Exam 4: Record-Keeping

Select the heading under which each of the items in the following questions should generally appear in the chart of accounts of a public company. -Prepaid insurance:

Which of the following is NOT a source document?

Inventory of $100 000 was purchased on credit.The journal entry is: A. DR Inventory $\quad$ $\quad$ CR Cash B. DR Inventory $\quad$ CR Accounts payable C. DR Accounts payable $\quad$ CR Inventory D. DR Inventory $\quad$ $\quad$ CR Accrued expenses

Use the information given above to answer the following questions: Greening Ltd is a newly established business selling computer hardware. Shown below are ledger accounts in T-account form, with entries made for the first month of operations. -What is the closing balance of inventory?

Select the heading under which each of the items in the following questions should generally appear in the chart of accounts of a public company. -Dividend payable:

Dawes Pty Ltd received its monthly bank statement showing bank charges of $20.The transaction should be recorded as: A. DR Cash $\quad$ CR Bank charges B. DR Accounts payable $\quad$ CR Cash C. DR Bank charges $\quad$ CR Cash D. No record is necessary.

A chart of accounts is:

Merchandise purchased by Dawes Pty Ltd on credit for $1500 was returned,as it had been damaged in transit.The transaction would be recorded by Dawes Pty Ltd as: A. DR Inventory $\quad$ CR Accounts payable B. DR Accounts payable $\quad$ CR Inventory C. DR Cost of goods sold $\quad$ CR Inventory D. DR Accounts payable $\quad$ CR Cost of goods sold

Which of the following is an internal transaction?

Identify the correct classification for the following 5 ledger accounts in the chart of accounts: 1.prepayments 2.municipal rates 3.depreciation 4.accumulated depreciation 5.accrued expenses.

Which of the following statements about a trial balance is NOT true?

The journal entry for the receipt of cash from accounts receivable is: A. DR Cash $\quad$ CR Sales revenue B. DR Accounts receivable $\quad$ CR Sales revenue C. DR Cash $\quad$ CR Accounts receivable D. DR Sales $\quad$ CR Accounts receivable

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

Use the information given above to answer the following questions: Greening Ltd is a newly established business selling computer hardware. Shown below are ledger accounts in T-account form, with entries made for the first month of operations. -What does transaction (2)represent?

Use the information given above to answer the following questions: Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business. -What does transaction (2)represent?

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

Which of the following is NOT an example of an accounting transaction?

A trial balance would detect which of the following errors?

Which of the following may cause the sum of the debit column of a trial balance to differ from the sum of the credit column?

Supplies purchased on account were incorrectly recorded as office equipment.The correct entry would be: A. DR Supplies $\quad$$\quad$ $\quad$ CR Office equipment B. DR Accounts payable $\quad$ CR Supplies C. DR Office equipment $\quad$ CR Supplies D. DR Supplies $\quad$ $\quad$ $\quad$ CR Accounts payable