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WorksheetsAnalyze Transactions
Total questions: 40
Worksheet time: 18mins
A trial balance is prepared to
prove that there were no errors made in recording transactions into the journal
prove that no errors were made in posting to the ledger
prove that each account balance is correct
summarize the account balances to help prepare financial statements
The post reference columns are used to trace transactions from the journal to the accounts. What will be posted on the post reference column of (a) the journal and (b) on the account?
(a) the amount of the debit or credit (b) the journal page number
(a) the journal page number (b) the date of the transaction
(a) the journal page number, (b) the account number
(a) the account number, (b) the journal page number
The posting process will include the transfer of the following information from the journal to the account.
date, amount (debit or credit)
date, amount (debit or credit), journal page number
amount (debit or credit), account number
date, amount (debit or credit) account number
The process of transferring the journal entries to the accounts is known as
posting
updating
journalizing
summarizing
Which of the following is true regarding normal balances of accounts?
All accounts have a normal debit balance.
The normal balance of all accounts will have either a positive or negative balance.
Accounts that have a normal debit balance will only have debit entries, never credit entries.
The normal balance is the side of the account that increases the account
Which of the following group of accounts increase with a credit?
Capital, revenues, expenses
Assets, capital, revenues
Liabilities, capital, revenues
None of these
Which of the following group of accounts are increased with a debit?
assets, liabilities, owner’s equity
assets, drawing, expenses
assets, revenues, expenses
assets, liabilities, revenues
The payment for the monthly rent will require the following entry
Debit Cash and Debit Rent Expense
Credit Cash and Credit Rent Expense
Debit Rent Expense and Credit Cash
Credit Rent Expense and Debit Cash
All of the following accounts are increased with a debit except:
Unearned Revenues
Land
Accounts Receivable
Cash
In accordance with the debit and credit rules, which of the following is true?
Debits increase assets.
Credits increase assets.
Debits increase both assets and capital.
Credits increase both assets and liabilities.
Which of the following accounts would be increased with a credit?
Land, Accounts Payable, Drawing
Accounts Payable, Unearned revenue, Collins Capital
Collins Capital, Accounts Receivable, Unearned Revenue
Cash, Accounts Receivable, Collins Capital
The process of recording a transaction in the journal is called
recording
journalizing
posting
summarizing
The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?
1-Assets, 2-Liabilities, 3-Owner’s Equity, 4-Expenses, 5-Revenues
1-Assets, 2-Liabilities, 3-Owner’s Equity, 4-Revenues, 5-Expenses
1-Assets, 2-Owner’s Equity, 3-Revenues, 4-Expenses, 5-Drawing
1-Owner’s Equity, 2-Drawing, 3-Revenues, 4-Expenses
The owner’s equity will be reduced by all of the following accounts except:
Revenues
Expense
Drawing account
All are true
Which of the following statements is not true about liabilities?
Liabilities are debts owed to outsiders.
Account titles of liabilities often include the term “payable”.
Cash received before services are performed are considered to be liabilities.
Liabilities do not include wages owed to employees of the company.
The chart of accounts is designed to
alphabetize the accounts to make reading easier for its financial statement users.
analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users.
summarize the transactions and determine their ending balances.
meet the information needs of a company and other financial statement users.
Which of the following is not a correct rule of debits and credits?
assets, expenses and withdrawals are increased by debits
assets are decreased by credits and have a normal debit balance
liabilities, revenues and owner’s equity are increased by credits
the normal balance for revenues and expenses is a credit
A list of the accounts is called
ledger
chart of accounts
T-account
Debit
The balance of the account is determined by
adding all of the debits to all of the credits.
always subtracting the debits from the credits.
always subtracting the credits from the debits.
adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum.
Which of the following entries records the collection of cash from cash customers?
Fees Earned, debit; Cash, credit
Fees Earned, debit; Accounts Receivable, credit
Cash, debit; Fees Earned, credit
Accounts Receivable, debit; Fees Earned, credit
Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?
debit Sue Martin, Capital; credit Cash
debit Sue Martin, Drawing; credit Cash
debit Salaries Expense; credit Cash
debit Salaries Expense; credit Salaries Payable
In which of the following types of accounts are decreases recorded by credits?
liabilities
owner's capital
drawing
revenues
The classification and normal balance of the accounts payable account is
an asset with a credit balance
a liability with a credit balance
owner's equity with a credit balance
revenue with a credit balance
Which one of the statements below is not a purpose for the journal?
to show increases and decreases in accounts
to show a chronological order by date
to show a complete transaction in one place
to help locate errors
An account is said to have a debit balance if
the amount of the debits exceeds the amount of the credits
there are more entries on the debit side than on the credit side
its normal balance is debit without regard to the amounts or number of entries on the debit side
the first entry of the accounting period was posted on the debit side
True or False
The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.
(a)
True or False
Posting a transaction twice will cause the trial balance totals to be equal.
(a)
True or False
Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.
(a)
True or False
If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.
(a)
True or False
A trial balance determines the accuracy of the numbers.
(a)
True or False
A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.
(a)
True or False
Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.
(a)
True or False
A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.
(a)
True or False
The process of transferring the data from the journal to the ledger accounts is posting.
(a)
True or False
The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.
(a)
True or False
When an owner invests assets in the business, the capital account increases due to revenue being earned.
(a)
Which of the following entries records the payment of an account payable?
debit Cash; credit Accounts Payable
debit Accounts Receivable; credit Cash
debit Cash; credit Supplies Expense
debit Accounts Payable; credit Cash
Which of the following is true about a T-Account?
Left hand side of the T-Account is called a debit.
Left hand side of the T-Accounts is called a credit
Right hand side of the T-Account is called a debit
None are true.
Of the following which is true about assets?
Assets include physical and intangible assets.
Assets include only physical assets.
Assets are owned solely by the owner of the company.
Assets are the result of selling products or services to customers.
Which of the following situations increase owner’s equity?
Supplies are purchased on account.
Services are provided on account.
Cash is received from customers.
Utility bill will be paid next month.
