3.3 Learning Objective 3-3
1) If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error:
A) Failure to record a transaction
B) Recording the same erroneous amount for both the debit and the credit sides of a transaction
C) Incorrectly calculating the debit side of the trial balance
D) Recording the same transaction more than once
2) If the business records a number as 179 and it should be 197, this error would be called:
A) a rearrangement.
B) a slide.
C) a transposition.
D) None of the above
3) If a trial balance is not equal, you should first:
A) re-compute the ledger balances.
B) trace all postings.
C) re-add the trial balance and calculate the difference.
D) match debits and credits.
4) Which of the following errors would cause the trial balance to be out of balance?
A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57.
B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100.
C) The collection of an account was not recorded.
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000.
5) Which of the following transactions would cause the trial balance to be out of balance?
A) A debit to Cash and a debit to Equipment for the same amount
B) A credit to Cash and a debit to Supplies for the same amount
C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount
D) All of these answers are correct.
6) An $1,000 check written for supplies was journalized and posted as $200. The entry to correct this error is:
A) debit Supplies, $800; credit Cash, $800.
B) debit Cash, $800; credit Supplies, $800.
C) debit Supplies, $200; credit Cash, $200.
D) debit Cash, $200; credit Cash, $200.
7) Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:
A) all of the information from the journal was correctly transferred to the ledger.
B) all accounts have their correct balances in the ledger.
C) only the ledger is accurate; the journal may be incorrect.
D) only that the debit dollar amounts equal the credit dollar amounts.
8) In preparing the trial balance of the K&L’s Bridal Service, the Withdrawals account (which had a normal balance in the general ledger) was listed as a credit for $400. What will be the difference between the debit and credit sides of the trial balance?
A) $150
B) $200
C) $300
D) $800
9) The trial balance:
A) includes all accounts with a ledger balance.
B) includes assets, liabilities, capital, withdrawals, revenues and expenses.
C) ensures that debits equal credits.
D) All of the above are correct.
10) To correct an error made in the journal (prior to posting in the ledger):
A) erase the error and write the correct entry.
B) write a new journal entry correcting the original entry.
C) No adjustment is required.
D) None of the above is correct.
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