A Business Quiz: True/False Questions

An exceptional balance refers to a balance that is not typical or ordinary. It implies a deviation from what is considered normal or expected. Therefore, the statement "An exceptional balance is opposite to what would be normal" is true, as it suggests that an exceptional balance is contrary to what is typically observed or anticipated.

The statement is true because on a simple balance sheet, the first dollar amount recorded in an account is placed on the same side as it appears. In a balance sheet, assets are listed on the left side and liabilities and equity are listed on the right side. Therefore, the first dollar amount recorded in an account will be placed on either the left or right side of the balance sheet, depending on whether it is an asset or a liability/equity.

The statement is true because the J.R Dahl account in the ledger of C. Jacob can be classified as either an account receivable or an account payable. An account receivable refers to the amount owed to C. Jacob by J.R Dahl, while an account payable refers to the amount owed by C. Jacob to J.R Dahl. Therefore, depending on the nature of the transaction between the two parties, the J.R Dahl account can be either an account receivable or an account payable.

In accounting, every transaction affects two accounts - one is debited and the other is credited. The basic principle of double-entry bookkeeping states that every debit must have a corresponding credit. Therefore, if the balance of an account is not zero, it means that there have been transactions affecting that account, and thus, there must be either a debit or a credit balance. Hence, the statement is true.

Yes there is a capital account which is the owner's equity and needs to be recorded

This statement is a fundamental principle of double-entry bookkeeping. According to this principle, every transaction involves two accounts - one account is debited and another account is credited, and the amounts recorded in these accounts are always equal. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. By following this principle, accurate and reliable financial records can be maintained.

A total assets figure is not found in the ledger but found on balance sheets

debit supplies, credit cash, the ledger will balance numerically

although the ledger may be more complex, it is better organized

false, it proves that there is no error is the amounts, but these amounts may be in the wrong accounts

this proves that there are 1 or more errors

t-accounts are informal documents where they try to explain the debit and credit theory in a basic way

it is informal to express one's thoughts about transactions

this is most likely an accounts payable and we owe him instead of him purchasing.

The customer does not owe anything, but the company loses cash, so the account affected is cash.

A trial balance is used to identify the error, and can be taken at any time

each account must be shown on a separate sheet of paper.

it may not be correct as there may be some errors like misplacing a value in the wrong account, debit, or credit, or even putting a value in a wrong account

A correct trial balance needs to be kept permanently as it serves as a snapshot of the financial position of a company at a specific point in time. It is an essential tool for preparing financial statements and identifying any errors or discrepancies in the accounting records. Keeping a correct trial balance ensures the accuracy and integrity of the financial information, and it is not discarded after the next trial balance is taken.