Question 1

Liabilities increase on the credit side of the account and decrease on the debit side.

Accepted Answer

A) True 
 B)False  True

Question 2

Prepare journal entries for the following transactions that occurred during April. Omit explanations.
Apr 7 Purchased supplies on account, $800.
12 Paid May salaries, $400.
17 Paid for supplies purchased on Apr 7.
23 Received telephone bill, to be paid later, $150.

Accepted Answer

Apr 7 Supplies  800
Accounts Payable  800
12 Salaries Expense   400
Cash   400
17 Accounts Payable   800
Cash   800
23 Telephone Expense  150
Accounts Payable   150

Question 3

Interim statements are prepared to

Accepted Answer

A)  notify management of the company's current financial position. 
B)  notify investors of the company's current financial position. 
C)  allow management to make changes to the business before processing year-end financial statements. 
D)  All of the above are correct. 
A)  notify management of the company's current financial position. 
B)  notify investors of the company's current financial position. 
C)  allow management to make changes to the business before processing year-end financial statements. 
D)  All of the above are correct. D

Question 4

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
(a) Earned $8,000 fees on account.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit.
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $2,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.

Accepted Answer

The answer of Record the following selected transactions for January...

Question 5

The following trial balance has been improperly completed. All the accounts have normal balances. Prepare a corrected trial balance in good form.
Danielson Online Company
Trial Balance
March 31, 2020
$\begin{array} { l r r } \text { Salaries Expense } & & 200 \ \text { Rent Expense } & & 250 \ \text { Accounts Receivable } & 40 & \ \text { Equipment } & 2,250 & \ \text { Danielson, Capital } & 1,800 & \ \text { Danielson, Withdrawals } & & 900 \ \text { Service Fees } & 2,050 & \ \text { Accounts Payable } & & 2,000 \ \text { Cash } & \underline {  } & \underline { \underline 2, 210 } \ \text { Totals } & \underline { \underline { 6,140 } } &\underline { \underline { 5,560 } } \end{array}$

Accepted Answer

Danielson Online Company
Trial Balance
M

Question 6

If Rent Expense has been debited, it is likely that

Accepted Answer

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

Question 7

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 8

If an error in a journal entry is detected after posting, you should

Accepted Answer

A)  erase the incorrect entry. 
B)  initial where the error was made. 
C)  make a correcting entry. 
D)  do nothing in hopes it will go away. 
A)  erase the incorrect entry. 
B)  initial where the error was made. 
C)  make a correcting entry. 
D)  do nothing in hopes it will go away.

Question 9

If Accounts Payable has been debited, it is most likely that

Accepted Answer

A)  the company made a payment to a creditor. 
B)  a customer made a payment. 
C)  the company made a purchase on account. 
D)  None of these are possible. 
A)  the company made a payment to a creditor. 
B)  a customer made a payment. 
C)  the company made a purchase on account. 
D)  None of these are possible.

Question 10

Posting is the transfer of information from

Accepted Answer

A)  the general ledger to the journal. 
B)  the chart of accounts to the journal. 
C)  the chart of accounts to the ledger. 
D)  the journal to the general ledger. 
A)  the general ledger to the journal. 
B)  the chart of accounts to the journal. 
C)  the chart of accounts to the ledger. 
D)  the journal to the general ledger.

Question 11

A compound journal entry affects more than two accounts in the transaction.

Accepted Answer

A) True 
 B)False

Question 12

In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $300. What will be the difference between the debit and credit sides of the trial balance?

Accepted Answer

A)  $150 
B)  $200 
C)  $300 
D)  $600 
A)  $150 
B)  $200 
C)  $300 
D)  $600

Question 13

If the Owner's Equity account increases during the year, most likely

Accepted Answer

A)  The company was promised a large and profitable contract for next year. 
B)  Equipment purchases were higher than average for the year. 
C)  Payment of liabilities was lower than average for the year. 
D)  The owner made additional investment during the year. 
A)  The company was promised a large and profitable contract for next year. 
B)  Equipment purchases were higher than average for the year. 
C)  Payment of liabilities was lower than average for the year. 
D)  The owner made additional investment during the year.

