Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts
payable. What will the trial balance show for this error?
a. too mush for liabilities b. too much for expenses c. too much for cash
d. the trial balance will not balance
The detailed record of the changes in a particular asset, liability or owners’ equity is called: a. a ledger b. a journal c. a trial balance d. an account
Suppose Hunt Equipment has receivables of $65,000; furniture totaling $205,000 and cash of
$52,000. The business has a $109,000 bill payable and owes $81,000 on account. How much is Hunt’s owners’ equity? a. $190,000 b. $132,000 c. $28,000 d. $322,000
The users of accounting information include the following: a. All the answers are correct b. Investors c. Customers d. Banks
Which sequence correctly summarises the accounting process?
a. journalise transaction, post to the accounts, prepare a trial balance
b. post to the journal, copy from the journal to the ledger, prepare a trial balance.
c. record to the ledger, post to the journal, prepare a trial balance
d. post to the journal, record to the ledger, prepare a trial balance
Give an example of a transaction that has the following effects on the account equation:
Decrease an asset and decrease owner’s equity. a. Sale of asset for cash
b. Collection of accounts receivable c. Sales of assets for cash d. Paid an expense Clear my choice
Give an example of a transaction that has the following effects on the account equation:
Increase an asset and increase a liability. a. Paid an expense
b. Purchase an asset on account c. Drawings d. Sales of assets for cash
Michael Barry, Attorney, began the year with total assets of $126000, liabilities of $74000
and owners' equity of $52000. During the year the business earned revenue of $110000 and
paid expenses of $33000. Barry also withdrew cash of $69000. How would Michael Barry
record expenses paid of $33 000?
a. Dr. Accounts payable / Cr. Cash $33,000
b. Dr. Expenses / Cr. Cash $33,000
c. Dr. Expense / Cr. Accounts payable $33,000
d. Dr. Cash / Cr. Expenses $33,000
Timothy McGreggor, Attorney, began the year with total assets of $129000, liabilities of
$77000 and owners'equity of $52000. During the year the business earned revenue of
$113000 and paid expenses of $34000. McGreggor also withdrew cash of $63000. How
much is the business' equity at the year – end? a. $97,000 b. $131,000 c. $165,000 d. $68,000 Clear my choice
T&T Corporation completed a project for a client. The $8,000 fee for this project was billed
to the client in 2014, but will be collected in 2015. Is this revenue recorded in 2014? Which
principle could have been applied? a. Matching b. Profit recognition c. Going-concern d. Historical cost