Question

Quick accounting questions!

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All accounting systems currently in use are computerized Select one True False The amounts in the Adjustments Columns are always added to the amounts in the Trial Balance columns to determine the amounts in the Adjusted Trial Balance columns Select one True False If the Balance Sheet columns do not balance, the error is most likely to exist in the Select one or more a Last six columns of the worksheet b. First six columns of the work sheet c General ledger Od General journal Which of the following statements is false regarding the closing process? Select one or more a. The income Summary account is closed to the Retained Earnings account b. The closing of expense accounts results in a debit to Income Summary O c The Dividends account is closed to Income Summary d. The closing of revenues results in a credit to Income Summary Which of the following accounts is least likely to be adjusted on the work sheet? Select one or more a Unearned Delivery Fees b. Land Dc Supplies on Hand d. Prepaid Rent Immaterial items do not have to be recorded at all Select one True O False

Answer 1

1. The statement is true.

2. The statement is false.

3. The adjusted trial balance columns should balance before items are segregated to Statement of account, retained earnings and balance sheet columns. Thus if the balance sheet columns do not balance, the error is likely to exist in the last six columns of the work sheet. Hence the correct option is (a).

4. The dividends account is closed to Retained earnings account than Income summary. Hence correct option is (c).

5. Land can be adjusted only if there is an error involving that account. The other accounts are all likely to be adjusted. Hence (b) is the correct option.

6. Immaterial items need not be disclosed and need not be recorded at all. Hence the statement is true.