Question 1

If the Debit and Credit column totals of a trial balance are equal, then:

Accepted Answer

A) All transactions have been recorded correctly. 
B) All entries from the journal have been posted to the ledger correctly. 
C) All ledger account balances are correct. 
D) The total debit entries and total credit entries are equal. 
E) The balance sheet would be correct.

Question 2

Wisconsin Rentals purchased office supplies on credit.The journal entry made by Wisconsin Rentals to record this transaction will include a:

Accepted Answer

A) Debit to Accounts Payable. 
B) Debit to Accounts Receivable. 
C) Credit to Cash. 
D) Credit to Accounts Payable. 
E) Credit to Retained Earnings.

Question 3

A trial balance that is in balance is proof that no errors were made in journalizing the transactions, posting to the ledger, and preparing the trial balance.

Accepted Answer

A) True 
 B)False

Question 4

A trial balance that balances is not proof of complete accuracy in recording transactions.

Accepted Answer

A) True 
 B)False

Question 5

A company failed to post a $50 debit to the Office Supplies account.The effect of this error will be that:

Accepted Answer

A) The Office Supplies account balance will be overstated. 
B) The trial balance will not balance. 
C) The error will overstate the debits listed in the journal. 
D) The total debits in the trial balance will be larger than the total credits. 
E) The trial balance will be in balance.

Question 6

Explain the debt ratio and its use in analyzing a company's financial condition.

Accepted Answer

The answer of Explain the debt ratio and its use...

Question 7

What is another name for the general journal?

Accepted Answer

A) The book. 
B) The ledger. 
C) The book of original entry. 
D) The record. 
E) The account book.

Question 8

On November 30, a company had an Accounts Receivable balance of $5,100.During the month of December, total credits to Accounts Receivable were $76,000 from customer payments.The December 31 Accounts Receivable balance was $43,000.What was the amount of credit sales during December?

Accepted Answer

A) $8,100 
B) $27,900 
C) $70,900 
D) $76,000 
E) $113,900

Question 9

A credit entry:

Accepted Answer

A) Increases asset and expense accounts and decreases liability, common stock, and revenue accounts. 
B) Is always a decrease in an account. 
C) Decreases asset and expense accounts and increases liability, common stock, and revenue accounts. 
D) Is recorded on the left side of a T-account. 
E) Is always an increase in an account.

Question 10

Dividends are a type of business expense.

Accepted Answer

A) True 
 B)False

Question 11

David Roberts is a real estate appraiser.Shown below are (a)several accounts in his ledger with each account preceded by an identification number and (b)several transactions completed by Roberts.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Accepted Answer

The answer of David Roberts is a real estate appraiser.Shown...

Question 12

An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Accepted Answer

A) True 
 B)False

Question 13

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Accepted Answer

A)   
B)   
C)   
D)   
E)

Question 14

If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 15

On December 3, the Matador Company paid $5,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On December 3, the Matador Company paid...

Question 16

The general ledger of a business

Accepted Answer

A) Is a collection of all accounts used in a company's information system. 
B) Must be kept in a computer file. 
C) Is also called the book of original entry. 
D) Is not affected by a company's size and diversity. 
E) Is one of the four financial statements.

Question 17

If a company provides services to a customer on credit, the service provider company should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 18

___________________ is a promise of payment from customers to sellers.

Accepted Answer

The answer of ___________________ is a promise of payment from...

Question 19

A collection of all accounts (with account balances)used by a business is called a:

Accepted Answer

A) Journal 
B) Book of original entry 
C) General Journal 
D) Balance column journal 
E) General Ledger

Question 20

On October 1, 2011, Smith invested $20,000 cash, office equipment costing $15,000, and drafting equipment costing $12,000 into the company in exchange for common stock.Show the general journal entry to record this transaction.

Accepted Answer

The answer of On October 1, 2011, Smith invested $20,000...

Exam 15: Basic Accounting for Transactions

If the Debit and Credit column totals of a trial balance are equal, then:

Wisconsin Rentals purchased office supplies on credit.The journal entry made by Wisconsin Rentals to record this transaction will include a:

A trial balance that is in balance is proof that no errors were made in journalizing the transactions, posting to the ledger, and preparing the trial balance.

A trial balance that balances is not proof of complete accuracy in recording transactions.

A company failed to post a $50 debit to the Office Supplies account.The effect of this error will be that:

Explain the debt ratio and its use in analyzing a company's financial condition.

What is another name for the general journal?

On November 30, a company had an Accounts Receivable balance of $5,100.During the month of December, total credits to Accounts Receivable were $76,000 from customer payments.The December 31 Accounts Receivable balance was $43,000.What was the amount of credit sales during December?

A credit entry:

Dividends are a type of business expense.

An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.

On December 3, the Matador Company paid $5,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

The general ledger of a business

If a company provides services to a customer on credit, the service provider company should credit Accounts Receivable.

___________________ is a promise of payment from customers to sellers.

A collection of all accounts (with account balances) used by a business is called a:

On October 1, 2011, Smith invested $20,000 cash, office equipment costing $15,000, and drafting equipment costing $12,000 into the company in exchange for common stock.Show the general journal entry to record this transaction.