165.Randomly listed below are the steps for preparing a trial balance: (1)Verify that the total of the Debit column equals the total of the Credit column. (2)List the accounts from the ledger and...

165.Randomly listed below are the steps for preparing a trial balance:

(1)Verify that the total of the Debit column equals the total of the Credit column.

(2)List the accounts from the ledger and enter their debit or credit balance in the Debit orCredit column of the trial balance.

(3)List the name of the company, the title of the trial balance, and the date the trial balanceis prepared.

(4)Total the Debit and Credit columns of the trial balance.

What is the proper order of these steps?a. (3), (2), (4), (1)

b. (2), (3), (4), (1)

c. (3), (2), (1), (4)

d. (4), (3), (2), (1)

166.A trial balance is prepared to

a.prove that there were no errors made in recording transactions into the journal

b.prove that no errors were made in posting to the ledger

c.prove that each account balance is correct

d.discover errors that affect the equality of debits and credits

167.The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Prepare a trial balance. The total of the debits isa. $13,900

b. $11,200

c. $12,700

d. $9,700

168.Of the following, which is an internal report that will determine if debit balances equal credit balances in theledger?

a.chart of accounts

b.income statement

c.trial balance

d.account reconciliation

169.An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimmingemployee. When Jamison receives cash from the employee for the amount of the overpayment, which of thefollowing entries will Jamison make?

a.Cash, debit; Wages Expense, credit

b.Wages Payable, debit; Wages Expense, credit

c.Wages Expense, debit, Cash, credit

d.Cash, debit; Wages Payable, credit

170.If the two totals of a trial balance are not equal, it could be due to

a.failure to record a transaction

b.recording the same erroneous amount for both the debit and the credit parts of a transaction

c.an error in determining the account balances, such as a balance being incorrectly computed

d.recording the same transaction more than once

171.When a transposition error is made on the trial balance, the difference between the debit and credit totals on thetrial balance will be

a.zero

b.twice the amount of the transposition

c.one-half the amount of the transposition

d.divisible by 9

172.Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

a.A transaction was not posted.

b.A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 toCash.

c.A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450to Cash.

d.Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 toAccounts Payable.

173.Which of the following errors will cause the trial balance totals to be unequal?

a.posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted

b.failure to record a transaction or to post a transaction

c.recording the same transaction more than once

d.recording the same erroneous amount for both the debit and the credit parts of a transaction

174.The trial balance is out of balance and the accountant suspects that a transposition or slide error hasoccurred. What will the accountant do to confirm this suspicion?

a.Determine the amount of the error and look for that amount on the trial balance.

b.Determine the amount of the error and divide by two, then look for that amount on the trial balance.

c.Determine the amount of the error and refer to the journal entries for that amount.

d.Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error islikely.

175.The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit toAccounts Receivable for $500. The correcting entry would include a:

a.credit to Accounts Receivable for $500b. credit to Accounts Receivable for $1,000

c.credit to Accounts Payable for $500d. credit to Accounts Payable for $1,000

176.Which of the following is
nota useful step in finding errors on the trial balance?

a.Determine the difference between debits and credits and look for the amount.

b.Determine the difference between debits and credits and change any account to make the trial balancecorrect.

c.Determine the difference between debits and credits, divide the amount by 2, and look for the amount.

d.Determine the difference between debits and credits, divide the amount by 9, and if it divides evenly, look fora transposition or slide error.

177.All of the following statements regarding a horizontal analysis are true
except:

a.A horizontal analysis is used to compare an item in a current statement with the same item in priorstatements.

b.A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement ofcash flows.

c.If fees earned in Year 1 are $125,000 and fees earned in Year 2 are $143,750, a horizontal analysis willindicate a 15% increase over this period.

d.When two statement s are compared in horizontal analysis, the earlier statement is used as the base forcomputing the amount and the percent of change.

178.McNally Industries has a condensed income statement as shown.

Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

a. $32,500, 19.6%b. $18,000, 10.9%

c. $35,000, 17.7%d. $17,000, 9.4%

179.Richardson Company has a condensed income statement as shown.

Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

a. $(17,000), (11.3%)b. $(15,500), (10.3%)

c. $(18,000), (10.9%)d. $(15,500), (9.4%)