2.6 Learning Objective 2-6
1) Accounts are listed in random order in a trial balance.
2) A trial balance is one of a company's major financial statements.
3) Although a trial balance can be prepared at any time, the most common time is at the end of the accounting period.
4) When a trial balance is out of balance due to a transposition error, the difference between total debits and total credits will be evenly divisible by 2.
5) When a trial balance is out of balance due to a slide-type error, the difference between total debits and total credits will be evenly divisible by 9.
6) A bookkeeper posted the same journal entry twice. This will cause the trial balance to be out of balance.
7) The financial statements can be prepared from the trial balance.
8) The normal balance of an expense account is a ________ because expenses decrease ________.
A) debit, assets
B) debit, expenses
C) debit, Retained Earnings
D) credit, Retained Earnings
9) The normal balance of an account:
A) falls on the side where decreases are recorded.
B) falls on the side where increases are recorded.
C) must be computed after every transaction.
D) cannot be computed in a manual accounting system.
10) The normal balance of a revenue account is a ________ because revenues increase ________.
A) credit, assets
B) debit, expenses
C) debit, Retained Earnings
D) credit, Retained Earnings