Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

The entry to record delivering a financial lecture and immediately collecting payment from the customer would be

Accepted Answer

A)  Cash 750 
Lecture Fees   750 
B)  Cash  750 
Accounts Payable   750 
C)  Lecture Fees   750 
Cash   750 
D)  Lecture Fees   750 
Accounts Payable   750 
A)  Cash 750 
Lecture Fees   750 
B)  Cash  750 
Accounts Payable   750 
C)  Lecture Fees   750 
Cash   750 
D)  Lecture Fees   750 
Accounts Payable   750

Question 4

Interim reports are usually prepared once a year.

Accepted Answer

A) True 
 B)False

Question 5

During the month of January, Katelyn invested $10,000 in starting her legal practice. The proper journal entry would be

Accepted Answer

A)  Cash, debit $10,000; Katelyn's Capital, credit $10,000. 
B)  Katelyn's Capital, debit $10,000; Cash, credit $10,000. 
C)  Cash, debit $10,000; Revenue, credit $10,000. 
D)  Katelyn's Withdrawals, debit $10,000; Cash, credit $10,000. 
A)  Cash, debit $10,000; Katelyn's Capital, credit $10,000. 
B)  Katelyn's Capital, debit $10,000; Cash, credit $10,000. 
C)  Cash, debit $10,000; Revenue, credit $10,000. 
D)  Katelyn's Withdrawals, debit $10,000; Cash, credit $10,000.

Question 6

A running balance is maintained in the ledger after each transaction is posted.

Accepted Answer

A) True 
 B)False

Question 7

Renzi's Volleyball Gym purchased equipment for $1,400. It made a down payment of $800 with the remainder on account. The journal entry to record this transaction is

Accepted Answer

A)  Cash   800 
Accounts Receivable   800 
B)  Accounts Payable   600 
Cash   800
Equipment   1,400 
C)  Supplies   1,400 
Cash   800
Accounts Payable   600 
D)  Equipment   1,400 
Accounts Payable   600
Cash   800 
A)  Cash   800 
Accounts Receivable   800 
B)  Accounts Payable   600 
Cash   800
Equipment   1,400 
C)  Supplies   1,400 
Cash   800
Accounts Payable   600 
D)  Equipment   1,400 
Accounts Payable   600
Cash   800

Question 8

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

Accepted Answer

A)  a payment was made on account. 
B)  a purchase was made on account. 
C)  a charge customer made a payment. 
D)  None of these are possible. 
A)  a payment was made on account. 
B)  a purchase was made on account. 
C)  a charge customer made a payment. 
D)  None of these are possible.

Question 9

To correct an error made in the journal (prior to posting in the ledger),

Accepted Answer

A)  erase the error and write the correct entry. 
B)  line out the incorrect portion of the entry and write in the correction. 
C)  ignore the error, it will correct itself in the next accounting period. 
D)  write a new journal entry correcting the original entry. 
A)  erase the error and write the correct entry. 
B)  line out the incorrect portion of the entry and write in the correction. 
C)  ignore the error, it will correct itself in the next accounting period. 
D)  write a new journal entry correcting the original entry.

Question 10

The same information is contained in the journal and the ledger but in a different form.

Accepted Answer

A) True 
 B)False

Question 11

A trial balance difference divisible by 9 could indicate

Accepted Answer

A)  a slide or transposition. 
B)  a slide only. 
C)  a transposition only. 
D)  a journal entry error. 
A)  a slide or transposition. 
B)  a slide only. 
C)  a transposition only. 
D)  a journal entry error.

Question 12

The accounting cycle element that would benefit the most from using a computer is

Accepted Answer

A)  journalizing. 
B)  posting. 
C)  summarizing. 
D)  correcting errors. 
A)  journalizing. 
B)  posting. 
C)  summarizing. 
D)  correcting errors.

Question 13

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities. This transaction could have been

Accepted Answer

A)  purchase of office equipment for $12,000, paying $8,000 cash, with the rest on account. 
B)  investment by the owner of an additional $4,000. 
C)  purchase of office equipment, paying $4,000 cash, and $8,000 on account. 
D)  None of these answers are correct. 
A)  purchase of office equipment for $12,000, paying $8,000 cash, with the rest on account. 
B)  investment by the owner of an additional $4,000. 
C)  purchase of office equipment, paying $4,000 cash, and $8,000 on account. 
D)  None of these answers are correct.

