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College Accounting Chapter 3 Learning Objective 3

Quiz by Tracy Weber

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16 questions
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  • Q1
    Which of the following errors, considered individually, would cause the trial balance totals to be unequal?
    A payment of $76 for supplies was posted as a debit of $67 to Supplies Expense and a credit of $67 to Cash.
    Cash received from a customer on account was posted as a credit of $120 to Cash, $120 to Income from Services, and a debit of $220 to Accounts Receivable.
    A payment of $391 to a creditor was neglected to be journalized by the accountant of a company.
    A receipt of $691 from a customer was posted as a debit of $961 to Cash and a credit of $961 to Inventory.
    30s
  • Q2
    Which of the following errors will probably be located when preparing a trial balance?
    Posting the debit of a journal entry as a credit and the credit as a debit
    Failure to post an entire entry in the ledger
    Failure to record an entire entry in the journal
    Failure to post part of an entry
    30s
  • Q3
    The proof that the debits and credits in the ledger are equal is called the
    trial balance.
    journal
    balance sheet.
    statement of owner's equity.
    30s
  • Q4
    In the accounting process, the second step is to
    record the account numbers in the journal.
    prepare a trial balance.
    record the information from a source document.
    post entries to the ledger accounts.
    30s
  • Q5
    Which of the following errors, each considered separately, would cause the trial balance totals to be unequal?
    A payment of $20 for Miscellaneous Expense was recorded as a debit of $20 to Cash and a credit of $20 to Miscellaneous Expense.
    The amount of $326 received from customers on account was posted as a debit of $236 to Cash and a credit of $236 to Accounts Receivable.
    A payment of $18 to a creditor was posted as a debit of $180 to Accounts Payable and a credit of $180 to Cash.
    A payment of $410 to a creditor was posted as a debit of $410 to Accounts Payable and a credit of $41 to Cash.
    30s
  • Q6
    When posting from the journal to the ledger, the accountant failed to post a $52 debit to Cash. The effect of this error will be that the
    trial balance will not balance.
    amounts in the journal will be in error.
    Cash account balance will be overstated.
    trial balance will not be affected.
    30s
  • Q7
    Which of the following is true concerning the trial balance?
    If the trial balance equals then there are no errors in the recording of journal entries.
    The trial balance only lists the names of the accounts, not the balances.
    A trial balance should be prepared before posting.
    The trial balance proves only that the total ledger debit balances equal the total ledger credit balances.
    30s
  • Q8
    Lohan Company had the following account balances as of June 30. Cash $29,000 Equipment $15,000 Accounts Payable $2,800 T. Lohan, Capital $62,700 T. Lohan, Drawing $5,000 Income from Services $35,000 Rent Expense $12,000 Salaries Expense $8,000 What is the debit balance of the trial balance?
    $141,700
    $69,000
    $64,000
    $136,700
    30s
  • Q9
    Munoz Company had the following account balances as of December 31. Cash $15,000 Equipment $7,000 Accounts Payable $4,200 R. Munoz, Capital $10,300 R. Munoz, Drawing $3,000 Income from Services $18,500 Rent Expense $6,000 Salaries Expense $2,000 What is the credit balance of the trial balance?
    $33,000
    $28,800
    $25,500
    $17,800
    30s
  • Q10
    Accidentally recording the $300 debit of a transaction twice and the credit only once will cause the trial balance totals to differ by $300.
    True
    False
    30s
  • Q11
    To keep the fundamental accounting equation in balance, debits and credits must be in balance and equal amounts must be on each side of the equation.
    False
    True
    30s
  • Q12
    If an entry is correctly journalized, but posted to the incorrect accounts, with equal debits and credits, the trial balance will still be out of balance.
    True
    False
    30s
  • Q13
    Posting an entire transaction twice will cause the trial balance totals to be unequal.
    True
    False
    30s
  • Q14
    If an entry is recorded twice, the error will show up in the trial balance.
    True
    False
    30s
  • Q15
    When preparing the trial balance, record the balances of the accounts in the order in which they appear in the general ledger.
    False
    True
    30s

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