Journalizing and Posting Transactions Flashcards
7 cards from real CPB / BookKeeping practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Journalizing and Posting Transactions flashcards as text
If a $200 utility bill is paid in cash but recorded as a debit to Accounts Payable and credit to Cash, the error will cause:
Answer: Accounts Payable to be overstated and Utilities Expense understated
Debiting Accounts Payable instead of Utilities Expense leaves Accounts Payable incorrectly reduced and Utilities Expense not recorded at all.
A transposition error occurs when:
Answer: Digits within a number are reversed (e.g., $459 written as $495)
A transposition error reverses the order of digits in a number, such as writing $459 as $495, and is often detectable because the difference is divisible by 9.
When equipment worth $5,000 is purchased by paying $2,000 cash and financing the rest on account, the journal entry includes:
Answer: Debit Equipment $5,000, Credit Cash $2,000 and Credit Accounts Payable $3,000
The full cost of the equipment ($5,000) is debited, with partial payment from Cash ($2,000) and the balance owed to Accounts Payable ($3,000).
The folio column in a general journal serves what purpose?
Answer: Contains the account numbers used as cross-references to the ledger
The folio (or posting reference) column in the journal holds ledger account numbers, linking each journal line to its ledger account.
A business receives $600 in advance for services not yet performed. This is recorded as:
Answer: Debit Cash, Credit Unearned Revenue
Cash received before earning it creates Unearned Revenue, a liability, because the business still owes the service to the customer.
Which of the following would NOT appear in a standard general journal entry?
Answer: Current account balances after posting
General journal entries include the date, accounts, amounts, and a description, but do NOT show running account balances — that information is in the ledger.
If total debits in the trial balance do not equal total credits, the bookkeeper should first:
Answer: Re-add the debit and credit columns of the trial balance
The first step is to re-add the trial balance columns to rule out a simple arithmetic error before investigating further.