CH3-Analyzing Transactions Using T-Accounts (game mode)

The current balance in the cash account of Williams Company is $942. Which of the following figures, if included on the trial balance as the cash account balance, would represent a transposition error?

$924

The current balance in the cash account of Williams Company is $953. Which of the following figures, if included on the trial balance as the cash account balance, would represent a transposition error?

$935.00

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:

2

If the trial balance totals are not equal, this may have been caused by a transposition error if the difference is divisible by:

9

If assets are numbered from 100 to 199, which of the following accounts would not be given a number in the 100 series?

Accounts Payable

Which of the following is an accurate statement?

Cash is a real account.

Which of the accounts below would ALL appear on the balance sheet

Cash, Accounts Payable, Owner's Capital (ending balance)

A business pays a creditor on account. The entry to record this transaction is:

Debit Accounts Payable; Credit Cash

A business earns $4,000 from various charge account clients. To record this transaction, the business would:

Debit Accounts Receivable; Credit Fees Income

A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:

Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000

A business performed $8,600 of services. Their customer paid $3,900 of the amount right away but charged the remaining amount. To record this transaction, the business would:

Debit Cash $3,900 and Debit Accounts Receivable $4,700 and Credit Fees Income $8,600

A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:

Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000

A business purchases equipment costing $9,200. They pay $1,200 right away and charge the remaining amount. To record this transaction, the business would:

Debit Equipment $9,200; Credit Cash $1,200 and Credit Accounts Payable $8,000

A business purchases supplies on account. The entry to record this transaction is:

Debit Supplies; Credit Accounts Payable

A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:

Debiting Utilities Expense; Crediting Accounts Payable

Which of the following does NOT describe a transposition?

It causes the difference between the debit total and the credit total to be divisible by 2.

Which of the following statements regarding the double-entry system is accurate?

It dictates that at least one debit and one credit must be entered when a transaction is recorded.

Which of the following accounts is NOT a nominal account?

Office Supplies

Which of the following would cause the Trial Balance to be out of balance?

Placing the Accounts Receivable balance in the Credit column

Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?

Placing the Prepaid Rent balance in the Credit column

Which of the following would result in an error when preparing the Trial Balance?

Placing the Prepaid Rent balance in the Credit column

Which of the following accounts is not a permanent account?

Salaries Expense

Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.

Trial Balance

The classification and normal balance of the accounts payable account is _________ .

a liability with a credit balance.

Separate written records called ____________________ are kept for each asset and liability and for the owner's equity of a business.

accounts

Which of the following groups of accounts all have the same normal balance?

accounts receivable, rent expense, John Smith, drawing

When are the financial statements prepared?

after the trial balance is prepared

The classification and normal balance of the accounts receivable account is:

an asset with a debit balance.

Debits are used to record increases in:

assets and expenses.

Which of the following is the order in which accounts are listed on the trial balance?

assets, liabilities, owner's equity, revenues, expenses

The difference between the debit and credit side of a T account is called the account ____________________.

balance

The account Moriah Paige, Capital, would appear on both the Statement of Owner's Equity and the__________________.

balance sheet

The order in which financial statements are prepared is determined by the fact that information from one statement is needed to prepare the next. Which statement is prepared last? _____________________.

balance sheet

Which of the following would not include any temporary accounts?

balance sheet

What type of account is listed first within the chart of accounts?

balance sheet accounts

Which of the following procedures would not be used to identify an error within a trial balance?

check that no temporary accounts have been included within the trial balance

If a trial balance is not in balance (the Debit and Credit columns are not equal), a logical first step is to

check the addition of each column.

An entry on the right side of a T account is called a(n) ____________________.

credit

The right side of a T account is referred to as the ____________________ side of an account.

credit

Rent Revenue is increased by _________________ the account.

crediting

A decrease in a liability is recorded on the ____________________ side of the T account.

debit

An entry on the left side of an account is called a(n) ____________________.

debit

Expense accounts are increased on the ____________________ side of the T account.

debit

Select the entry below to record the receipt of previously-owed cash from a customer.

debit Cash, and credit Accounts Receivable

Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

debit Ty Knott, Drawing, and credit Cash

A firm purchased furniture on account. To record this transaction, the accountant would:

debit furniture and credit accounts payable

The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:

debit to Accounts Payable and credit Cash.

The trial balance includes which of the following column titles?

debit, credit

When cash is spent to purchase supplies, the accountant:

debits an asset account and credits an asset account

A special type of owner's equity account set up to record withdrawals of assets by the owner for personal use is called a(n) ____________________ account.

drawing

Which of the following transactions increase owner's equity?

earning revenue

When equipment is purchased for cash, the cash account is credited and the ____________________ account is debited.

equipment

Which of the following types of accounts normally have debit balances?

expenses and assets

A small pencil figure written at the base of an amount column showing the sum of the entries in the column is called a ____________________.

footing

Another name for the profit and loss statement is the _____________________.

income statement

Debits are used to record:

increases in assets.

Credits are used to record:

increases in liabilities and revenues.

The total of the figures on the left side of a Cash T account is $26,800. The total of the figures on the right side is $14,300. The balance of this account:

is $12,500 and would be recorded on the left side of the T account.

The total of the figures on the left side of a Cash T account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:

is $20,450 and would be recorded on the left side of the T account.

When recording a transaction in a T account, which of the following is not accurate?

it is not necessary to record a credit for every transaction

The increase side of an account represents the ____________________ balance of the account.

normal

When charge customers pay cash to apply against their accounts, the amount is recorded:

on the left side of the Cash account and the right side of the Accounts Receivable account.

A(n) ____________________ account is used to record increases in owner's equity from the sale of goods or services.

revenue

The normal balance of an account is the:

side of the T account on which it increases.

The error that occurs when the number $272.00 is written as $27.20 is called a(n) ____________________ error.

slide

The error that occurs when the number $5.00 is written as $50.00 is called a(n) ____________________ error.

slide

Which of the following accounts begins each new period with a zero balance?

supplies expense

Revenue and expense accounts are called ____________________ accounts.

temporary

The account used to record increases in owner's equity from the sale of goods or services is:

the fees income account.

The error that occurs when the number $916 is written as $961 is called a(n) ____________________ error.

transposition

A statement prepared to test the equality of total debits and credits after transactions have been recorded is called a(n) ____________________.

trial balance