Reference no: EM132680934

Problem 1: Which of the following is not a possible combination of a journal entry?

a. Increase in asset and increase in liability

b. Decrease in equity and increase in liability

c. Decrease in liability and decrease in asset

d. Increase in asset and decrease in capital

Problem 2: A subsidiary ledger is

a. A listing of the components of account balances

b. A backup system to protect against record destruction

c. A listing of accounts before closing entries

d. A list of accounts of a subsidiary

Problem 3: Which statement regarding a trial balance is incorrect?

a. A trial balance is a test of the equality of the debit and credit balances in the ledger

b. A trial balance is a list of all the open accounts in the ledger with their balances

c. A trial balance proves that no errors of any kind have been made in the accounts during the accounting period

d. A trial balance helps to localize errors within an identifiable time period