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Which of the following situations would result in a trial balance that does not balance?


A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.
C) A $50 cash receipt for the performance of a service was not recorded at all.
D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

F) A) and D)
G) All of the above

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List the steps in processing transactions.

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Business transactions and events are the...

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The general ledger of a business:


A) Is a collection of all accounts used in a company's information system.
B) Must be kept in a computer file.
C) Is also called the book of original entry.
D) Is not affected by a company's size and diversity.
E) Is one of the four financial statements.

F) A) and B)
G) B) and D)

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Carl's Carpentry purchased $10,000 of land and a building for $40,000.The company paid $20,000 cash and signed a long-term note for the amount still owed.How would the company record this transaction?


A) Debit Land for $50,000 and credit Cash for $50,000.
B) Debit Land for $10,000,debit Building for $40,000 and credit Cash for $50,000.
C) Debit Cash for $20,000,debit Notes Payable for $30,000,credit Land for $10,000,and credit Building for $40,000.
D) Debit Land for $10,000,debit Building for $40,000 credit Cash for $20,000,and credit Notes Payable for $30,000.
E) Debit Building for $20,000 and Notes Payable for $20,000.

F) A) and E)
G) None of the above

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The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

A) True
B) False

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Unearned revenue is classified as _______________ that is satisfied by delivering products or services in the future.

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What is another name for the general journal?


A) The book.
B) The ledger.
C) The book of original entry.
D) The record.
E) The account book.

F) A) and B)
G) A) and D)

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Explain debits and credits and their role in the accounting system.

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Debit refers to the left side of an acco...

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A trial balance that is in balance is proof that no errors were made in journalizing the transactions,posting to the ledger,and preparing the trial balance.

A) True
B) False

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The accounting process begins with:


A) Analysis of business transactions and events.
B) Preparation of financial statements and other reports.
C) Summarizing the recorded effects of business transactions.
D) Presentation of financial information to decision-makers.
E) Preparation of the trial balance.

F) A) and E)
G) A) and B)

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Revenues and expenses are two categories of ____________________ accounts.

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Which of the following statements is correct?


A) The left side of a T-account is the credit side.
B) Debits decrease asset and expense accounts and increase liability,equity,and revenue accounts.
C) The left side of a T-account is the debit side.
D) Credits increase asset and expense accounts and decrease liability,equity,and revenue accounts.
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.

F) A) and B)
G) B) and C)

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Flora Accounting Services completed these transactions in February: a.Purchased office supplies on account,$300. b.Completed work for a client on credit,$500. c.Paid cash for the office supplies purchased in (a). d.Completed work for a client and received $800 cash. e.Received $500 cash for the work described in (b). f.Received $1,000 from a client for accounting services to be performed in March. Prepare journal entries to record the above transactions.Explanations are not necessary.

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A company failed to post a $50 debit to the Office Supplies account.The effect of this error will be that the:


A) Office Supplies account balance will be overstated.
B) Trial balance will not balance.
C) Error will overstate the debits listed in the journal.
D) Total debits in the trial balance will be larger than the total credits.
E) Trial balance will be in balance.

F) D) and E)
G) None of the above

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David Roberts is a real estate appraiser.Shown below are (a) several accounts in his ledger with each account preceded by an identification number and (b) several transactions completed by Roberts.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. David Roberts is a real estate appraiser.Shown below are (a) several accounts in his ledger with each account preceded by an identification number and (b) several transactions completed by Roberts.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. David Roberts is a real estate appraiser.Shown below are (a) several accounts in his ledger with each account preceded by an identification number and (b) several transactions completed by Roberts.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

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blured image_TB6947_00...

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The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. -Calculate net income. -Calculate net income.

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$150,000 - $15,000 -...

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Nancy O'Rode starts a consulting business called EducateMe.On May 1,the company paid $1,200 cash for six months of insurance coverage beginning on June 1.How would EducateMe record this transaction?


A) Debit Cash for $1,200 and credit Prepaid Insurance for $1,200.
B) Debit Cash for $1,200 and credit Insurance Expense for $1,200
C) Debit Insurance Expense for $1,200 and credit Cash for $1,200.
D) Debit Prepaid Insurance for $1,200 and credit Cash for $1,200.
E) Debit Cash for $1,200 and credit Common Stock for $1,200.

F) B) and E)
G) B) and D)

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A company paid $2,500 cash to satisfy a previously recorded account payable,the only liability on the books.Assume the company had a $4,000 balance in Cash immediately prior to this transaction.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.Show ending account balances. A company paid $2,500 cash to satisfy a previously recorded account payable,the only liability on the books.Assume the company had a $4,000 balance in Cash immediately prior to this transaction.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.Show ending account balances.

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On November 30,a company had an Accounts Receivable balance of $5,100.During the month of December,total credits to Accounts Receivable were $76,000 from customer payments.The 31 Accounts Receivable balance was $43,000 on December 31.What was the amount of credit sales during December?


A) $8,100
B) $27,900
C) $70,900
D) $76,000
E) $113,900

F) All of the above
G) A) and B)

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If the Debit and Credit column totals of a trial balance are equal,then:


A) All transactions have been recorded correctly.
B) All entries from the journal have been posted to the ledger correctly.
C) All ledger account balances are correct.
D) The total debit entries and total credit entries are equal.
E) The balance sheet would be correct.

F) All of the above
G) A) and B)

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