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
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?An account that would be increased by a debit is __________.
A. cash
B. fees earned
C. capital
D. accounts payable
Reset SelectionMark for Review What’s This?A debit to an asset account was posted to an expense account. This error would cause __________.
A. liabilities to be overstated
B. expenses to be overstated
C. assets to be understated
D. Both B and C are correct.
Reset SelectionMark for Review What’s This?Which of the following is prepared first?
A. Balance sheet
B. Income statement
C. Statement of owner’s equity
D. Trial balance
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?A credit customer paid $850 toward his accounts receivable. The accountant recorded a credit to the revenue account. This error would cause __________.
A. revenue to be understated
B. cash to be overstated
C. accounts receivable to be overstated
D. liabilities to be understated
Reset SelectionMark for Review What’s This?A debit to a liability account was posted to a revenue account. This error would cause __________.
A. revenues to be understated
B. liabilities to be understated
C. capital to be overstated
D. None of the above answers are correct.
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. This error would cause __________.
A. assets to be overstated
B. assets to be understated
C. liabilities to be overstated
D. liabilities to be understated
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?Which of the following transactions would cause the debit and credit columns in the trial balance to be unequal?
A. debit Cash, $900; credit Revenue, $900
B. debit Accounts Payable, $350; credit Cash, $350
C. debit Equipment $1,400; credit Accounts Receivable, $1,400
D. debit Withdrawals, $500; credit Cash, $500
Reset SelectionMark for Review What’s This?Which of the following is not a financial statement?
A. Balance sheet
B. Income statement
C. Statement of owner’s equity
D. Trial balance
Reset SelectionMark for Review What’s This?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
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
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?The entry to record the payment of office salaries would be __________.
A. debit Cash; credit Accounts Receivable
B. debit Cash; credit Salaries Expense
C. debit Salaries Expense; credit Accounts Payable
D. debit Salaries Expense; credit Cash
Reset SelectionMark for Review What’s This?Business transactions are first recorded in the __________.
A. ledger
B. journal
C. trial balance
D. balance sheet
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?A debit to the capital account was posted to an expense account. This would cause __________.
A. assets to be overstated
B. liabilities to be understated
C. capital to be overstated
D. expense to be understated
Reset SelectionMark for Review What’s This?Posting is performed by transferring information from the journal to the __________.
A. ledger
B. trial balance
C. balance sheet
D. income statement
Reset SelectionMark for Review What’s This?”PR” in the general journal and general ledger stands for __________.
A. per reviewer
B. posting reference
C. prior receipt
D. None of the above answers are correct.
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?A debit to an expense account was posted to an asset account. This would cause __________.
A. assets to be understated
B. liabilities to be understated
C. capital to be understated
D. expenses to be understated
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?The journal entry to record a withdrawal by the owner would most commonly include __________.
A. a debit to Wage Expense and a credit to Cash
B. a debit to Capital and a credit to Cash
C. a debit to Withdrawals and a credit to Cash
D. a debit to Cash and a credit to Wage Expense
Reset SelectionMark for Review What’s This?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.
Reset SelectionMark for Review What’s This?Renzi’s Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is __________.
A.
Cash 600
Accounts Receivable
600
B.
Accounts Payable 600
Cash 600
Equipment
1,200
C.
Supplies 1,200
Cash
600
Accounts Payable
600
D.
Equipment 1,200
Accounts Payable
600
Cash
600
Reset SelectionMark for Review What’s This?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
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
Reset SelectionMark for Review What’s This?A debit to the capital account was posted to a revenue account. This would cause __________.
A. assets to be understated
B. liabilities to be overstated
C. capital to be understated
D. revenue to be understated
Reset SelectionMark for Review What’s This?The first step of the accounting cycle is __________.
A. recording journal entries
B. posting to the ledger
C. preparing a trial balance
D. analyzing business transactions
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?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
Reset SelectionMark for Review What’s This?
This question is from the 1st set. I cant see the correct answer on it.Which of the following is not a financial statement?
A. Balance sheet
B. Income statement
C. Statement of owner’s equity
D. Trial balance Reset SelectionMark for Review What’s This?
