Assignment
1. Which of the following is NOT a financial statement?
a. Balance sheet
b. Income statement
c. Statement of owner's equity
d. Trial balance
2. 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.
3. Which of the following is prepared first?
a. Balance sheet
b. Income statement
c. Statement of owner's equity
d. Trial balance
4. 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
5. 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
6. 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.
7. The business provided services to a cash customer. To record this:
a. an asset is debited and a liability is credited.
b. an asset is debited and a revenue is credited.
c. an expense is debited and Capital is credited.
d. None of the above answers are correct.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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
13. 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.
14. 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.
15. An account that would be increased by a debit is:
a. cash.
b. fees earned.
c. capital.
d. accounts payable.
16. 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.
17. 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.
18. 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.
19. 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.
20. 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.
21. "PR" in the general journal and general ledger stands for:
a. per reviewe
b. posting reference.
c. prior receipt.
d. None of the above answers are correct.
22. 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.
23. 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.
24. 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.
25. Posting is performed by transferring information from the journal to the:
a. ledger.
b. trial balance.
c. balance sheet.
d. income statement.
26. 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.
27. 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.
28. 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
29. 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
30. 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.
31. 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
32. 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
33. 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.
34. 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.
35. 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.
36. A credit to an asset account was posted to an expense account. This would cause:
a. assets to be overstated.
b. liabilities to be understated.
c. capital to be understated.
d. expenses to be overstated.
37. 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.
38. 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.
4. expense to be understated.
39. 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.
40. 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.