Question 1

Which of the following is NOT a source document?

Accepted Answer

A)  Invoice 
B)  Cash register listings 
C)  Goods received advice 
D)  Journal entry 
A)  Invoice 
B)  Cash register listings 
C)  Goods received advice 
D)  Journal entry

Question 2

What source document supports the provision of services on credit?

Accepted Answer

A)  Supplier's invoice received by the business 
B)  A copy of a credit note issued by the vendor 
C)  Cash receipt 
D)  Invoice sent by the business to a customer 
A)  Supplier's invoice received by the business 
B)  A copy of a credit note issued by the vendor 
C)  Cash receipt 
D)  Invoice sent by the business to a customer

Question 3

ABC paid $1 million for a business and acquired the following assets and liabilities:
 
Which of these entries would be made for goodwill?

Accepted Answer

A)  Dr Goodwill $50 000 
B)  Dr Goodwill $950 000 
C)  Cr Goodwill $200 000 
D)  Goodwill is not entered in the accounts until the business is sold. 
A)  Dr Goodwill $50 000 
B)  Dr Goodwill $950 000 
C)  Cr Goodwill $200 000 
D)  Goodwill is not entered in the accounts until the business is sold.

Question 4

The bank notifies the company of fees for the month already taken out of the company's bank account. The transaction should be recorded as:

Accepted Answer

A)  Dr Bank charges
Cr Accounts payable 
B)  Dr Bank charges
Cr Expenses payable 
C)  Dr Bank charges
Cr Cash 
D)  No entry is required. 
A)  Dr Bank charges
Cr Accounts payable 
B)  Dr Bank charges
Cr Expenses payable 
C)  Dr Bank charges
Cr Cash 
D)  No entry is required.

Question 5

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A)  A transaction was not posted. 
B)  A payment of $64 for supplies was posted as a debit of $46 to Supplies and a credit of $46 to cash. 
C)  A payment of $131 to a creditor was posted as a debit of $131 to accounts payable and a debit of $131 to accounts receivable. 
D)  Cash received from customers on account was posted as a debit of $240 to cash and a credit of $240 to accounts payable. 
A)  A transaction was not posted. 
B)  A payment of $64 for supplies was posted as a debit of $46 to Supplies and a credit of $46 to cash. 
C)  A payment of $131 to a creditor was posted as a debit of $131 to accounts payable and a debit of $131 to accounts receivable. 
D)  Cash received from customers on account was posted as a debit of $240 to cash and a credit of $240 to accounts payable.

Question 6

Which of the following is an accounting transaction?

Accepted Answer

A)  Make a purchase order. 
B)  Establish a bank overdraft. 
C)  Hire a new staff member. 
D)  Sign a new contract. 
A)  Make a purchase order. 
B)  Establish a bank overdraft. 
C)  Hire a new staff member. 
D)  Sign a new contract.

Question 7

Which of the following is an internal transaction?

Accepted Answer

A)  Payment of dividends to shareholders 
B)  Loan to a director 
C)  Depreciation of equipment 
D)  Purchase of machinery on credit 
A)  Payment of dividends to shareholders 
B)  Loan to a director 
C)  Depreciation of equipment 
D)  Purchase of machinery on credit

Question 8

Which of the following accounts does NOT appear on a post-closing trial balance?

Accepted Answer

A)  Insurance expense 
B)  Prepaid rent 
C)  Accumulated depreciation 
D)  Retained profits 
A)  Insurance expense 
B)  Prepaid rent 
C)  Accumulated depreciation 
D)  Retained profits

Question 9

On 30 June, Dawes Pty Ltd receives an account for TV advertising for the month of June. It is not due for payment until August. The transaction would be recorded as:

Accepted Answer

A)  Dr Expenses payable
Cr Advertising expense 
B)  Dr Advertising expense
Cr Prepaid expenses 
C)  Dr Prepaid expenses
Cr Expenses payable 
D)  Dr Advertising expense
Cr Expenses payable 
A)  Dr Expenses payable
Cr Advertising expense 
B)  Dr Advertising expense
Cr Prepaid expenses 
C)  Dr Prepaid expenses
Cr Expenses payable 
D)  Dr Advertising expense
Cr Expenses payable

Question 10

A chart of accounts is:

Accepted Answer

A)  a means of ensuring that the debits equal the credits. 
B)  a chronological record of all transactions. 
C)  a list of the titles of all accounts in the ledger, together with an appropriate numbering system for the accounts. 
D)  a trial balance. 
A)  a means of ensuring that the debits equal the credits. 
B)  a chronological record of all transactions. 
C)  a list of the titles of all accounts in the ledger, together with an appropriate numbering system for the accounts. 
D)  a trial balance.

