Question : 52. Which of the following statements correct? A. All transactions require compound entries. B. Compound : 1197826

 

 

52. Which of the following statements is correct? 

A. All transactions require compound entries.

B. Compound entries include only debits.

C. Accounts being debited should always follow the accounts being credited in a compound entry.

D. Compound entries affect more than one debit and/or more than one credit.

 

53. The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include 

A. a debit to Equipment for $100 and a credit to Cash for $100.

B. a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

C. a debit to Equipment for $100 and a credit to Accounts Payable for $400.

D. debit to Equipment for $500 and a credit to Cash for $500.

 

54. The process of transferring the data from the journal into the ledgers is called: 

A. footing

B. posting

C. transponding

D. journalizing

 

55. The general ledger accounts are usually arranged in the following order: 

A. first the balance sheet accounts, then the income statement accounts.

B. first the accounts with debit balances, then the accounts with credit balances.

C. first the temporary accounts, then the permanent accounts.

D. first the accounts used most often, then those used less frequently.

 

56. The Accounts Payable account has a $3,000 credit balance. An entry for the payment of $1,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is 

A. a $2,000 credit balance.

B. a $4,000 credit balance.

C. a $2,000 debit balance.

D. a $4,000 debit balance.

 

57. The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is 

A. a $3,000 debit balance.

B. a $27,000 debit balance.

C. a $13,000 debit balance.

D. a $17,000 debit balance.

 

58. The account numbers are recorded in the Posting Reference column of the general journal 

A. as the transaction is journalized.

B. after each amount is posted.

C. after all entries on the journal page have been posted.

D. as the first amount written in the journal.

 

59. The Posting Reference column of a journal is used to 

A. record the date on which an amount is posted to a ledger account.

B. record the number of the ledger account to which the information is posted.

C. record the number of amounts posted to that ledger account since the beginning of the current accounting period.

D. record the page number of the ledger account.

 

60. Which of the following statements is correct? 

A. The general ledger contains the accounts that are used to prepare the financial statements.

B. Some companies use the general ledger instead of a general journal.

C. When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.

D. When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

 

61. If a journal entry that contains an error has already been posted, 

A. the incorrect items should be erased and replaced with the correct data.

B. the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it.

C. a correcting entry should be journalized and posted.

D. the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.

 

 

 

62. A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data was posted. The correcting entry should contain 

A. a debit to Office Equipment and a credit to Cash.

B. a debit to Office Equipment and a credit to Utilities Expense.

C. a debit to Cash and a credit to Office Equipment.

D. a debit to Utilities Expense and a credit to Cash.

 

63. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary? 

A. Debit Accounts Receivable $1,350; credit Cash $1,350

B. Debit Cash $1,350; credit Accounts Receivable $1,350

C. Debit Accounts Receivable $1,350; credit Fees Income $1,350

D. Debit Fees Income $1,350; credit Cash $1,350

 

64. Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary? 

A. Debit Office Equipment $4,500; credit Shop Equipment $4,500

B. Debit Shop Equipment $4,500; credit Office Equipment $4,500

C. Debit Cash $4,500; credit Shop Equipment $4,500

D. Debit Office Equipment $4,500; credit Cash $4,500

 

65. Which of the following statements is correct? 

A. All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

B. If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

C. If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

D. If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.