Multiple Choice Questions A02 Principles of Accounting I Exam 5 Answers (Ashworth College) Question 1 of 40 2.5/ 2.5 Points A. Description A02 Principles of Accounting I Exam 5 Answers (Ashworth Colle

Multiple Choice QuestionsA02 Principles of Accounting I Exam 5 Answers (Ashworth College) Question 1 of 40 2.5/ 2.5 Points A.DescriptionA02 Principles of Accounting I Exam 5 Answers (Ashworth College)Question 1 of 402.5/ 2.5 PointsA 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 overstatedB. assets to be understatedC. liabilities to be overstatedD. liabilities to be understatedQuestion 2 of 400.0/ 2.5 PointsA credit to an asset account was posted to a revenue account. This error would cause __________.A. assets to be overstatedB. revenue to be overstatedC. expenses to be overstatedD. Both A and C are correct.Question 3 of 402.5/ 2.5 PointsAn account that would be increased by a debit is __________.A. cashB. fees earnedC. capitalD. accounts payableQuestion 4 of 402.5/ 2.5 PointsThe chart of accounts __________.A. is a numbered list of all of the business’ accountsB. allows accounts to be located quicklyC. can be expanded as the business growsD. All of the above answers are correct.Question 5 of 402.5/ 2.5 PointsA 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 understatedB. cash to be overstatedC. accounts receivable to be overstatedD. liabilities to be understatedQuestion 6 of 402.5/ 2.5 PointsA debit to an expense account was posted to a revenue account. This error would cause __________.A. assets to be overstatedB. liabilities to be overstatedC. revenue to be understatedD. None of the above answers are correct.Question 7 of 402.5/ 2.5 PointsA withdrawal by the owner was posted to an expense account. This error would cause __________.A. assets to be overstatedB. liabilities to be understatedC. withdrawals to be overstatedD. expenses to be overstatedQuestion 8 of 402.5/ 2.5 PointsWhich 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 402.5/ 2.5 PointsWhich of the following is not a financial statement?A. Balance sheetB. Income statementC. Statement of owner’s equityD. Trial balanceQuestion 10 of 402.5/ 2.5 PointsGiven the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?Cash$1000Equipment500Accounts Payable350Capital900Service Fees1000Salaries Expense750A. $3,250 debit, $3,250 creditB. $1,125 debit, $1,125 creditC. $4,500 debit, $4,500 creditD. $2,250 debit, $2,250 creditQuestion 11 of 402.5/ 2.5 PointsA credit to an asset account was posted to a liability account. This error would cause __________.A. assets to be understatedB. liabilities to be overstatedC. capital to be understatedD. None of the above answers are correct.Question 12 of 402.5/ 2.5 PointsA credit to an asset account was posted to the capital account. This error would cause __________.A. assets to be overstatedB. liabilities to be overstatedC. capital to be understatedD. Both A and C are correct.Question 13 of 402.5/ 2.5 PointsThe business provided services to a cash customer. To record this __________.A. an asset is debited and a liability is creditedB. an asset is debited and a revenue is creditedC. an expense is debited and Capital is creditedD. None of the above answers are correct.Question 14 of 402.5/ 2.5 PointsA credit to a liability account was posted to an expense account. This error would cause __________.A. assets to be overstatedB. liabilities to be overstatedC. expenses to be overstatedD. None of the above answers are correct.Question 15 of 402.5/ 2.5 PointsWhich of the following groups of accounts have a normal credit balance?A. revenue, liabilities, and capitalB. assets, capital, and withdrawalsC. liabilities, expenses, and assetsD. assets, expenses, and withdrawalsQuestion 16 of 402.5/ 2.5 PointsA debit to an asset account was posted to an expense account. This error would cause __________.A. liabilities to be overstatedB. expenses to be overstatedC. assets to be understatedD. Both B and C are correct.Question 17 of 402.5/ 2.5 PointsGiven the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?Cash$1,100Accounts Receivable800Capital1,900Withdrawals500Service Fees1,000Rent Expense500A. $2,900 debit, $2,900 creditB. $3,900 debit, $3,900 creditC. $2,000 debit, $2,000 creditD. $1,200 debit, $1,200 creditQuestion 18 of 402.5/ 2.5 PointsA credit to a liability account was posted to an asset account. This error would cause __________.A. liabilities to be overstatedB. liabilities to be understatedC. revenues to be overstatedD. revenues to be understatedQuestion 19 of 400.0/ 2.5 PointsThe business incurred an expense and paid it immediately. To record this __________.A. an expense is debited and a liability is creditedB. an expense is debited and an asset is creditedC. an expense is debited and Capital is creditedD. None of the above answers are correct.Question 20 of 402.5/ 2.5 PointsWhich of the following