Accounting 101 Second Examination (continued) -3 9. The following statements are

Question

Accounting 101 Second Examination (continued) -3 9. The following statements are all true of Reversing Entries except a. b. e, d. done to keep acerued expenses from being counted in the new period. is recorded at the end of the current cycle are prepared after the post closing trial balance is the exact opposite of the entry made during adjustments -10 . All of the following are true of Accumulated Depreciation except: a. is increased on the debit side b. is a contra asset e. will offset a Property, Plant and Equipment Account d. is reported on the Balance Sheet 11. The entry to record replenishing of the petty cash account is: a. b. c. d. a debit to petty cash and a credit to cash in bank a debit to each of the expenses and a credit to cash in bank a debit to each of the expenses and a credit to account payable a debit to cash in bank and credit to the expense 12. A principle technique of internal control is: separating the duties of cash receipts and the cash record keeping assigning tasks and responsibilities performing audits at irregular intervals all are principle techniques of internal control only items a and c are correct. a. b. c. d. e. Which of the following types of entries is made primarily to help conform to the matching concept: 13. a. closing entries b. reversing entries c. general (regular) entries d. adjusting entries Matching: Match the next five statements below to the lettered items listed: A. Accrued Expenses B. Post-Closing Trial Balance C. Natural Business Year D. Mixed Account E. Electronic Funds Transfer (EFT) _14, a computerized approach to completing a cash transaction 15. An account composed of a portion that is now used and a part still good 16. ending the period of operation when activities are at a low point 17, an expense incurred but not yet paid; identified and listed at end of period 18. a device used to assure that there are equal debits and credits after closing

Explanation / Answer

9: Option B

Reason: Reversing entry is made at the brginning of the current cycle and adjusting entry is made at the end of the current cycle.

10: Option A

Reason: Accumlated depreciation is increased on the credit side.

11: Option A

Reason: Journal entry for the following:

                  Petty Cash A/c Dr

                     To Cash

12: Option D

Reason: This technique will help to strengthen the internal control system in the organisation and bring transparency in thee work.

13: Option D

Reason: The journal entries that affect the income statement accounts (revenues and expenses) and balance sheet accounts (assets, liabilities, and owners’ equity) in conformity with the matching accounting principle are known as adjusting journal entries.

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