Description
Question 1
of 40
2.5 Points
A credit to a
liability account was posted to an expense account. This error would cause
__________.
A. assets to be overstated
B. liabilities to be overstated
C. expenses to be overstated
D. None of the above answers are correct.
Question 2 of 40
2.5 Points
A credit to an
asset account was posted to a liability account. This error would cause
__________.
A. assets to be understated
B. liabilities to be overstated
C. capital to be understated
D. None of the above answers are correct.
Question 3 of 40
2.5 Points
Which of the
following errors would cause the trial balance to be out of balance?
A. An entry is posted twice.
B. An entry is not posted at all.
C. A debit is entered as $200 and the credit
is entered at $2,000.
D. None of the above answers are correct.
Question 4 of 40
2.5 Points
A credit to an
asset account was posted to a revenue account. This error would cause
__________.
A. assets to be overstated
B. revenue to be overstated
C. expenses to be overstated
D. Both A and C are correct.
Question 5 of 40
2.5 Points
A debit to an
asset account was posted to a liability account. This error would cause
__________.
A. assets to be understated
B. liabilities to be overstated
C. capital to be overstated
D. None of the above answers are correct.
Question 6 of 40
2.5 Points
A credit to a
liability account was posted to an asset account. This error would cause
__________.
A. liabilities to be overstated
B. liabilities to be understated
C. revenues to be overstated
D. revenues to be understated
Question 7 of 40
2.5 Points
The chart of
accounts __________.
A. is a numbered list of all of the business’
accounts
B. allows accounts to be located quickly
C. can be expanded as the business grows
D. All of the above answers are correct.
Question 8 of 40
2.5 Points
A credit to an
asset account was posted to the capital account. This error would cause __________.
A. assets to be overstated
B. liabilities to be overstated
C. capital to be understated
D. Both A and C are correct.
Question 9 of 40
2.5 Points
A list of all
the accounts from the ledger with their ending balances is called a __________.
A. normal balance
B. trial balance
C. chart of accounts
D. footing
Question 10 of 40
2.5 Points
Which of the
following groups of accounts have a normal credit balance?
A. revenue, liabilities, and capital
B. assets, capital, and withdrawals
C. liabilities, expenses, and assets
D. assets, expenses, and withdrawals
Question 11 of 40
2.5 Points
Given the
following list of accounts with normal balances, what are the trial balance
totals of the debits and credits?
Cash
$1000
Equipment
500
Accounts Payable
350
Capital
900
Service Fees
1000
Salaries Expense
750
A. $3,250 debit, $3,250 credit
B. $1,125
debit, $1,125 credit
C. $4,500 debit, $4,500 credit
D. $2,250 debit, $2,250 credit
Question 12 of 40
2.5 Points
The purpose of
the trial balance is __________.
A. to list all of the accounts in the chart
of accounts
B. to report all accounts with zero balances
C. to prove that debits equal credits
D. to distribute it with the other financial
reports
Question 13 of 40
2.5 Points
A debit to an
expense account was posted to a revenue account. This error would cause
__________.
A. assets to be overstated
B. liabilities to be overstated
C. revenue to be understated
D. None of the above answers are correct.
Question 14 of 40
2.5 Points
A debit to an
expense account was posted to a revenue account. This error would cause
__________.
A. assets to be overstated
B. liabilities to be overstated
C. revenue to be understated
D. None of the above answers are correct.
Question 15 of 40
2.5 Points
Which of the
following is prepared last?
A. Balance Sheet
B. Income Statement
C. Statement of Owner’s Equity
D. Trial
Balance
Question 16 of 40
2.5 Points
Given the
following list of accounts with normal balances, what are the trial balance
totals of the debits and credits?
Cash
$1,100
Accounts
Receivable
800
Capital
1,900
Withdrawals
500
Service Fees
1,000
Rent Expense
500
A. $2,900 debit, $2,900 credit
B. $3,900 debit, $3,900 credit
C. $2,000 debit, $2,000 credit
D. $1,200 debit, $1,200 credit
Question 17 of 40
2.5 Points
Which of the
following is not a financial statement?
A. Balance sheet
B. Income statement
C. Statement of owner’s equity
D. Trial
balance
Question 18 of 40
2.5 Points
The business
incurred an expense and paid it immediately. To record this __________.
A. an expense is debited and a liability is
credited
B. an expense is debited and an asset is
credited
C. an expense is debited and Capital is
credited
D. None of the above answers are correct.
Question 19 of 40
2.5 Points
A credit to an
asset account was posted to the capital account. This error would cause
__________.
A. assets to be overstated
B. liabilities to be overstated
C. capital to be understated
D. Both A and C are correct.
Question 20 of 40
2.5 Points
A debit to a
liability account was posted to the capital account. This error would cause
__________.
A. assets to be overstated
B. liabilities to be overstated
C. capital to be overstated
D. None of the above answers are correct.
Question 21 of 40
2.5 Points
Which of the
following entries records the owner taking cash for personal use?
