Question 1
Exhibit 1 displays a sales invoice from Emagine IT Group. The journal entry to record this sale would be ________.
April 30
Accounts Receivable
1500
Service Revenue
1500
To record services performed on account
April 30
Cash
1500
Service Revenue
1500
To record services performed on account
May 15
Service Revenue
1500
Accounts Receivable
1500
To record services performed on account
May 15
Cash
1500
Service Revenue
1500
To record services performed on account
Question 2. A common technique for correcting a balancing error on the trial balance is to calculate the difference between total debits and total credits and divide this number by 9. If the out-of-balance amount is divisible by 9, the error is most likely due to ________.
an error caused by omitting a journal entry
posting a credit balance as a debit balance or vice versa
omitting an account on the trial balance
a slide or transposition
Question 3.
Exhibit 2 displays a payment on account from Gillman Paper Company to Emagine IT Group. This transaction would ________for the Emagine IT Group.
decrease assets and increase owner's equity
have no effect on total assets
increase assets and owner's equity
decrease liabilities and increase assets
Question 4. Collection of an accounts receivable balance would result in ________.
a credit to cash and a debit to accounts receivable
a debit to cash and a credit to accounts receivable
a credit to cash and a debit to sales revenue
a debit to cash and a credit to sales revenue
Question 5. Which of the following isNOT true about the trial balance?
it lists all ledger accounts and their balances
it provides an accuracy check by indicating whether total debits equal total credits
it can be used in lieu of a balance sheet for external reporting purposes
it reports general ledger balances as of a specific date