Wk 4 – Practice: Topic 12: Posting Journal Entries and Preparing a Trial Balance Quick Check

Which ONE of these accounts typically has a CREDIT balance in the trial balance? -Dividends -Cash -Sales Revenue -Inventory -Wage Expense

Sales Revenue

A trial balance shows that: -All transactions have been properly recorded -Total debits equals total credits -Journal entries have not been posted to the wrong accounts -No transactions have been omitted

Total debits equals total credits

Which ONE of these accounts typically has a DEBIT balance in the trial balance? -Wage Expense -Paid-in Capital -Sales Revenue -Accounts Payable -Loans Payable

Wage Expense

Which of the following would cause a trial balance to be out of balance? -A transaction was not recorded -A transaction was recorded twice -Only the debit of a transaction was recorded -A transaction was posted to the wrong account

Only the debit of a transaction was recorded

The accounting record where all accounts are posted and summarized is the: -Balance sheet -General Ledger -Posting reference -General Journal

General Ledger

When Jim was preparing the trial balance, he accidentally recorded a $550 payment of accounts payable twice: he reduced both Cash and Accounts Payable by $550 twice instead of just once. By how much will this cause the trial balance columns to differ? -$275 -$550 -$1,100 -$0

$0

When Jim was preparing the trial balance, he accidentally recorded a $300 debit as a credit instead. By how much will this cause the trial balance columns to differ? -$0 -$600 -$150 -$300

$600

Which of the following is not true about a trial balance? -A trial balance is strictly an internal document. -A trial balance shows that the accounting equation is in balance. -A trial balance is used to summarize all of the account balances. -A trial balance and a balance sheet are essentially the same document.

A trial balance and a balance sheet are essentially the same document.

Each account is assigned a number. This systematic listing of all accounts is called a: -General Journal -Chart of Accounts -Trial Balance -General Ledger

Chart of Accounts

After all transactions have been journalized and posted to the accounts, a trial balance will be prepared. The purpose of this is to: -Check that total debits equals total credits -Obtain unadjusted balances that can be transferred directly to the financial statements -Determine whether there is enough cash to pay dividends -Close the books

Check that total debits equals total credits