2526975
Descripción
Test por Claudia Voin, actualizado hace más de 1 año
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Creado por Claudia Voin
hace alrededor de 9 años
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Pregunta 1
Pregunta
Debt refers to
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an asset
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the right side of an account
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a liability
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the left side of an account
Pregunta 2
Pregunta
Which of the following items is not an asset?
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A/R
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cash
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A/P
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supplies
Pregunta 3
Pregunta
The common characteristic possessed by all assets is?
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long life
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great monetary value
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tangible nature
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future economic benefit
Pregunta 4
Pregunta
Liabilities...
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are future economic benefits
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are existing debts and obligations
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possess service potential
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are things of value used by the business in its operation
Pregunta 5
Pregunta
Owner's Equity , in a proprietorship, can be described as
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creditorship claims on total assets
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ownership claim on total assets
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benefactor's claim on total assets
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debtor claim on total assets
Pregunta 6
Pregunta
Notes Payable are classified as
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an asset
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owner's equity
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revenue
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a liability
Pregunta 7
Pregunta
The basic accounting EQN is written as
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Assets + Liabilities = Owner's Equity
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Assets = Liabilities + Owner's Equity
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Assets = Revenues - Expenses
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Assets + Owner's Equity = Liabilities
Pregunta 8
Pregunta
A way to write the expanded accounting EQN is
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Assets + Expenses + Withdrawals = Owner's Capital + Revenue
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Assets = Liabilities + Owner's Capital + Revenue - Expenses - Withdrawals
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Assets + Owner's Capital = Liabilities + Revenue - Expenses - Withdrawals
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Assets + Revenue = Liabilities + Owner's Capital + Expenses - Withdrawals
Pregunta 9
Pregunta
What is a ledger?
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a list of all assets
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accounts grouped together in book or computerized form
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a list of all liabilities
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the debit side of an account
Pregunta 10
Pregunta
If total liabilities = $75 000 and OE = $150 000, total assets =
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75 000
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150 000
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250 000
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225 000
Pregunta 11
Pregunta
An activity that changes the value of a firm's assets, liabilities, or owner's equity is referred to as
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a service business
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an income statement
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a net loss
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a transaction
Pregunta 12
Pregunta
If the assets of a business increase by $16 000 during an accounting period and OE increases by $4 000, what is the amount and direction of the change in liabilities for the period?
Respuesta
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+ $12 000
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- $12 000
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+ $20 000
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= $16 000
Pregunta 13
Pregunta
If an individual asset, in a proprietorship, is increased then
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there must be an equal decrease in a specific liability
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there must be an equal decrease in OE
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there must be an equal decrease in another asset
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none of these is possible
Pregunta 14
Pregunta
Net income occurs when
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A > L
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R = E
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R > E
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R < E
Pregunta 15
Pregunta
If the OE account increases from the beginning of the year to the end of the year, then
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NI is less than other drawings
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a NL is less than owner drawings
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additional owner investments are less than NL
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NI is greater than owner drawings
Pregunta 16
Pregunta
Before the following transaction, Sam's Landscaping has $25 000 in assets, $15 000 in liabilities, and $10 000 in OE. Sam borrows $10 000 from the bank. What effect will this have on the accounting EQN?
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assets will increase by $10 000 and liabilities will decrease by $10 000
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liabilities will decrease by $10 000 and OE will increase by $10 000
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assets will increase by $10 000 and liabilities will increase by $10 000
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assets will decrease by $10 000 and OE will decrease by $10 000
Pregunta 17
Pregunta
An accountant has debited an asset account for $1 000 and credited a liability account for $500. What can be done to complete the recording of the transaction?
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nothing further must be done
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debit an OE account for $500
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debit another asset account for $500
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credit a different asset account for $500
Pregunta 18
Pregunta
Eric paid $500 for repairs on the truck he uses in his landscaping business. The effect on the accounting EQN would include a(n)
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increase to OE
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decrease to liabilities
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decrease to assets
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increase to revenue
Pregunta 19
Pregunta
James received a cheque for $1 000 from one of his clients for work he had performed in a prior accounting period. How should James record the receipt for this cheque?
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increase cash $1 000, decrease A/P $1 000
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increase cash $1 000, decrease service revenue $1 000
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increase cash $1 000, increase capital $1 000
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increase cash $1 000, decrease A/R $1 000
Pregunta 20
Pregunta
The purchase of supplies on credit
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decreases liabilities
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has no effect on the accounting EQN
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decreases assets
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increases liabilities
Pregunta 21
Pregunta
Which of the following activities increases OE?
