1. Which of the following is not true about proper journal entry?

a. All credits are intended

b. All debits are listed first before the first credit
c. An explanation is needed for each debit and each credit
d. A debit is never intended, even if a liability or owner’s equity account is involved

2. When entry is posted, what is the last step to be taken?

a. The explanation must be transferred

b. The account number is places in the reference column of the ledger
c. The journal page number is placed in the reference column of the journal
d. The account number is placed in the reference column of the journal

3. Which of the following errors will probably be disclosed by the preparation of trial balance
(e.g., would cause it to be out of balance)?

a. Failure to post an entire journal entry (e.g., nothing is posted)

b. Failure to record an entry in the journal (e.g., nothing is entered)
c. Failure to post part of a journal entry
d. Posting the debit of a journal entry as credit and the credit is a debit

4. When cash is received in payment of an account receivable, which of the following is true?

a. Total assets increase

b. Total assets remain the sae
c. Total assets decrease
d. Total assets and owner’s equity

5. Which of the following increased by debits?

a. Lito Descalzo, Drawing

b. Unearned Revenue
c. Accounts Payable
d. Lito Descalzo, Capital