Question 1

Which of these errors would be detected by a trial balance?

Accepted Answer

A) A cash sale was recorded in the sales account as $237 instead of $273 but was correctly recorded in the bank account 
B) Office salaries were recorded as office expenses 
C) The sales assistant pocketed the cash from a cash sale and did not ring it up on the register 
D) Purchase of inventory on credit was recorded as a debit to the plant and equipment account and a credit to creditors 
A) A cash sale was recorded in the sales account as $237 instead of $273 but was correctly recorded in the bank account 
B) Office salaries were recorded as office expenses 
C) The sales assistant pocketed the cash from a cash sale and did not ring it up on the register 
D) Purchase of inventory on credit was recorded as a debit to the plant and equipment account and a credit to creditors A

Question 2

The transactions below are from the records of Templestowe Picture Framers,the internal transaction is:

Accepted Answer

A) Cash sale 
B) Paid monthly rent on premises 
C) Credit sale 
D) Recorded depreciation on shop fixtures and fittings 
A) Cash sale 
B) Paid monthly rent on premises 
C) Credit sale 
D) Recorded depreciation on shop fixtures and fittings D

Question 3

A __________ of _______________ is a plan of the ledger listing the names of all ledger accounts together with an appropriate numbering system.

Accepted Answer

chart of accounts

Question 4

The term used in the Framework for the Preparation and Presentation of Financial Statements for income which arises in the course of the ordinary activities of an entity is:

Accepted Answer

A) Revenue 
B) Gain 
C) Fees 
D) Profit 
A) Revenue 
B) Gain 
C) Fees 
D) Profit

Question 5

A deposit received in advance by Maharaj Co for services not yet supplied can be initially recorded by Maharaj in a liability account called:

Accepted Answer

A) Sales 
B) Mortgage 
C) Unearned income 
D) Expenses payable 
A) Sales 
B) Mortgage 
C) Unearned income 
D) Expenses payable

Question 6

J.Wood performed carpentry services for $7500.He received cash of $2000 and gave 1. credit for $\$ 5500$. Ignoring GST the transaction is recorded as:
a. Debit Cash $\$ 2000$, deb it Accounts Receivable $\$ 7500$, credit Accounts receivable $\$ 2000$, credit Income Eamed $\$ 7500$
b. Debit Income Earned $\$ 7500$, credit Cash $\$ 2000$, credit Accounts Payable $\$ 5500$
c. Debit Cash $\$ 7500$, credit Equity $\$ 7500$
d. Debit Cash $\$ 2000$, debit Equity $\$ 5500$, credit Income Earned $\$ 7500$

Accepted Answer

The answer of J.Wood performed carpentry services for $7500.He received...

Question 7

Which is the correct statement concerning a chart of accounts?

Accepted Answer

A) The accounts are listed in alphabetical order 
B) Is drawn up at the commencement of a business 
C) Is similar for most businesses 
D) It is a list of accounts with their current balances 
A) The accounts are listed in alphabetical order 
B) Is drawn up at the commencement of a business 
C) Is similar for most businesses 
D) It is a list of accounts with their current balances

Question 8

The source document associated with the provision of goods on credit is an i______________.

Accepted Answer

The answer of The source document associated with the provision...

Question 9

The true statement is:

Accepted Answer

A) GST collections is an asset account 
B) In the income statement income and expenses are recorded net of GST 
C) If the GST inclusive price of a package of books is $1200 the GST component is $120. 
D) The entries to account for GST are regarded as internal transactions 
A) GST collections is an asset account 
B) In the income statement income and expenses are recorded net of GST 
C) If the GST inclusive price of a package of books is $1200 the GST component is $120. 
D) The entries to account for GST are regarded as internal transactions

Question 10

The bookkeeper recorded wages for the month as a debit to the Sales account rather than as a debit to Wages Expense.This error will result in:

Accepted Answer

A) Overstated profit for the period 
B) Understated equity at the end of the period 
C) Understated assets at the end of the period 
D) No effect on profit of the period 
A) Overstated profit for the period 
B) Understated equity at the end of the period 
C) Understated assets at the end of the period 
D) No effect on profit of the period

Question 11

Quinn paid $440,including GST,for advertising.The entry to record this transaction is: a. Debit Advertising $\$ 440$, credit Cash $\$ 440$
b. Debit Advertising $\$ 400$, debit GST Outlays $\$ 40$, credit Cash $\$ 440$
c. Debit Advertising $\$ 440$, credit GST Outlays $\$ 40$, credit Cash $\$ 400$
d. Debit Advertising $\$ 440$, debit GST Outlays $\$ 44$; credit Cash $\$ 484$

Accepted Answer

The answer of Quinn paid $440,including GST,for advertising.The entry to...

Question 12

Creol Soaps requires its customers to pay for their orders six weeks before shipping the goods.How should the payments be initially recorded by Creol?

