Question 1

After closing off the accounts, which of the following accounts will have a zero balance?

Accepted Answer

Vehicle Expense is a temporary account that is closed at the end of the accounting period, resulting in a zero balance.

Question 2

Which of the accounts listed below would be increased with a debit entry?

Accepted Answer

Asset accounts, like "Vehicle," are increased with a debit entry.

Question 3

When the owner of a business withdraws money from the business for her own use:

Accepted Answer

When the owner withdraws money for personal use, it decreases the business's cash account, so the cash account is credited.

Question 4

A company had the following transactions:
 $\begin{array}{ll}
\text { October } 1 & \text { Georgeanne started a new business investing } \$ 30000 \text { into the business bank account } \
\text { October } 3 & \text { Purchased equipment for } \$ 10 \text { 000 on credit from Astor Equipment } \
\text { October } 5 & \text { Sales of } \$ 1000 \text { on account to Joe Rice, cost of sales is } \$ 450 \
\text { October } 15 & \text { Pays Astor Equipment } \$ 5000 \
\text { October } 20 & \text { Received } \$ 750 \text { from Joe Rice } \
\text { October } 30 & \text { Georgeanne takes } \$ 1200 \text { from the business for her personal use }
\end{array}$ Journalise these transactions.

Accepted Answer

The answer of A company had the following transactions:
 \(\begin{array}{ll}
\text...

Question 5

Your ledger accounts have the following balances: $\begin{array}{|l|r|}
\hline \text { Cash } & 15,000 \
\hline \text { Debtors } & 125,000 \
\hline \text { Creditors } & 92,000 \
\hline \text { Capital } & ? ? ? \
\hline \text { Equipment } & 175,000 \
\hline \text { Sales } & 289,000 \
\hline \text { Inventory } & 42,000 \
\hline \text { Drawings } & 22,000 \
\hline \text { Expenses } & 48,000 \
\hline \text { Cost of Sales } & 140,000 \
\hline
\end{array}$ What is the balance of the Capital account?

Accepted Answer

The answer of Your ledger accounts have the following balances:...

Question 6

With a computerised accounting system, there is no need for an audit trail.

Accepted Answer

A computerised accounting system records and processes data automatically, but it is still essential to maintain an audit trail for legal and regulatory compliance. It helps in tracing the origin of a transaction, identifying errors, and detecting fraudulent activities.

Question 7

A balanced trial balance is proof that there are no errors in the accounts.

Accepted Answer

A balanced trial balance only indicates that the total debits equal total credits; it does not guarantee the absence of errors such as omitted entries, duplicated entries, or incorrect account allocations.

Question 8

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

Accepted Answer

The balance is calculated as the beginning balance plus total debits minus total credits: $500 + $1,250 - $775 = $975.

Question 9

Which of the accounts listed below would be decreased with a debit entry?

Accepted Answer

Drawings is a capital account and debit entry decreases capital accounts.

Question 10

A sale on account results in a debit to cash and a credit to sales.

Accepted Answer

A sale on account means that the customer has bought something but has not yet paid for it. In this case, there is no debit to cash as no cash has been received. Instead, there would be a debit to accounts receivable (the amount owed by the customer) and a credit to sales.

Question 11

What are two advantages and two disadvantages of the double-entry accounting system?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The answer of What are two advantages and two disadvantages...

Question 12

List five examples of errors that would prevent a trial balance from balancing.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The answer of List five examples of errors that would...

Question 13

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

Accepted Answer

The journal is the book of original entry where all transactions are recorded in chronological order with all relevant details needed to record them in the ledger. The balance sheet, profit and loss book, and worksheet are all financial statements or tools used to organize and summarize information from the ledger and other sources.

Question 14

A listing of all open accounts with their debit or credit balances totalled is a:

Accepted Answer

A listing of all open accounts with their debit or credit balances totalled is a trial balance. A balance sheet is a financial statement that shows assets, liabilities, and equity of a company at a specific point in time. Ledger balance refers to the current balance in a specific account in the general ledger, and account balance refers to the balance of a specific account.

Question 15

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

Accepted Answer

The process described in the question is known as closing off the accounts. It involves transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account. This process is done at the end of an accounting period to prepare the accounts for the next period.

