Question 1

When using a four-column ledger account format,the pair of columns on the far right is used to show the:

Accepted Answer

The answer of When using a four-column ledger account format,the...

Question 2

The accounts of Yardy Company are as follows on November 30,2015:  What is the total of the debit column in the trial balance at November 30,2015?

Accepted Answer

The total of the debit column in a trial balance must equal the total of the credit column. Since the options list only the debit column, we need to determine the total of both columns. Summing up all the credits, we get:
$3,000 + $1,200 + $48,000 + $3,600 + $9,000 + $1,500 + $2,100 + $6,000 + $200 + $6,700 + $400 + $6,000 + $2,000 = $89,700
Summing up all the debits, we get:
$2,400 + $1,500 + $2,100 + $39,000 + $14,000 + $10,000 + $3,000 + $3,600 + $1,000 + $2,000 + $2,000 + $3,000 + $1,000 = $84,300
Therefore, the best choice is C, which matches the calculated total of the debit column.

Question 3

A trial balance has which of the following features?

Accepted Answer

A trial balance is a listing of all accounts in the ledger with their respective debit or credit balances. It includes totals for all accounts in the ledger, not just balance sheet or income statement accounts. The purpose of a trial balance is to ensure that the total debits and credits in the ledger are equal and to identify any errors in recording transactions.

Question 4

If the trial balance does not balance,several steps can be taken to find the error.Which step will probably NOT help you find the error?

Accepted Answer

Dividing the out-of-balance amount by 5 will not help find the error as it is not a common method used for error detection. Instead, dividing by 2 or 9 can help identify if there is a transposition error or if a wrong amount has been carried forward respectively. Tracing each account back and forth from the journal to the ledger can also help locate errors in posting or incorrect entries.

Question 5

Which of the following statements regarding a trial balance is TRUE?

Accepted Answer

A trial balance can be prepared at any time, lists all accounts with their balances, and ensures that total debits equal total credits.

Question 6

Andy Company had a Cash balance on May 1 of $27,000.At the end of May,the Cash balance had increased to $28,000.During the month of May,Andy received cash of $46,000 from various sources.Based on this information,cash payments for the month of May were:

Accepted Answer

The cash payments can be calculated by taking the beginning cash balance, adding cash received, and subtracting the ending cash balance: $27,000 + $46,000 - $28,000 = $45,000.

Question 7

Simmons Company began the month with a balance of $80,000 in Accounts Receivable.An analysis of the account determined that sales on account for the month totaled $110,000.At the end of the month,the balance in Accounts Receivable was $85,000.From this information,it can be determined that Simmons Company had collections from customers on account of:

Accepted Answer

The answer of Simmons Company began the month with a...

Question 8

An example of a slide-type error is writing:

Accepted Answer

A slide-type error occurs when the decimal point is misplaced, as in writing $400 as $40.

Question 9

The accounts of Local Company at May 31,2015 are as follows:  What are the first four lines,in proper order,on the trial balance at May 31,2015?

Accepted Answer

The trial balance typically lists accounts in alphabetical order or in the order in which they appear in the ledger. Among the given options, choice C lists the first four accounts in alphabetical order, which is the most common convention for preparing a trial balance. Therefore, option C is the best choice.

Question 10

A company did not record the receipt and payment of an utility bill for $500.Is the trial balance out of balance?

Accepted Answer

The trial balance will not be out of balance because both the receipt and payment of the utility bill were not recorded, meaning both the debit and credit sides are equally affected and remain balanced.

Question 11

An example of a transposition error is writing:

Accepted Answer

The answer of An example of a transposition error is...

Question 12

When listing the accounts on the trial balance,we list the________ accounts first and then the ________ accounts.

Accepted Answer

Assets are listed first on the trial balance, followed by liabilities.

Question 13

The Diamond Store began business on June 1.During the month of June,it had cash payments of $9,000.At the end of June,it had a $14,000 balance in Cash.Based on this information,the cash receipts for the month of June were:

Accepted Answer

If the Diamond Store had cash payments of $9,000 and ended up with a balance of $14,000, then it must have received cash receipts of $23,000 ($9,000 in payments + $14,000 ending balance = $23,000 in receipts). Therefore, choice C is the correct answer.

Question 14

Yellow Company had a balance of $30,000 in Accounts Payable at the beginning of June,and purchased $100,000 of merchandise on account during the month.At the end of June,Yellow's Account Payable balance was $28,000.What amount did Yellow pay on account during June?

Accepted Answer

Yellow Company started with $30,000 in Accounts Payable, added $100,000 in purchases, totaling $130,000. With an ending balance of $28,000, they must have paid $102,000 ($130,000 - $28,000) during June.

Question 15

Which account has a normal debit balance?

Accepted Answer

Advertising Expense is an expense account, and expense accounts typically have a normal debit balance.

Question 16

If a posting error has occurred whereby a debit is posted as a credit,then the out-of-balance amount on the trial balance will be evenly divisible by:

Accepted Answer

If a debit is posted as a credit, the error will affect both sides of the trial balance by the same amount, causing a difference that is evenly divisible by 2.

Question 17

Which of the following is a CORRECT statement about a chart of accounts?

