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Intro to Accounting_40 MCQs

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Question;Question 1;of 40;2.5 Points;A credit to a;liability account was posted to an expense account. This error would cause;A. assets to be overstated;B. liabilities to be overstated;C. expenses to be overstated;D. None of the above answers are correct.;Question 2 of 40;2.5 Points;A credit to an;asset account was posted to a liability account. This error would cause;A. assets to be understated;B. liabilities to be overstated;C. capital to be understated;D. None of the above answers are correct.;Question 3 of 40;2.5 Points;Which of the;following errors would cause the trial balance to be out of balance?;A. An entry is posted twice.;B. An entry is not posted at all.;C. A debit is entered as $200 and the credit;is entered at $2,000.;D. None of the above answers are correct.;Question 4 of 40;2.5 Points;A credit to an;asset account was posted to a revenue account. This error would cause;A. assets to be overstated;B. revenue to be overstated;C. expenses to be overstated;D. Both A and C are correct.;Question 5 of 40;2.5 Points;A debit to an;asset account was posted to a liability account. This error would cause;A. assets to be understated;B. liabilities to be overstated;C. capital to be overstated;D. None of the above answers are correct.;Question 6 of 40;2.5 Points;A credit to a;liability account was posted to an asset account. This error would cause;A. liabilities to be overstated;B. liabilities to be understated;C. revenues to be overstated;D. revenues to be understated;Question 7 of 40;2.5 Points;The chart of;accounts __________.;A. is a numbered list of all of the business;accounts;B. allows accounts to be located quickly;C. can be expanded as the business grows;D. All of the above answers are correct.;Question 8 of 40;2.5 Points;A credit to an;asset account was posted to the capital account. This error would cause __________.;A. assets to be overstated;B. liabilities to be overstated;C. capital to be understated;D. Both A and C are correct.;Question 9 of 40;2.5 Points;A list of all;the accounts from the ledger with their ending balances is called a __________.;A. normal balance;B. trial balance;C. chart of accounts;D. footing;Question 10 of 40;2.5 Points;Which of the;following groups of accounts have a normal credit balance?;A. revenue, liabilities, and capital;B. assets, capital, and withdrawals;C. liabilities, expenses, and assets;D. assets, expenses, and withdrawals;Question 11 of 40;2.5 Points;Given the;following list of accounts with normal balances, what are the trial balance;totals of the debits and credits?;Cash;$1000;Equipment;500;Accounts Payable;350;Capital;900;Service Fees;1000;Salaries Expense;750;A. $3,250 debit, $3,250 credit;B. $1,125;debit, $1,125 credit;C. $4,500 debit, $4,500 credit;D. $2,250 debit, $2,250 credit;Question 12 of 40;2.5 Points;The purpose of;the trial balance is __________.;A. to list all of the accounts in the chart;of accounts;B. to report all accounts with zero balances;C. to prove that debits equal credits;D. to distribute it with the other financial;reports;Question 13 of 40;2.5 Points;A debit to an;expense account was posted to a revenue account. This error would cause;A. assets to be overstated;B. liabilities to be overstated;C. revenue to be understated;D. None of the above answers are correct.;Question 14 of 40;2.5 Points;A debit to an;expense account was posted to a revenue account. This error would cause;A. assets to be overstated;B. liabilities to be overstated;C. revenue to be understated;D. None of the above answers are correct.;Question 15 of 40;2.5 Points;Which of the;following is prepared last?;A. Balance Sheet;B. Income Statement;C. Statement of Owner's Equity;D. Trial;Balance;Question 16 of 40;2.5 Points;Given the;following list of accounts with normal balances, what are the trial balance;totals of the debits and credits?;Cash;$1,100;Accounts;Receivable;800;Capital;1,900;Withdrawals;500;Service Fees;1,000;Rent Expense;500;A. $2,900 debit, $2,900 credit;B. $3,900 debit, $3,900 credit;C. $2,000 debit, $2,000 credit;D. $1,200 debit, $1,200 credit;Question 17 of 40;2.5 Points;Which of the;following is not a financial statement?;A. Balance sheet;B. Income statement;C. Statement of owner's equity;D. Trial;balance;Question 18 of 40;2.5 Points;The business;incurred an expense and paid it immediately. To record this __________.;A. an expense is debited and a liability is;credited;B. an expense is debited and an asset is;credited;C. an expense is debited and Capital is;credited;D. None of the above answers are correct.;Question 19 of 40;2.5 Points;A credit to an;asset account was posted to the capital account. This error would cause;A. assets to be overstated;B. liabilities to be overstated;C. capital to be understated;D. Both A and C are correct.;Question 20 of 40;2.5 Points;A debit to a;liability account was posted to the capital account. This error would