Question 1

When is a trial balance usually prepared?

Accepted Answer

A trial balance is usually prepared before financial statements are prepared to ensure that the total debits equal the total credits in the ledger accounts. This is an important step in the accounting cycle to ensure accuracy in the financial statements that will be prepared from the ledger accounts.

Question 2

The following are the ending month's balances for Toys Galore.  What is the net income for Toys Galore for September?

Accepted Answer

The answer of The following are the ending month's balances...

Question 3

The following transactions have been journalized and posted to the proper accounts. Prepare a trial balance in good form.
a. Edward Wilson invested $8,000 cash in his new landscaping business.
b. The business paid the first month's rent with $300 cash.
c. The business purchased equipment by paying $2,000 cash and executing a note payable for $3,000.
d. The business purchased supplies for $200 cash.
e. The business billed clients for a total of $1,000 for design services rendered.
f. The business received $750 cash from clients for services rendered above.
g. The owner took a withdrawal of $2,000.

Accepted Answer

The answer of The following transactions have been journalized and...

Question 4

A trial balance lists accounts in which order?

Accepted Answer

The most common order for a trial balance is to list accounts in the order of Assets, Liabilities, and Owner's Equity, followed by Revenues and then Expenses. This order ensures that the trial balance is balanced, meaning that the total debits equal the total credits. Therefore, the correct choice is D, which lists the accounts in the required order.

Question 5

Thermo HVAC is a heating and air conditioning service business. On December 31, 2010, after its first month of business, Thermo HVAC had the following balances in its accounts, listed alphabetically.
  Determine the balance in the cash account and prepare a trial balance using proper format.

Accepted Answer

The answer of Thermo HVAC is a heating and air...

Question 6

The following are the ending month's balances for Toys Galore.  What is the total amount of credits for the trial balance?

Accepted Answer

The answer of The following are the ending month's balances...

Question 7

The following are the ending month's balances for Toys Galore.  What would be the first account listed on the trial balance for Toys Galore?

Accepted Answer

The first account listed on a trial balance is typically an asset account, and cash is the most common asset account. Therefore, the best choice is option C: Cash. The other options, revenue, expenses, and accounts payable, are all accounts that would appear on the income statement or balance sheet but are not typically the first account listed on a trial balance.

Question 8

At the end of a month, a business shows the following balances in its ledger.
  Please use this data to prepare a trial balance.

Accepted Answer

The answer of At the end of a month, a...

Question 9

The following are the ending month's balances for Toys Galore.  What would be the last account listed on the trial balance for Toys Galore?

Accepted Answer

The answer of The following are the ending month's balances...

Question 10

The following are the ending month's balances for Toys Galore.  What is the total amount of debits for the trial balance?

Accepted Answer

The answer of The following are the ending month's balances...

Question 11

The following are the ending month's balances for Toys Galore, before preparing the trial balance.  What amount should be shown for Capital on the trial balance?

Accepted Answer

The answer of The following are the ending month's balances...

Question 12

The last step before preparing financial statements is to:

Accepted Answer

Preparing the trial balance is the last step before preparing financial statements. A trial balance is a list of all the accounts in the general ledger, with their debit or credit balances. It ensures that the total of all debits equals the total of all credits, and helps identify any errors before finalizing the financial statements.

Question 13

On a trial balance, which accounts are listed last?

Accepted Answer

Expenses are typically listed last on a trial balance, following the order of assets, liabilities, equity, revenues, and then expenses. This order reflects the structure of the accounting equation and the format of financial statements.

Question 14

Which of the following statements CORRECTLY describes a trial balance?

Accepted Answer

A trial balance is a list of all accounts with their balances, and it is used to ensure that the total debits equal the total credits in the general ledger. It is not the first step in the accounting cycle, as it typically follows the recording of transactions in the general journal and posting to the general ledger. It is also not the same as a balance sheet, which is a financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time. The chart of accounts is a list of all accounts used by a company, but it is not the same as a trial balance.

Question 15

A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250. Which of the following statements about the trial balance is TRUE?

Accepted Answer

The erroneous recording will result in the debits being overstated by $270 (520 - 250), which means the sum of the debits will exceed the sum of the credits by $270. Therefore, the trial balance will not be in balance, and the answer is C.

Question 16

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will cause which of the following conditions on the trial balance?

Accepted Answer

The error affects only the allocation between expense accounts and does not impact the overall balance between debits and credits.

Quiz 2: Recording Business Transactions

When is a trial balance usually prepared?

The following are the ending month's balances for Toys Galore. What is the net income for Toys Galore for September?

A trial balance lists accounts in which order?

Thermo HVAC is a heating and air conditioning service business. On December 31, 2010, after its first month of business, Thermo HVAC had the following balances in its accounts, listed alphabetically. Determine the balance in the cash account and prepare a trial balance using proper format.

The following are the ending month's balances for Toys Galore. What is the total amount of credits for the trial balance?

The following are the ending month's balances for Toys Galore. What would be the first account listed on the trial balance for Toys Galore?

At the end of a month, a business shows the following balances in its ledger. Please use this data to prepare a trial balance.

The following are the ending month's balances for Toys Galore. What would be the last account listed on the trial balance for Toys Galore?

The following are the ending month's balances for Toys Galore. What is the total amount of debits for the trial balance?

The following are the ending month's balances for Toys Galore, before preparing the trial balance. What amount should be shown for Capital on the trial balance?

The last step before preparing financial statements is to:

On a trial balance, which accounts are listed last?

Which of the following statements CORRECTLY describes a trial balance?

A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250. Which of the following statements about the trial balance is TRUE?

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will cause which of the following conditions on the trial balance?