Multiple Choice to Help
Which term refers to the owner having full responsibility for company debts and obligations?
A. limited liability C. unlimited liability
B. stock obligation D. taxation obligation
Limited Liability
What is the term for a financial reporting period of time beginning on January 1 and ending on December 31?
Calendar Year
Expenses exceed Income
Net Loss
Tricky Ricky's Appliances sold merchandise on account to Smith Builders for $880, plus sales tax of $40.
The journal entry for Tricky Ricky's Appliances to record this transaction is:
debit Accounts Receivable/Smith Builders, $920;
credit Sales, $880, Sales Tax Payable, $40.
Icy Treats purchased merchandise for cash from Flavor Supply for $100. The journal entry for Icy Treats to record this transaction is:
debit Purchases, $100; credit Cash, $100.
The accounting assumption that a business is expected to survive and operate indefinitely is called a:
A. business entity. C. Charter Entity
B. capital concern. D. going concern.
Going Concern
Reporting information to executives and internal users of information who are involved in departments such as purchasing and hiring?
Management
If the company operates in a Net Loss, which side is the Net Loss written on the Income Statement?
Credit Side
Dollar Arcade paid cash on account to Cola Distributors, $245; covering Purchase Invoice No. 4131 for $250, less a 2% discount, $5.00. The journal entry for Dollar Arcade to record this transaction is:
debit Accounts Payable/Cola Distributors, $250;
credit Purchases Discount, $5 and credit Cash, $245.
The correct journal entry for the transaction BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY is:
debit Supplies and
credit Accounts Payable/Jones Supply Company
In which type of business ownership structure does each owner in the group risk losing his/her personal property even though responsibilities are shared?
A. limited liability company C. partnership
B. sole proprietorship D. corporation
Partnership
A company wants to hire an individual that can convert its manual accounting system to a computerized system. Which skill is needed in their applicant?
Workplace Skills
On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a:
$400 Net Income
City Utilities received $118 cash from Cody Waters for payment on account. Cody Waters took a $3 discount for paying early. The journal entry for City Utilities to record this transaction is:
debit Cash, $118, Sales Discounts, $3;
credit Accounts Receivable/Cody Waters, $121.
Michael's Hardware purchased merchandise on account from Hardware Supply for $690. The journal entry for Michael's Hardware to record this transaction is:
debit Purchases, $690;
credit Accounts Payable/Hardware Supply, $690.
In which type of business are operations and production usually unaffected when ownership is transferred?
A. corporation C. Sole proprietorship
B. partnership D. limited liability company
Corporation
What is the common term for a retirement savings plan sponsored by employers that will allow workers to save and invest?
401(k) savings plan
The ABC Manufacturing Company's Income Statement worksheet shows total debits of $1100 and total credits of $750. ABC Manufacturing Company has a:
Net Loss of -350.00
Diane's Perfume Wholesale sold merchandise on account to Select Perfumes for $437, plus sales tax of $23.
The journal entry for Diane's Perfume Wholesale to record this transaction is:
debit Accounts Receivable/Select Perfumes, $460; credit Sales, $437, Sales Tax Payable, $23.
The Aquatic Kingdom sold Quiet Pets some newly hatched goldfish on account for $145, plus sales tax of $10. The journal entry for the Aquatic Kingdom to record this transaction is:
debit Accounts Receivable/Quiet Pets, $155;
credit Sales, $145, Sales Tax Payable, $10.
Samantha needs to total the values in cells A1 to A10. What is the most efficient method to find the answer? A. formula C. label
B. function D. value
Function
@sum(A1:A10)
Which career involves providing financial advice to help individuals and business organizations, and requires education and experience as well as passing a uniform exam?
CPA
Trash Haulers of America has income of $8,500. The company has the following expenses:
Advertising Expense - $1,200 Insurance Expense - $950 Rent Expense - $1,000 Supplies Expense - $450 Utilities Expense - $375
What is the component percentage for Rent Expense?
11.8%
Susan discovered that a sale on account to Michelle Company on February 12 for $800 was incorrectly charged to the account of Michael Company. The journal entry to correct this error is:
debit Accounts Receivable/Michelle Company, $800; credit Accounts Receivable/Michael Company, $800.
Lotta Milk, Inc. received $235 cash from Biggies Grocery for payment on account. The journal entry for Lotta Milk, Inc. to record this transaction is:
Debit Cash $235;
Credit Accounts Receivable/Biggies Groceries $235