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A trial balance is a useful device because it provides a check on accuracy by showing whe

 A trial balance is a useful device because it provides a check on accuracy by showing whether:

A) total assets equal total liabilities

B) total debits equal total credits

C) total revenues plus gains equal total expenses plus losses

D) total of all the income statement accounts equals the total of all the balance sheet accounts

12) If the debit amount of an entry to record the purchase of supplies on account was not posted:

A) liabilities would be understated

B) liabilities would be overstated

C) assets would be overstated

D) assets would be understated

13) If a transposition error has occurred when recording a transaction, then the out-of-balance amount will be evenly divisible by:

A) 11

B) 9

C) 2

D) 5

14) If the credit amount of an entry to record the payment of salaries was not posted:

A) expenses would be understated

B) assets would be overstated

C) shareholders' equity would be understated

D) expenses would be overstated

15) Which of the following statements regarding a trial balance is false?

A) A trial balance may be taken at any time the postings are up to date.

B)  A trial balance is a list of all accounts with their balances.

C)  A trial balance is the same as a balance sheet.

D)  A trial balance provides a check on the equality of debits and credits.

16) A trial balance has all of the following features listed below except:

A) a heading

B) subtotals for assets, liabilities, and shareholders' equity

C) totals for both debits and credits

D) accounts listed in order, assets first, followed by liabilities and then shareholders' equity

17) An organization's list of all its accounts and the related account numbers is called a:

A) journal

B) ledger

C) trial balance

D) chart of accounts

18) A chart of accounts is:

A) prepared as the last step in analyzing transactions

B) a source document

C) the same as a trial balance

D) a list of all of the accounts of the organization and their related account numbers

19) A trial balance that is "in balance" proves:

A) the equality of the debits and credits

B) all journal entries were properly posted to the ledger

C) all transactions were properly recorded during the accounting period

D) none of the above

20) When using a three-column account format, the column on the far right is used to show:

A) the debit and credit amounts posted from journal entries

B) the names of the accounts being debited and credited

C) the transactions' date and journal reference

Dec 09 2019 Read more Less More

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