2.3-33 The entry to record an owner investment of $600 into the business would be:
C. D.
Answer: D
Cash Common Stock LO: 2-3
Diff: 1
Cash Service Revenue 600 600 EOC: E2-16
A. B.
Cash Dividends 600 600 Dividends Cash 600 600 600 600 2.3-34 The entry to record the payment of $925 to a supplier for office supplies previously purchased on account
would be:
C. D. A. B.
Cash Accounts Payable Accounts Payable Cash Office Supplies Expense 925 Cash Office Supplies Expense 925 Accounts Payable
LO: 2-3
Diff: 2 925 925 925 925 925 925 EOC: E2-16
Answer: B
2.3-35 The normal balance of an expense account is a _____ because expenses decrease _______.
A. debit, assets B. debit, expenses
C. debit, stockholders’ equity D. credit, stockholders’ equity Answer: C
LO: 2-3
Diff: 2
EOC: E2-21
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2.3-36 The normal balance of the Dividends account is a _______ because it decreases _______. A. debit, assets B. debit, expenses
C. debit, stockholders’ equity
D. credit, stockholders’ equity Answer: C
LO: 2-3
Diff: 2
EOC: P2-50A
2.3-37 The normal balance of a revenue account is a ________ because revenues increase ________ . A. debit, assets B. debit, expenses
C. debit, stockholders’ equity
D. credit, stockholders’ equity Answer: D
LO: 2-3
Diff: 2
EOC: E2-21
2.3-38 A trial balance is: A. prepared before the posting process is completed. B. a list of all accounts with their balances.
C. a list of balance sheet accounts with their balances.
D. a list of income statement accounts with their balances. Answer: B
LO: 2-4
Diff: 2
EOC: E2-19
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2.3-39 The trial balance is used to determine 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 increases in accounts equal total decreases in accounts. Answer: B
LO: 2-4
Diff: 2
EOC: S2-8
2.3-40 If the debit amount of an entry to record the purchase of supplies on account was not posted,:
A. assets would be understated. B. assets would be overstated. C. liabilities would be understated. D. liabilities would be overstated. Answer: A
LO: 2-3
Diff: 3
EOC: E2-25
2.3-41 If a posting 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. Answer: C
LO: 2-4
Diff: 2
EOC: QC 12
2.3-42 A trial balance prepared by an inexperienced accountant showed total debits of $360,000 and total credits
of $36,000. This discrepancy is most likely due to which type of error?
A. Slide B. Transposition C. Mislabeling
D. Failure to post a transaction Answer: A
LO: 2-4
Diff: 2
EOC: S2-10
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2.3-43 A trial balance prepared by an inexperienced accountant showed total debits of $540,000 and total credits
of $450,000. This discrepancy is most likely due to which type of error? A. Slide B. Transposition C. Mislabeling
D. Failure to post a transaction Answer: B
LO: 2-4
Diff: 2
EOC: S2-10
2.3-44 If the credit amount of an entry to record the payment of salaries was not posted,: A. assets would be overstated and owners’ equity would be overstated.
B. liabilities would be understated and owners’ equity would be overstated. C. expenses would be understated and owners’ equity would be understated.
D. there would be no effect on stockholders’ equity. Answer: D
LO: 2-3
Diff: 3
EOC: E2-25
2.3-45 Which of the following statements regarding a trial balance is TRUE? A. A trial balance may be taken at any time during the accounting period. B. A trial balance is a list of all accounts with their balances. C. A trial balance shows that total debits equals total credits.
D. All of the above is true. Answer: D
LO: 2-4
Diff: 2
EOC: S2-8
2.3-46 A trial balance has which of the following features? A. totals for balance sheet accounts only B. totals for income statement accounts only C. totals for all accounts listed in the ledger
D. both A and B are correct Answer: C
LO: 2-4
Diff: 2
EOC: E2-25
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2.4-1 A chart of accounts is organized in the alphabetical order of the accounting equation—with assets first, followed by expenses, liabilities, owners’ equity, and revenues—because using numbers can be very complicated.
Answer: False LO: 2-4 Diff: 1 EOC: E2-19 2.4-2 When the trial balance is out of balance due to a transposition error, the difference between total debits
and total credits will be evenly divisible by 2.
Answer: False LO: 2-4 Diff: 2 EOC: S2-10 2.4-3 When the trial balance is out of balance due to a slide-type error, the difference between total debits and
total credits will be evenly divisible by 9.
Answer: False LO: 2-4 Diff: 2 EOC: QC 12 2.4-4 When the trial balance is out of balance due to an incorrect posting of a debit or a credit, the difference is
evenly divisibly by 2.
Answer: True
LO: 2-4
Diff: 2
EOC: S2-10
2.4-5 If the payment of a utilities bill is not posted, assets will be overstated.
Answer: True LO: 2-4 Diff: 2 EOC: E2-22
2.4-6 The normal balance for any account is always the side of the account (debit or credit) where the largest
amount is found.
Answer: False LO: 2-4 Diff: 2 EOC: S2-11 2.4-7 The T-account is a tool for visualizing business transactions and usually can be easily prepared.
Answer: True
LO: 2-4
Diff: 2
EOC: S2-7
2.4-8 The normal balance of Accounts Receivable is a ________because it is a(n) ________account.
A. credit, liability
B. debit, asset
C. credit, stockholders’ equity D. debit, expense Answer: B
LO: 2-4
Diff: 2
EOC: S2-9
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