Question :
62. The journal entry to record a particular business transaction includes : 1229684
62. The journal entry to record a particular business transaction includes a credit to the Cash account. This transaction is most likely also to include:
A. Issuance of new capital stock.
B. The purchase of an asset on account.
C. Payment of an outstanding note payable.
D. A credit to Accounts Receivable.
63. The collection of an account receivable is recorded by a debit to Cash and a credit to Accounts Payable. If this error is not corrected:
A. Total liabilities are understated.
B. Total assets are understated.
C. Total liabilities are overstated.
D. Owners’ equity is overstated.
64. Posting is the process of:
A. Transferring debit and credit entries from the journal into the appropriate ledger accounts.
B. Determining that the dollar amount of debit entries recorded in the ledger is equal to the dollar amount of credit entries.
C. Entering information into a computerized data base.
D. Preparing journal entries to describe each business transaction.
65. If a company purchases equipment for cash:
A. Assets will increase and owners’ equity will also increase.
B. Assets will increase and owners’ equity will decrease.
C. Assets will increase and owners’ equity will remain unchanged.
D. Total assets and owners’ equity will remain unchanged.
66. A trial balance that is out of balance indicates that:
A. The number of ledger accounts with debit balances is not equal to the number of accounts with credit balances.
B. A debit has been posted to the wrong account.
C. There is not an equality of debit and credit amounts in the ledger.
D. A journal entry has been completely omitted from the posting process.
67. A trial balance consists of:
A. A two-column schedule of all debit and credit entries posted to ledger accounts.
B. A two-column financial statement intended for distribution to interested parties outside the business.
C. A two-column schedule showing the totals of all debits and of all credits made in journal entries.
D. A two-column schedule listing names and balances of all ledger accounts.
68. Green Systems sold and delivered modems to Blue Computers for $660,000 to be paid by Blue in three equal installments over the next three months. The journal entry made by Blue Computers to record the last of the three installment payments will include:
A. A debit of $220,000 to Modem Expense.
B. A debit of $220,000 to Accounts Receivable.
C. A debit of $220,000 to Cash.
D. A debit of $220,000 to Accounts Payable.
69. Which of the following errors would be disclosed by preparation of a trial balance?
A. The collection of an account receivable was recorded by a debit to the Land account rather than to the Cash account.
B. The collection of an account receivable for $219 was recorded by a $291 debit to Cash and a $291 credit to Accounts Receivable.
C. The collection of a $365 account receivable was not recorded at all.
D. The collection of a $325 account receivable was recorded by a $325 debit to Cash and a $325 debit to Accounts Receivable.
70. Which of the following errors would not be disclosed by preparation of a trial balance?
A. An error was made in computing the balance of the Cash account.
B. A journal entry included a debit to the Equipment account for $3,200, but this amount was erroneously posted as $2,300.
C. During the posting process, a $1,700 debit to Cash was accidentally entered in the credit side of the Cash account.
D. The journal entries recorded on the last day of the year have never been posted to the ledger.
71. Black Systems sold and delivered modems to White Computers for $330,000 to be paid by White in three equal installments over the next three months. The journal entry made by Black Systems to record this transaction will include:
A. A debit to Sales Revenue for $330,000.
B. A debit to Accounts Receivable for $330,000.
C. A debit to Accounts Receivable for $110,000.
D. A debit to Cash Paid for $330,000.
Please follow these directions carefully.