Post on 01-Jun-2018
8/9/2019 Acct 1 Test 1
1/9
Name:
TaftUCrf,Prt-
Date:
ID: A
'Jnd-'at
Test
-
Chapter
,2 ,3& 4
Multiple
Choice
Identifu
the choice
that best completes
he statement
or answers he
question.
1.
Profit s the
difference etween
a. assets
nd iabi l i t ies
b. the ncoming ash
and outgoing ash
c. the assets
urchased
with
cashcontributed
by
the
owner and he cashspent o operate
he
business
d.
the assets eceived or
goods
and
services nd he amountsused o
provide
he
goods
and
servlces
2. Financial
eports
re usedby
a. management
b.
cred tors
c. investors
d. all
arecorrect
3. The nitials
GAAP stand or
a. GeneralAccounting Procedures
b.
GenerallyAcceptedPlans
c. GenerallyAcceptedAccounting
Principles
d. GenerallyAccepted
Accounting Practices
4. For
accounting
urposes,
he business ntify
shouldbe considered eparaterom its
owners
f the entity s
a.
a corporation
b, a
proprietorship
c. a
partnership
d. all
ofthe above
5.
Equipment
with an estimatedmarket
valueof
$55,000
s offered or
saleat
$75,000.
he equipments
acquired or
$20,000
n
cashand a
note payable
of
$40,000
due n
30 days.
The
amountused n
the
buyer's
accountingecords
o record his acquisitions
a.
555.000
b. $60.000
c.
$20,000
d.
$75,000
6. Owned resources f a business re referred o as
a. assets
b.
liabil it ies
c. equities
d. revenues
,{$
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Name:
7. Debts
owed
by a business
re
referred
o
as
a.
accountseceivables
b. equities
c.
owner'seqLrity
d . l iab i l i t ies
8.
The
accounting
quationmay
be expressed
s
a. Assets
Equit ies
Liabi l i t ies
b.
Assets Liabilities
=
Owner'sEquity
c. Assets
Revenuesess
Liabilit ies
d. Assets
Liabilit ies:
Owner'sEquity
9. Accounts
a. do not reflect
money amounts
b. are not used
by entities hat manufacture roducts
c.
are
ecords
f
irrcreases
nddecreasesn individual
inancial
statementtems
d. are
only usedby large
entities
with
many ransactions
10. Which
of the ollowing accountss
an owner's quityaccount?
a. Cash
b. Accounts
Payable
c. Prepaid
nsurance
d. Ross
Morris, Capital
1
. Tlre
gross
ncreasest't
owner's quity
attributableo business ctivities
recalled
a. assets
b .
l iab i l i t ies
c. revenues
d. net ncome
12. An
account s
said o
have
a debit balance f
a. the
amountof the debits
exceeds he amount
of
the
credits
b. there
aremoreentries n
the debitside hanon the creditside
c. its normal
balance
s
debitwithout regard
o the amourrts r number
of entr ies n the
debits ide
d. the irst entry
of the accounting
eriod
was
posted
n
the debitside
13.
A
debitmaysignify
a(n)
a. decreasen asset
accounts
b. decreasen liabil ity accounts
c. increase n the capital account
d.
decrease
n
the drawins account
ID: A
8/9/2019 Acct 1 Test 1
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Name:
ID: A
14.
Whichof the ollowinggroups
f accounts ave
a normal
ebitbalance?
a. revenues,
iabilities,
apital
b. capital,
ssets
c.
l iabi l i t ies ,expenses
d. assets,xpenses
15.
A creditmay
ignify
a.
decreasen
assets
b. decreasen
liabilities
c.
decreasen capital
d.
decreasen revenue
16. Which
f the ollowing
ntriesecords
he
payment
f
an
account
ayable?
a.
debitCash; redit
Accounts ayable
b. debitAccounts
eceivable;
reditCash
c,
debit
Cash; redit uppliesxpense
d.
debitAccounts ayable;
redit
Cash
17. The
balance
f theaccounts determined
y
a, adding
ll of thedebitso all
of thecredits.
b.
always ubtracting
hedebits rom
hecredits.
c. always
ubtractingll
of thecreditsrom
hedebit.
d.
adding ll of thedebits,
dding ll
of thecredits, nd hen
ubtractinghesmaller um
from
lie
arger
urn.
