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

A) assets to be understated.

B) liabilities to be understated.

C) capital to be understated.

D) expenses to be understated.

 

8) A debit to the Capital account was posted to an expense account. This would cause:

A) assets to be overstated.

B) liabilities to be understated.

C) capital to be overstated.

D) expense to be understated.

9) A credit to an asset account was posted to a liability account. This would cause:

A) assets to be understated.

B) liabilities to be overstated.

C) capital to be overstated.

D) revenue to be overstated.

 

10) A debit to the Capital account was posted to a revenue account. This would cause:

A) assets to be understated.

B) liabilities to be overstated.

C) capital to be understated.

D) revenue to be understated.

 

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

A) expenses to be overstated.

B) revenue to be understated.

C) expenses to be understated.

D) capital to be overstated.

 

12) A debit to a liability account was posted to an expense account. This would cause:

A) assets to be overstated.

B) liabilities to be understated.

C) owner’s equity to be overstated.

D) expenses to be overstated.

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

A) assets to be overstated.

B) liabilities to be overstated.

C) capital to be overstated.

D) revenue to be overstated.

 

14) The posting reference column on the general journal:

A) shows which transactions have been posted to the ledger.

B) displays to which accounts the transactions have been posted.

C) allows us to cross reference to the general ledger.

D) All of the above are correct.

 

15) The posting reference column in the journal is used for:

A) recording the source documents identification number.

B) recording the account number to which the entry was posted.

C) recording the time when the entry was posted.

D) recording the initials of the person who did the posting.

 

16) The proper sequence used in recording a business transaction is:

A) analyze, post, journalize, record the account balance, and complete the reference column in the journal.

B) analyze, journalize, post, record the account balance, and complete the reference column in the journal.

C) analyze, journalize, post, complete the reference column in the journal, and record the account balance.

D) journalize, analyze, post, record the account balance, and complete the reference column in the journal.

 

 



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