Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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)  match debits and credits in the journal. 
A)  re-compute the ledger balances. 
B)  trace all postings. 
C)  re-add the trial balance and calculate the difference. 
D)  match debits and credits in the journal.

Question 4

The posting reference column in the journal is used for:

Accepted Answer

A)  recording the source documents identification number. 
B)  recording the account number to which the entry was posted. 
C)  recording the posted account's initials. 
D)  recording the initials of the person who did the posting. 
A)  recording the source documents identification number. 
B)  recording the account number to which the entry was posted. 
C)  recording the posted account's initials. 
D)  recording the initials of the person who did the posting.

Question 5

Complete the following questions based on the journal entry below:   
a) Date of Journal entry: ___________
b) Name of account debited: ___________
c) Name of account credited: ___________
d) Provide an explanation for this entry: ___________
e) Page of Journal: ___________
f) Account number for Cash: ___________
g) Account number for Accounts Receivable: ___________

Accepted Answer

a) June 1
b) Cash
c)

Question 6

What are interim financial statements?

Accepted Answer

Interim financial statements are prepare

Question 7

Transactions are listed in chronological order in the journal.

Accepted Answer

A) True 
 B)False

Question 8

Provide an explanation for the following journal entries:
a) Prepaid Rent debited, Cash credited
b) Office supplies debited, Cash credited
c) Cash debited, Capital credited
d) Utility expense debited, Cash credited
e) Accounts Payable debited, Cash credited

Accepted Answer

a) Paid rent in advance
b) Pai

Question 9

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

Question 10

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)  an expense was paid with cash. 
A)  a payment was made on account. 
B)  a purchase was made on account. 
C)  a charge customer made a payment. 
D)  an expense was paid with cash.

Question 11

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 12

CSI completed a performance and collected revenue of $12,000 not previously billed or recorded. The journal entry to record the collection would be:

Accepted Answer

The answer of CSI completed a performance and collected revenue...

Question 13

If Accounts Receivable has been credited, it is most likely that:

Accepted Answer

A)  the company collected a payment from a customer. 
B)  the company made a payment on account. 
C)  the company made a purchase on account. 
D)  None of these is possible. 
A)  the company collected a payment from a customer. 
B)  the company made a payment on account. 
C)  the company made a purchase on account. 
D)  None of these is possible.

Question 14

The trial balance proves the accuracy of the ledger.

Accepted Answer

A) True 
 B)False

Question 15

A debit to an expense account was posted to an asset 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 16

On July 1, Bill's Construction paid six months' insurance in advance. The journal entry to record this transaction is:

Accepted Answer

A)  debit Prepaid Insurance; credit Cash 
B)  debit Insurance Expense; credit Accounts Payable 
C)  debit Cash; credit Prepaid Insurance 
D)  debit Cash; credit Insurance Expense 
A)  debit Prepaid Insurance; credit Cash 
B)  debit Insurance Expense; credit Accounts Payable 
C)  debit Cash; credit Prepaid Insurance 
D)  debit Cash; credit Insurance Expense

Question 17

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Accepted Answer

A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit; Cash, credit 
D)  Cash, debit; Wages Payable, credit 
A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit; Cash, credit 
D)  Cash, debit; Wages Payable, credit

Question 18

The debit part of the transaction is recorded second in a journal entry.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

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

Exam 3: Beginning the Accounting Cycle

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

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

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

The posting reference column in the journal is used for:

What are interim financial statements?

Transactions are listed in chronological order in the journal.

Provide an explanation for the following journal entries: a) Prepaid Rent debited, Cash credited b) Office supplies debited, Cash credited c) Cash debited, Capital credited d) Utility expense debited, Cash credited e) Accounts Payable debited, Cash credited

A debit to a Liability account was posted to an Expense account. This would cause:

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

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

CSI completed a performance and collected revenue of $12,000 not previously billed or recorded. The journal entry to record the collection would be:

If Accounts Receivable has been credited, it is most likely that:

The trial balance proves the accuracy of the ledger.

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

On July 1, Bill's Construction paid six months' insurance in advance. The journal entry to record this transaction is:

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

The debit part of the transaction is recorded second in a journal entry.

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

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:

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,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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