18,
Prarie linic
pLrrchased
-rayequipment
or
$4,000,
aid
$l
,275
down,with
he emainder
o be
paid
ater.
The
correct ntrywould
be
a, Equiprnent
1,27
Cash 1,275
b. Cash
1,215
Accounts ayable
2,725
Equipment
4,000
c. Equipment
xpense 4,000
Accounts ayable
1,275
Cash 2,725
d. Equiprnerrt
4,000
Accounts ayable 2,725
Cash
1,275
e. Cash
1,275
Equiprnent 1,275
19. Which
of the ollowing tatementss not
rueabout
iabilities?
a. Liabilities re
debts wed o outsiders.
b.
Account
itlesof liabilities
ften
nclude
he erm
o'payable".
c. Cash eceivedefore ervices
re
performed
reconsideredo be iabilities.
d. Liabilities o not nclude ages
wed
o
employeesf thecompany.
8/9/2019 Acct 1 Test 1
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Name:
ID: A
20. All
except ne
of tl ie following
accounts ill
be ncreased ith
a debit:
a.
Unearned everrues
b. Land
c. Accounts
eceivable
d.
Casfr
21.
Usingaccrual
ccounting,
xpenses
re ecorded
nd
eported
nly
a. when
hey
are ncurred,whether
or
not
cash s
paid
b. when hey
are ncurred
and
paid
at the
same ime
c.
ifthey
are
paid
before hey
are
ncurred
d. if
theyare
paid
after hey are ncurred
22. Adjusting
entries re
a. the
sarne scorrectirrg
ntries
b. needed
o
bring accounts rp o
dateand nratch evenlle nd
expense
c. optiorial
under
generally
ccepted ccounting
rinciples
d. rarely
eededn large
ompanies
23.
Generally ccepted
ccounting
rinciples
equires
hatcompanies
se he
_
of accounting.
a. cash
basis
b. deferral
asis
c.
accrual asis
d. account
asis
24. Which accountwould
norrnally
require rradjLrstingntry?
a. Wages
Expense
b. Accounts
Receivable
c. AccumulatedDepreciat ion
d.
Smith,Capital
25 . Theba lance in theo f f i cesupp l iesaccountonJune
was$6,300,supp l iespurchaseddur ingJunewer
$ 3 , l 0 0 , a n d t h e s u p p l i e s o n h a n d a t J u n e 3 0 w e r e $ 2 , 5 0 0 .
l r e a m o u n t t o b e u s e d f o r t h e a p p r o p r i a t e
adjustirrg
ntry s
a,
$3,700
b.
$
1 ,900
c.
$5 ,700
d.
$6,900
26. A
business
aysweekly
salaries f
$20,000
n
Friday or
a five-dayweekending
on that day. The adjusting
entrynecessary
t the end ofthe fiscal
period
endingon
Tuesday
s
a. debitSalaries ayable,
8,000;
reditCash,
8,000
b. debitSalaryExpense,
8,000;
redit
Drawing,
$8,000
c.
debitSalaryExpense,
8,000;
redit
Salaries
ayable,
8,000
d.
debitDrawing,
$8,000;
reditCash,
$8,000
27. The adjusting
ntry o record lie depreciation
f
equipmentor
the
iscal
period
s
a. debitDepreciat ion xpense;
reditEquiprnent
b. debit Depreciation
xpense; reditAccumulated epreciation
c.
debit
Accurnulated
epreciation; reditDepreciatiorr xpense
d, debitEquipment; reditDepreciation
xpense
8/9/2019 Acct 1 Test 1
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Name:
ID: A
28,
The ncome
statement
s
prepared
rom:
a.
the adjLrsted
rial
balance.
b.
the ncome
taternent
olumns
f thework
sheet.
c.
either
he adjusted
rial
balance
r the nconle
tatenleltt
olumns
f
the work
sl,eet.
d.
both
he adjLrsted
rial
balance nd
he ncorre
statement
olumns
of t he work
sheet.
29.
The
Statement
f
Owner's Equity
should
be
prepared
a.
before
he ncome
statement
ndafter
he balance
heet
b.
before he ncome
statement
nd balance
heet
c.
after he ncome
statement
nd balance
heet
d. after
he ncome
statement nd
before he balance
heet
Use he ollowing
rrformation
rr
he adjusted
rial balancebr
Stockton
Company o answer he ollowir-rg
questions.
