1. What is the order in which assets are generally listed on a classified balance sheet?<\/p>\n
a. Current and long-term<\/p>\n
b. Current; property, plant, and equipment; long-term investments; intangible assets <\/p>\n
c. Current; property, plant, and equipment; intangible assets; long-term investments <\/p>\n
d. Current; long-term investments; property, plant, and equipment; intangible assets<\/p>\n
2. The information for preparing a trial balance on a worksheet is obtained from<\/p>\n
a. financial statements.<\/p>\n
b. general ledger accounts. <\/p>\n
c. general journal entries. <\/p>\n
d. business documents.<\/p>\n
3. The most efficient way to accomplish closing entries is to<\/p>\n
a. credit the income summary account for each revenue account balance. <\/p>\n
b. debit the income summary account for each expense account balance.<\/p>\n
c. credit the owner\u2019s drawing balance directly to the income summary account.<\/p>\n
d. credit the income summary account for total revenues and debit the income summary account for total expenses.<\/p>\n
4. All of the following are property, plant, and equipment except<\/p>\n
a. supplies.<\/p>\n
b. machinery. <\/p>\n
c. land.<\/p>\n
d. buildings.<\/p>\n
5. On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550. Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be:<\/p>\n
a. Supplies………………………………………………………………………550<\/p>\n
Accounts Payable \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026550<\/p>\n
b. Supplies………………………………………………………………………550<\/p>\n
Accounts Payable \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026500<\/p>\n
Equipment \u2026\u2026\u2026.\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u2026\u2026\u202650<\/p>\n
c. Supplies………………………………………………………………………550<\/p>\n
Equipment \u2026\u2026\u2026.\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u2026\u2026\u2026550<\/p>\n
d. Supplies………………………………………………………………………550<\/p>\n
Equipment \u2026\u2026\u2026.\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u2026\u2026\u2026500<\/p>\n
Accounts Payable \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.\u2026\u202650<\/p>\n
6. The operating cycle of a company is the average time that is required to go from cash to<\/p>\n
a. sales in producing revenues.<\/p>\n
b. cash in producing revenues.<\/p>\n
c. inventory in producing revenues.<\/p>\n
d. accounts receivable in producing revenues.<\/p>\n
7. The purpose of the post-closing trial balance is to<\/p>\n
a. prove that no mistakes were made.<\/p>\n
b. prove the equality of the balance sheet account balances that are carried forward into the next accounting period.<\/p>\n
c. prove the equality of the income statement account balances that are carried forward into the next accounting period.<\/p>\n
d. list all the balance sheet accounts in alphabetical order for easy reference.<\/p>\n
8. The first step in posting involves<\/p>\n
a. entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal.<\/p>\n
b. writing in the journal the account number to which the debit amount was posted. <\/p>\n
c. writing in the journal the account number to which the credit amount was posted.<\/p>\n
d. entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.<\/p>\n
9. On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will<\/p>\n
a. use two journal entries. <\/p>\n
b. make a compound entry. <\/p>\n
c. make a simple entry.<\/p>\n
d. list the credit entries first, which is proper form for this type of transaction.<\/p>\n
10. Which of the following are the same under both GAAP and IFRS?<\/p>\n
a. The account.<\/p>\n
b. Debit and credit rules.<\/p>\n
c. Steps in the recording process.<\/p>\n
d. All of these answers are correct<\/p>\n
11. The final step in the recording process is to transfer the journal information to the<\/p>\n
a. trial balance.<\/p>\n
b. financial statements. <\/p>\n
c. ledger.<\/p>\n
d. file cabinets.<\/p>\n
12. At January 31, 2015, the balance in Aislers Inc.\u2019s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be<\/p>\n
a. $525 debit.<\/p>\n
b. $975 debit.<\/p>\n
c. $525 credit.<\/p>\n
d. $775 debit<\/p>\n
13. Transactions in a journal are recorded in<\/p>\n
