Question 1

Sassycat Company's trial balance contains the following balances: 
What is the amount of total credits for this trial balance?

Accepted Answer

The answer of Sassycat Company's trial balance contains the following...

Question 2

Anthoney Inc's trial balance contains the following balances: Cash $533 Accounts Payable $347 Revenue $671
Accounts Receivable $280 Expenses $205
What is the amount of total credits for this trial balance?

Accepted Answer

The total credits for this trial balance are the sum of Accounts Payable ($347) and Revenue ($671), which equals $1,018.

Question 3

The trial balance:

Accepted Answer

The trial balance lists all accounts, with their balances, on a given date. This includes accounts used in both the Balance Sheet and the Income Statement.

Question 4

The purpose of the trial balance is to:

Accepted Answer

The purpose of the trial balance is to summarize all account balances (option A) and verify that total debits equal total credits (option C). Therefore, the best choice is E, which correctly identifies that options A and C pertain to the purpose of the trial balance. Option B is not entirely accurate since the trial balance does not necessarily determine that all account balances are correct, but rather only confirms that the debits equal the credits. Option D includes all of the above options, but it is not the best choice since option B is not entirely accurate.

Question 5

A $375 purchase of supplies on account was recorded by debiting Supplies for $375 and crediting Cash for $375. The entry needed to correct this error is:

Accepted Answer

Since the supplies were purchased on account, it means that the company didn't pay for them yet. Thus, the correct entry should involve a credit to Accounts Payable instead of Cash. Since Supplies was already debited correctly, we don't need to alter it. Therefore, option C is the correct entry needed to correct the error.

Question 6

A company purchased supplies on account; however, the journal entry to record the purchase was a debit to Supplies for $200 and a credit to Cash for $200. What will the effect be on the trial balance?

Accepted Answer

The trial balance will still balance because both the debit and credit sides of the journal entry are equal, even though the entry was recorded in the wrong accounts.

Question 7

A company purchased a truck for $800 on credit. The journal entry to record this transaction, however, was a debit to 'Truck' for $700 and a credit to 'Account Payable' for $700. What will the effect be on the trial balance?

Accepted Answer

The answer of A company purchased a truck for $800...

Question 8

A cash payment was made to pay for delivery expenses, but was mistakenly charged to Advertising Expense. What effect will this have on the trial balance?

Accepted Answer

The trial balance will still balance because it is a summary of all ledger accounts, and an error in classification between expense accounts does not affect the overall balance between debits and credits.

Question 9

A company accidentally records the rent payment twice in October. The effect on the trial balance will be:

Accepted Answer

The trial balance will still balance because both the debit and credit sides of the rent payment entry are recorded twice, maintaining the equality of debits and credits.

Question 10

The sequence of steps used to record and report business transactions is referred to as:

Accepted Answer

The accounting cycle is the sequence of steps used to record and report business transactions. It includes several stages, such as identifying and analyzing transactions, entering them in the journal, posting to the ledger, and preparing financial statements.

Question 11

Only the ________ accounts from the trial balance will be used to prepare the Income Statement.

Accepted Answer

The income statement presents the revenues and expenses of a company over a specific period of time. Therefore, only the revenue and expense accounts from the trial balance will be used to prepare the income statement. The other account categories, such as assets, liabilities, and stockholders' equity, are not relevant to the income statement preparation.

Question 12

The columns on a trial balance represent:

Accepted Answer

The columns on a trial balance represent the total debits and credits of each account, which are necessary for ensuring that the total debits equal the total credits on the financial statements. Thus, the correct choice is B, which reflects the fundamental accounting principle of double-entry bookkeeping. A is incorrect because a trial balance only includes account balances and not revenues and expenses. C is incorrect because common stock and dividends are equity accounts that are not included in a trial balance. D is incorrect because a trial balance does not have subtotals or totals; rather, it lists all the account balances and their corresponding debit or credit balances.

Quiz 2: Analyzing and Recording Business Transactions

Sassycat Company's trial balance contains the following balances: What is the amount of total credits for this trial balance?

Anthoney Inc's trial balance contains the following balances: Cash $533 Accounts Payable $347 Revenue $671 Accounts Receivable $280 Expenses $205 What is the amount of total credits for this trial balance?