A debit to an asset account was posted to an expense account. This error would cause:

1) A debit to an asset account was posted to an expense account. This error
would cause:
A) assets were overstated
B) expenses were overstated.
C) liabilities were overstated.
D) None of the above are correct.

2) The owner withdrew cash from the business. To record this:
A) Capital is debited and an asset is credited.
B) an expense is debited and an asset is credited.
C) Withdrawals is debited and an asset is credited.
D) None of these are correct.

3) One asset would be debited and another credited if:
A) the business paid a creditor.
B) the business provided services to a cash customer
C) the business bought supplies paying cash.
D) the business provided services to a credit customer

4) Paid the rent for the next six months.
A) An asset would be debited and an expense credited.
B) An asset would be debited and a revenue credited.
C) Capital would be debited and a revenue credited.
D) An asset would be debited and an asset credited.

5) The journal described as the simplest form is a (an):
A) accounting journal.
B) general journal.
C) special journal.
D) interim journal.

6) The process of initially recording business transactions in a journal is:
A) posting.
B) sliding.
C) journalizing.
D) transposing.

7) In the month of June, Davis Computers paid three months rent in advance.
The journal entry to record this transaction is:
A) Rent Expense Cash
B) Cash Prepaid Rent
C) Cash Rent Expense
D) Prepaid Rent Cash

8) Antonio s catered a reception. The total price was $1,200. The customer paid
$200 cash and charged the remainder. The journal entry to record this transaction
is:
A) Cash 200
Accounts Receivable 200
B) Cash 200
Accounts Receivable 1,000
Catering Service Fees 1,200
C) Cash 1,000
Accounts Receivable 200
Catering Service Fees 1,200
D) Accounts Receivable 1,200
Cash 200
Catering Service Fees 1,000

9) M. Sands, CPA, collected fees of $650 not previously billed or recorded. The
journal entry to record the collection would be:
A) Accounting Fees 650
Cash 650
B) Accounts Receivable 650
Cash 650
C) Cash 650
Accounting Fees 650
D) Cash 650
M. Sands, Capital 650

10) When a number is recorded as 856 instead of 865 it is called a:
A) slide.
B) rearrangement.
C) composition
D) transposition.

  1. (required)
  2. (valid email required)
  3. By clicking below, you agree to accept the Terms and Conditions of this website.
 

Leave a Reply

You must be logged in to post a comment.