WorksheetsTraining - Day 3
Total questions: 61
Worksheet time: 31mins
Which of the following classifications of accounts have normal credit balances?
withdrawals, revenues, liabilities
revenues, OE, assets
revenues, liabilities, OE
revenues, liabilities, expenses
the primary purpose of the trial balance is to test the
equality of debit and credit entries in the journal
recording of transactions
equality of debit and credit balances in the ledger
analysis of transactions
the general journal does not have a column titled
date
description
posting reference
account balance
to find an explanation for a transaction, one should look at the
chart of accounts
ledger
journal
trial balance
which of the following errors will cause a trial balance to be out of balance?
a journal entry was accicentally posted twice
a credit was posted to an account as a debit
the bookkeeper forgot to journalize a transaction
the bookkeeper forgot to post a journal entry to the ledger
which of the following entries records the withdrawal of cash for personal use by Catherine Viesca, owner of the business?
Debit Cash and Credit Visca, Withdrawals
Debit Cash and Credit Salaries Expense
Debit Salaries Expense and Credit Cash
Debit Viesca Withdrawals, Credit Cash
Which of the following describes the classification and normal balance of Cabrera, Capital
Asset, debit
Revenue, credit
OE, debit
OE, credit
Which of the following describes the classification and normal balance of the Service Revenue account
Capital, debit
Revenue, credit
Asset, credit
Asset, debit
If a P4,700 cash purchase of supplies is recorded as a P5,700 debit to Supplies Expense and P5,700 credit to Cash the result will be that
the trial balance will be out of balance
the Supplies Expense account will be understated
the Cash account will be overstated
Supplies Expense will be overstated and cash will be understated
which of the following gives the correct sequence of accounting procedures?
ledger, trial balance, journal financial statements
journal, leger, trial balance, financial statements
financial statements, trial balance, ledger, journal
financial statements, journal, ledger, trial balance
which of the following errors will not cause the debit and credit columns of the trial balance to be unequal
a debit entry was recorded in the wrong account
the balance of an accoutn was incorrectly computed
the account balance was carried to the wrong column of the trial balance
a debit was entered in an account as credit
An entry with more than one debit or credit is called
multiple entry
double entry
compound entry
dual entry
which of the following accounts has a normal debit balance
owner's capital
owner's withdrawals
unearned revenue
salaries payable
A purchase of supplies on account should be recorded as
a debit to Supplies and a credit to Cash
a debit to Accounts Payable and a credit to Supplies
a debit to Supplies and a credit to Accounts Payable
A debit to Supplies Expense and a credit to Accounts Receivable
the owner's withdrawal account appears in
the income statement only
the balance sheet only
the statement of changes in owner's equity only
both the income statement and balance sheet
Which pair of accounts follows the rules of debit and credit in the same manner?
Owner's Capital and Rent Expense
Prepaid Rent and Advertising Expense
Repair Expense and Notes Payable
Service Revenue and Equipment Rental Revenue
which of the following accounts has a normal debit balance?
unearned art revenues
art revenue
mortgage payable
unexpired insurance
which of hte following errors will cause a trial balance to be out of balance?
incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land
forgetting to enter an entire transaction into the journal
posting a debit to land as a debit to Machinery
placing a debit balance amount into the credit balance column of the ledger
The Posting Reference column in the general journal is used to show that an account has been posted to the ledger when which of the following is placed in it?
an X
journal page number
account number
journal number
the principal purpose of posting is to
enter transactions directly into the ledger
help identify errors made in the journal
obtain updated account balances
help determine if financial statements are ready to be prepared
Which of the following does not require an entry in journal form?
payment for a service performed previously
purchase of a one-year insurance policy
agreement to perform a srvice at a future date
performance of a service agreed to at a past date
when a magazine entity receives an advance payment for a subscription, it
debits Cash and credits Unearned Subscription Revenues
debits Cash and Credits Subscription Revenue
debits Prepaid Subscriptions and credits Cash
debits Unearened Subscriptions Revenues and credits Cash
which of the following transaction decreases both assets and owner's equity?
payment of a liability
owner withdrawal of cash
receipt of phone bill, to be paid at a later time
advance payment for insurance
which of the following increases both assets and OE?
payment received from a credit customer
received a bank loan
rendered services, payment not yet received
owner withdrawal of cash
which of hte following errors will cause the trial balance to be out of balance?
a debit entry was entered in the wrong debit account
an entire transaction was entered in the general journal as P53 instead of P35
the balance of an account was incorrectly computed
an entire transation was ommitted from the general journal
which of the following account might be placed first in a proper journal entry?
cash, when it has been decreased
interest income, when it has been increased
unearned revenue, when it has been increased
bonds payable when it has been decreased
which of the following accounts would be credited in proper journal entry?
owner's withdrawal, when it has been increased
accounts receivable, when it has been decreased
salaries expense, when it has been increased
salaries payable, when it has been decreased
for which of the following accounts would a related Accumulated Depreciaton account be recorded?
