1 through December 31.

The debit is indented in a journal entry.

Posting is performed by transferring information from the journal to the:

The journal entry to record an investment by the owner would most commonly include:

The trial balance proves the equality of debits and credits.

A debit to a liability account was posted to an expense account.This would cause:

What are interim financial statements?

Which of the following transactions would cause the trial balance to be out of balance?

Which of the following errors would cause the trial balance to be out of balance?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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