cause;A. assets to be overstated;B. liabilities to be overstated;C. capital to be overstated;D. None of the above answers are correct.;Question 21 of 40;2.5 Points;Which of the;following entries records the owner taking cash for personal use?;A. debit Wage Expense, credit Cash;B. debit Capital, credit Cash;C. No entry is necessary since the owner owns;the cash and the entire business.;D. debit Withdrawals, credit Cash;Question 22 of 40;2.5 Points;A credit to an;asset account was posted to a revenue account. This would cause __________.;A. assets to be understated;B. liabilities to be understated;C. capital to be understated;D. revenue to be overstated;Question 23 of 40;2.5 Points;A credit to an;asset account was posted to a liability account. This would cause __________.;A. assets to be understated;B. liabilities to be overstated;C. capital to be overstated;D. revenue to be overstated;Question 24 of 40;2.5 Points;A debit to a;revenue account was posted to an expense account. This would cause __________.;A. expenses to be overstated;B. revenue to be understated;C. expenses to be understated;D. capital to be overstated;Question 25 of 40;2.5 Points;The purpose of;posting is to __________.;A. list the transactions in chronological;order in the journal;B. provide an explanation of the transaction;C. update the account balances in the ledger;D. correct a previous entry;Question 26 of 40;2.5 Points;The posting;reference column on the general journal __________.;A. shows which transactions have been posted;to the ledger;B. displays to which accounts the;transactions have been posted;C. allows us to cross reference to the;general ledger;D. All of the above answers are correct.;Question 27 of 40;2.5 Points;During the month;of January, Katelyn invested $11,000 in starting her legal practice. The proper;journal entry would be __________.;A. Cash, debit $11,000, Katelyn's Capital;credit $11,000;B. Accounts Payable, debit $11,000, Cash;credit $11,000;C. Cash, debit $11,000, Revenue, credit;$11,000;D. Katelyn's Capital, debit $11,000, Cash;credit $11,000;Question 28 of 40;2.5 Points;Posting is;performed by transferring information from the journal to the __________.;A. ledger;B. trial balance;C. balance sheet;D. income;statement;Question 29 of 40;2.5 Points;A journal entry;affecting three or more accounts is called a __________.;A. multi-level entry;B. multi-step entry;C. compound entry;D. simple entry;Question 30 of 40;2.5 Points;Business;transactions are first recorded in the __________.;A. ledger;B. journal;C. trial balance;D. balance sheet;Question 31 of 40;2.5 Points;The process that;begins with recording business transactions and includes the completion of the;financial statements is the __________.;A. calendar year;B. natural business year;C. fiscal year;D. accounting cycle;Question 32 of 40;2.5 Points;A debit to a;liability account was posted to a revenue account. This would cause __________.;A. assets to be overstated;B. liabilities to be overstated;C. capital to be overstated;D. revenue to be overstated;Question 33 of 40;2.5 Points;A debit to a;liability account was posted to an expense account. This would cause;A. assets to be overstated;B. liabilities to be understated;C. owner's equity to be overstated;D. expenses to be overstated;Question 34 of 40;2.5 Points;The general;journal __________.;A. is the book of original entry;B. is the book of final entry;C. contains account balances;D. is completed after the general ledger;Question 35 of 40;2.5 Points;The posting;reference column in the ledger is __________.;A. used to record the journal and page number;the transactions originated;B. used to record the ledger number;C. used to record the date;D. not used;Question 36 of 40;2.5 Points;A credit to a;liability account was posted to an owner's equity account. This would cause;A. assets to be overstated;B. liabilities to be understated;C. owner's equity to be understated;D. net income to be overstated;Question 37 of 40;2.5 Points;The twelve-month;period a business chooses for its accounting period is a(n. __________.;A. calendar year;B. accounting period;C. fiscal year;D. accounting cycle;Question 38 of 40;2.5 Points;Revenue is;traditionally recognized in the accounting records when __________.;A. cash is received;B. services are rendered;C. it is incurred;D. None of the above answers are correct.;Question 39 of 40;2.5 Points;Which of the;following entries would record the payment of a utility bill?;A. debit Utilities Expense, credit Cash;B. debit Cash, credit Utilities Expense;C. debit Utilities Expense, credit Accounts;Payable;D. debit Accounts Receivable, credit;Utilities Expense;Question 40 of 40;2.5 Points;Which of the;following entries records the acquisition of office supplies for cash?;A.;Office Supplies;5,000;Cash;5,000;B.;Office Supplies;5,000;Accounts Payable;5,000;C.;Equipment;5,000;Accounts Payable;5,000;D.;Equipment;5,000;Accounts;Receivable;5,000

 

Paper#37361 | Written in 18-Jul-2015

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