a. account number order.<\/p>\n
b. dollar amount order. <\/p>\n
c. alphabetical order. <\/p>\n
d. chronological order.<\/p>\n
14. The final step in solving an ethical dilemma is to<\/p>\n
a. identify and analyze the principal elements in the situation. <\/p>\n
b. recognize an ethical situation.<\/p>\n
c. identify the alternatives and weigh the impact of each alternative on stakeholders. <\/p>\n
d. recognize the ethical issues involved.<\/p>\n
15. Accounting consists of three basic activities which are related to economic events of an organization. These include<\/p>\n
a. identifying, recording, and communicating<\/p>\n
b. identifying, calculating, and responding<\/p>\n
c. classifying, numbering, and reporting<\/p>\n
d. issuing, reporting, and classifying<\/p>\n
16. The primary purpose of the statement of cash flows is to report<\/p>\n
a. a company\u2019s investing transactions.<\/p>\n
b. a company\u2019s financing transactions.<\/p>\n
c. information about cash receipts and cash payments of a company. <\/p>\n
d. the net increase or decrease in cash.<\/p>\n
17. Retained earnings at the end of the period is equal to<\/p>\n
a. retained earnings at the beginning of the period plus net profit minus liabilities<\/p>\n
b. retained earnings at the beginning of the period plus net profit minus dividends paid<\/p>\n
c.net profit plus total assets<\/p>\n
d. assets plus liabilities<\/p>\n
18. A basic assumption of accounting assumes that the dollar is<\/p>\n
a. unrelated to business transactions.<\/p>\n
b. a poor measure of economic activities.<\/p>\n
c. the common unit of measure for all business transactions. <\/p>\n
d. useless in measuring an economic event.<\/p>\n
19. All of the following are steps in analyzing ethics cases in financial reporting except<\/p>\n
An accounting time period that is one year in length, but does not begin on January 1, is referred to as<\/p>\n
a. a fiscal year.<\/p>\n
b. an interim period.<\/p>\n
c. the time period assumption. <\/p>\n
d. a reporting period.<\/p>\n
20. Which of the statements below is not true?<\/p>\n
a. An adjusted trial balance should show ledger account balances.<\/p>\n
b. An adjusted trial balance can be used to prepare financial statements.<\/p>\n
c. An adjusted trial balance proves the mathematical equality of debits and credits in the ledger.<\/p>\n
d. An adjusted trial balance is prepared before all transactions have been journalized.<\/p>\n
21. Which of the following statements is not true?<\/p>\n
a. Expenses increase owner\u2019s equity.<\/p>\n
b. Expenses have normal debit balances. <\/p>\n
c. Expenses decrease owner\u2019s equity.<\/p>\n
d. Expenses are a negative factor in the computation of net income.<\/p>\n
22. A company spends $15 million dollars for an office building. Over what period should the cost be written off?<\/p>\n
a. When the $10 million is expended in cash <\/p>\n
b. All in the first year<\/p>\n
c. Over the useful life of the building<\/p>\n
d. After $10 million in revenue is earned<\/p>\n
23. Accounts often need to be adjusted because<\/p>\n
a. there are never enough accounts to record all the transactions. <\/p>\n
b. many transactions affect more than one time period.<\/p>\n
c. there are always errors made in recording transactions. <\/p>\n
d. management can\u2019t decide what they want to report.<\/p>\n
24. Which of the following is in accordance with generally accepted accounting principles?<\/p>\n
a. Accrual basis accounting<\/p>\n
b. Cash basis accounting<\/p>\n
c. Both accrual basis and cash basis accounting <\/p>\n
d. Neither accrual basis nor cash basis accounting<\/p>\n","protected":false},"excerpt":{"rendered":"
1. What is the order in which assets are generally listed on a classified balance sheet? a. Current and long-term b. Current; property, plant, and equipment; long-term investments; intangible assets c. Current; property, plant, and equipment; intangible assets; long-term investments Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50245","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50245"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50245\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}