Question : 114.A journal entry which records revenue must include: A. A debit to : 1259738

 

 

114.A journal entry which records revenue must include:   

A. A debit to Cash.

 

B. A credit to a revenue account.

 

C. A credit to the owners’ equity account.

 

D. A debit to the owners’ equity account.

 

 

 

 

115.A journal entry to record revenue could include each of the following, except:   

A. A credit to a revenue account.

 

B. A credit to the Capital Stock account.

 

C. A debit to Cash.

 

D. A debit to Accounts Receivable.

 

 

 

 

116.A journal entry to recognize an expense must include:   

A. A credit to Accounts Payable.

 

B. A credit to an expense account.

 

C. A credit to Cash.

 

D. A debit to an expense account.

 

 

 

 

117.A journal entry to recognize an expense could include each of the following, except:   

A. A debit to an expense account.

 

B. A credit to Accounts Payable.

 

C. A debit to a liability account.

 

D. A credit to Cash.

 

 

 

 

118.The agreement of the debit and credit totals of the trial balance gives assurance that:   

A. All transactions were posted correctly.

 

B. No transactions were omitted.

 

C. The number of accounts with debit balances equals the number of accounts with credit balances.

 

D. The total debits equal the total credits.

 

 

 

 

119.If the trial balance has a higher debit balance than credit balance, it signifies:   

A. Assets are more than liabilities.

 

B. A profit.

 

C. A loss.

 

D. An error has been made.

 

 

 

 

120.If the trial balance has a smaller debit balance than credit balance, it signifies:   

A. Assets are more than liabilities.

 

B. A profit.

 

C. A loss.

 

D. An error has been made.

 

 

 

 

121.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.

 

 

 

 

122.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.

 

 

 

 

123.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.