ASHWORTH A01 Online Exam 5

ASHWORTH A01 Online Exam 5 in $34 (Instant Download)

Question 1 of 40 0.0/ 2.5 Points

A credit to a liability account was posted to an expense account. This error would cause __________.

A. assets to be overstated

B. liabilities to be overstated

C. expenses to be overstated

D. None of the above answers are correct.

Question 2 of 40 2.5/ 2.5 Points

Which of the following is prepared last?

A. Balance Sheet (Sample Answer)

B. Income Statement

C. Statement of Owner’s Equity

D. Trial Balance

Question 3 of 40 2.5/ 2.5 Points

A credit to an asset account was posted to the capital account. This error would cause __________.

A. assets to be overstated

B. liabilities to be overstated

C. capital to be understated

D. Both A and C are correct. (Sample Answer)

Question 4 of 40 2.5/ 2.5 Points

The business provided services to a cash customer. To record this __________.

A. an asset is debited and a liability is credited

B. an asset is debited and a revenue is credited

C. an expense is debited and Capital is credited

D. None of the above answers are correct.

Question 5 of 40 2.5/ 2.5 Points

Which of the following is not a financial statement?

A. Balance sheet

B. Income statement

C. Statement of owner’s equity

D. Trial balance

Question 6 of 40 2.5/ 2.5 Points

Which of the following groups of accounts have a normal credit balance?

A. revenue, liabilities, and capital

B. assets, capital, and withdrawals

C. liabilities, expenses, and assets

D. assets, expenses, and withdrawals

Question 7 of 40 2.5/ 2.5 Points

Which of the following errors would cause the trial balance to be out of balance?

A. An entry is posted twice.

B. An entry is not posted at all.

C. A debit is entered as $200 and the credit is entered at $2,000.

D. None of the above answers are correct.

Question 8 of 40 2.5/ 2.5 Points

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

A. liabilities to be overstated

B. expenses to be overstated

C. assets to be understated

D. Both B and C are correct.

Question 9 of 40 2.5/ 2.5 Points

A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. This error would cause __________.

A. assets to be overstated

B. assets to be understated

C. liabilities to be overstated

D. liabilities to be understated

Question 10 of 40 2.5/ 2.5 Points

A debit to an expense account was posted to a revenue account. This error would cause __________.

A. assets to be overstated

B. liabilities to be overstated

C. revenue to be understated

D. None of the above answers are correct.

Question 11 of 40 2.5/ 2.5 Points

A withdrawal by the owner was posted to an expense account. This error would cause __________.

A. assets to be overstated

B. liabilities to be understated

C. withdrawals to be overstated

D. expenses to be overstated

Question 12 of 40 2.5/ 2.5 Points

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Cash $1,100

Accounts Receivable 800

Capital 1,900

Withdrawals 500

Service Fees 1,000

Rent Expense 500

A. $2,900 debit, $2,900 credit

B. $3,900 debit, $3,900 credit

C. $2,000 debit, $2,000 credit

D. $1,200 debit, $1,200 credit

Question 13 of 40 0.0/ 2.5 Points

A credit to an asset account was posted to a revenue account. This error would cause __________.

A. assets to be overstated

B. revenue to be overstated

C. expenses to be overstated

D. Both A and C are correct.

Question 14 of 40 2.5/ 2.5 Points

A debit to an asset account was posted to a liability account. This error would cause __________.

A. assets to be understated

B. liabilities to be overstated

C. capital to be overstated

D. None of the above answers are correct.

Question 15 of 40 2.5/ 2.5 Points

A debit to an expense account was posted to a revenue account. This error would cause __________.

A. assets to be overstated

B. liabilities to be overstated

C. revenue to be understated

D. None of the above answers are correct.

Question 16 of 40 2.5/ 2.5 Points

Which of the following transactions would cause the debit and credit columns in the trial balance to be unequal?

A. debit Cash, $900; credit Revenue, $900

B. debit Accounts Payable, $350; credit Cash, $350

C. debit Equipment $1,400; credit Accounts Receivable, $1,400

D. debit Withdrawals, $500; credit Cash, $500

Question 17 of 40 2.5/ 2.5 Points

A credit to an asset account was posted to a revenue account. This error would cause __________.

A. assets to be overstated

B. revenue to be overstated

C. expenses to be overstated

D. Both A and B are correct.

Question 18 of 40 2.5/ 2.5 Points

The chart of accounts __________.

A. is a numbered list of all of the business’ accounts

B. allows accounts to be located quickly

C. can be expanded as the business grows

D. All of the above answers are correct.

Question 19 of 40 2.5/ 2.5 Points

An account that would be increased by a debit is __________.

A. cash

B. fees earned

C. capital

D. accounts payable

Question 20 of 40 2.5/ 2.5 Points

Which of the following is prepared first?

