Question 1

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 2

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 3

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 4

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 5

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

Accepted Answer

The answer of Supplies purchased on account were incorrectly recorded...

Question 6

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.  
- Which transaction represents the acquisition of a noncurrent asset?

Accepted Answer

A)  (2) 
B)  (4) 
C)  (9) 
D)  (10) 
A)  (2) 
B)  (4) 
C)  (9) 
D)  (10)

Question 7

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 three months of business.  
- Which transaction represents a customer paying his/her account?

Accepted Answer

A)  (5
A)  
B)  (6
A)  
C)  (7) 
D)  (8) 
A)  (5
A)  
B)  (6
A)  
C)  (7) 
D)  (8)

Question 8

The following are steps in the accounting cycle:   What is the order that is normally followed?

Accepted Answer

A)  4,7,3,6,1,9,2,8,5. 
B)  4,7,3,6,8,9,1,2,5. 
C)  4,7,3,6,1,9,8,2,5. 
D)  None of the above. 
A)  4,7,3,6,1,9,2,8,5. 
B)  4,7,3,6,8,9,1,2,5. 
C)  4,7,3,6,1,9,8,2,5. 
D)  None of the above.

Question 9

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?

Accepted Answer

A)  $120 000 
B)  $140 000 
C)  $200 000 
D)  $260 000 
A)  $120 000 
B)  $140 000 
C)  $200 000 
D)  $260 000

Question 10

Identify the correct classification for the following four ledger accounts in the chart of accounts:

Accepted Answer

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

Question 11

Which of the following accounts are not closed off at balance date?

Accepted Answer

A)  Accounts receivable 
B)  Profit and loss summary 
C)  Dividend declared 
D)  Sales revenue 
A)  Accounts receivable 
B)  Profit and loss summary 
C)  Dividend declared 
D)  Sales revenue

Question 12

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?

Accepted Answer

A)  Purchase of inventory on credit 
B)  Purchase of inventory for cash 
C)  Sale of inventory on credit 
D)  Sale of inventory for cash 
A)  Purchase of inventory on credit 
B)  Purchase of inventory for cash 
C)  Sale of inventory on credit 
D)  Sale of inventory for cash

Question 13

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.   
-  Which transaction represents payment for an expense item?

Accepted Answer

A)  (4) 
B)  (5) 
C)  (10) 
D)  (8) 
A)  (4) 
B)  (5) 
C)  (10) 
D)  (8)

Question 14

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 15

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 16

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

The answer of On 30 June,Dawes Pty Ltd receives an...

Question 17

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?

Accepted Answer

A)  Posting the same wrong amount to both sides of the right accounts. 
B)  Posting an amount to the wrong side of the right account. 
C)  Posting an amount to the right side of the wrong account. 
D)  Reversing the postings,that is,debiting the account that should have been credited and crediting the account that should have been debited. 
A)  Posting the same wrong amount to both sides of the right accounts. 
B)  Posting an amount to the wrong side of the right account. 
C)  Posting an amount to the right side of the wrong account. 
D)  Reversing the postings,that is,debiting the account that should have been credited and crediting the account that should have been debited.

Question 18

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 three months of business.   
-What does transaction (2)represent?

Accepted Answer

A)  Sale of inventory on credit 
B)  Sale of inventory for cash 
C)  Purchase of inventory on credit 
D)  Purchase of inventory for cash 
A)  Sale of inventory on credit 
B)  Sale of inventory for cash 
C)  Purchase of inventory on credit 
D)  Purchase of inventory for cash

Question 19

Inventory of $100 000 was purchased on credit.The journal entry is:

Accepted Answer

The answer of Inventory of $100 000 was purchased on...

Question 20

Which of the following is NOT an accounting transaction?

Accepted Answer

A)  A payment is made by cheque to Telstra. 
B)  The company is awarded a contract to build a bridge,with construction to commence in 12 months' time. 
C)  A creditor charges interest for late payment. 
D)  The payroll department issues a cheque to pay an employee. 
A)  A payment is made by cheque to Telstra. 
B)  The company is awarded a contract to build a bridge,with construction to commence in 12 months' time. 
C)  A creditor charges interest for late payment. 
D)  The payroll department issues a cheque to pay an employee.

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

A chart of accounts is:

A trial balance would detect which of the following errors?

Identify the correct classification for the following four ledger accounts:

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

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. - Which transaction represents the acquisition of a noncurrent asset?

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 three months of business. - Which transaction represents a customer paying his/her account?

The following are steps in the accounting cycle: What is the order that is normally followed?

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?

Identify the correct classification for the following four ledger accounts in the chart of accounts:

Which of the following accounts are not closed off at balance date?

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?

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. - Which transaction represents payment for an expense item?

Which of the following is NOT a source document?

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?

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:

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?

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 three months of business. -What does transaction (2)represent?

Inventory of $100 000 was purchased on credit.The journal entry is:

Which of the following is NOT an accounting transaction?

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 statements about a trial balance is true?

A chart of accounts is:

A trial balance would detect which of the following errors?

Identify the correct classification for the following four ledger accounts:

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

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. - Which transaction represents the acquisition of a noncurrent asset?

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 three months of business. - Which transaction represents a customer paying his/her account?

The following are steps in the accounting cycle: What is the order that is normally followed?

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?

Identify the correct classification for the following four ledger accounts in the chart of accounts:

Which of the following accounts are not closed off at balance date?

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?

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. - Which transaction represents payment for an expense item?

Which of the following is NOT a source document?

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?

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:

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?

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 three months of business. -What does transaction (2)represent?

Inventory of $100 000 was purchased on credit.The journal entry is:

Which of the following is NOT an accounting transaction?

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