3.3   Learning Objective 3-3


1) The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the:

A) journal.

B) ledger.

C) income statement.

D) trial balance.


2) If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error:

A) Failure to record a transaction

B) Recording the same erroneous amount for both the debit and the credit sides of a transaction

C) Incorrectly calculating the debit side of the trial balance

D) Recording the same transaction more than once


3) If the business records a number as 179 and it should be 197, this error would be called:

A) rearrangement.

B) transposition.

C) slide.

D) None of the above


4) If a trial balance is not equal, you should first:

A) re-compute the ledger balances.

B) trace all postings.

C) re-add the trial balance and calculate the difference.

D) look for missing transactions.

5) The proper format for a journal entry includes all of the following, except:

A) the total amounts of debits must equal the total amount of credits.

B) skip a line between transactions.

C) the credit portion of the transaction is always first.

D) listed in chronological order.


6) Which of the following errors would cause the trial balance to be out of balance?

A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57.

B) The payment of an account payable for $100 was recorded as a debit to Cash, $100, and a credit to Accounts Payable, $100.

C) The collection of an account was not recorded.

D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000.


7) Which of the following transactions would cause the trial balance to be out of balance?

A) A debit to Cash and a debit to Equipment for the same amount

B) A credit to Cash and a debit to Supplies for the same amount

C) A debit to Accounts Receivable and a credit to Accounting Fees for the same amount

D) All of these answers are correct.


8) An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

A) Cash, debit; Wages Expense, credit

B) Wages Payable, debit; Wages Expense, credit

C) Wages Expense, debit; Cash, credit

D) Wages Expense, debit; Wages Payable, credit

9) Which of the following accounts would be credited in a proper journal entry?

A) Cash when it is increased

B) Service Fees when it is increased

C) Capital when it is decreased

D) Accounts Payable when it is decreased

10) An $900 check written for supplies was journalized as $180. The entry to correct this error is:

A) debit Supplies, $720; credit Cash, $720.

B) debit Cash, $720; credit Supplies, $720.

C) debit Supplies, $180; credit Cash, $180.

D) debit Cash, $180; credit Cash, $180.




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