learning objective 2 5 1 in a trial balance total debits are always equal to total c 4311583

Learning Objective 2-5

1) In a trial balance, total debits are always equal to total credits.

2) The trial balance is generally used only inside the business and is not published with the other financial statements.

3) A trial balance summarizes a ledger by listing all the accounts with their ending balances.

4) Which of the following is a method used to detect errors when the two columns of the trial balance are NOT equal?

A) Compute the difference in the columns and search the trial balance for a transposition error or a slide error if the difference is evenly divisible by 9.

B) Compute the difference in the columns, divide the difference between total debits and total credits by 2 and search for a debit shown as a credit, or vice versa.

C) Compute the difference in the columns and search for a missing account with that balance.

D) All of the above are suggested methods for detecting errors.

5) A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will cause which of the following conditions on the trial balance?

A) The sum of the credits will equal the sum of the debits.

B) The sum of the debits will exceed the sum of the credits by $75.

C) The sum of the debits will exceed the sum of the credits by $150.

D) The sum of the credits will exceed the sum of the debits by $150.

6) A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250.  Which of the following statements about the trial balance is TRUE?

A) The sum of the credits will exceed the sum of the debits by $270.

B) The sum of the debits will exceed the sum of the credits by $250.

C) The sum of the debits will exceed the sum of the credits by $270.

D) The trial balance will be in balance; the sum of the credits will equal the sum of the debits.

7) A trial balance lists accounts in which order?

A) Assets, Liabilities, Revenues, Expenses, Stockholders' equity

B) Assets, Expenses, Liabilities, Revenues, Stockholders' equity

C) Assets, Revenues, Liabilities, Expenses, Stockholders' equity

D) Assets, Liabilities, Stockholders' equity, Revenues, Expenses

8) When is a trial balance usually prepared?

A) After each entry is journalized

B) Before financial statements are prepared

C) After financial statements are published

D) At the beginning of an accounting period

9) Which of the following statements CORRECTLY describes a trial balance?

A) A trial balance is the first step in the accounting cycle.

B) A trial balance is also known as a balance sheet.

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

D) A trial balance is also known as the chart of accounts.

10) The last step before preparing financial statements is to:

A) post all entries.

B) record all transactions in the journal.

C) prepare the trial balance.

D) review source documents.

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