37. You are given the following complete trial balance: Which account appears to bave its balance improperly transferred to the trial balance? a. Account A e. Account E b. Account B f. Account F c. Account C g. Account G d. Account D h. Account H 38. You are given the following complete trial balance with one account containing a transposition error: Which account appears to contain the transposition error? a. Account A e. Account E b. Account B f. Account F c. Account C g. Account G d. Account D h. Account H 39. Which of the following is an example of an accrual error? a. failure to adjust Prepaid Insurance to its proper balance at year end b. failure to adjust Inventory to its proper balance at year end c. failure to record depreciation at year end d. none of the above 40. Which of the following is an example of a deferral error? a. initially recording advance payment of an insurance promium to Prepaid Insurance instead of Insurance Expense b. failure to record interest expense incurred but not yet paid c. failure to adjust Unearned Revenue to its proper balance at year end d. none of the above 41. On April 1, 20X0, your company finances partial payment of the sale of machinery to a customer for a $20,000,3-year, 8% note receivable. Interest is payable annually on April 1. On December 31,20X0, an adjusting entry debits Interest Receivable and credits Interest Revenue for $1,600. The entry necessary to correct the error before the books are closed would include... a. a $400 debit to Interest Revenue b. a $400 credit to Interest Expense c. a $400 credit to Unearned Interest Receivable d. a $400 credit to Sales 42. Which of the following statements about accrual and deferral errors is correct? a. Acerual errors affect only balance sheet accounts. b. Deferral errors affect only income statement accounts. c. Accrual and deferral errors affect both income statement and balance sheet accounts. d. All above statements are correct. 43. When preparing 202 financial statements, you discover that depreciation expense was not recorded in 20X1. Which of the following statements about correction of the error in 20X2 is not Lrue? a. The correction requires a prior period adjustment. b. The correcting entry will be different than if the error had been corrected the previous year when it occurred. c. The 20X1 Depreciation Expense account will be involved in the correcting entry. d. All above statements are true. 44. Which of the following is an accurate description of how failure to record an accrual is likely to be found? a. An expense that was not accrued is paid, but there is no payable on the books as there should be. b. A revenue that was not accrued is received, but there is no receivable on the books as there should be. c. A review of the trial balance reveals that an asset or liability account that is normally present after accruals are recorded is not present. d. All above statements are accurate descriptions of how failure to record an acerual is likely to be found. 45. A comparison of this year's trial balance with last year's may be a good way to discover... a. whether normal accruals were made this year b. whether normal deferrals were made this year c. errors in aceruals or deferrals that have resulted in over-or understatement of revenues or expenses d. all of the above 46. When trying to find errors in a trial balance that does not balance, the first step should be to.... a. work from the ledger to the trial balance to check the journal entries and postings for errors b. see if the ledger account balances have been calculated correctly c. work from the ledger to the trial balance to verify that ledger account balances were transferred to the correct debit or credit columns d. work from the trial balance to the ledger to verify that ledger account balances were transferred to the correct debit or eredit columns 47. Which of the following is not a normal balance? a. a $6,000 credit balance in Discount on Bonds Payable b. a $9,000 credit balance in Unearned Service Revenue c. a $1,200 debit balance in Sales Returns and Allowances d. a $10,000 debit balance in Treasury Stock 48. Which of the following uncorrected errors would result in both assets and net income being overstated? a. failure to adjust Uncarned Revenue to recognize rovenue carned b. failure to record depreciation for the year c. failure to accrue interest payable d. adjusting Prepaid Insurance by crediting it for an amount that is too large 49. If trial balance total debits are $72,000 and total credits are $74,700, then the error cannot be... a. a slide b. a doubling error c. a transposition for which you can find the error by investigating each account where the difference between the first two digits of its balance is 3 d. Actually, you can find the error using a, b or c. 50. In your trial balance, total debits are $264,000 and total credits are $259,500. You have determined that the error may be a transposition and that you may find the error by investigating accounts with balances for which the difference between the first two digits is 5 . Which of the following account balances could be the problem? a. Accounts Receivable, with an indicated balance of $1,600 b. Accounts Payable, with an indicated balance of $1,600 c. Land, with an indicated balance of $4,900 d. both a and c 