Question 16

In double-entry accounting, transactions are journalised and then posted to ledger accounts. What is the difference in these two processes and why is it necessary to do both?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The answer of In double-entry accounting, transactions are journalised and...

Question 17

The book that is used to record transactions in a double-entry accounting system is the:

Accepted Answer

The answer of The book that is used to record...

Question 18

Recording a payment for utilities as a debit to vehicle expense would not cause the trial balance to be out of balance.

Accepted Answer

Recording a payment for utilities as a debit to vehicle expense would not cause the trial balance to be out of balance because both are expense accounts and the total debits and credits would still match. However, it would misclassify the expense.

Question 19

Which of the following is correct for recording the payment to a supplier for a purchase previously made on account?

Accepted Answer

When a payment is made to a supplier for a purchase previously made on account, the accounts involved are Payables/Creditors and Cash. Payables/Creditors account is credited to reduce the liability of the company towards the supplier and Cash account is debited to Show the reduction in the cash balance of the company. 
Option A and D are incorrect as they do not involve the Payables/Creditors account. Option B is incorrect as it involves Inventory account, which is not relevant in this transaction as the purchase has already been made and recorded in the accounts.

Question 20

Your ledger accounts have the following balances: $\begin{array}{|l|r|}
\hline \text { Cash } & 10,000 \
\hline \text { Creditors } & 85,000 \
\hline \text { Capital } & 337,000 \
\hline \text { Equipment } & 250,000 \
\hline \text { Sales } & 325,000 \
\hline \text { Inventory } & 50,000 \
\hline \text { Cost of Sales } & 250,000 \
\hline \text { Drawings } & 25,000 \
\hline \text { Expenses } & 52,000 \
\hline \text { Debtors } & 110,000 \
\hline
\end{array}$ What is the balance of the debit and credit columns of the trial balance?

Accepted Answer

The total of the debit balances is $747,000 (10,000 + 250,000 + 50,000 + 110,000 + 325,000). The total of the credit balances is also $747,000 (85,000 + 337,000 + 25,000 + 52,000).

Quiz 4: Recording Transactionsthe Journal and Ledger Accounts

After closing off the accounts, which of the following accounts will have a zero balance?

Which of the accounts listed below would be increased with a debit entry?

When the owner of a business withdraws money from the business for her own use:

With a computerised accounting system, there is no need for an audit trail.

A balanced trial balance is proof that there are no errors in the accounts.

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

Which of the accounts listed below would be decreased with a debit entry?

A sale on account results in a debit to cash and a credit to sales.

What are two advantages and two disadvantages of the double-entry accounting system? _ _

List five examples of errors that would prevent a trial balance from balancing. _ _

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

A listing of all open accounts with their debit or credit balances totalled is a:

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

In double-entry accounting, transactions are journalised and then posted to ledger accounts. What is the difference in these two processes and why is it necessary to do both? _ _

The book that is used to record transactions in a double-entry accounting system is the:

Recording a payment for utilities as a debit to vehicle expense would not cause the trial balance to be out of balance.

Which of the following is correct for recording the payment to a supplier for a purchase previously made on account?

Quiz 4: Recording Transactionsthe Journal and Ledger Accounts

After closing off the accounts, which of the following accounts will have a zero balance?

Which of the accounts listed below would be increased with a debit entry?

When the owner of a business withdraws money from the business for her own use:

With a computerised accounting system, there is no need for an audit trail.

A balanced trial balance is proof that there are no errors in the accounts.

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

Which of the accounts listed below would be decreased with a debit entry?

A sale on account results in a debit to cash and a credit to sales.

What are two advantages and two disadvantages of the double-entry accounting system? _____________________________________________________________________________________________ _____________________________________________________________________________________________

List five examples of errors that would prevent a trial balance from balancing. _____________________________________________________________________________________________ _____________________________________________________________________________________________

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

A listing of all open accounts with their debit or credit balances totalled is a:

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

The book that is used to record transactions in a double-entry accounting system is the:

Recording a payment for utilities as a debit to vehicle expense would not cause the trial balance to be out of balance.

Which of the following is correct for recording the payment to a supplier for a purchase previously made on account?

What are two advantages and two disadvantages of the double-entry accounting system? _ _

List five examples of errors that would prevent a trial balance from balancing. _ _