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

,{$

8/9/2019 Acct 1 Test 1

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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

8/9

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