Question

Which of the following statements are true?

Answer 1

1) the trial balance is a list of all accounts from the ledger with their balances at a point in time.

Because trial balance shows the ending balance bof every account.

So the option is (e)

2) cash balance at the beginning = closing cash balance + cash disbursement - cash receipts

Cash balance at the beginning =1900 + 8950 - 7800

Cash balance at the beginning = $3050

So the option is (a)

3) Amount of revenue in July = 1300 + 575

= $1875

Only these services which are provided in July for cash and on credit are taken.

Other services like point b,e are not related to any services provided by us i.e. we didn't take it.

And point c revenue is already booked in June but we are receiving it in july, so we didn't count it again.

And point f is related with future services i.e. it is advance received against the service, and actual services are not provided in the month of July, so we will not take it.

So the option is (c)

4) debt ratio = liabilities/ total assets

= 175/555

Debt ratio = 31.5%

So the option is (c)

5) amount of credit sales during may

Opening balance + credit sales - credits to accounts receivable = closing balance

Credit sales = closing balance + credits to account receivable - opening balance

Credit sales = 16150 + 62500 - 22200

Credit sales = $56450

So the correct option is option (b)

6) cash account balance = opening balance - supplies purchases - bill of rent - wages paid + billed customer for services

Cash account balance = 110500 - 24900 - 2690 - 1010 + 1600

Cash balance = $83500

Option (e) is correct

7) Service revenue account balance= perform service and left a bill+ perform service and billed customer + performed service on account - get partial payment

Service revenue = 5000+ 2400+7200-1700

Service revenue = $12900

So the correct option is (d)

Note:-

Service performed and collected immediately are not taken into this. Because the payment is collected immediately and no liability arises, hence we didn't take it in service revenue.

8) In this question the actual credit sales is $28 but it is recorded as $2800.

So it is overstated by 2800 - 28 = $2772

This means that option (e) is correct.

Sales is overstated by $2772.

9) totol assets = cash + supplies+ prepaid rent + accounts receivable + office equipment+ shaving equipment

Total assets = 141140+1850+3900+27000+28200+38290

Total assets = $240380

So option (b) is correct