is prepared last?A. Balance SheetB. Income StatementC. Statement of Owner’s EquityD. Trial BalancePart 2 of 2 – Lesson 5 Questions47.5/ 50.0 PointsQuestion 21 of 402.5/ 2.5 PointsRevenue is traditionally recognized in the accounting records when __________.A. cash is receivedB. services are renderedC. it is incurredD. None of the above answers are correct.Question 22 of 402.5/ 2.5 PointsA credit to an asset account was posted to a revenue account. This would cause __________.A. assets to be understatedB. liabilities to be understatedC. capital to be understatedD. revenue to be overstatedQuestion 23 of 402.5/ 2.5 PointsPosting is performed by transferring information from the journal to the __________.A. ledgerB. trial balanceC. balance sheetD. income statementQuestion 24 of 402.5/ 2.5 PointsThe purpose of posting is to __________.A. list the transactions in chronological order in the journalB. provide an explanation of the transactionC. update the account balances in the ledgerD. correct a previous entryQuestion 25 of 402.5/ 2.5 PointsThe general journal __________.A. is the book of original entryB. is the book of final entryC. contains account balancesD. is completed after the general ledgerQuestion 26 of 402.5/ 2.5 PointsA credit to an asset account was posted to a liability account. This would cause __________.A. assets to be understatedB. liabilities to be overstatedC. capital to be overstatedD. revenue to be overstatedQuestion 27 of 402.5/ 2.5 PointsA debit to an expense account was posted to an asset account. This would cause __________.A. assets to be understatedB. liabilities to be understatedC. capital to be understatedD. expenses to be understatedQuestion 28 of 402.5/ 2.5 PointsA journal entry affecting three or more accounts is called a __________.A. multi-level entryB. multi-step entryC. compound entryD. simple entryQuestion 29 of 402.5/ 2.5 PointsThe journal entry to record a withdrawal by the owner would most commonly include __________.A. a debit to Wage Expense and a credit to CashB. a debit to Capital and a credit to CashC. a debit to Withdrawals and a credit to CashD. a debit to Cash and a credit to Wage ExpenseQuestion 30 of 402.5/ 2.5 PointsThe first step of the accounting cycle is __________.A. recording journal entriesB. posting to the ledgerC. preparing a trial balanceD. analyzing business transactionsQuestion 31 of 402.5/ 2.5 PointsThe posting reference column on the general journal __________.A. shows which transactions have been posted to the ledgerB. displays to which accounts the transactions have been postedC. allows us to cross reference to the general ledgerD. All of the above answers are correct.Question 32 of 400.0/ 2.5 PointsThe posting reference column in the journal is used for __________.A. recording the source documents identification numberB. recording the account number to which the entry was postedC. recording the time when the entry was postedD. recording the initials of the person who did the postingQuestion 33 of 402.5/ 2.5 PointsThe process that begins with recording business transactions and includes the completion of the financial statements is the __________.A. calendar yearB. natural business yearC. fiscal yearD. accounting cycleQuestion 34 of 402.5/ 2.5 PointsThe posting reference column in the ledger is __________.A. used to record the journal and page number the transactions originatedB. used to record the ledger numberC. used to record the dateD. not usedQuestion 35 of 402.5/ 2.5 PointsThe twelve-month period a business chooses for its accounting period is a(n. __________.A. calendar yearB. accounting periodC. fiscal yearD. accounting cycleQuestion 36 of 402.5/ 2.5 PointsA debit to a liability account was posted to an expense account. This would cause __________.A. assets to be overstatedB. liabilities to be understatedC. owner’s equity to be overstatedD. expenses to be overstatedQuestion 37 of 402.5/ 2.5 PointsRenzi’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.  Cash600Accounts Receivable600B.  Accounts Payable600Cash600Equipment1,200C.  Supplies1,200Cash600Accounts Payable600D.  Equipment1,200Accounts Payable600Cash600Question 38 of 402.5/ 2.5 PointsA credit to an asset account was posted to an expense account. This would cause __________.A. assets to be overstatedB. liabilities to be understatedC. capital to be understatedD. expenses to be overstatedQuestion 39 of 402.5/ 2.5 PointsA credit to a liability account was posted to an owner’s equity account. This would cause __________.A. assets to be overstatedB. liabilities to be understatedC. owner’s equity to be understatedD. net income to be overstatedQuestion 40 of 402.5/ 2.5 PointsA debit to a liability account was posted to a revenue account. This would cause __________.A. assets to be overstatedB. liabilities to be overstatedC. capital to be overstatedD. revenue to be overstated