ACC 290 Week 3 Practice Connect Knowledge Check (2019 New)

Complete the Week 3 Knowledge Check in Connect.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don't worry, this might happen after your due date.

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:

Multiple Choice

•  

a debit to Equipment for $100 and a credit to Accounts Payable for $400.

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debit to Equipment for $500 and a credit to Cash for $500.

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a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

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a debit to Equipment for $100 and a credit to Cash for $100.

Which of the following statements is CORRECT?

Multiple Choice

•  

Compound entries include only debits.

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Accounts being debited should always follow the accounts being credited in a compound entry.

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Compound entries affect more than one debit and/or more than one credit.

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All transactions require compound entries.

The account numbers from the ledger are recorded in the Posting Reference column of the general journal:

Multiple Choice

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after each amount is posted.

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as the transaction is journalized.

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after all entries on the journal page have been posted.

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as the first amount written in the journal.

The journal entry to record the performance of services for cash would include:

Multiple Choice

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a debit to Fees Income and a credit to Cash.

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a debit to Cash and a credit to Accounts Receivable.

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a debit to Cash and a credit to Fees Income.

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a debit to Accounts Receivable and a credit to Cash.

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

•  

the journal

•  

the source document

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the ledger

•  

the chart of accounts

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Multiple Choice

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Debit Cash; Credit Utilities Expense

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Debit Accounts Payable; Credit Cash

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Debit Utilities Expense; Credit Accounts Payable

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Debit Utilities Expense; Credit Cash

Transactions in a journal are initially recorded in:

Multiple Choice

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alphabetical order.

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dollar amount order.

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chronological order.

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randomly.

When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.

Multiple Choice

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After posting a transaction, the new balance in an account can be seen in the general ledger.

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The process of transferring data from the journal to the ledger is called posting.

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All transactions are recorded first in the general journal and then they are transferred to the general ledger.

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All transactions are recorded first in the general ledger and then they are transferred to the journal.

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

•  

All transactions are recorded first in the general ledger and then they are journalized in the journal.

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All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.

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An explanation is indented and entered on the line underneath the last credit in the entry.

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No dates are used in the journal.

Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

Multiple Choice

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$20,560

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$23,760

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$22,160

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$25,360

Which of the following statements is NOT correct?

Multiple Choice

•  

If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.

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The description of a journal entry should include a reference to the source of the information contained in the entry.

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The credit portion of a general journal entry is always recorded first.

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A firm should be able to trace amounts through the accounting records and back to their source documents.

Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice

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Debit Accounts Receivable $1,350; credit Cash $1,350

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Debit Fees Income $1,350; credit Cash $1,350

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Debit Cash $1,350; credit Accounts Receivable $1,350

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Debit Accounts Receivable $1,350; credit Fees Income $1,350

The journal entry to record the payment of the monthly rent would include:

Multiple Choice

•  

a debit to Rent Expense and a credit to Cash.

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a debit to Capital and a credit to Cash.

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a debit to Rent Expense and a credit to Capital.

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a debit to Rent Expense and a credit to Accounts Receivable.

Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

rev: 12_08_2017_QC_CS-111818

Multiple Choice

•  

Debit Fees Income $2,500; Credit Accounts Receivable $2,500

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Debit Cash $1,000; Credit Fees Income $1,000

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Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500

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Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500

Which of the following statements is CORRECT?

Multiple Choice

•  

Some companies use the general ledger instead of a general journal.

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The general ledger contains the accounts that are used to prepare the financial statements.

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When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.

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When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

The accounts on the Trial Balance are always listed in the following order:

Multiple Choice

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Assets, Liabilities, Equity, Revenue, Expense

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Assets, Equity, Expense, Liabilities, Revenue

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Expense, Revenue, Equity, Liabilities, Assets

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Assets, Expense, Liabilities, Equity, Revenue

If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:

Multiple Choice

•  

the ledger

•  

the chart of accounts

•  

the source document

•  

the journal

On December 5, Honor Consulting Services issued a check to purchase $1,800 of office equipment. The journal entry to record this transaction is:

Multiple Choice

•  

Office Equipment $ 1,800  

Accounts Receivable $ 1,800

________________________________________

•  

Cash $ 1,800  

Accounts Payable $ 1,800

________________________________________

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Office Equipment $ 1,800  

Cash $ 1,800

________________________________________

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Cash $ 1,800  

Office Equipment $ 1,800

________________________________________

Which of the following statements is CORRECT?

Multiple Choice

•  

If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.

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If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

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All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

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If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

On December 1, the Accounts Receivable account had a $22,000 debit balance.  During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

•  

a $24,700 credit balance.

•  

a $23,700 credit balance.

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a $19,300 debit balance.

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a $24,700 debit balance.

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice

•  

Debit Shop Equipment $4,500; credit Office Equipment $4,500

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Debit Office Equipment $4,500; credit Shop Equipment $4,500

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Debit Cash $4,500; credit Shop Equipment $4,500

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Debit Office Equipment $4,500; credit Cash $4,500

The general ledger accounts are usually arranged in the following order:

Multiple Choice

•  

first the temporary accounts, then the permanent accounts.

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first the accounts with debit balances, then the accounts with credit balances.

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first the accounts used most often, then those used less frequently.

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first the balance sheet accounts, then the income statement accounts.

A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

Multiple Choice

•  

a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000.

•  

a debit to Equipment for $15,000 and a credit to Cash for $15,000.

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a debit to Equipment for $1,000 and a credit to Cash for $1,000.

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a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000.

On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is:

Multiple Choice

•  

Equipment $ 2,000  

Accounts Payable $ 8,000

________________________________________

•  

Equipment $ 8,000  

Cash $ 8,000

________________________________________

•  

Equipment $ 8,000  

Cash $ 2,000  

Accounts Payable $ 10,000

________________________________________

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Equipment $ 10,000  

Cash $ 2,000

Accounts Payable $ 8,000

________________________________________

Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:

Multiple Choice

•  

Debit Utilities Expense; Credit Accounts Payable

•  

Debit Accounts Payable; Credit Cash

•  

Debit Utilities Expense; Credit Cash

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Debit Cash; Credit Utilities Expense

The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:

Multiple Choice

•  

a $13,000 debit balance.

•  

a $3,000 debit balance.

•  

a $27,000 debit balance.

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a $17,000 debit balance.

Which of the following statements is CORRECT?

Multiple Choice

•  

All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

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If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.

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If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

•  

If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

On December 1, the Accounts Receivable account had a $22,000 debit balance.  During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:

Multiple Choice

•  

a $24,700 debit balance.

•  

a $19,300 debit balance.

•  

a $23,700 credit balance.

•  

a $24,700 credit balance.

When an entry is made in the general journal,

Multiple Choice

•  

the first account entered should be indented.

•  

asset accounts should be indented.

•  

the accounts to be credited should be indented.

•  

liability, capital, and revenue accounts should be indented.

When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.

Multiple Choice

•  

All transactions are recorded first in the general ledger and then they are journalized in the journal.

•  

No dates are used in the journal.

•  

An explanation is indented and entered on the line underneath the last credit in the entry.

•  

All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.