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performance of services for client on credit
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withdrawal of cash for personal
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payment of office rent
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purchase of supplies on credit
Pregunta 22
Pregunta
The three basic financial statements are
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income statement, bank statement, balance sheet
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income statement, statement of owner's equity, balance sheet
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bank statement, invoice, and revenue statement
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statement of owner's equity, balance sheet, worksheet
Pregunta 23
Pregunta
A listing of a firm's assets, liabilities, and OE at a specific point in time is known as
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a statement of OE
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a balance sheet
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the accounting EQN
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an income statement
Pregunta 24
Pregunta
Which of the following is not true of the terms debit and credit?
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they can be abbreviated as DR and CR
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they can be interpreted as increase or decrease
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they can be used to describe the balance of an account
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they can be interpreted to mean left or right
Pregunta 25
Pregunta
Which statement is true regarding the rules for debits and credits?
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debits are always positive, credits always negative
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debits on the right, credits on the left
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a debit will decrease an asset
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a credit will be recorded on the right side of an account
Pregunta 26
Pregunta
What is the change to the balance in OE when revenues were $1 500, expenses were $800, and withdrawals were $400?
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an increase of $1 500
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a decrease of $400
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an increase of 300
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an increase of $700
Pregunta 27
Pregunta
Tom invoices his customer $1 200 for services. The correct entry to record this transaction is
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debit A/R $1 200 and credit deferred payments $1 200
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debit cash $1 200 and credit service revenue $1 200
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debit A/R $1 200 and service revenue $1 200
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none of the above are correct
Pregunta 28
Pregunta
Which of the following is true?
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when we receive cash, we credit the cash account
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when we receive cash, we debit the revenue account
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when we pay a bill, we debit the cash account
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when we pay a bill, we credit the cash account
Pregunta 29
Pregunta
A TB is a list of all
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business liabilities
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ledger accounts and their balances
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revenues and expenses
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business assets
Pregunta 30
Pregunta
The normal balance of liabilities and OE is, respectively
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credit and credit
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debit and debit
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debit and credit
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credit and debit
Pregunta 31
Pregunta
An account will be said to have a credit balance if
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the normal balance is a credit
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there are more credit transactions than debit
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the sum of the credit transactions is greater than that of the debit
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the account is an OE account
Pregunta 32
Pregunta
A/R had a normal balance of $8 500 at the beginning of the month. During the month, the account had debit postings of $8 500 and credit postings of $10 000. The balance of A/R at the end of the month is a
Respuesta
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$8 500 credit balance
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$10 000 credit balance
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$7 000 debit balance
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$10 000 debit balance
Pregunta 33
Pregunta
The following accounts have normal balances as shown below. What is the TB total for debits and credits?
A/P - 1 500, A/R - 2 000, Capital - 4 000, Cash - 1 000, Equip - 5 000, Notes Payable - 3 500, Withdrawals - 1 000
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8 000 debit and 8 000 credit
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10 000 debit and 10 000 credit
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9 000 debit and 9 000 credit
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8 000 debit and 10 000 credit
Pregunta 34
Pregunta
What is the purpose of a TB?
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to verify that all transactions are correct
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to show net income
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to show that all transactions have been recorded
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to verify equality of debits and credits
Pregunta 35
Pregunta
The book of original entry is the
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four-column account
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journal
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ledger
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TB
Pregunta 36
Pregunta
The owner of a business purchases equipment by making a down payment with the balance owed on account. This transaction is recorded by debiting the
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equip account and crediting the cash and A/P accounts
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equip account and the A/P account and crediting the cash account
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cash account and the equip account and crediting the A/P account
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cash account and the A/P account and crediting the equip account
Pregunta 37
Pregunta
When a business transaction requires entries to more than one debit or more than one credit, it is called a
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complex entry
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compound entry
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standard entry
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double entry
Pregunta 38
Pregunta
Thomas' Dry Wall completed work on a house. Thomas received $3 500 when he finished the job and will receive the balance of $1 500 in 30 days. The correct journal entry to record this event is
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debit cash $3 500 and credit service revenue $3 500
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debit A/R $5 000 and credit cash $3 500 and service revenue $1 500
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debit cash $3 500 and credit A/R $1 500 and service revenue $5 000
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debit cash $3 500 and A/R $1 500 and credit service revenue $5 000
Pregunta 39
Pregunta
The journal entry to record the payment of Ralph's Plumbing and Repair electric bill of $175 for the month is
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debit cash $175 and credit A/P $175
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debit cash $175 and credit utilities expense $175
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debit utilities expense $175 and credit cash $175
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none of the above are correct
Pregunta 40
Pregunta
A term used for transferring information from the journal to the ledger is
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transference
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transposing
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posting
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referencing
Pregunta 41
Pregunta
When the new balance of an account is calculated
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a debit posting is added if the account has a credit balance
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a credit posting is subtracted if the account has a credit balance
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a debit posting is subtracted if the account has a debit balance
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a debit posting is subtracted if the account has a credit balance
Pregunta 42
Pregunta
What is a transposition error?