Question 11

The following accounts were taken from the trial balance:
 
Net profit for the period is:

Accepted Answer

A)  $10 000. 
B)  $11 000. 
C)  $12 000. 
D)  $12 500. 
A)  $10 000. 
B)  $11 000. 
C)  $12 000. 
D)  $12 500.

Question 12

Supplies purchased on account were incorrectly recorded as office equipment. The correcting entry would be:

Accepted Answer

A)  Dr Supplies
Cr Office equipment 
B)  Dr Accounts payable
Cr Supplies 
C)  Dr Office equipment
Cr Supplies 
D)  Dr Supplies
Cr Accounts payable 
A)  Dr Supplies
Cr Office equipment 
B)  Dr Accounts payable
Cr Supplies 
C)  Dr Office equipment
Cr Supplies 
D)  Dr Supplies
Cr Accounts payable

Question 13

If the two totals of a trial balance are not equal, it could be due to:

Accepted Answer

A)  failure to record a transaction. 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction. 
C)  an error in determining the account balances, such as an incorrectly computed balance. 
D)  recording the same transaction more than once. 
A)  failure to record a transaction. 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction. 
C)  an error in determining the account balances, such as an incorrectly computed balance. 
D)  recording the same transaction more than once.

Question 14

Which of the following statements about a trial balance is true?

Accepted Answer

A)  A trial balance is one of the financial statements provided to shareholders at the close of the financial period. 
B)  A trial balance will detect if a transaction was not recorded. 
C)  The sum of the debits is not necessarily the same as the total of the assets side of the balance sheet. 
D)  None of the statements are true. 
A)  A trial balance is one of the financial statements provided to shareholders at the close of the financial period. 
B)  A trial balance will detect if a transaction was not recorded. 
C)  The sum of the debits is not necessarily the same as the total of the assets side of the balance sheet. 
D)  None of the statements are true.

Question 15

A chart of accounts is:

Accepted Answer

A)  a depiction of the significant and formal relationships and roles within a business organisation. 
B)  a list, in some logical form, of all relevant transactions in a business organisation. 
C)  a list, in chronological order, of journal accounts used in an accounting system. 
D)  a list of the complete set of account titles and their related reference numbers. 
A)  a depiction of the significant and formal relationships and roles within a business organisation. 
B)  a list, in some logical form, of all relevant transactions in a business organisation. 
C)  a list, in chronological order, of journal accounts used in an accounting system. 
D)  a list of the complete set of account titles and their related reference numbers.

Question 16

The journal entry for the receipt of cash from accounts receivable is:

Accepted Answer

A)  Dr Cash
Cr Sales revenue 
B)  Dr Accounts receivable
Cr Sales revenue 
C)  Dr Cash
Cr Accounts receivable 
D)  Dr Sales
Cr Accounts receivable 
A)  Dr Cash
Cr Sales revenue 
B)  Dr Accounts receivable
Cr Sales revenue 
C)  Dr Cash
Cr Accounts receivable 
D)  Dr Sales
Cr Accounts receivable

Question 17

Identify the correct classification for the following four ledger accounts:

Accepted Answer

A)  1 expense, 2 expense, 3 asset, 4 expense. 
B)  1 expense, 2 asset, 3 revenue, 4 liability. 
C)  1 asset, 2 asset, 3 revenue, 4 liability. 
D)  1 asset, 2 asset, 3 asset, 4 liability. 
A)  1 expense, 2 expense, 3 asset, 4 expense. 
B)  1 expense, 2 asset, 3 revenue, 4 liability. 
C)  1 asset, 2 asset, 3 revenue, 4 liability. 
D)  1 asset, 2 asset, 3 asset, 4 liability.

Question 18

The total of the debit column of the trial balance exceeds that of the credit column by $27. Which of the following errors could NOT have caused this?

