41 the chart of accounts a is a numbered list of all of the business 39 accounts b a 4303054

 

41) The chart of accounts:

A) is a numbered list of all of the business' accounts.

B) allows accounts to be located quickly.

C) can be expanded as the business grows.

D) All of the above are correct.

 

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

A) assets to be understated.

B) liabilities to be overstated.

C) capital to be understated.

D) None of the above are correct.

 

43) The business incurred an expense and paid it immediately. To record this:

A) an expense is debited and a liability is credited.

B) an expense is debited and an asset is credited.

C) an expense is debited and Capital is credited.

D) None of these are correct.

44) The business provided services to a cash customer. To record this:

A) an asset is debited and a liability is credited.

B) an asset is debited and a revenue is credited.

C) an expense is debited and Capital is credited.

D) None of these are correct.

 

45) The owner invested personal equipment in the business. To record this transaction:

A) debit Equipment and credit Accounts Payable.

B) debit Accounts Payable and credit Equipment.

C) debit Equipment and credit Capital.

D) credit Equipment and debit Capital.

 

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

A) An entry is posted twice.

B) An entry is not posted at all.

C) A debit is entered as $200 and the credit is entered at $2,000.

D) None of these answers are correct.

 

47) The business bought supplies on account. To record this:

A) an expense is debited and a liability is credited.

B) an asset is debited and an asset is credited.

C) an asset is debited and a liability is credited.

D) None of these are correct.

48) A liability would be credited and an expense debited if:

A) the business paid a creditor.

B) the business incurred an expense and did not pay the expense immediately.

C) the business bought supplies on account.

D) the business bought supplies for cash.

 

49) One asset would be debited and another credited if:

A) the business provided services to a cash customer.

B) the business paid a creditor.

C) the business bought supplies paying cash.

D) the business provided services to a credit customer.

 

50) An asset would be debited and a liability credited if:

A) the business bought supplies for cash.

B) the business incurred an expense and paid it.

C) the business incurred an expense and did not pay for the expense immediately.

D) the business bought equipment on account.