31) Accounts Receivable has a normal balance of $1,100. After collecting $800, the balance in the account is:

A) debit $300.

B) debit $1,900.

C) credit $300.

D) credit $1,900.

32) The beginning balance in Cash was $3,500. Additional cash of $2,000 was received. Checks were written totaling $2,500. The cash balance is:

A) $2,000.

B) $6,000.

C) $4,500.

D) $3,000.

 

33) A credit to an asset account was posted to the Capital account. This error would cause:

A) assets to be overstated.

B) liabilities to be overstated.

C) Capital to be understated.

D) Both A and C are correct.

 

34) A credit to a liability account was posted to an expense account. This error would cause:

A) assets to be overstated.

B) liabilities to be overstated.

C) expenses to be overstated.

D) None of the above are correct.

 

35) A debit to an expense account was posted to a revenue account. This error would cause:

A) assets to be overstated.

B) liabilities to be overstated.

C) revenue to be understated.

D) None of the above are correct.

36) A credit to an asset account was posted to a revenue account. This error would cause:

A) assets to be overstated.

B) revenue to be overstated.

C) expenses to be overstated.

D) Both A and C are correct.

 

37) A debit to a liability account was posted to the Capital account. This error would cause:

A) assets to be overstated.

B) liabilities to be overstated.

C) Capital to be overstated.

D) None of the above are correct.

 

38) A debit to an asset account was posted to an expense account. This error would cause:

A) liabilities to be overstated.

B) expenses to be overstated.

C) assets to be understated.

D) Both B and C are correct.

 

39) A debit to a liability account was posted to a revenue account. This error would cause:

A) revenues to be understated.

B) liabilities to be understated.

C) capital to be overstated.

D) None of the above are correct.

40) A debit to an asset account was posted to a liability account. This error would cause:

A) assets to be understated.

B) liabilities to be overstated.

C) capital to be overstated.

D) None of the above are correct.

 

 

 



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