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Multiple Choice 3-5 1. Which of the following is false? a. A company can have a transaction that affects only the left side of the fundamental accounting equation b. In each accounting transaction, total debits to assets must equal total credits to liabilities c. The fundamental accounting equation will always balance after each correctly recorded accounting transaction d. All of these choices are true 2. In the double-entry system, each accounting transaction is recorded twice Each journal entry will at least affect two accounts. a. i. only b. ii. only c. Both i. and ii. d. Neither i. nor ii. 3. Which of the following groups of accounts shows only accounts that are increased with a debit? a. Assets, Liabilities, Dividends b. Assets, Equity, Dividends c. Assets, Expenses, Dividends d. Assets, Equity, Expenses 4. Which of the following is true? Paying out a dividend of $1,000 would result in a debit to the Dividends account. In the general ledger, this $1,000 would be entered on the right side of the Dividends T-account. a. i. only b. ii. only c. Both i. and ii. d. Neither i. nor ii. Multiple Choice 3-9 5. What would be the result of a credit to these accounts? a. b. c. d. 6. Which of the following would cause a trial balance not to balance? a. Recording a $350 purchase of supplies on account as a debit to Supplies and a credit to Cash b. A $425 payment on account is unrecorded c. A $400 purchase on account is debited to Supplies for $400 and credited to Accounts Payable for $4,000 d. A $500 purchase of supplies on account is credited to Supplies and debited to Accounts Payable 7. Which of the following is not a purpose of the trial balance? a. To summarize in one place all accounts of an entity and their respective balances b. To provide a chronological order of a company's transactions c. To serve as a helpful tool in preparing financial statements d. To prove that total debit balances equal total credit balances \fExercise 3-19 Posting Transactions The following information pertains to York Rafting Company: Required: Post the journal entries to their appropriate T-accounts. If an amount box does not require an entry, leave it blank Cash Common Stock 25000 Rent Expense 1200 Service Revenue 25000 3500 25000 3500 Accounts Receivable 7000 Supplies 7000 Notes Payable 7000 10000 7000 10000 Accounts Payable 1500 Prepare a trial balance at January 31. List the accounts in chart of accounts order. Enter all amounts as positive numbers. York Rafting Co. Trial Balance January 31 Debit Credit $ 25000 $ 25000 10000 1500 1200 3500 $ $ 35500 36300