A. Balance sheet

B. Income statement

C. Statement of owner’s equity

D. Trial balance

Part 2 of 2 – Lesson 5 Questions 47.5/ 50.0 Points

Question 21 of 40 2.5/ 2.5 Points

A credit to an asset account was posted to a revenue account. This would cause __________.

A. assets to be understated

B. liabilities to be understated

C. capital to be understated

D. revenue to be overstated

Question 22 of 40 2.5/ 2.5 Points

Business transactions are first recorded in the __________.

A. ledger (Sample Answer)

B. journal

C. trial balance

D. balance sheet

Question 23 of 40 2.5/ 2.5 Points

The process that begins with recording business transactions and includes the completion of the financial statements is the __________.

A. calendar year

B. natural business year

C. fiscal year

D. accounting cycle

Question 24 of 40 2.5/ 2.5 Points

Which of the following entries records the acquisition of office supplies for cash?

A.

Office Supplies 5,000

Cash 5,000

B.

Office Supplies 5,000

Accounts Payable 5,000

C.

Equipment 5,000

Accounts Payable 5,000

D.

Equipment 5,000

Accounts Receivable 5,000

Question 25 of 40 2.5/ 2.5 Points

Posting is performed by transferring information from the journal to the __________.

A. ledger

B. trial balance

C. balance sheet

D. income statement

Question 26 of 40 2.5/ 2.5 Points

The purpose of posting is to __________.

A. list the transactions in chronological order in the journal

B. provide an explanation of the transaction

C. update the account balances in the ledger

D. correct a previous entry

Question 27 of 40 2.5/ 2.5 Points

Revenue is traditionally recognized in the accounting records when __________.

A. cash is received

B. services are rendered

C. it is incurred

D. None of the above answers are correct.

Question 28 of 40 2.5/ 2.5 Points

A debit to the capital account was posted to a revenue account. This would cause __________.

A. assets to be understated

B. liabilities to be overstated

C. capital to be understated

D. revenue to be understated

Question 29 of 40 2.5/ 2.5 Points

A credit to an asset account was posted to a liability account. This would cause __________.

A. assets to be understated

B. liabilities to be overstated

C. capital to be overstated

D. revenue to be overstated

Question 30 of 40 2.5/ 2.5 Points

“PR” in the general journal and general ledger stands for __________.

A. per reviewer

B. posting reference

C. prior receipt

D. None of the above answers are correct.

Question 31 of 40 2.5/ 2.5 Points

A credit to an asset account was posted to an expense account. This would cause __________.

A. assets to be overstated

B. liabilities to be understated

C. capital to be understated

D. expenses to be overstated

Question 32 of 40 2.5/ 2.5 Points

During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be __________.

A. Cash, debit $11,000; Katelyn’s Capital, credit $11,000

B. Accounts Payable, debit $11,000; Cash, credit $11,000

C. Cash, debit $11,000; Revenue, credit $11,000

D. Katelyn’s Capital, debit $11,000; Cash, credit $11,000

Question 33 of 40 2.5/ 2.5 Points

A debit to a liability account was posted to a revenue account. This would cause __________.

A. assets to be overstated

B. liabilities to be overstated

C. capital to be overstated

D. revenue to be overstated

Question 34 of 40 2.5/ 2.5 Points

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

A. assets to be understated

B. liabilities to be understated

C. capital to be understated

D. expenses to be understated

Question 35 of 40 2.5/ 2.5 Points

A debit to the capital account was posted to an expense account. This would cause __________.

A. assets to be overstated

B. liabilities to be understated (Sample Answer)

C. capital to be overstated

D. expense to be understated

Question 36 of 40 2.5/ 2.5 Points

A debit to a revenue account was posted to an expense account. This would cause __________.

A. expenses to be overstated

B. revenue to be understated

C. expenses to be understated

D. capital to be overstated

Question 37 of 40 2.5/ 2.5 Points

The twelve-month period a business chooses for its accounting period is a(n. __________.

A. calendar year

B. accounting period

C. fiscal year

D. accounting cycle

Question 38 of 40 2.5/ 2.5 Points

Which of the following entries would record the payment of a utility bill?

A. debit Utilities Expense; credit Cash

B. debit Cash; credit Utilities Expense

C. debit Utilities Expense; credit Accounts Payable

D. debit Accounts Receivable; credit Utilities Expense

Question 39 of 40 0.0/ 2.5 Points

The posting reference column in the journal is used for __________.

A. recording the source documents identification number

B. recording the account number to which the entry was posted

C. recording the time when the entry was posted

D. recording the initials of the person who did the posting

Question 40 of 40 2.5/ 2.5 Points

The posting reference column in the ledger is __________.

A. used to record the journal and page number the transactions originated

B. used to record the ledger number

C. used to record the date

D. not used

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