Qs 1-5
Qs 6-10
Qs 11-15
Qs 16-20
Qs 21-25
100
1. Use the following information as of December 31 to determine equity.?? Liabilities $141,000 Cash $57,000 Equipment $ 206,000 Buildings $175,000
297,000
100
6. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. What general journal entry will RH Consulting make to record this transaction?
What is DR Cash 70,000 DR Land 130,000 CR Common Stock 200,000
100
11. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of those expenses is the:
What is Matching principle
100
16. The Fireside Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue?
What is On the date the guests stay in the inn.
100
21. Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31. This oversight would:
What is Understate expense by $24,000. Overstate net income by $24,000.
200
2. A debit is:
What is The left-hand side of a T-account.
200
7. ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2014, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year-end on December 31, 2014, would be:
What is DR Unearned Rent 2,400 CR Rent Earned 2,400
200
12. Which of the following statements are true? a) If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. b) The trial balance is a book of original entry. c) Another name for trial balance is chart of accounts. d) The trial balance is a list of all accounts from the ledger with their balances at a point in time. e) The trial balance is another name for the balance sheet as long as debits balance with credits.
What is The trial balance is a list of all accounts from the ledger with their balances at a point in time.
200
17. A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:
What is Recorded as a credit to an unearned revenue account
200
22. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):
What is Contra account
300
3. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:
What is Debit Office Supplies Expense $254 Credit Office Supplies $254
300
8. Adjusting entries: a) Affect only income statement accounts. b) Affect only balance sheet accounts. c) Affect both income statement and balance sheet accounts. d) Affect only cash flow statement accounts. e) Affect only equity accounts.
What is Affect both income statement and balance sheet accounts
300
13. What would be the account balance in the Cash account after the following transactions, assuming a zero beginning balance? Owner invested cash. 100,000 Purchased supplies with cash. 20,000 Received bill for one month of rent. 2,200 Paid wages. $800 Billed customer for services performed. $1,250
What is $79,200
300
18. Rocky Industries received its telephone bill in the amount of $300 and immediately paid it. Rocky's journal entry to record this transaction is:
What is DR Telephone Expense 300 CR Cash 300
300
23. Which of the following is true of accrued revenues? A. Accrued revenues at the end of one accounting period often result in cash receipts from customers in the next period. B. Accrued revenues at the end of one accounting period often result in cash payments in the next period. C. Accrued revenues are also called unearned revenues. D. Accrued revenues are listed on the balance sheet as liabilities. E. Accrued revenues are recorded at the end of an accounting period because cash has already been received for revenues earned.
What is Accrued revenues at the end of one accounting period often result in cash receipts from customers in the next period.
400
4. Which of the following statements is incorrect? a) The normal balance of accounts receivable is a debit. b) The normal balance of dividends is a debit. c) The normal balance of unearned revenues is a credit. d) The normal balance of an expense account is a credit. e) The normal balance of common stock is a credit.
What is The normal balance of an expense account is a credit.
400
9. If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:
What is Increased $19,000
400
14. Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000?
What is Debit to Equipment, credit to Notes Payable, credit to Cash
400
19. What is the proper order of the accounting cycle without missing a step?
What is Analyze, Journalize, post, unadjusted trial balance, Adjust, Adjusted Trial Balance
400
24. The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:
What is Depreciation
500
5. Which of the following is the primary purpose of accounting? a) To establish a business. b) To identify, record, and communicate business transactions. c) To earn a large profit. d) To reduce taxes owed for the business. e) To establish credit for a company.
What is: To identify, record, and communicate business transactions.
500
10. Accounts payable appear on which of the financial statements?
What is Balance sheet.
500
15. The process of transferring general journal information to the ledger is:
What is Posting
500
20. The recurring steps performed each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, are referred to as the: A. Accounting period
What is Accounting cycle
500
25. A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
What is Debit Salaries Expense $400 Credit Salaries Payable $400
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