Question 14

If the business records a number as 176 and it should be 167, this error would be called

Accepted Answer

A)  rearrangement. 
B)  transposition. 
C)  slide. 
D)  None of the above 
A)  rearrangement. 
B)  transposition. 
C)  slide. 
D)  None of the above

Question 15

All nine transactions for Ross Realty for June 2020, the first month of operation, are recorded in the following T accounts: $$\begin{array}{l}
\text {Cash}\
\begin{array} { l | l r } 
\hline(1) 30,000&(3) 7,500 \
(7) 4,900&(5) 2,000\
(9) 3,700&(6) 4,500\
&(8) 2,000
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Greg Ross, Capital}\
\begin{array} { l | l r } 
\hline  &(1) 30,00\
& 
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accounts Receivable}\
\begin{array} { l | l r } 
\hline  (4) 4,100&(9) 3,700\
& 
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Greg Ross, Withdrawals}\
\begin{array} { l | l r } 
\hline (8) 2,000&\
& 
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Supplies}\
\begin{array} { l | l r } 
\hline (3) 7,500&\
& 
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Fees Earned}\
\begin{array} { l | l r } 
\hline &(4) 4,100\
& (7) 4,900
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Equipment}\
\begin{array} { l | l r } 
\hline (2) 22,500&\
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Operating Expense}\
\begin{array} { l | l r } 
\hline (6) 4,500&\
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accounts Payable}\
\begin{array} { l | l r } 
\hline (5) 2,000&(2) 22,500\
&
\end{array}
\end{array}$$ Prepare a trial balance, listing the accounts and their balance in proper order.

Accepted Answer

Ross Realty
Trial Balance
June 30, 2020

Question 16

A fiscal year is always January 1 through December 31.

Accepted Answer

A) True 
 B)False

Question 17

All ten transactions for Bexon Consulting for August 2021, the first month of operation, are recorded in the following T accounts: $$\begin{array}{l}
\text { Cash }\
\begin{array} { l | l r } 
\hline (1) 20,000 & (3) 4,500 \
(7) 6,800& (5) 5,000\
(9) 1,800&(6) 2,500\
(10) 1,500&(8) 3,000\
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Blake Bexon, Capital }\
\begin{array} { l | l r } 
\hline&(1) 20,000 \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accounts Receivable }\
\begin{array} { l | l r } 
\hline(4) 3,500&(9) 1,800 \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Blake Bexon, Withdrawals }\
\begin{array} { l | l r } 
\hline(8) 3,000& \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Supplies }\
\begin{array} { l | l r } 
\hline((3) 4,500& \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Fees Earned}\
\begin{array} { l | l r } 
\hline&(4) 3,500 \
&(7) 6,800\
&(10) 1,500\
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Equipment }\
\begin{array} { l | l r } 
\hline(2) 18,500& \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Operating Expense }\
\begin{array} { l | l r } 
\hline(6) 2,500& \
&
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accounts Payable }\
\begin{array} { l | l r } 
\hline(5) 5,000&(2) 18,500 \
&
\end{array}
\end{array}$$ Prepare a trial balance, listing the accounts and their balance in proper order.

Accepted Answer

Blake Bexon Consulting
Trial Balance
Aug

Question 18

An example of a transposition error is

Accepted Answer

A)  debit to Accounts Receivable for $2,000 instead of $200. 
B)  debit to Rent Expense instead of a debit to Prepaid Rent for $200. 
C)  debit to Telephone Expense for $250 instead of $520. 
D)  debit to Equipment for $1,200 instead of $1,000. 
A)  debit to Accounts Receivable for $2,000 instead of $200. 
B)  debit to Rent Expense instead of a debit to Prepaid Rent for $200. 
C)  debit to Telephone Expense for $250 instead of $520. 
D)  debit to Equipment for $1,200 instead of $1,000.

Question 19

Revenue is recorded only once the payment is received.

Accepted Answer

A) True 
 B)False

Question 20

A debit to the Capital account was posted to an expense account. This would cause

Accepted Answer

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

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

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

The entry to record delivering a financial lecture and immediately collecting payment from the customer would be

Interim reports are usually prepared once a year.

During the month of January, Katelyn invested $10,000 in starting her legal practice. The proper journal entry would be

A running balance is maintained in the ledger after each transaction is posted.

Renzi's Volleyball Gym purchased equipment for $1,400. It made a down payment of $800 with the remainder on account. The journal entry to record this transaction is

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

To correct an error made in the journal (prior to posting in the ledger),

The same information is contained in the journal and the ledger but in a different form.

A trial balance difference divisible by 9 could indicate

The accounting cycle element that would benefit the most from using a computer is

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities. This transaction could have been

If the business records a number as 176 and it should be 167, this error would be called

A fiscal year is always January 1 through December 31.

An example of a transposition error is

Revenue is recorded only once the payment is received.

A debit to the Capital account was posted to an expense account. This would cause

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

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

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

The entry to record delivering a financial lecture and immediately collecting payment from the customer would be

Interim reports are usually prepared once a year.

During the month of January, Katelyn invested $10,000 in starting her legal practice. The proper journal entry would be

A running balance is maintained in the ledger after each transaction is posted.

Renzi's Volleyball Gym purchased equipment for $1,400. It made a down payment of $800 with the remainder on account. The journal entry to record this transaction is

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

To correct an error made in the journal (prior to posting in the ledger),

The same information is contained in the journal and the ledger but in a different form.

A trial balance difference divisible by 9 could indicate

The accounting cycle element that would benefit the most from using a computer is

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities. This transaction could have been

If the business records a number as 176 and it should be 167, this error would be called

A fiscal year is always January 1 through December 31.

An example of a transposition error is

Revenue is recorded only once the payment is received.

A debit to the Capital account was posted to an expense account. This would cause

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