Question : 148.Identify the statement below that true. A.If the trial balance in : 1236632

 

148.Identify the statement below that is true.   

A.If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions.

B.The trial balance is a book of original entry.

C.Another name for the trial balance is the chart of accounts.

D.The trial balance is a list of all accounts from the ledger with their balances at a point in time.

E.The trial balance is another name for the balance sheet as long as debits balance with credits.

149.While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the Equipment account. The effect of this error will be that:   

A.The Equipment account balance will be overstated.

B.The trial balance will not balance.

C.The error will overstate the debits listed in the journal.

D.The total debits in the trial balance will be larger than the total credits.

E.The error will overstate the credits listed in the journal.

150.A $15 credit to Sales was posted as a $150 credit. By what amount is the Sales account in error?   

A.$150 understated.

B.$135 overstated.

C.$150 overstated.

D.$15 understated.

E.$135 understated.

151.At year-end, a trial balance showed total credits exceed total debits by $4,950. This difference could have been caused by:   

A.An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.

B.A net income of $4,950.

C.The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.

D.The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.

E.An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

152.Identify the item below that would cause the trial balance to not balance?   

A.A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.

B.The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.

C.A $50 cash receipt for the performance of a service was not recorded at all.

D.The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.

E.The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

153.The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?   

A.The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700.

B.The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700.

C.The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400.

D.The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400.

E.The total of the Debit column of the trial balance will equal the total of the Credit column.

154.On a trial balance, if the Debit and Credit column totals are equal, then:   

A.All transactions have been recorded correctly.

B.All entries from the journal have been posted to the ledger correctly.

C.All ledger account balances are correct.

D.Equal debits and credits have been recorded for transactions.

E.The balance sheet would be correct.

155.Given the following errors, identify the one by itself that will cause the trial balance to be out of balance.   

A.A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.

B.A $100 cash receipt from a customer in payment of her account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.

C.A $75 cash receipt from a customer in payment of her account posted as a $75 debit to Cash and a $75 credit to Cash.

D.A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.

E.An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

156.A $130 credit to Supplies was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?   

A.Supplies, understated $130; Fees Earned, overstated $130.

B.Supplies, understated $260; Fees Earned, overstated $130.

C.Supplies, overstated $130; Fees Earned, overstated $130.

D.Supplies, overstated $130; Fees Earned, understated $130.

E.Supplies, overstated $260; Fees Earned, understated $130.

157.All of the following are asset accounts except:   

A.Accounts Receivable.

B.Buildings.

C.Supplies expense.

D.Equipment.

E.Prepaid insurance.

158.Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.    

A.Accounts Payable; Cash; Supplies.

B.Unearned Revenue; Accounts Payable; Owner’s Withdrawals.

C.Building; Prepaid Insurance; Supplies Expense.

D.Cash; Prepaid Insurance; Equipment.

E.Notes Payable; Cash; Owner’s Withdrawals.

159.Which financial statement reports an organization’s financial position at a single point in time?   

A.Income statement.

B.Balance sheet.

C.Statement of owner’s equity.

D.Cash flow statement.

E.Trial balance.

160.Joe Jackson opened Jackson’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: 1. Jackson invested $25,000 cash in the business. 2. Jackson contributed $100,000 of equipment to the business. 3. The company paid $2,000 cash to rent office space for the month. 4. The company received $16,000 cash for repair services provided during March. 5. The company paid $6,200 for salaries for the month. 6. The company provided $3,000 of services to customers on account. 7. The company paid cash of $500 for monthly utilities. 8. The company received $3,100 cash in advance of providing repair services to a customer. 9. Jackson withdrew $5,000 for his personal use from the company. Based on this information, net income for March would be:    

A.$10,300.

B.$13,400.

C.$5,300.

D.$8,400.

E.$13,500.

161.Joel Consulting received $3,000 from a customer for services provided. Joel’s general journal entry to record this transaction will be:   

A.Debit Services Revenue, credit Accounts Receivable.

B.Debit Cash, credit Accounts Payable.

C.Debit Cash, credit Accounts Receivable.

D.Debit Cash, credit Services Revenue.

E.Debit Accounts Payable, credit Services Revenue.

162.Wiley Hill opened Hill’s Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books:1. Wiley invested $25,000 cash in the business.2. Wiley contributed $100,000 of equipment to the business.3. The company paid $2,000 cash to rent office space for the month.4. The company received $16,000 cash for repair services provided during March.5. The company paid $6,200 for salaries for the month.6. The company provided $3,000 of services to customers on account.7. The company paid cash of $500 for monthly utilities.8. The company received $3,100 cash in advance of providing repair services to a customer.9. Wiley withdrew $5,000 for his personal use from the company.Based on this information, the balance in Wiley Hill, Capital reported on the Statement of Owner’s Equity at the end of March would be:    

A.$133,400.

B.$130,300.

C.$125,300.

D.$8,400.

E.$13,500.