Question : 171. When a transposition error made the trial balance, the difference : 1239512

 

 

171. When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be A. zeroB. twice the amount of the transpositionC. one-half the amount of the transpositionD. divisible by 9

 

172. Which of the following errors would cause the trial balance totals to be unequal? A. A transaction was not posted.B. A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash.C. A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Accounts Receivable.D. Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

 

173. Supplies purchased on account were incorrectly recorded as Office Equipment.  The correcting entry would be A. Supplies, debit; Office Equipment, credit.B. Accounts Receivable, debit; Supplies, credit.C. Office Equipment, debit; Supplies Expense, credit.D. Supplies, debit; Accounts Payable, credit.

 

174. Which of the following errors will cause the trial balance totals to be unequal? A. posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly postedB. failure to record a transaction or to post a transactionC. recording the same transaction more than onceD. recording the same erroneous amount for both the debit and the credit parts of a transaction

 

175. The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred.  What will the accountant do to find the error? A. Determine the amount of the error and look for that amount on the trial balance.B. Determine the amount of the error and divide by two, then look for that amount on the trial balance.C. Determine the amount of the error and refer to the journal entries for that amount.D. Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.

 

176. Which of the following is not a short-cut in finding errors on the trial balance? A. Determine the difference between debits and credits and look for the amount.B. Determine the amount and change any account to make the trial balance correct.C. Determine the difference between debits and credits, divide the amount by 2, look for the amount.D. Determine the difference between debits and credits, divide the amount by 9, if it divides evenly, look for a transposition or slide error.

 

177. All of the following statements regarding a horizontal analysis are true except A. A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.  B. A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.C. If Fees Earned in 2013 is $125,000 and Fees Earned in 2014 is $143,750, a horizontal analysis will indicate a 15% increase over this period.D. When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

 

178. McMann Company has a condensed income statement as shown:: 

 

2014

2013

Sales

$198,000

$165,500

Total operating expenses

163,000

147,500

Net income

35,000

18,000

 

 

 

Using horizontal analysis, calculate the amount and percent change for Sales.  Round to one decimal place. A. $32,500, 19.6%B. $18,000, 10.9%C. $35,000, 17.7%D. $17,000, 9.4%

 

179. McMann Company has a condensed income statement as shown:: 

 

2014

2013

Sales

$150,000

$165,500

Total operating expenses

133,000

147,500

Net income

17,000

18,000

 

 

 

Using horizontal analysis, calculate the amount and percent change for Sales.  Round to one decimal place. A. (17,000), (11.3%)B. (15,500), (10.3%)C. ($18,000), (10.9%)D. ($15,500), (9.4%)

 

180. The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500.  The correcting entry would include a: A. credit to Accounts Receivable for $500B. credit to Accounts Receivable for $1,000C. credit to Accounts Payable for $500D. credit to Accounts Payable for $1,000

 

 

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