Chapter 4

Question 0

What does the trial balance do

Answer 0

Checks the accuracy of the ledger

Question 1

An accounts payable having a debit balance is an example of what kind of situation

Answer 1

Exceptional situation or account

Question 2

Tf. Accounting balances are called pencil footings

Answer 2

False

Question 3

Tf. Accounts payable would normally have a debit balance

Answer 3

False

Question 4

Tf. When a trial balance is out of balance it means there have been too many debit or credit entries

Answer 4

False ( could be other stuff)

Question 5

Tf money received from a debtor to reduce the amount owed is called a receipt on account

Answer 5

True

Question 6

Tf liabilities increase on the debit side

Answer 6

False

Question 7

Tf. Accounting software like sage simply accounting software, has made manual accounting unnecessary

Answer 7

False

Question 8

Tf. Capital would normally have a credit balance

Answer 8

True

Question 9

Tf the terms account and ledger are the same and may be used interchangeably

Answer 9

False

Question 10

Tf an asset cannot have a credit balance

Answer 10

False

Question 11

Tf pin totals are circled in the t accounts

Answer 11

False

Question 12

Tf the beginning balance of an asset account is placed on the right side of a t account

Answer 12

False