37. You are given the following complete trial balance: Which account appears to bave its balance improperly transferred to the trial balance? a. Account A e. Account E b. Account B f. Account F c. Account C g. Account G d. Account D h. Account H 38. You are given the following complete trial balance with one account containing a transposition error: Which account appears to contain the transposition error? a. Account A e. Account E b. Account B f. Account F c. Account C g. Account G d. Account D h. Account H 39. Which of the following is an example of an accrual error? a. failure to adjust Prepaid Insurance to its proper balance at year end b. failure to adjust Inventory to its proper balance at year end c. failure to record depreciation at year end d. none of the above 40. Which of the following is an example of a deferral error? a. initially recording advance payment of an insurance promium to Prepaid Insurance instead of Insurance Expense b. failure to record interest expense incurred but not yet paid c. failure to adjust Unearned Revenue to its proper balance at year end d. none of the above 41. On April 1, 20X0, your company finances partial payment of the sale of machinery to a customer for a $20,000,3-year, 8% note receivable. Interest is payable annually on April 1. On December 31,20X0, an adjusting entry debits Interest Receivable and credits Interest Revenue for $1,600. The entry necessary to correct the error before the books are closed would include... a. a $400 debit to Interest Revenue b. a $400 credit to Interest Expense c. a $400 credit to Unearned Interest Receivable d. a $400 credit to Sales 42. Which of the following statements about accrual and deferral errors is correct? a. Acerual errors affect only balance sheet accounts. b. Deferral errors affect only income statement accounts. c. Accrual and deferral errors affect both income statement and balance sheet accounts. d. All above statements are correct. 43. When preparing 202 financial statements, you discover that depreciation expense was not recorded in 20X1. Which of the following statements about correction of the error in 20X2 is not Lrue? a. The correction requires a prior period adjustment. b. The correcting entry will be different than if the error had been corrected the previous year when it occurred. c. The 20X1 Depreciation Expense account will be involved in the correcting entry. d. All above statements are true. 44. Which of the following is an accurate description of how failure to record an accrual is likely to be found? a. An expense that was not accrued is paid, but there is no payable on the books as there should be. b. A revenue that was not accrued is received, but there is no receivable on the books as there should be. c. A review of the trial balance reveals that an asset or liability account that is normally present after accruals are recorded is not present. d. All above statements are accurate descriptions of how failure to record an acerual is likely to be found. 45. A comparison of this year's trial balance with last year's may be a good way to discover... a. whether normal accruals were made this year b. whether normal deferrals were made this year c. errors in aceruals or deferrals that have resulted in over-or understatement of revenues or expenses d. all of the above 46. When trying to find errors in a trial balance that does not balance, the first step should be to.... a. work from the ledger to the trial balance to check the journal entries and postings for errors b. see if the ledger account balances have been calculated correctly c. work from the ledger to the trial balance to verify that ledger account balances were transferred to the correct debit or credit columns d. work from the trial balance to the ledger to verify that ledger account balances were transferred to the correct debit or eredit columns 47. Which of the following is not a normal balance? a. a $6,000 credit balance in Discount on Bonds Payable b. a $9,000 credit balance in Unearned Service Revenue c. a $1,200 debit balance in Sales Returns and Allowances d. a $10,000 debit balance in Treasury Stock 48. Which of the following uncorrected errors would result in both assets and net income being overstated? a. failure to adjust Uncarned Revenue to recognize rovenue carned b. failure to record depreciation for the year c. failure to accrue interest payable d. adjusting Prepaid Insurance by crediting it for an amount that is too large 49. If trial balance total debits are $72,000 and total credits are $74,700, then the error cannot be... a. a slide b. a doubling error c. a transposition for which you can find the error by investigating each account where the difference between the first two digits of its balance is 3 d. Actually, you can find the error using a, b or c. 50. In your trial balance, total debits are $264,000 and total credits are $259,500. You have determined that the error may be a transposition and that you may find the error by investigating accounts with balances for which the difference between the first two digits is 5 . Which of the following account balances could be the problem? a. Accounts Receivable, with an indicated balance of $1,600 b. Accounts Payable, with an indicated balance of $1,600 c. Land, with an indicated balance of $4,900 d. both a and c