Stockton
Conrpanv
Adiusted r ial
Balance
For the Year
endedDecernber
2010
Cash
s
6.030
Accounts
eceivable
2.1 0
Prepaid
xperrses
700
Equipment
r3 .700
Accumulated
epreciat ion
$
t , 1 0 0
Accounts
Payable
1.900
NotesPayable
4.200
Bob
Steely,
apital
12.940
Bob
Steelv.
Withdrawals
790
Fees
Earned
8.750
WagesExpense
2,500
RentExpense
r .960
Util i t ies xpense
775
Depreciatiorr
xpense
250
Miscel laneous
xoense
85
Totals
$28"890 $28,890
Determine
henet ncome
loss)
or
he
period.
a. Net ncome
2,390
b. NetLoss$790
c, Net
Loss 5.570
d. Net ncome
3,180
30.
8/9/2019 Acct 1 Test 1
6/9
Name:
ID: A
3
.
Determine
he
owner 's
equityending
alance
or the
per iod.
a .
$ 1 2 , 1 5 0
b .
$ 1 5 , 3 3 0
c .
$ 1 6 , 1 2 0
d.
$
12,940
32.
Which
of the ollowing
accounts
hould
be closed
o
Income
Summary t the
endof the i scal
year?
a. Supplies
xpense
b.
Accumulated
epreciation
c. Prepaid
nsurance
d.
Unearned ent
Use he ol lowing
worksheet
o answer
he ol lowing
qLrestions.
Finley
Company
Worksheet
For
heYearEndedDecember 1,2010
Adjusted
rial
Balance
IncomeStatement
Balance
Sheet
Account
i t le
Debit
Credi t
Dcb i t
Credit Debit
Credit
Cash
48,000
48.000
Accor-rntseceivable
18 ,000
r
8.000
SLrppl ies
6.000
6.000
Equ ipment
57,000
57,000
Accumu
atedDepr-Equ
o
18 ,000
18.000
Accounts
Payable
30,000
30.000
Wases avable
6,000
6,000
C,
Finley,
Capital
33,000
33.000
C.
F in ley .
rawins
3,000
3.000
Fees
Earned
1 4 1 . 0 0 0
1 4 1 . 0 0 0
WagesExperrse
63,000
63,000
Rent
Expense
r8 .000
r8.000
Deoreciatiorr
xoense
15 .000
r5.000
Totals
228"000
228.000
96,000 1 41 .0 00
132.000 87.000
Net
Income
Loss)
4s.000
4s.000
1 4 1 . 0 0 0
141 .000 132 .000
r32.000
33. The
oLrrnal
ntry
o close evenues ould
be:
a . deb i t ncome ummary 141,000,red i t ees a rned 141,000
b. deb i tC. F i r r ley ,
ap i ta l
141 ,000 ,
red i t ees a rned
141,000
c. debitFeesEarned
141
000;
redit ncome
Summary
141
000
d.
c red i t
ees
arned 141,000;
red i tC. F in ley , ap i ta l 141 ,000
8/9/2019 Acct 1 Test 1
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Name:
ID:
A
34. Based
n he
preceding
rial
balance,
heentryo
close xpenses
ould
e:
a. Wages
xpense
63,000
Rent
Expense
| 8,000
Depreciat ion
xpense
15,000
Income
ummary
96,000
b. Expenses 96,000
Irrcome
ummary
96,000
c.
Wages
xpense
63,000
Rent
Expense
18,000
Depreciat ionExpense
5,000
C. Finley, rawing
96,000
d. Income
untmary
96,000
Wages xpense
63,000
Rent xperrse
18,000
Depreciat ion
xpense15,000
8/9/2019 Acct 1 Test 1
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ID:
A
Test
-
Chapter
,2 ,3
&
Answer
Section
MULTIPLE
CHOICE
L
ANS:
D
PTS:
I
DIF:
Easy
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremenr
2.
ANS:
D
PTS:
I
DIF:
Easy
NAT:
AACSB
rraly t ic
AtCpA
BB- lndust ry
3 .
A N S :
C
PTS:
I
DIF:
Moderate
NAT:
AACSB
Analyt ic
AICPA
FN-Measurernent
4.
