Question 1

Accounts with normal debit balances include:

Accepted Answer

Cash, Accounts Receivable, and Supplies are asset accounts, which typically have a normal debit balance. Accounts Payable and Notes Payable are liability accounts, which normally have a credit balance.

Question 2

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 account representing amounts owed by customers to the company.

Question 3

A chart of accounts:

Accepted Answer

A chart of accounts is a list of all the accounts that an organization uses to record its financial transactions. It includes account names and numbers to ensure consistency in recording financial transactions. Therefore, option D is correct. Options A, B, and C are incorrect.

Question 4

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

Accepted Answer

A) A trial balance can be prepared at any time during the accounting period, but it is usually prepared at the end of an accounting period.
B) A trial balance is a list of all accounts used in a business with their balances.
C) A trial balance shows whether the total debits equal the total credits. This is the fundamental principle of double-entry accounting, where every transaction has equal debits and credits. Therefore, the two sides of the trial balance should always balance out.

Question 5

Simmons Company began the month with a balance of $84,000 in Accounts Receivable.An analysis of the account determined that sales on account for the month totaled $113,000.At the end of the month,the balance in Accounts Receivable was $86,000.From this information,it can be determined that Simmons Company had collections from customers on account of:

Accepted Answer

$84,000 + $113,000 - $86,000 = $111,000

Question 6

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

Accepted Answer

In the preparation of a trial balance, asset accounts are listed first, followed by liability accounts. This order reflects the structure of the balance sheet, where assets are typically presented first, followed by liabilities and equity.

Question 7

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

Accepted Answer

$27,000 + $48,000 - $31,000 = $44,000

Question 8

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

Accepted Answer

0 + x - $8,000 = $20,000;x = $28,000

Question 9

The accounts of Local Company at May 31,2019 are as follows:  What are the first four lines,in proper order,on the trial balance at May 31,2019?

Accepted Answer

The first four accounts listed on the trial balance are usually assets in order of liquidity (ease of converting to cash), followed by liabilities in order of maturity (when they are due). Therefore, the most likely first four accounts on the trial balance are Cash, Accounts Receivable, Supplies, and Accounts Payable. Option C is the only one that includes these four accounts.

Question 10

The accounts of Yardy Company are as follows on November 30,2019:  What is the total of the debit column in the trial balance at November 30,2019?

Accepted Answer

Cash $73,000 + Accounts Receivable $16,600 + Supplies $1,500 + Dividends $8,000 + Insurance Expense $4,100 + Salary Expense $14,000 = $117,200

Question 11

A trial balance has which of the following features?

Accepted Answer

A trial balance includes totals for all accounts listed in the ledger, regardless of whether they are balance sheet or income statement accounts. The accounts may be listed in any order, not necessarily alphabetical.

Question 12

Which account has a normal debit balance?

Accepted Answer

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

Question 13

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 is not a standard method for identifying errors in a trial balance. Methods like dividing by 2 or 9 can help identify specific types of errors, such as transposition or slide errors.

Question 14

A bookkeeper forgot to post a credit to Accounts Receivable,but did post the debit part of the journal entry correctly.Then:

Accepted Answer

The trial balance would show total debits exceeding total credits because the debit was posted without the corresponding credit entry.

Question 15

The trial balance is used to determine if:

Accepted Answer

The trial balance is used to ensure that the total debits of all the accounts in the general ledger equal the total credits of all the accounts. This ensures that the financial records are accurate and that the accounting equation (assets = liabilities + equity) is in balance. While options A, C, and D are related to accounting principles, they do not specifically pertain to the purpose of the trial balance.

Question 16

Which error will be uncovered by a trial balance?

Accepted Answer

A trial balance checks for the equality of debits and credits after recording transactions. It would uncover an error where the amounts entered for a debit and a credit do not match, as in option D, where a credit of $400 was mistakenly recorded as $40, causing an imbalance. Options A, B, and C would not be detected by a trial balance because they do not affect the overall balance between debits and credits.

Question 17

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

Accepted Answer

If a debit is treated as a credit, the trial balance will be out of balance by twice the amount of the error, which is evenly divisible by 2.

Question 18

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 19

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $36,000.During the month,Johnny made sales on account of $46,000.The ending balance in the Accounts Receivable account is $32,000.What are cash collections for the month?

Accepted Answer

$36,000 + $46,000 - $32,000 = $50,000

Question 20

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

Accepted Answer

$31,000 + $104,000 - $29,000 = $106,000

Quiz 2: Transaction Analysis

Accounts with normal debit balances include:

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

A chart of accounts:

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

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

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

The accounts of Local Company at May 31,2019 are as follows: What are the first four lines,in proper order,on the trial balance at May 31,2019?

The accounts of Yardy Company are as follows on November 30,2019: What is the total of the debit column in the trial balance at November 30,2019?

A trial balance has which of the following features?

Which account has a normal debit balance?

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?

A bookkeeper forgot to post a credit to Accounts Receivable,but did post the debit part of the journal entry correctly.Then:

The trial balance is used to determine if:

Which error will be uncovered by a trial balance?

If a posting error has occurred whereby a debit is treated 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 Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $36,000.During the month,Johnny made sales on account of $46,000.The ending balance in the Accounts Receivable account is $32,000.What are cash collections for the month?

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

Quiz 2: Transaction Analysis

Accounts with normal debit balances include:

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

A chart of accounts:

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

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

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

The accounts of Local Company at May 31,2019 are as follows: What are the first four lines,in proper order,on the trial balance at May 31,2019?

The accounts of Yardy Company are as follows on November 30,2019: What is the total of the debit column in the trial balance at November 30,2019?

A trial balance has which of the following features?

Which account has a normal debit balance?

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?

A bookkeeper forgot to post a credit to Accounts Receivable,but did post the debit part of the journal entry correctly.Then:

The trial balance is used to determine if:

Which error will be uncovered by a trial balance?

If a posting error has occurred whereby a debit is treated 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 Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $36,000.During the month,Johnny made sales on account of $46,000.The ending balance in the Accounts Receivable account is $32,000.What are cash collections for the month?

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

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

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