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a math error involving an incorrectly placed decimal point
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a recording error involving an incorrectly place decimal point
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a posting error involving an incorrectly placed decimal point
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a posting error involving a reversal of digits
Pregunta 43
Pregunta
An awareness of the normal balance of accounts would help you spot which of the following as an error in recording?
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a debit balance in the drawings account
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a credit balance in an expense account
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a credit balance in a liability account
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a credit balance in a revenue account
Pregunta 44
Pregunta
Which of the following errors will cause a TB to not balance?
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journalizing a transaction twice
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failure to record a transaction
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failure to post part of an entry to the ledger
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posting a transaction twice
Pregunta 45
Pregunta
Which of the following entries would cause a TB not to balance
Respuesta
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a debit to cash for $360 and credit to equip for $360
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a debit to cash for $400 and credit to A/P for $400
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a debit to A/P for $560 and credit to A/P for $560
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a debit to salaries expense for $780 and credit to salaries payable for $870
Pregunta 46
Pregunta
A TB would only help in detecting which of the following errors
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a transaction not journalized
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an entry posted twice
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an entry using incorrect accounts
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a transposition error when transferring the debit side of a journal entry to the ledger
Pregunta 47
Pregunta
Linda prepared the Tb and found that total debits were $19 000 and total credits were $21 500. Which of the following errors would cause the TB to be out of balance?
Respuesta
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the payment of rent was recorded as a debit to cash for $2 500 and credit to rent expense for $2 500
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the purchase of equip on account was recorded as a debit to equip for $2 500 and a credit to cash for $2 500
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the receipt of a customer's payment was recorded as a credit to A/R for $1 250 ad a credit to cash for $1 250
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the purchase of supplies was recorded as a debit to supplies expense for $1 250 and a credit to supplies for $1 250
Pregunta 48
Pregunta
If a purchase of supplies on account for $100 is journalized correctly but posted as a debit to the supplies account for $1 000 and a credit to A/P for $100, what effects will the error have?
Respuesta
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the TB will be out of balance, but A/P account will be correct
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the TB will be in balance
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the TB will be in balance, and the supplies account will be correct
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the TB will be out of balance, and both supplies account and the A/P account will be incorrect
Pregunta 49
Pregunta
The payment of a $450 invoice for utilities was recorded as a debit to rent expense for $540 and a credit to cash for $540. The entry to correct this mistake is
Respuesta
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debit rent expense $90, credit cash $90
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debit utilities expense $540, credit rent expense $540
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debit cash $540, credit utilities expense $450 and rent expense $90
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debit cash $90 and utilities expense $450, and credit rent expense $540
Pregunta 50
Pregunta
Trent received a $350 payment from one of his customers and incorrectly recorded this amount as a debit for $530 to cash and a credit to A/P for $530. The entry that will correct the error is
Respuesta
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debit A/P $180, credit cash $180
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debit A/R $530, credit sales $530
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debit A/P 530, credit A/R $350 and cash $180
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debit cash $350 and credit A/R $350
Pregunta 51
Pregunta
A business organized as a corporation
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is not a separate legal entity in most provinces
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requires that shareholders are personally liable for debts of the business
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is owned by its shareholders
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terminates when one of the owners dies
Pregunta 52
Pregunta
A partnership form of business organization
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is a separate legal entity
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is a common form of organization for professional businesses
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enjoys an unlimited life
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has limited liability
Pregunta 53
Pregunta
Which of the following is not an advantage of the corporate business form?
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limited liability of shareholders
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transferability of ownership
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unlimited personal liability for shareholders
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unlimited life
Pregunta 54
Pregunta
The accounting EQN for a corporation may be expressed as
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Assets = Liabilities + Shareholders' Equity
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Assets = Liabilities + Partners' Equity
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Assets = Liabilities + Owner's Equity
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all of the above
Pregunta 55
Pregunta
Accumulated earnings in a corporation are reported in
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capital
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share capital
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retained earnings
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dividends
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