Reference no: EM132782475

Problem 1: Which of the following statements regarding a trial balance is incorrect?

Option 1: A trial balance helps to localize errors within an identifiable time period.
Option 2: A trial balance is a test of the equality of the debit and credit balances in the ledger.
Option 3: A trial balance is a list of all of the open accounts in the ledger with their balances as of a given date.
Option 4: A trial balance proves that no errors of any kind have been made in the accounts during the accounting period.

Problem 2: A simple journal entry

Option 1: consists of two debits and one credit.
Option 2: consists of one debit and two credits.
Option 3: is a memorandum entry.
Option 4: consists of one debit and one credit.

Problem 3: The Posting Reference column in the ledger shows that an item has been posted when which of the foilowing is placed in it?

Option 1: An "X"
Option 2: The account number
Option 3: The journal page number
Option 4: A check mark

Problem 4: Which of the following transactions does not affect the balance sheet totals?

Option 1: Purchasing P50,000 supplies on account
Option 2: Collecting P40,000 from customers on account
Option 3: Paying a P300,000 note payable
Option 4: Withdrawal of PB0,000 by the firm's owner