Question 14

A journal is considered to be a book of final entry.

Accepted Answer

A) True 
 B)False

Question 15

Revenue is traditionally recognized in the accounting records when

Accepted Answer

A)  cash is received. 
B)  services are provided to the customer. 
C)  it is incurred. 
D)  None of the answers are correct. 
A)  cash is received. 
B)  services are provided to the customer. 
C)  it is incurred. 
D)  None of the answers are correct.

Question 16

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 $87 and a credit to Cash for $87. 
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 $87 and a credit to Cash for $87. 
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.

Question 17

Transactions are entered in a journal by

Accepted Answer

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. 
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.

Question 18

During the month of June, Charles Green invested $5,000 in starting his company, Green Lawn Service. The proper journal entry would be

Accepted Answer

A)  Cash 5,000 Charles Green, Capital 5,000 
B)  Charles Green, Capital 5,000 Cash 5,000. 
C)  Cash 5,000 Lawn Service Fees 5,000 
D)  Charles Green, Capital 5,000 Cash 5,000 
A)  Cash 5,000 Charles Green, Capital 5,000 
B)  Charles Green, Capital 5,000 Cash 5,000. 
C)  Cash 5,000 Lawn Service Fees 5,000 
D)  Charles Green, Capital 5,000 Cash 5,000

Question 19

A credit to an asset account was posted to a liability account. This would cause

Accepted Answer

A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  capital to be overstated. 
D)  revenue to be overstated. 
A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  capital to be overstated. 
D)  revenue to be overstated.

Question 20

The trial balance lists the accounts

Accepted Answer

A)  alphabetically. 
B)  in the same order as in the ledger. 
C)  all debits first and then credits. 
D)  all credits first and then debits. 
A)  alphabetically. 
B)  in the same order as in the ledger. 
C)  all debits first and then credits. 
D)  all credits first and then debits.

Liabilities increase on the credit side of the account and decrease on the debit side.

Prepare journal entries for the following transactions that occurred during April. Omit explanations. Apr 7 Purchased supplies on account, $800. 12 Paid May salaries, $400. 17 Paid for supplies purchased on Apr 7. 23 Received telephone bill, to be paid later, $150.

Interim statements are prepared to

If Rent Expense has been debited, it is likely that

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

If an error in a journal entry is detected after posting, you should

If Accounts Payable has been debited, it is most likely that

Posting is the transfer of information from

A compound journal entry affects more than two accounts in the transaction.

In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $300. What will be the difference between the debit and credit sides of the trial balance?

If the Owner's Equity account increases during the year, most likely

A journal is considered to be a book of final entry.

Revenue is traditionally recognized in the accounting records when

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

Transactions are entered in a journal by

During the month of June, Charles Green invested $5,000 in starting his company, Green Lawn Service. The proper journal entry would be

A credit to an asset account was posted to a liability account. This would cause

The trial balance lists the accounts

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 3: Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

Liabilities increase on the credit side of the account and decrease on the debit side.

Prepare journal entries for the following transactions that occurred during April. Omit explanations. Apr 7 Purchased supplies on account, $800. 12 Paid May salaries, $400. 17 Paid for supplies purchased on Apr 7. 23 Received telephone bill, to be paid later, $150.

Interim statements are prepared to

If Rent Expense has been debited, it is likely that

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

If an error in a journal entry is detected after posting, you should

If Accounts Payable has been debited, it is most likely that

Posting is the transfer of information from

A compound journal entry affects more than two accounts in the transaction.

In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $300. What will be the difference between the debit and credit sides of the trial balance?

If the Owner's Equity account increases during the year, most likely

A journal is considered to be a book of final entry.

Revenue is traditionally recognized in the accounting records when

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

Transactions are entered in a journal by

During the month of June, Charles Green invested $5,000 in starting his company, Green Lawn Service. The proper journal entry would be

A credit to an asset account was posted to a liability account. This would cause

The trial balance lists the accounts

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters