2024 Liabilities were overstated, accounting homework help

Liabilities were overstated, accounting homework help

Business Finance Assignment Help 2024

3. The cash purchase of a truck was recorded as a purchase on credit. Due to this error:

A. assets were overstated

B. Liabilities were overstated

C. answers a and b are both correct

d. none of the above.

10. The beginning balance in the computers account was $2,000. The company purchased an additional $1000 worth of computers. The balance in the account is:

a. debit of $2,000

b. credit of $3,000

c. debit of $3,000

d. credit of $2,000

20. if cash has been debited, it is likely that :

a. the owner made and investment

b. a charge customer made a payment

c. the business borrowed cash from the bank

d. all of the above

21. if prepaid rent has been debited, it is likely that :

a. the rent was paid for 3 months in advance

b. a bill for the past month’s rent was received

c. this month’s rent was paid

d. all of the above

22. proof that the dollar amount of the debits equal the dollar amount of the credits in the ledger mean:

a. all of the info. from the journal was correctly transferred to the ledger

b. all accounts have their correct balances in the ledger.

c. only the ledger is accurate: the journal may be incorrect.

d. only that the debit dollar amounts equal the credit dollar amounts

23. In preparing the trial balance of the K&L’s bridal service, the withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $400. What will be the difference between the debit and credit sides of the trial balance?

a. $150

b, 200

c. 300

d. 800