21) If a posting error has occurred when recording a transaction by posting a debit as a credit, then the out-of-balance amount will be evenly divisible by:
22) If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?
A) Tracing each account back and forth from the journal to the ledger
B) Divide the out-of-balance amount by 2
C) Divide the out-of-balance amount by 9
D) Analyzing the financial statements
23) A trial balance shows total debits of $540,000 and total credits of $450,000. This discrepancy is most likely due to which type of error?
D) Failure to post a transaction
24) A chart of accounts:
A) is used by an organization to determine the balance in all of their accounts.
B) lists all of the accounts of an organization in alphabetical order.
C) must be the same for all organizations.
D) lists all of an organization's accounts and account numbers.
25) If the total debits and the total credits of a trial balance are not equal, the error could be due to:
A) recording the same transaction twice.
B) recording both the debit and credit of the journal entry for the same incorrect amount.
C) an error in determining an account balance.
D) forgetting to record a transaction.
26) Which of the following statements regarding a trial balance is TRUE?
A) A trial balance may be taken at any time during the accounting period.
B) A trial balance is a list of all accounts with their balances.
C) A trial balance shows that total debits equals total credits.
D) All of the above are true.
27) A trial balance has which of the following features?
A) Totals for balance sheet accounts only
B) Totals for income statement accounts only
C) Totals for all accounts listed in the ledger
D) Totals for all asset and liability accounts only
28) Which of the following is a correct statement about a chart of accounts?
A) It is used only by service corporations.
B) It can be used to determine the balance in an account.
C) It is a tool used by accountants to help prepare the financial statements.
D) It lists the asset accounts first.
29) When setting up the numbering system for a company's chart of accounts:
A) the account numbers generally have four or more digits.
B) asset accounts will begin with the number 5.
C) revenue accounts will begin with the number 4.
D) there cannot be a gap between account numbers.
30) A trial balance has total debits of $720,000 and total credits of $850,000, with a debit balance of $65,000 for notes payable. This situation indicates:
A) a slide.
B) an incorrect posting.
C) a transposition.
D) that none of the above are correct.