Accepted Answer

A) Debit bank,credit a liability account 
B) Debit bank,credit an expense account 
C) Debit bank,credit an asset account 
D) Debit bank,credit an income account 
A) Debit bank,credit a liability account 
B) Debit bank,credit an expense account 
C) Debit bank,credit an asset account 
D) Debit bank,credit an income account

Question 13

The statement relating to a trial balance that is incorrect is:

Accepted Answer

A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger 
B) A trial balance reports the financial performance of a business 
C) The fact that the sum of the debit column equals the sum of the credit column does not guarantee that no errors have been made in the ledger 
D) A trial balance is a list of all the accounts in the ledger with their current balances 
A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger 
B) A trial balance reports the financial performance of a business 
C) The fact that the sum of the debit column equals the sum of the credit column does not guarantee that no errors have been made in the ledger 
D) A trial balance is a list of all the accounts in the ledger with their current balances

Question 14

The true statement concerning the accounting period is:

Accepted Answer

A) The length of the accounting period varies with the needs of users. 
B) The accounting period originates from the accounting equation 
C) Accounting periods are hardly ever shorter than 6 months 
D) The accounting period is the sequence of events from transactions through to financial statements 
A) The length of the accounting period varies with the needs of users. 
B) The accounting period originates from the accounting equation 
C) Accounting periods are hardly ever shorter than 6 months 
D) The accounting period is the sequence of events from transactions through to financial statements

Question 15

A credit entry is made to:

Accepted Answer

A) Decrease an expense,increase income,and increase equity 
B) Decrease an asset,increase a liability,and decrease equity 
C) Increase an asset,decrease a liability,and decrease equity 
D) Decrease an asset,decrease a liability,and increase equity 
A) Decrease an expense,increase income,and increase equity 
B) Decrease an asset,increase a liability,and decrease equity 
C) Increase an asset,decrease a liability,and decrease equity 
D) Decrease an asset,decrease a liability,and increase equity

Question 16

A ____________ __________________ is a list of ledger accounts and their balances prepared to verify the equality of debits and credits in the ledger.

Accepted Answer

The answer of A ____________ __________________ is a list of...

Question 17

Machinery is purchased on credit for $16 000 plus GST.The general journal entry to record this transaction is: a.$\begin{array}{lrr}&\$ & \$ \
&\mathrm{DR} & \mathrm{CR}\
\text { Equipment } & 16000 \
\quad \text { Accounts Payable }&& 16000 
\end{array}$

b.$\begin{array}{lr}
\text { Equipment } & 14545 \
\text { GST Outlays } & 1455 \
 \text { Accounts Payable } &&16,000
\end{array}$

c.$\begin{array}{lr}
\text { Equity } & 16000 \
\text { GST Outlays } & 1600 \
\text { Accounts Payable } &&17,600
\end{array}$

d.$ \begin{array}{lr}\text { Equipment } & 16000 \ \text { GST Outlays } & 1600\\text { Accounts Payable }&&17,600\end{array} $

Accepted Answer

The answer of Machinery is purchased on credit for $16...

Question 18

A party to whom the entity owes money for goods or services provided to the entity is called a:

Accepted Answer

A) Creditor 
B) Debtor 
C) Debit 
D) Credit 
A) Creditor 
B) Debtor 
C) Debit 
D) Credit

Question 19

A firm borrows $4000 cash from the bank.The transaction is recorded as:

Accepted Answer

A) Debit Bank Loan $4000; credit Owner's capital $4000 
B) Debit Cash at bank $4000; credit Accounts Receivable $4000 
C) Debit Cash at bank $4000; credit Bank Loan $4000 
D) Debit Bank Loan $4000; credit Cash at bank $4000 
A) Debit Bank Loan $4000; credit Owner's capital $4000 
B) Debit Cash at bank $4000; credit Accounts Receivable $4000 
C) Debit Cash at bank $4000; credit Bank Loan $4000 
D) Debit Bank Loan $4000; credit Cash at bank $4000

Question 20

The accounting entry when income is earned on credit is:

Accepted Answer

A) Debit cash,credit income 
B) Debit accounts receivable,credit income 
C) Debit income,credit accounts payable 
D) Debit income,credit accounts receivable 
A) Debit cash,credit income 
B) Debit accounts receivable,credit income 
C) Debit income,credit accounts payable 
D) Debit income,credit accounts receivable

Exam 3: Recording Transactions

Which of these errors would be detected by a trial balance?

The transactions below are from the records of Templestowe Picture Framers,the internal transaction is:

A __________ of _______________ is a plan of the ledger listing the names of all ledger accounts together with an appropriate numbering system.

The term used in the Framework for the Preparation and Presentation of Financial Statements for income which arises in the course of the ordinary activities of an entity is:

A deposit received in advance by Maharaj Co for services not yet supplied can be initially recorded by Maharaj in a liability account called:

Which is the correct statement concerning a chart of accounts?

The source document associated with the provision of goods on credit is an i______________.

The true statement is:

The bookkeeper recorded wages for the month as a debit to the Sales account rather than as a debit to Wages Expense.This error will result in:

Creol Soaps requires its customers to pay for their orders six weeks before shipping the goods.How should the payments be initially recorded by Creol?

The statement relating to a trial balance that is incorrect is:

The true statement concerning the accounting period is:

A credit entry is made to:

A ____________ __________________ is a list of ledger accounts and their balances prepared to verify the equality of debits and credits in the ledger.

A party to whom the entity owes money for goods or services provided to the entity is called a:

A firm borrows $4000 cash from the bank.The transaction is recorded as:

The accounting entry when income is earned on credit is:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

Filters

A of _____ is a plan of the ledger listing the names of all ledger accounts together with an appropriate numbering system.

A ______ is a list of ledger accounts and their balances prepared to verify the equality of debits and credits in the ledger.