ANS:
D
PTS:
I
DIF:
Moderate
NAT:
AACSB
Analyt ic
AICPA
BB-tndustry
5 .
ANS:
B
PTS:
I
DIF:
Diff icult
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
6 , ANS: A PTS: I
DIF:
Easy
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
7.
ANS:
D
PTS:
I
DIF:
Easy
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremerrr
8 . ANS:
D
PTS:
I
DIF :
Moc le ra te
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
9 .
ANS:
C
PTS:
I
DIF :
Easy
NAT:
AACSB
Arralyt ic
AICPA
FN-Measuremenr
10 .
ANS: D
PTS:
I
DIF :
Easy
NAT:
AACSB
Analyt ic
I
AICPA
FN-Measurement
l l .
ANS:
C
PTS:
I
DIF :
Easy
NAT: AACSB Analyt icI AICPA FN-Measuremenr
12 .
ANS:
A
PTS:
I
DIF :
D i f f i cu t t
NAT:
AACSI)
Analyt ic
I
AICPA
FN-Measuremenr
13 ,
ANS:
B
PTS:
I
DIF :
Moderare
NAT:
AACSB
Analyt ic
AICpA
FN-Measurerrrenr
14 .
ANS:
D
PTS:
I
DIF :
f :asy
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
15.
ANS:
A
PTS:
I
DtF:
Moderare
NAT:
AACSB
Analytic
I
AICPA
FN-Measurement
16.
ANS:
D
PTS:
I
DIF:
Diff icutt
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
17 . ANS: D PTS: I DtF : D i f f i cL r l t
NAT:
AACSB
Analyt ic
ATCPA
FN-Measuremenr
18 .
ANS:
D
PTS:
I
DtF :
Moderare
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
19 .
ANS:
D
PTS:
I
DIF :
D i f f i cu t t
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremenr
20.
ANS:
A
PTS:
I
DIF:
Easy
NAT:
AACSB
Analytic
I
AICPA
FN-Measurement
O B J :
0 l - 0 1
OBJ:
0 l -01
OBJ:
0l -02
OBJ:
0l-02
OBJ:
0l -02
OBJ:
0l -03
OBJ:
0 l -03
OBJ:
0 l -03
OBJ:
02-01
OBJ:
02-01
OBJ:
02-01
OBJ:
02-01
OBJ:
02-02
OBJ:
02-02
OBJ:
02-02
OBJ:
02-02
OBJ: 02-01
OBJ:
02-02
OBJ:
02-01
OBJ:
02-02
8/9/2019 Acct 1 Test 1
9/9
ID:
A
21.
ANS:
A
PTS:
I
DIF:
Moclerate
OBJ:
03_01
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremenr
22.
ANS:
B
PTS:
I
DIF:
Moderate
OBJ:
03_01
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremenr
23. ANS: C PTS: I DIF: Easy OBJ: 03_01
NAT:
AACSB
Analytic
AICPA
FN-Measurement
24.
ANS:
D
PTS:
I
DtF:
Diff icult
OBJ:
03-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurerrrent
25.
ANS:
D
PTS:
I
DIF:
Diff icult
OBJ: 03-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measuremenr
26.
ANS:
C
PTS:
I
DIF:
Diff icult
OBJ: 03-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
27.
ANS:
B
PTS:
I
DIF: Moderate
OBJ: 03-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
28. ANS:
C
PTS:
I
DIF:
Moderate
OBJ: 04-02
NAT:
AACSB
Analytic
AICPAFN-Measurement
29.
ANS:
D
PTS:
I
DIF: Moderate
OBJ:
04-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurernent
30.
ANS:
D
PTS:
I
DIF:
Moderate
OBJ:
04-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
31.
ANS:
B
PTS:
I
DIF: Dif f icul t
OBJ: 04-02
NAT:
AACSB
Analyt ic
AICPA
FN-Measurement
32. ANS:
A
PTS:
I
DIF: Moderate
OBJ: 04-03
NAT:
AACSB
Analyt ic
AICPA
FN-Measurernent
33. ANS:
C
PTS:
I
DIF:
Moderate
OBJ: 04-03
NAT:
AACSB
Analytic
AICPA
FN-Measurement
34.
ANS:
D
PTS:
I
DIF:
Moderate
OBJ: 04-03
NAT: AACSBAnalvt ic
AICPA
FN-Measurement