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A02 Principles of Accounting I Exam 5 Answers (Ashworth College)

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A02 Principles of Accounting I Exam 5 Answers (Ashworth College)

Question 1 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 2 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 3 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 4 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 5 of 40

2.5/ 2.5 Points

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

 

 

Question 6 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 7 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 8 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 9 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 10 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

$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

 

 

Question 11 of 40

2.5/ 2.5 Points

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 the above answers are correct.

 

 

Question 12 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.

 

 

Question 13 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 14 of 40

2.5/ 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 15 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 16 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 17 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 18 of 40

2.5/ 2.5 Points

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

 

 

 

A. liabilities to be overstated

 

 

B. liabilities to be understated

 

 

C. revenues to be overstated

 

 

D. revenues to be understated

 

 

Question 19 of 40

0.0/ 2.5 Points

The business incurred an expense and paid it immediately. To record this __________.

 

 

 

A. an expense is debited and a liability is credited

 

 

B. an expense is debited and an asset is credited

 

 

C. an expense is debited and Capital is credited

 

 

D. None of the above answers are correct.

 

 

Question 20 of 40

2.5/ 2.5 Points

Which of the following is prepared last?

 

 

 

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

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 22 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 23 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 24 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 25 of 40

2.5/ 2.5 Points

The general journal __________.

 

 

 

A. is the book of original entry

 

 

B. is the book of final entry

 

 

C. contains account balances

 

 

D. is completed after the general ledger

 

 

Question 26 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 27 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 28 of 40

2.5/ 2.5 Points

A journal entry affecting three or more accounts is called a __________.

 

 

 

A. multi-level entry

 

 

B. multi-step entry

 

 

C. compound entry

 

 

D. simple entry

 

 

Question 29 of 40

2.5/ 2.5 Points

The journal entry to record a withdrawal by the owner would most commonly include __________.

 

 

 

A. a debit to Wage Expense and a credit to Cash

 

 

B. a debit to Capital and a credit to Cash

 

 

C. a debit to Withdrawals and a credit to Cash

 

 

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

 

 

Question 30 of 40

2.5/ 2.5 Points

The first step of the accounting cycle is __________.

 

 

 

A. recording journal entries

 

 

B. posting to the ledger

 

 

C. preparing a trial balance

 

 

D. analyzing business transactions

 

 

Question 31 of 40

2.5/ 2.5 Points

The posting reference column on the general journal __________.

 

 

 

A. shows which transactions have been posted to the ledger

 

 

B. displays to which accounts the transactions have been posted

 

 

C. allows us to cross reference to the general ledger

 

 

D. All of the above answers are correct.

 

 

Question 32 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 33 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 34 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

 

 

Question 35 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 36 of 40

2.5/ 2.5 Points

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

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. owner's equity to be overstated

 

 

D. expenses to be overstated

 

 

Question 37 of 40

2.5/ 2.5 Points

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is __________.

 

 

 

A.  

Cash

600

Accounts Receivable

600

 

 

 

B.  

Accounts Payable

600

Cash

600

Equipment

1,200

 

 

 

C.  

Supplies

1,200

Cash

600

Accounts Payable

600

 

 

 

D.  

Equipment

1,200

Accounts Payable

600

Cash

600

 

 

 

Question 38 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 39 of 40

2.5/ 2.5 Points

A credit to a liability account was posted to an owner's equity account. This would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. owner's equity to be understated

 

 

D. net income to be overstated

 

 

Question 40 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

 

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