Land
Office Equipment
Office Supplies
Prepaid Rent
the process of transferring journal entry from the journal to the ledger is called
footing
journalizing
posting
analyzing
Debit to an expense acccount signifies
increase in OE
increase in assets
increase in liabilities
decrease in OE
which of the following accounts is decreased with a credit
advertising revenue
owner's capital
unearned art revenue
rent expense
If Accounts Payable has debit postings of P170,000, credit postings of P140,000, and a normal ending balance of P60,000 which of the following was its beginning balance?
P30,000 Cr.
P30,000 Dr.
P90,000 Dr.
P90,000 Cr.
When collections are made on Accounts Receivable,
owner's equity increases
total assets increase
total assets decrease
total assets remain the same
When a T-account has several items on both sides, the balance of the account is written
on the side with the greatest numer of items
on the side with the least number of items
on the side with the larger total
on the side with the smaller total
the first financial statement that is prepared from the trial balance is the
statement of cash flows
statement of changes in equity
income statement
balance sheet
At the end of an accounting period, the equation Assets = Liabilities + Owner's Equity does not necessarily balance. Which of the following actions balanes the equation
subtract revenues and add expenses to owner's equity
subtract revenues from owner's equity and add expenses to assets
add the difference between revenues and expenses to OE
add revenues and subtract expenses from assets
which of the following transactions correctly maintains the equality in the accounting equation?
to record collections on account, cash and accounts receivable are increased by P160,000
to record purchse of computer equipment, computer equipment is increased and cash is decreased by P46,000
to record payment of notes, notes payable is decreased and cash is increased by P70,000
to record payment of rent, rent expense and cash are increased by P8,000
which of the following combinations of trial balance totals suggest the presence of either a transposition or a number slide?
P65,470 debit and P68,170 credit
P33,220 debit and P35,420 credit
P25,670 debit and P26,670 credit
P14,517 debit and P15,477 credit
the first step in recording a transaction in a journal is to
record the debit
record the date
record the credit
write an explanation
which of the following accounts is classified differently from the other listed?
notes payable
unearned revenues
mortgage payable
art revenues
which of the following is a business event that is not considered a recordable transaction?
an entity receives a product previously ordered
an entity pays an employee for work performed
a customer inquires about the availability of a service
a customer purchases a service
which of the following is a business event that is also considered a recordable transaction?
an entity hires a new employee
a customer purchases a merchandise
an entity orders a product from a supplier
an employee sends a purchase requisition to the purchasing department
the term footing refers to the
process of obtaining the top number in an account
process of obtaining the bottom number in an account
process of posting
addition of a column of figures
what function do general ledgers serve in the accounting process?
summarizing
recording
classifying
reporting
A chart of accounts is a (an)
journal
flowchart of all transactions
list of names of all account titles
accounting procedure manual
Balance sheet accounts are
permanent accounts
temporary accounts
accounts with debit balances only
adjusting accounts
most companies use a chart of accounts prepared by the
accounting standards council
securities and exchange commission
bureau of internal revenue
entity's accounting department
what function do journal serve in the accounting process?
classifying
summarizing
reporting
recording
the normal balance of an account is on the
side represented by decrease in the account balance
debit side of the account
side represented by increases in the account balance
credit side of the account
payment of insurance premium gives rise to
prepaid expense
unearned income
accrued income
accrued expense
the accounting cycle is
the length of time it takes to complete a set of financial statement after the books are closed
a process that begins with adjusting entries and ends with the preparation of financial statements
applicable only to manual systems, not to computerized systems
the sequence of procedures used by a business to process economic information and to produce financial statements
the equality of debits and credtis in the ledger should be verified at the end of each accounting period by preparing
an accounting statement
an account verification report
a trial balance
a balance report
Office supplies are expensed
at no time, since they are assets
when they are paid for
when they are purchased
when they consumed (used up)
which of the following statements is false about a proper journal entry?
it may have more than one debit or credit entry
a space should be skipped between journal entries
credits are always indented
accounts that are increased are always listed first
transactions are recorded chronologically in the
ledger
t-account
daybook
journal
when an entity pays for goods or services before actual receipt, the payment should be recorded as a decrease in Cash and an increase in
an asset
an expense
an OE account
a liability
entries recorded on the right side of any account are called
debits
increases
credits
decreases
unearned revenues are recorded by companies that
pay money in advance of the performance of a service
pay money at the time the performance of a service is complete
receive money in advance of the performance of a service
receive money at the time the performance of a service is complete
which of the following statements regarding a trial balance is incorrect?
a trial balance helps to localize errors within an identifiable period
a trial balance is a test of the equality of the debit and credit balances in the ledger
a trial balance is a list of all the open accounts in the ledger with their balances as of a given date
a trial balance proves that no errors of any kind have been made in the accounts during the accounting period
the accrul basis of accounting recognizes
revenues when cash is received
expenses when cash is paid
revenues when products are produced as part of the operating activities
expenses when resources are consumed as part of operating activities
which of the following is true about a proper journal entry?
an explanation must follow each debit and each credit
the name of the month should be repeated for each entry
the posting reference column is filled in prior to posting
all debits are listed before any credits
