Question 1

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:

Accepted Answer

A)  asset 
B)  liability 
C)  shareholders' equity 
D)  expense.

Question 2

Which of the following is NOT a source document?

Accepted Answer

A)  invoice 
B)  cheque butt 
C)  goods received advice 
D)  journal entry.

Question 3

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

Accepted Answer

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

Question 4

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?

Accepted Answer

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

Question 5

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:

Accepted Answer

A)  asset 
B)  liability 
C)  shareholders' equity 
D)  expense.

Question 6

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.

Accepted Answer

The answer of Dawes Pty Ltd received its monthly bank...

Question 7

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.

Question 8

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

Accepted Answer

The answer of Merchandise purchased by Dawes Pty Ltd on...

Question 9

Which of the following is an internal transaction?

Accepted Answer

A)  payments of dividend to shareholders 
B)  loan to a director 
C)  amortisation of goodwill 
D)  credit purchase of machinery.

Question 10

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.

Accepted Answer

A) 1 asset, 2 expense, 3 expense, 4 asset, 5 expense 
B) 1 asset, 2 expense, 3 asset, 4 expense, 5 liability 
C) 1 asset, 2 expense, 3 expense, 4 asset, 5 liability 
D) 1 expense, 2 expense, 3 expense, 4 expense, 5 expense.

Question 11

Which of the following statements about a trial balance is NOT 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 may be prepared at any time to ensure that the debits equal the credits. 
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 above is correct.All statements are true

Question 12

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

Accepted Answer

The answer of The journal entry for the receipt of...

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.

Question 14

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?

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.

Question 15

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?

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.

Question 16

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.

Question 17

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

Accepted Answer

A)  A salesman disappears with a company vehicle and merchandise. 
B)  The bank charges interest on a loan. 
C)  A customer settles an account by undertaking delivery work for the business. 
D)  A purchase order for inventory from a supplier is sent.

Question 18

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.

Question 19

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,i.e.,debiting the account that should have been credited and crediting the account that should have been debited.

Question 20

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

Accepted Answer

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

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:

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?

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:

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

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

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.

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