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The balance day adjustment for salaries accrued of $1,100 is:   Dr salaries expense $1,100; Cr salaries payable $1,100. Dr salaries expense $1,000; Dr GST paid $100; Cr expense accrued $1,100. Dr expense accrued $1,100 Cr; salaries expense $1,100. Dr expense accrued $1,100; Cr salaries expense $1,000; Cr GST paid $100.

The balance day adjustment for salaries accrued of $1,100 is:   Dr salaries expense $1,100; Cr salaries payable $1,100. Dr salaries expense $1,000; Dr GST paid $100; Cr expense accrued $1,100. Dr expense accrued $1,100 Cr; salaries expense $1,100. Dr expense accrued $1,100; Cr salaries expense $1,000; Cr GST paid $100.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.21E: Adjustments for unearned and accrued fees The balance in the unearned fees account, before...
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Part A : Multiple Choice Questions

 

  1. The balance day adjustment for salaries accrued of $1,100 is:

 

  1. Dr salaries expense $1,100; Cr salaries payable $1,100.
  2. Dr salaries expense $1,000; Dr GST paid $100; Cr expense accrued $1,100.
  3. Dr expense accrued $1,100 Cr; salaries expense $1,100.
  4. Dr expense accrued $1,100; Cr salaries expense $1,000; Cr GST paid $100.

 

  1. Which of the following items decreases the balance in the accounts receivable?

 

  1. Cash paid to creditors
  2. Discounts received
  3. Credit sales
  4. Discounts allowed

 

  1. Which of the following statements is not true?

 

  1. Expense is the amount incurred or paid in earning the revenue and running the business.
  2. Expenses includes the cost of goods sold (that is, the cost of the goods or inventory that have been sold).
  3. The expense account should be credited when an expense is incurred.
  4. Wages, electricity and motor vehicle expenses are all examples of expenses.

 

  1. If inventory was purchased for $2 288 inclusive of GST, what would the GST amount be?

 

  1. $22.88
  2. $229.00
  3. $208.00
  4. $20.80

 

  1. In a credit sale of inventory using the perpetual inventory method, which of the following accounts is not affected?

 

  1. Inventory
  2. GST payable
  3. Accounts receivable control
  4. GST receivable

 

 

 

 

 

  1. The business hires an office manager at $700 a week. The immediate effect on the

         accounting equation is to:

  1. increase equity by $700 and decrease the asset cash by $700.
  2. decrease the asset cash by $700 and decrease equity by $700.
  3. no effect as this is not a business transaction.
  4. increase wages by $700 and decrease equity by $700.

 

  1. An invoice for $275 has been overdue for two months and the terms of trading stated that 15% p.a. interest would be charged for late payments. How much interest is to be added for late payment?

 

  1. $ 13
  2. $41.25
  3. $ 88
  4. $68.80

 

  1. Which of the following statement is not correct?

 

  1. Employees who approve the payment should not also prepare cheques 
  2. Control relies heavily on separation of record keeping and custodianship
  3. Making all payments by electronic transfer or by cheques is necessary for a good      internal control system.
  4. All of the statements are correct.

 

  1. When the petty cash imprest system is established:

 

  1. the bank account is debited.
  2. the petty cash account is credited.
  3. the bank account is debited and the petty cash account is credited.
  4. the bank account is credited and the petty cash account is debited.

 

  1. ABC Books has a petty cash imprest of $200. Expenses from petty cash were stationery $110; travel $22; coffee, tea, milk etc. $18; postage $25. If the petty cash is reimbursed, the cheque for reimbursement would be drawn up for:

 

  1. $
  2. $200.
  3. $175.
  4. $159.

 

  1. When special journals are used, a General Journal is

 

  1. still required
  2. not required.
  3. used only to record sales returns and allowances.
  4. used only to record cash deposits of owner investments

 

  1. Purchase journal maintained to record:

 

  1. all credit purchases.
  2. all cash purchases.
  3. all cash and credit purchase of goods.
  4. None of the above

 

 

  1. The balance day adjustment to create an allowance for doubtful debts is:

 

  1. Dr bad debts expense; Cr allowance for bad debts.
  2. Dr bad debts expense; Cr allowance for doubtful debts.
  3. Dr allowance for doubtful debts; Cr doubtful debts expense.
  4. Dr allowance for bad debts; Cr bad debts expense.

 

  1. All cash payments are recorded in:

 

  1. Sales Journal
  2. Cash Payments Journal
  3. Cash Receipts Journal
  4. General Journal

 

  1. Which of the following statements is false with regard to a Cash Receipts Journal?:

 

  1. All receipts of cash from customers should be recorded in it
  2. Receipts of cash from the owner should not be recorded in it
  3. Receipt of cash from cash sales should be recorded in it.
  4. Receipt of cash from borrowing should be recorded in it.

 

  1. On balance day, a physical inventory count and cost was $10,250, and the market value of inventory was $10,180. At what figure will the inventory be shown in the balance sheet?

 

  1. $10,250
  2. $10,180
  3. $10,215
  4. None of the above.

 

  1. When preparing a bank reconciliation statement and the closing bank statement balance is an overdraft, we begin with the balance in the bank statement and then:

 

  1. add unpresented cheques and deduct outstanding receipts.
  2. add outstanding receipts and deduct unpresented cheques.
  3. add all receipts and deduct all payments.
  4. add all payments and deduct all receipts.

 

  1. The difference between the bank statement balance and the balance in Bank account in the general ledger may be due to:

 

  1. unpresented payments.
  2. outstanding receipts.
  3. errors done by the bank and the entity.
  4. all of the choices given.

 

  1. Adjusting entries are recorded:

 

  1. only on the work sheet.
  2. only in the general ledger.
  3. only in the general journal.
  4. in any of the special journals.

 

 

 

 

  1. The balance in the profit and loss account is transferred to the:

 

  1. profit and loss account.
  2. capital account.
  3. bank account.
  4. drawings account.

 

 

___________________________________________________________________________

 

 

Give your answers to Multiple Choice Questions in the following table:

 

Question

Answer

Question

Answer

Question

Answer

Question

Answer

Q1

 

Q6

 

Q11

 

Q16

 

Q2

 

Q7

 

Q12

 

Q17

 

Q3

 

Q8

 

Q13

 

Q18

 

Q4

 

Q9

 

Q14

 

Q19

 

Q5

 

Q10

 

Q15

 

Q20

 

 

 

 

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