Accepted Answer

A)  A credit of $13.50 inadvertently posted to the debit of the account concerned. 
B)  An item of $27 debited, but not credited to any account. 
C)  Omission of a credit purchase of $27 from the journal. 
D)  In posting a transaction to the ledger, the credit was correctly recorded as $36, but the debit was recorded as $63. 
A)  A credit of $13.50 inadvertently posted to the debit of the account concerned. 
B)  An item of $27 debited, but not credited to any account. 
C)  Omission of a credit purchase of $27 from the journal. 
D)  In posting a transaction to the ledger, the credit was correctly recorded as $36, but the debit was recorded as $63.

Question 19

A trial balance would detect which of the following errors?

Accepted Answer

A)  Failure to record depreciation for the year. 
B)  A credit purchase recorded in accounts payable account as $927 instead of $972. 
C)  A cash purchase of inventory recorded as a debit to plant and a credit to accounts payable. 
D)  A salesman failing to record a cash sale, and retaining the proceeds. 
A)  Failure to record depreciation for the year. 
B)  A credit purchase recorded in accounts payable account as $927 instead of $972. 
C)  A cash purchase of inventory recorded as a debit to plant and a credit to accounts payable. 
D)  A salesman failing to record a cash sale, and retaining the proceeds.

Question 20

Which of the statements about closing the accounts is NOT true?

Accepted Answer

A)  Revenue accounts are debited. 
B)  A net profit is credited to the retained profits account. 
C)  Expense accounts are credited. 
D)  Dividends received are credited. 
A)  Revenue accounts are debited. 
B)  A net profit is credited to the retained profits account. 
C)  Expense accounts are credited. 
D)  Dividends received are credited.

Which of the following is NOT a source document?

What source document supports the provision of services on credit?

ABC paid $1 million for a business and acquired the following assets and liabilities: Which of these entries would be made for goodwill?

The bank notifies the company of fees for the month already taken out of the company's bank account. The transaction should be recorded as:

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Which of the following is an accounting transaction?

Which of the following is an internal transaction?

Which of the following accounts does NOT appear on a post-closing trial balance?

On 30 June, Dawes Pty Ltd receives an account for TV advertising for the month of June. It is not due for payment until August. The transaction would be recorded as:

A chart of accounts is:

The following accounts were taken from the trial balance: Net profit for the period is:

Supplies purchased on account were incorrectly recorded as office equipment. The correcting entry would be:

If the two totals of a trial balance are not equal, it could be due to:

Which of the following statements about a trial balance is true?

A chart of accounts is:

The journal entry for the receipt of cash from accounts receivable is:

Identify the correct classification for the following four ledger accounts:

The total of the debit column of the trial balance exceeds that of the credit column by $27. Which of the following errors could NOT have caused this?

A trial balance would detect which of the following errors?

Which of the statements about closing the accounts is NOT true?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Accrual Accounting Adjustments

Financial Reporting Principles, Accounting Standards and Auditing

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters

Exam 4: Record-Keeping

Which of the following is NOT a source document?

What source document supports the provision of services on credit?

ABC paid $1 million for a business and acquired the following assets and liabilities: Which of these entries would be made for goodwill?

The bank notifies the company of fees for the month already taken out of the company's bank account. The transaction should be recorded as:

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Which of the following is an accounting transaction?

Which of the following is an internal transaction?

Which of the following accounts does NOT appear on a post-closing trial balance?

On 30 June, Dawes Pty Ltd receives an account for TV advertising for the month of June. It is not due for payment until August. The transaction would be recorded as:

A chart of accounts is:

The following accounts were taken from the trial balance: Net profit for the period is:

Supplies purchased on account were incorrectly recorded as office equipment. The correcting entry would be:

If the two totals of a trial balance are not equal, it could be due to:

Which of the following statements about a trial balance is true?

A chart of accounts is:

The journal entry for the receipt of cash from accounts receivable is:

Identify the correct classification for the following four ledger accounts:

The total of the debit column of the trial balance exceeds that of the credit column by $27. Which of the following errors could NOT have caused this?

A trial balance would detect which of the following errors?

Which of the statements about closing the accounts is NOT true?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Accrual Accounting Adjustments

Financial Reporting Principles, Accounting Standards and Auditing

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters