Question 1

Accidentally recording the $300 debit of a transaction twice and the credit only once will cause the trial balance totals to differ by $300.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A)   Cash received from a customer on account was posted as a credit of $120 to Cash, $120 to Income from Services, and a debit of $220 to Accounts Receivable.
B)   A payment of $76 for supplies was posted as a debit of $67 to Supplies Expense and a credit of $67 to Cash.
C)   A payment of $391 to a creditor was neglected to be journalized by the accountant of a company.
D)   A receipt of $691 from a customer was posted as a debit of $961 to Cash and a credit of $961 to Inventory.
E)   A payment of $83 to pay the telephone bill (received last week)  was posted as a credit of $83 to Accounts Payable and a debit of $83 to cash.F) B) and C)
G) C) and D)

Question 3

Process Solutions Company received $193 from a charge customer which was recorded and posted as $391. The journal entry to correct the error is:

Accepted Answer

A)   a credit to Cash for $198 and a debit to Income from Services for $198.
B)   a debit to Cash for $391 and a credit to Accounts Receivable for $391.
C)   a debit to Accounts Receivable for $198 and a credit to Cash for $198.
D)   a debit to Cash for $193 and a credit to Accounts Payable for $193.
E)   a credit to Cash for $198 and a debit to Accounts Payable for $198.F) A) and D)
G) B) and C)

Question 4

If the number of an account is 211, this probably means that the account is the first account in the

Accepted Answer

A)   Owner's Equity section.
B)   Assets section.
C)   Revenues section.
D)   Liabilities section.
E)   Expenses section.F) A) and B)
G) A) and C)

Question 5

____________ furnish proof that a transaction has taken place.

Accepted Answer

A)   Source documents
B)   Secure documents
C)   Ledgers
D)   Journal entriesE) None of the above
F) B) and D)

Question 6

There are two methods for correcting errors, the

Accepted Answer

A)   ruling method and the manual method.
B)   manual method and the correcting entry method.
C)   ruling method and the correcting entry method.
D)   the ruling method and the deletion method.E) A) and C)
F) None of the above

Question 7

Shower Flower Company bought equipment, paying cash, $2,500. The accountant would record the following journal entry:

Accepted Answer

A)     Cash $2,500 Equipment $2,500\begin{array} { l r } 	ext { Cash } & \$ 2,500 \	ext { Equipment } & \$ 2,500\end{array} Cash  Equipment ​$2,500$2,500​ 
B)     Equipment $2,500 Cash $2,500\begin{array} { l r } 	ext { Equipment } & \$ 2,500 \	ext { Cash } & \$ 2,500\end{array} Equipment  Cash ​$2,500$2,500​ 
C)     Equipment $2,500 Accounts Payable $2,500\begin{array} { l l } 	ext { Equipment } & \$ 2,500 \	ext { Accounts Payable } & \$ 2,500\end{array} Equipment  Accounts Payable ​$2,500$2,500​ 
D)     Equipment Expense $2,500 Cash $2,500\begin{array} { l } 	ext { Equipment Expense }\quad \$ 2,500 \	ext { Cash } \quad \$ 2,500 \\end{array} Equipment Expense $2,500 Cash $2,500​E) B) and D)
F) None of the above

Question 8

G. Wilson invested her personal computer, which had a fair market value of $5,000, in her business. The transaction would involve a:

Accepted Answer

A)   debit to Cash.
B)   debit to Accounts Receivable.
C)   debit to G. Wilson, Capital.
D)   debit to Equipment.E) B) and C)
F) None of the above

Question 9

Which of the following is true?

Accepted Answer

A)   The ledger account form maintains a running balance of the account.
B)   When recording business transactions, it is not important that one use the exact account titles as listed in the chart of accounts.
C)   The process of transferring information from the journal to the ledger is called journalizing.
D)   All of the answers listed are correct.E) A) and C)
F) All of the above

Question 10

Which of the following is correct concerning correcting errors on the computer?

Accepted Answer

A)   It is ok to delete an error entry on the computer.
B)   If using a computer program, there will never be any errors to correct because the computer never allows errors to be recorded.
C)   A correcting entry should be made with a brief explanation when correcting an error on the computer.
D)   All of the answers listed are correct.E) B) and D)
F) C) and D)

Question 11

The process of writing a transaction in a ledger is called journalizing.

Accepted Answer

A) True 
 B)False

Question 12

The general ledger shows a complete record of the transactions recorded in each individual account.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms below with the correct definitions.
-Number assigned to an account

Accepted Answer

A)  Chart of accounts
B)  Journalizing
C)  General ledger account
D)  General ledger
E)  JournalF) Source documentsG) PostingH) Account numberI) General journalJ) Cost principleK) A) and F)
L) All of the above

Question 14

Which of the following errors will probably be located when preparing a trial balance?

Accepted Answer

A)   Posting the debit of a journal entry as a credit and the credit as a debit
B)   Failure to record an entire entry in the journal
C)   Failure to post an entire entry in the ledger
D)   Failure to post part of an entry
E)   Posting the correct amount to the incorrect credit accountF) B) and E)
G) A) and B)

Question 15

A $500 payment for Wages Expense was incorrectly journalized and posted as a debit to Rent Expense for $500 and a credit to Cash for $500. The correcting entry, using the one-step method, would include a

Accepted Answer

A)   debit to Cash for $500.
B)   credit to Rent Expense for $500.
C)   credit to Supplies Expense for $500.
D)   credit to Cash for $500.E) A) and B)
F) B) and D)

Question 16

The _______________ requires that assets be recorded at the actual cost.

Accepted Answer

A)   business entity principle
B)   matching principle
C)   cost principle
D)   fair value principleE) A) and B)
F) A) and C)

Question 17

P. Baker deposits $10,000 in a bank account, in the name of his business, to be used to purchase equipment. The journal entry to record the transaction would involve a:

Accepted Answer

A)   credit to Equipment.
B)   credit to Cash.
C)   credit to P. Baker, Capital.
D)   credit to P. Baker, Drawing.E) A) and D)
F) None of the above

Question 18

When posting from the journal to the ledger, the accountant failed to post a $52 debit to Cash. The effect of this error will be that the

Accepted Answer

A)   amounts in the journal will be in error.
B)   trial balance will not balance.
C)   total debits in the trial balance will be larger than the total credits.
D)   Cash account balance will be overstated.
E)   trial balance will not be affected.F) A) and D)
G) A) and B)

Question 19

An accountant wanting to know the balance of a particular account would refer to the

Accepted Answer

A)   ledger.
B)   chart of accounts.
C)   book of original entry.
D)   source document.
E)   journal.F) All of the above
G) D) and E)

Question 20

One type of ledger account form has a two-balance-column arrangement.

Accepted Answer

A) True 
 B)False

Exam 3: The General Journal and the General Ledger

Which of the following is correct concerning correcting errors on the computer?

Correct AnswerverifiedShow Answer

If the number of an account is 211, this probably means that the account is the first account in the

Correct AnswerverifiedShow Answer

One type of ledger account form has a two-balance-column arrangement.

Correct AnswerverifiedShow Answer

Which of the following errors, considered individually, would cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

G. Wilson invested her personal computer, which had a fair market value of $5,000, in her business. The transaction would involve a:

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -Number assigned to an account

Correct AnswerverifiedShow Answer

A $500 payment for Wages Expense was incorrectly journalized and posted as a debit to Rent Expense for $500 and a credit to Cash for $500. The correcting entry, using the one-step method, would include a

Correct AnswerverifiedShow Answer

The process of writing a transaction in a ledger is called journalizing.

Correct AnswerverifiedShow Answer

When posting from the journal to the ledger, the accountant failed to post a $52 debit to Cash. The effect of this error will be that the

Correct AnswerverifiedShow Answer

There are two methods for correcting errors, the

Correct AnswerverifiedShow Answer

The general ledger shows a complete record of the transactions recorded in each individual account.

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Shower Flower Company bought equipment, paying cash, $2,500. The accountant would record the following journal entry:

Correct AnswerverifiedShow Answer

The _______________ requires that assets be recorded at the actual cost.

Correct AnswerverifiedShow Answer

Accidentally recording the $300 debit of a transaction twice and the credit only once will cause the trial balance totals to differ by $300.

Correct AnswerverifiedShow Answer

____________ furnish proof that a transaction has taken place.

Correct AnswerverifiedShow Answer

P. Baker deposits $10,000 in a bank account, in the name of his business, to be used to purchase equipment. The journal entry to record the transaction would involve a:

Correct AnswerverifiedShow Answer

An accountant wanting to know the balance of a particular account would refer to the

Correct AnswerverifiedShow Answer

Process Solutions Company received $193 from a charge customer which was recorded and posted as $391. The journal entry to correct the error is:

Correct AnswerverifiedShow Answer

Which of the following errors will probably be located when preparing a trial balance?

Correct AnswerverifiedShow Answer

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