A. debit Wage Expense; credit Cash
B. debit Capital; credit Cash
C. No entry is necessary since the owner owns
the cash and the entire business.
D. debit Withdrawals; credit Cash
Question 22 of 40
2.5 Points
A credit to an
asset account was posted to a revenue account. This would cause __________.
A. assets to be understated
B. liabilities to be understated
C. capital to be understated
D. revenue to be overstated
Question 23 of 40
2.5 Points
A credit to an
asset account was posted to a liability account. This would cause __________.
A. assets to be understated
B. liabilities to be overstated
C. capital to be overstated
D. revenue to be overstated
Question 24 of 40
2.5 Points
A debit to a
revenue account was posted to an expense account. This would cause __________.
A. expenses to be overstated
B. revenue to be understated
C. expenses to be understated
D. capital to be overstated
Question 25 of 40
2.5 Points
The purpose of
posting is to __________.
A. list the transactions in chronological
order in the journal
B. provide an explanation of the transaction
C. update the account balances in the ledger
D. correct a previous entry
Question 26 of 40
2.5 Points
The posting
reference column on the general journal __________.
A. shows which transactions have been posted
to the ledger
B. displays to which accounts the
transactions have been posted
C. allows us to cross reference to the
general ledger
D. All of the above answers are correct.
Question 27 of 40
2.5 Points
During the month
of January, Katelyn invested $11,000 in starting her legal practice. The proper
journal entry would be __________.
A. Cash, debit $11,000; Katelyn’s Capital,
credit $11,000
B. Accounts Payable, debit $11,000; Cash,
credit $11,000
C. Cash, debit $11,000; Revenue, credit
$11,000
D. Katelyn’s Capital, debit $11,000; Cash,
credit $11,000
Question 28 of 40
2.5 Points
Posting is
performed by transferring information from the journal to the __________.
A. ledger
B. trial balance
C. balance sheet
D. income
statement
Question 29 of 40
2.5 Points
A journal entry
affecting three or more accounts is called a __________.
A. multi-level entry
B. multi-step entry
C. compound entry
D. simple entry
Question 30 of 40
2.5 Points
Business
transactions are first recorded in the __________.
A. ledger
B. journal
C. trial balance
D. balance sheet
Question 31 of 40
2.5 Points
The process that
begins with recording business transactions and includes the completion of the
financial statements is the __________.
A. calendar year
B. natural business year
C. fiscal year
D. accounting cycle
Question 32 of 40
2.5 Points
A debit to a
liability account was posted to a revenue account. This would cause __________.
A. assets to be overstated
B. liabilities to be overstated
C. capital to be overstated
D. revenue to be overstated
Question 33 of 40
2.5 Points
A debit to a
liability account was posted to an expense account. This would cause
__________.
A. assets to be overstated
B. liabilities to be understated
C. owner’s equity to be overstated
D. expenses to be overstated
Question 34 of 40
2.5 Points
The general
journal __________.
A. is the book of original entry
B. is the book of final entry
C. contains account balances
D. is completed after the general ledger
Question 35 of 40
2.5 Points
The posting
reference column in the ledger is __________.
A. used to record the journal and page number
the transactions originated
B. used to record the ledger number
C. used to record the date
D. not used
Question 36 of 40
2.5 Points
A credit to a
liability account was posted to an owner’s equity account. This would cause
__________.
A. assets to be overstated
B. liabilities to be understated
C. owner’s equity to be understated
D. net income to be overstated
Question 37 of 40
2.5 Points
The twelve-month
period a business chooses for its accounting period is a(n. __________.
A. calendar year
B. accounting period
C. fiscal year
D. accounting cycle
Question 38 of 40
2.5 Points
Revenue is
traditionally recognized in the accounting records when __________.
A. cash is received
B. services are rendered
C. it is incurred
D. None of the above answers are correct.
Question 39 of 40
2.5 Points
Which of the
following entries would record the payment of a utility bill?
A. debit Utilities Expense; credit Cash
B. debit Cash; credit Utilities Expense
C. debit Utilities Expense; credit Accounts
Payable
D. debit Accounts Receivable; credit
Utilities Expense
Question 40 of 40
2.5 Points
Which of the
following entries records the acquisition of office supplies for cash?
A.
Office Supplies
5,000
Cash
5,000
B.
Office Supplies
5,000
Accounts Payable
5,000
C.
Equipment
5,000
Accounts Payable
5,000
D.
Equipment
5,000
Accounts
Receivable
5,000
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