ACG 11 Ass 2b – Flashcards
37 test answers
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Which sequence correctly summarizes the accounting process?
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Journal transaction, post to the accounts, prepare a trial balance.
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A trial balance contains?
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All accounts contained in the general ledger.
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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
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4,2,3,1
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A trial balance is a list of balance sheet accounts and their balances.
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False
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A trial balance has all of the following except:
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Subtotals for total assets, total liabilities and owner,s equity.
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The first step in the journalizing process is to:
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Identify the transaction from source documents.
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An owners withdrawal of $20000 would:
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Decrease owners equity by $20000
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The entry to record an owner investment of $400 cash into the business would be:
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Cash at bank $400 Capital. $400
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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:
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The trial balance to be in balance.
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The correct statement is:
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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.
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The owners withdrawing cash for personal use would:
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Decrease owners equity.
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The investment of cash into the business by the owner would:
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Increase owners equity.
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Posting is the process of copying information from the ledger to the journal.
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False
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Which of the following is correct?
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Computerized accounting systems eliminate all errors.
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The purchase of a building by signing a bill payable would:
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Have no effect on the owners equity
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The last step in the journalizing process is to identify the transaction from the source documents.
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False
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The account debited when payment is made for equipment purchased previously on account is:
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Accounts payable
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The payment of an account owed to a creditor would:
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Have no effect on the owners equity.
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The payment of salaries to employees would:
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Decrease owners equity.
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The account credited when cash is received from a customer on account is:
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Accounts receivable.
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Performing a service on credit would:
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Increase owners equity.
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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.
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Too much for liabilities.
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A $250 payment of an account payable was recorded as debit to accounts payable and a credit to accounts receivable. This error will cause.
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Accounts receivable to be understated.
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The entry to record the payment of $800 wages to employees would be:
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Salary Expense 800 Cash at bank 800
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A trial balance is:
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A list of all accounts with their balances.
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Which statement is false?
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A trial balance must list all accounts, even those with zero balances.
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Under a manual accounting system transactions are first recorded in a:
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Journal.
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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?
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$1600
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All of the following are included in the journal entry for a transaction except:
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The name of the source document.
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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:
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Cash at bank to be understated $600
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if the debit part of a journal entry is not posted but the credit part is, assets will be understated.
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False.
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A trial Balance is a formal financial statement that reports the financial position of the business as at a given day in time.
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False
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The copying of amounts from the journal to the appropriate ledger accounts is referred to as:
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Posting.
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