Question 1

Which of the statements about closing the accounts is NOT true?

Accepted Answer

A)   Revenue accounts are debited.
B)   A net profit is credited to the retained profits account.
C)   Expense accounts are reset at zero.
D)   Dividends received are credited.E) B) and C)
F) A) and D)

Question 2

Which of the following errors will be detectable by a trial balance?

Accepted Answer

A)   a revenue incorrectly posted to the ledger as a liability
B)   failure to record a journal entry
C)   a purchase of inventory posted twice to the general ledger
D)   an addition error in a ledger account.E) A) and C)
F) B) and C)

Question 3

A chart of accounts is:

Accepted Answer

A)   a depiction of the significant and formal relationships and roles within a business organisation
B)   a list,in some logical form,of all relevant transactions in a business organisation
C)   a list,in chronological order,of journal accounts used in an accounting system
D)   a list of the complete set of account titles and their related reference numbers.E) A) and D)
F) B) and C)

Question 4

Select the heading under which each of the items in the following questions should generally appear in the chart of accounts of a public company.
-Accumulated depreciation on computer:

Accepted Answer

A)   asset
B)   liability
C)   shareholders' equity
D)   expense.E) B) and D)
F) B) and C)

Question 5

Mr and Mrs Dawes formed Dawes Pty Ltd,each investing $1000 as capital.Dawes Pty Ltd should record these transactions as:
A. DR Share capital  $\quad $ CR Cash
 
B. DR Cash  $\quad $ CR Share capital

C. DR Cash  $\quad $ CR Loan

D. DR Investment  $\quad $ CR Capital

Accepted Answer

The answer of Mr and Mrs Dawes formed Dawes Pty...

Question 6

Which of the following is an accounting transaction?

Accepted Answer

A)   making a purchase order
B)   establishing a bank overdraft
C)   hiring a new staff member
D)   signing a new contract.E) A) and C)
F) A) and B)

Question 7

Which of the following accounts is not closed off at year-end?

Accepted Answer

A)   cost of goods sold
B)   amortisation expense
C)   interest revenue
D)   accounts receivableE) A) and B)
F) A) and C)

Question 8

The purpose of ledgers is to:

Accepted Answer

A)   provide a chronological record of transactions
B)   keep track of the large number of transactions that occur
C)   maintain a cumulative record of profit as it is earned
D)   make sure that the sum of the debit balances equals the sum of the credit balances.E) A) and B)
F) A) and C)

Question 9

Which of the following is NOT true of journal entries?

Accepted Answer

A)   The sum of the debits equals the sum of the credits.
B)   Journal entries are posted to the general ledger.
C)   A trial balance of all journal entries and their balances is prepared periodically.
D)   Journal entries are considered books of original entry.E) B) and C)
F) B) and D)

Question 10

Which of the following statements about closing the accounts is NOT true?

Accepted Answer

A)   Revenue accounts are debited.
B)   Depreciation account is credited.
C)   A net loss is credited to the retained profits account.
D)   Income accounts are debited.E) All of the above
F) A) and B)

Question 11

Use the information given above to answer the following questions:
Greening Ltd is a newly established business selling computer hardware. Shown below are ledger accounts in T-account form, with entries made for the first month of operations.

-Which transaction represents the acquisition of a noncurrent asset?

Accepted Answer

A)   (2) 
B)   (4) 
C)   (9) 
D)   (10) .E) A) and D)
F) A) and C)

Question 12

Use the information given above to answer the following questions:
Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business.

-Which transaction represents a customer settling his/her account?
A) (5A)
B) (6A)
C) (7)
D) (8).

Accepted Answer

The answer of Use the information given above to answer...

Question 13

In which order are the following steps in the accounting cycle performed at the end of the accounting period?
1.Prepare financial statements.
2.Prepare a post-closing trial balance.
3.Prepare and post the following journal entry:
 \quad DR Insurance 
 \quad CR Prepaid insurance.
4.Prepare and post the following journal entry:
 \quad DR Sales revenue
  \quad CR Profit and loss summary.
5.Prepare an unadjusted trial balance.
6.Prepare an adjusted trial balance.

Accepted Answer

A)  5, 3, 6, 4, 2, 1
B)  5, 3, 6, 4, 1, 2
C)  5, 4, 6, 3, 2, 1
D)  5, 3, 6, 2, 1, 4. E) A) and D)
F) B) and D) A

Question 14

Which of the following is an example of an accounting transaction?

Accepted Answer

A)   A bank overdraft limit of $500 000 is arranged with the bank manager.
B)   An accountant is hired at an annual salary of $80 000.
C)   The company is awarded a contract to build a bridge,with construction to commence in 12 months' time.
D)   The payroll department issues a cheque to pay an employee.E) All of the above
F) A) and D)

Question 15

When a company orders goods for resale,what is the accounting entry?
A. DR Inventory  $\quad $ CR Accounts payable

B. DR Purchases  $\quad $ CR Accounts payable

C. DR Accounts receivable  $\quad $ CR Accounts payable

D. No accounting entry is required yet.

Accepted Answer

D

Question 16

Which of the following statements about a purchase order is NOT true?

Accepted Answer

A)   A purchase order is dated and prenumbered.
B)   A purchase order is recorded in the accounts.
C)   A purchase order's documentation is important.
D)   A purchase order is a source of evidence for auditors.E) None of the above
F) C) and D)

Question 17

Use the information given above to answer the following questions:
Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business.

-Which transaction is an accrual accounting end-of-period adjustment?

Accepted Answer

A)   (7) 
B)   (8) 
C)   (9) 
D)   (10) .E) A) and C)
F) C) and D)

Question 18

Use the information given above to answer the following questions:
Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business.

