Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?Cash
$1000
Equipment
500
Accounts Payable
350
Capital
900
Service Fees
1000
Salaries Expense
750
A. $3,250 debit, $3,250 credit
B. $1,125 debit, $1,125 credit
C. $4,500 debit, $4,500 credit
D. $2,250 debit, $2,250 credit
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.
An account that would be increased by a debit is __________.
A. cash
B. fees earned
C. capital
D. accounts payable
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.
Which of the following is prepared first?
A. Balance sheet
B. Income statement
C. Statement of owner's equity
D. Trial balance
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.
The purpose of the trial balance is __________.
A. to list all of the accounts in the chart of accounts
B. to report all accounts with zero balances
C. to prove that debits equal credits
D. to distribute it with the other financial reports
A credit customer paid $850 toward his accounts receivable. The accountant recorded a credit to the revenue account. This error would cause __________.
A. revenue to be understated
B. cash to be overstated
C. accounts receivable to be overstated
D. liabilities to be understated
A debit to a liability account was posted to a revenue account. This error would cause __________.
A. revenues to be understated
B. liabilities to be understated
C. capital to be overstated
D. None of the above answers are correct.
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.
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.
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
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
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
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
Which of the following is not a financial statement?
A. Balance sheet
B. Income statement
C. Statement of owner's equity
D. Trial balance
A credit 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 understated
D. None of