Accepted Answer

CA chart of accounts typically lists the balance sheet accounts first, starting with assets, followed by liabilities and equity, before listing income statement accounts such as revenues and expenses. It is also a tool used by accountants to organize financial information and facilitate the preparation of financial statements, but it does not directly determine the balance in an account; it merely lists and categorizes the accounts.

Question 18

The normal balance of the Accounts Receivable account is a ________ because it is a(n)________ account.

Accepted Answer

The normal balance of the Accounts Receivable account is a debit because it is an asset.

Question 19

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $32,000.During the month,Johnny made sales on account of $42,000.The ending balance in the Accounts Receivable account is $30,000.What are cash collections for the month?

Accepted Answer

To find cash collections for the month, we need to subtract the decrease in Accounts Receivable from credit sales made during the month.
Credit sales = $42,000
Decrease in Accounts Receivable = Beginning balance - Ending balance = $32,000 - $30,000 = $2,000
Cash collections = Credit sales - Decrease in Accounts Receivable = $42,000 - $2,000 = $44,000. 
Therefore, the best choice is C.

Question 20

A chart of accounts:

Accepted Answer

A chart of accounts lists all of an organization's accounts and account numbers in a specific order, typically grouped by type of account. It is customized to fit each organization's unique needs and is not the same for all organizations. It is used as a reference tool to track and categorize financial transactions.

Quiz 2: Transaction Analysis

When using a four-column ledger account format,the pair of columns on the far right is used to show the:

The accounts of Yardy Company are as follows on November 30,2015: What is the total of the debit column in the trial balance at November 30,2015?

A trial balance has which of the following features?

If the trial balance does not balance,several steps can be taken to find the error.Which step will probably NOT help you find the error?

Which of the following statements regarding a trial balance is TRUE?

Andy Company had a Cash balance on May 1 of $27,000.At the end of May,the Cash balance had increased to $28,000.During the month of May,Andy received cash of $46,000 from various sources.Based on this information,cash payments for the month of May were:

An example of a slide-type error is writing:

The accounts of Local Company at May 31,2015 are as follows: What are the first four lines,in proper order,on the trial balance at May 31,2015?

A company did not record the receipt and payment of an utility bill for $500.Is the trial balance out of balance?

An example of a transposition error is writing:

When listing the accounts on the trial balance,we list the accounts first and then the accounts.

The Diamond Store began business on June 1.During the month of June,it had cash payments of $9,000.At the end of June,it had a $14,000 balance in Cash.Based on this information,the cash receipts for the month of June were:

Yellow Company had a balance of $30,000 in Accounts Payable at the beginning of June,and purchased $100,000 of merchandise on account during the month.At the end of June,Yellow's Account Payable balance was $28,000.What amount did Yellow pay on account during June?

Which account has a normal debit balance?

If a posting error has occurred whereby a debit is posted as a credit,then the out-of-balance amount on the trial balance will be evenly divisible by:

Which of the following is a CORRECT statement about a chart of accounts?

The normal balance of the Accounts Receivable account is a because it is a(n) account.

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $32,000.During the month,Johnny made sales on account of $42,000.The ending balance in the Accounts Receivable account is $30,000.What are cash collections for the month?

A chart of accounts:

Quiz 2: Transaction Analysis

When using a four-column ledger account format,the pair of columns on the far right is used to show the:

The accounts of Yardy Company are as follows on November 30,2015: What is the total of the debit column in the trial balance at November 30,2015?

A trial balance has which of the following features?

If the trial balance does not balance,several steps can be taken to find the error.Which step will probably NOT help you find the error?

Which of the following statements regarding a trial balance is TRUE?

Andy Company had a Cash balance on May 1 of $27,000.At the end of May,the Cash balance had increased to $28,000.During the month of May,Andy received cash of $46,000 from various sources.Based on this information,cash payments for the month of May were:

An example of a slide-type error is writing:

The accounts of Local Company at May 31,2015 are as follows: What are the first four lines,in proper order,on the trial balance at May 31,2015?

A company did not record the receipt and payment of an utility bill for $500.Is the trial balance out of balance?

An example of a transposition error is writing:

When listing the accounts on the trial balance,we list the________ accounts first and then the ________ accounts.

The Diamond Store began business on June 1.During the month of June,it had cash payments of $9,000.At the end of June,it had a $14,000 balance in Cash.Based on this information,the cash receipts for the month of June were:

Yellow Company had a balance of $30,000 in Accounts Payable at the beginning of June,and purchased $100,000 of merchandise on account during the month.At the end of June,Yellow's Account Payable balance was $28,000.What amount did Yellow pay on account during June?

Which account has a normal debit balance?

If a posting error has occurred whereby a debit is posted as a credit,then the out-of-balance amount on the trial balance will be evenly divisible by:

Which of the following is a CORRECT statement about a chart of accounts?

The normal balance of the Accounts Receivable account is a ________ because it is a(n) ________ account.

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $32,000.During the month,Johnny made sales on account of $42,000.The ending balance in the Accounts Receivable account is $30,000.What are cash collections for the month?

A chart of accounts:

When listing the accounts on the trial balance,we list the accounts first and then the accounts.

The normal balance of the Accounts Receivable account is a because it is a(n) account.