question

Your business Purchased supplies of $1000 on account. The journal entry to record this transaction is:

answer

a)supplies 1000 Accounts Receivable 1000

question

Performing a service and immediately collecting the cash would:

answer

Increase owners equity.

question

Which journal entry records your payment for supplies of $1000 previously purchased on account?

answer

Account payable. 1000 Cash at bank. 1000

question

Which of the following is the correct order in whic the following are prepared? 1. Trail balance 2. Ledger 3. Income statement 4. Balance sheet

answer

2,1,3,4

question

Which sequence correctly summarizes the accounting process?

answer

Journal transaction, post to the accounts, prepare a trial balance.

question

A trial balance contains?

answer

All accounts contained in the general ledger.

question

Which is the correct order in which the following steps occur? 1. Post to the ledger 2. Prepare source document 3. Enter the transaction occurs

answer

4,2,3,1

question

A trial balance is a list of balance sheet accounts and their balances.

answer

False

question

A trial balance has all of the following except:

answer

Subtotals for total assets, total liabilities and owner,s equity.

question

The first step in the journalizing process is to:

answer

Identify the transaction from source documents.

question

An owners withdrawal of $20000 would:

answer

Decrease owners equity by $20000

question

The entry to record an owner investment of $400 cash into the business would be:

answer

Cash at bank $400 Capital. $400

question

A $75 cash purchase of supplies was posted as a debit to salary expense and a credit to cash at the bank. This error will cause:

answer

The trial balance to be in balance.

question

The correct statement is:

answer

a) each ledger account shows the complete effect of a transaction. b) all transaction are recorded in the ledger butt only some are recorded in the journal. C) each journal entry shows the complete effect of a transaction D) all of the above are correct Answer: c) each journal entry shows the complete effect of a transaction.

question

The owners withdrawing cash for personal use would:

answer

Decrease owners equity.

question

The investment of cash into the business by the owner would:

answer

Increase owners equity.

question

Posting is the process of copying information from the ledger to the journal.

answer

False

question

Which of the following is correct?

answer

Computerized accounting systems eliminate all errors.

question

The purchase of a building by signing a bill payable would:

answer

Have no effect on the owners equity

question

The last step in the journalizing process is to identify the transaction from the source documents.

answer

False

question

The account debited when payment is made for equipment purchased previously on account is:

answer

Accounts payable

question

The payment of an account owed to a creditor would:

answer

Have no effect on the owners equity.

question

The payment of salaries to employees would:

answer

Decrease owners equity.

question

The account credited when cash is received from a customer on account is:

answer

Accounts receivable.

question

Performing a service on credit would:

answer

Increase owners equity.

question

Quick copies recorded a cash collection on account by debuting cash at bank and crediting accounts payable. What will the trial balance show for this error.

answer

Too much for liabilities.

question

A $250 payment of an account payable was recorded as debit to accounts payable and a credit to accounts receivable. This error will cause.

answer

Accounts receivable to be understated.

question

The entry to record the payment of $800 wages to employees would be:

answer

Salary Expense 800 Cash at bank 800

question

A trial balance is:

answer

A list of all accounts with their balances.

question

Which statement is false?

answer

A trial balance must list all accounts, even those with zero balances.

question

Under a manual accounting system transactions are first recorded in a:

answer

Journal.

question

You paid $700 for supplies and purchase additional supplies on account for $900. Later you paid $200 of the accounts payable. What is the balance in your supplies account?

answer

$1600

question

All of the following are included in the journal entry for a transaction except:

answer

The name of the source document.

question

A $300 receipt of cash from a customer was recorded as a debit to accounts payable and a credit to cash at bank. This error will cause:

answer

Cash at bank to be understated $600

question

if the debit part of a journal entry is not posted but the credit part is, assets will be understated.

answer

False.

question

A trial Balance is a formal financial statement that reports the financial position of the business as at a given day in time.

answer

False

question

The copying of amounts from the journal to the appropriate ledger accounts is referred to as:

answer

Posting.

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