The balance in an expense account is closed to a(n)
a. capital account.
b. revenue account.
c. drawing account.
d. income summary account.
Prepare a corrected trial balance by changing incorrect amounts and placing each
amount in the proper column.
a. Be sure all accounts have been listed with the appropriate debit or credit balance and
check column totals.
b. The debits to the Cash account are $36,796, and the credits are $29,009.
c. A $600 payment to a creditor was entered in the journal, but was not posted to the
Accounts Payable account. Cash was properly posted.
d. The Advertising Expense total has a transposition error of $81.
e. Accounts Receivable contains a slide error.
A special form of receipt showing the name of the payee, the purpose of the payment,
and the account to be charged for each petty cash payment is known as a
a. petty cash voucher.
b. petty cash check.
c. petty cash document.
d. petty cash register.
The amount reported in the Balance Sheet columns of the work sheet for the owner’s
capital represents the
a. ending balance that should be reported on the balance sheet.
b. beginning balance.
c. beginning balance plus additional investments.
d. beginning balance less withdrawals.
The fourth pair of columns on a 10-column work sheet prepared at the end of the period
would be the
a. Income Statement columns.
b. Adjustments columns.
c. Balance Sheet columns.
d. Adjusted Trial Balance columns.
Because the first formal accounting record of a transaction is made in a journal from
source document information, a journal is commonly referred to as a(n)
a. ledger.
b. account.
c. cross-reference.
d. book of original entry.
The debits and credits to Cash in the combination journal are posted
a. daily.
b. weekly.
c. at the end of the accounting period.
d. after each transaction.
Employers usually prepare which of the following types of payroll records?
a. payroll register, employee earnings record, and payroll check
b. payroll register, payroll ledger, and employee earnings record
c. payroll journal, employee earning record, and payroll ledger
d. employee earning record, payroll check, and payroll ledger
What is the purpose of the post-closing trial balance?
a. to prove no errors were made while recording entries in the journal
b. to prove the equality of the debit and credit balances in the general ledger accounts
c. to prove the closing entries were recorded correctly in the journal
d. to prove the balances in the general ledger accounts are correct
A net loss is shown on the work sheet as a(n)
a. debit in the Balance Sheet columns.
b. credit in the Balance Sheet columns.
c. debit and a credit in the Balance Sheet columns.
d. adjustment to owner’s equity.
The journal entry to close revenue accounts includes
a. debiting the revenue accounts and crediting Income Summary.
b. debiting Income Summary and crediting the revenue accounts.
c. debiting the revenue accounts and crediting Cash.
d. debiting the revenue accounts and crediting the drawing account.
The Fair Labor Standards Act provides which of the following minimum rates to be
paid to employees for all hours worked over 40 hours per week?
a. one and one-half times the regular rate
b. same rate as the regular rate
c. two and one-half times the regular rate
d. two times the regular rate
The account to which revenue and expenses are closed is called
a. Cash.
b. Drawing.
c. Income Summary.
d. Net Income.
Journal entries requiring more than one debit and/or one credit are called
____________________.
Depreciation expense is recorded for a specific period of time.
The amount an item can be sold for under normal economic conditions is the
____________________.
Pension payments are required deductions from an employee’s gross earnings.
Jesse made a cash purchase of computer printer cartridges to last for about three
months; this transaction increased Supplies and decreased Cash.
Many small professional service businesses use the modified cash basis of accounting.
If the difference between the debits and credits of a trial balance is divisible by nine,
you may have committed a(n) ____________________ or a(n)
____________________ error.
____________________ accounts accumulate information across accounting periods
and are reported on the balance sheet.
One who assumes all risks for the business and whose personal assets can be taken to
pay creditors is called a(n) ____________________.
The depositor who orders the bank to pay a certain amount of money is known as the
drawee.