students zone

Chapter 5 - Muliple-choice questions

1. The debit column of the trial balance shows:
   1.   ?    all the expenses and sales accounts
   2.   ?    all the sales and liability accounts
   3.   ?    all the expenses and asset accounts
   4.   ?    all the liability and expenses accounts.
2. When goods are returned to the supplier as faulty:
   1.   ?    a debit entry is made to the sales account
   2.   ?    a credit entry is made to the returns outward account
   3.   ?    a debit entry is made to the returns outward account
   4.   ?    a credit entry is made to the returns outward account and a debit entry is made to the sales account.
3. At the end of an accounting period, a credit on the bank account suggests that:
   1.   ?    assets have increased over the period
   2.   ?    assets have decreased over the period
   3.   ?    there is money in the bank
   4.   ?    there is an overdraft at the bank.
4. At the end of an accounting period, a credit balance outstanding on a stock account suggests that:
   1.   ?    assets have increased over the period
   2.   ?    there has been no change in assets during the period
   3.   ?    assets have decreased over the period
   4.   ?    a bookkeeping error has been made.
5. Which one of the following errors should show in a trial balance:
   1.   ?    if a debit had been made to an asset account instead of an expense account
   2.   ?    if a debit had been made to both an asset account and an expense account
   3.   ?    if both a debit and a credit entry have been omitted
   4.   ?    if a debit and a credit entry have been recorded but in the wrong accounts.
6. At the end of an accounting period a trial balance:
   1.   ?    must always balance first time
   2.   ?    will never balance if entries have been made to the wrong accounts
   3.   ?    will balance once any arithmetical errors have been corrected
   4.   ?    will balance if the figures are transposed.