-What is the closing balance of Bank?

Accepted Answer

A)   $100 000
B)   $131 500
C)   $170 000
D)   $208 500.E) B) and C)
F) A) and C)

Question 19

Scoot Ltd paid a supplier $240 and received a cash discount of $6.Scoot Ltd's journal entry will include:

Accepted Answer

A)   DR Discount allowed,$6
B)   DR Cash,$240
C)   DR Accounts payable,$246
D)   CR Purchases,$246E) A) and B)
F) A) and C)

Question 20

Identify the correct classification for the following 4 ledger accounts in the chart of accounts:
1.prepaid insurance
2.accrued wages
3.Depreciation
4.cost of goods sold

Accepted Answer

A)  1 expense, 2 liability, 3 expense, 4 expense
B)  1 asset, 2 liability, 3 expense, 4 expense
C)  1 asset, 2 liability, 3 expense, 4 asset
D)  1 asset, 2 liability, 3 liability, 4 revenue.E) B) and D)
F) None of the above B

Exam 4: Record-Keeping

Which of the statements about closing the accounts is NOT true?

Correct Answer
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Which of the following errors will be detectable by a trial balance?

Correct Answer
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A chart of accounts is:

Correct Answer
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Select the heading under which each of the items in the following questions should generally appear in the chart of accounts of a public company. -Accumulated depreciation on computer:

Correct Answer
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Mr and Mrs Dawes formed Dawes Pty Ltd,each investing $1000 as capital.Dawes Pty Ltd should record these transactions as: A. DR Share capital $\quad$ CR Cash B. DR Cash $\quad$ CR Share capital C. DR Cash $\quad$ CR Loan D. DR Investment $\quad$ CR Capital

Correct Answer
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Which of the following is an accounting transaction?

Correct Answer
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Which of the following accounts is not closed off at year-end?

Correct Answer
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The purpose of ledgers is to:

Correct Answer
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Which of the following is NOT true of journal entries?

Correct Answer
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Which of the following statements about closing the accounts is NOT true?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A

Which of the following is an example of an accounting transaction?

Correct Answer
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When a company orders goods for resale,what is the accounting entry? A. DR Inventory $\quad$ CR Accounts payable B. DR Purchases $\quad$ CR Accounts payable C. DR Accounts receivable $\quad$ CR Accounts payable D. No accounting entry is required yet.

Correct Answer
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D

Which of the following statements about a purchase order is NOT true?

Correct Answer
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Correct Answer
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Use the information given above to answer the following questions: Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business. -What is the closing balance of Bank?

Correct Answer
verified

Scoot Ltd paid a supplier $240 and received a cash discount of $6.Scoot Ltd's journal entry will include:

Correct Answer
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Identify the correct classification for the following 4 ledger accounts in the chart of accounts: 1.prepaid insurance 2.accrued wages 3.Depreciation 4.cost of goods sold

Correct Answer
verified
B

Exam 4: Record-Keeping

Which of the statements about closing the accounts is NOT true?

Correct AnswerverifiedShow Answer

Which of the following errors will be detectable by a trial balance?

Correct AnswerverifiedShow Answer

A chart of accounts is:

Correct AnswerverifiedShow Answer

Select the heading under which each of the items in the following questions should generally appear in the chart of accounts of a public company. -Accumulated depreciation on computer:

Correct AnswerverifiedShow Answer

Mr and Mrs Dawes formed Dawes Pty Ltd,each investing $1000 as capital.Dawes Pty Ltd should record these transactions as: A. DR Share capital \quad CR Cash B. DR Cash \quad CR Share capital C. DR Cash \quad CR Loan D. DR Investment \quad CR Capital

Correct AnswerverifiedShow Answer

Which of the following is an accounting transaction?

Correct AnswerverifiedShow Answer

Which of the following accounts is not closed off at year-end?

Correct AnswerverifiedShow Answer

The purpose of ledgers is to:

Correct AnswerverifiedShow Answer

Which of the following is NOT true of journal entries?

Correct AnswerverifiedShow Answer

Which of the following statements about closing the accounts is NOT true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

Which of the following is an example of an accounting transaction?

Correct AnswerverifiedShow Answer

When a company orders goods for resale,what is the accounting entry? A. DR Inventory \quad CR Accounts payable B. DR Purchases \quad CR Accounts payable C. DR Accounts receivable \quad CR Accounts payable D. No accounting entry is required yet.

Correct AnswerverifiedD

Which of the following statements about a purchase order is NOT true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Use the information given above to answer the following questions: Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business. -What is the closing balance of Bank?

Correct AnswerverifiedShow Answer

Scoot Ltd paid a supplier $240 and received a cash discount of $6.Scoot Ltd's journal entry will include:

Correct AnswerverifiedShow Answer

Identify the correct classification for the following 4 ledger accounts in the chart of accounts: 1.prepaid insurance 2.accrued wages 3.Depreciation 4.cost of goods sold

Correct AnswerverifiedB

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Mr and Mrs Dawes formed Dawes Pty Ltd,each investing $1000 as capital.Dawes Pty Ltd should record these transactions as: A. DR Share capital $\quad$ CR Cash B. DR Cash $\quad$ CR Share capital C. DR Cash $\quad$ CR Loan D. DR Investment $\quad$ CR Capital

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A

Correct Answer
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When a company orders goods for resale,what is the accounting entry? A. DR Inventory $\quad$ CR Accounts payable B. DR Purchases $\quad$ CR Accounts payable C. DR Accounts receivable $\quad$ CR Accounts payable D. No accounting entry is required yet.

Correct Answer
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D

Correct Answer
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Correct Answer
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B