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Accounting MCQs




Question;The;cost of an asset less accumulated depreciation equals;A.;book value.;B.;residual value.;C.;depreciation expense.;D.;None of these answers are correct.;If the balance of supplies at the start of;the month was $900 and at the end of the month you had $450 on hand, the;adjustment for Supplies would be;A.;$900.;B.;$350.;C.;$550.;D.;$450.;Depreciation Expense would be found on;which of the following financial statements?;A.;Income statement;B.;Statement of Owner's Equity;C.;Balance sheet;D.;Depreciation report;Which of the following accounts would;appear on the balance sheet?;A.;Depreciation Expense;B.;Fees Earned;C.;Accumulated Depreciation;D.;None of these are correct.;A form used to organize and check data;before preparing financial reports is known as a(n);A.;income statement.;B.;balance sheet.;C.;trial balance.;D.;worksheet.;Which of the following is most likely to;result in an adjusting entry at the end of the period?;A.;Payment for routine maintenance on the company van;B.;Owner's withdrawals;C.;Payment of two months' insurance in advance;D.;Payment of one month's rent;When historical cost is used to record;equipment, it would appear as the;A.;original cost on the income statement.;B.;original cost on the balance sheet.;C.;residual value on the balance sheet.;D.;residual value on the income statement.;Bringing account balances up to date before;preparing financial reports is called;A.;adjusting.;B.;posting.;C.;analyzing.;D.;journalizing.;Not recording the Prepaid Rent used causes;A.;assets to be too low.;B.;expenses to be too high.;C.;revenue to be too high.;D.;assets to be too high.;A contra-asset is;A.;in reality a liability.;B.;an account with an opposite balance of a normal asset.;C.;an asset with a debit balance.;D.;an account that increases the asset.;Reset Selection;Equipment with a cost of $150,000 has an;accumulated depreciation of $100,000. What is the historical cost of the;equipment?;A.;$100,000;B.;$200,000;C.;$50,000;D.;$150,000;The estimated value of an item at the end;of its useful life is;A.;residual value.;B.;accumulated depreciation.;C.;depreciation expense.;D.;None of these answers are correct.;Evans Golf Academy estimated depreciation;on its building at $300. The adjusting entry for depreciation of the building;would include;A. a;debit to Depreciation Expense for $300.;B.;a credit to Depreciation Expense for $300.;C.;a credit to Building for $300.;D.;a debit to Accumulated Depreciation for $300.;Equipment with a cost of $200,000 has an;accumulated depreciation of $100,000. What is the book value of the equipment?;A.;$200,000;B.;$100,000;C.;$150,000 D. $50,000;Which of the following accounts would most;likely not need to be adjusted at the end of the year?;A.;Cash;B.;Accumulated Depreciation;C.;Prepaid Rent;D.;Office Supplies;Question 16 of 30;5.0 Points;The;income statement credit column of the worksheet showed the following revenues;Catering;Fees;$500;Cleaning;Fees;800;The;journal entry to close the revenue accounts is;A.;Catering Fees;500;Cleaning Fees;800;Income Summary;1,300;B.;Capital;1,300;Income Summary;1,300;C.;Catering Fees;500;Cleaning Fees;800;Capital;1,300;D.;Income Summary;1,300;Catering Fees;500;Cleaning Fees;800;Reset Selection;Income Summary;A. is a temporary account.;B.;is a permanent account.;C.;summarizes revenue and expenses and transfers the balance to Capital.;D. Both A and C are correct.;Which of the following columns of the;worksheet are referred to when preparing closing entries to the Income Summary?;A.;Adjustments columns;B.;Adjusted trial balance columns;C.;Balance sheet columns;D.;Income statement columns;Adjusting journal entries;A.;need not be journalized since they appear on the worksheet.;B.;are not needed if closing entries are prepared.;C.;need not be posted if the financial statements are prepared from the;worksheet.;D.;must be journalized and posted.;When the balance in the Income Summary;account is a credit, the company has;A.;made an error in their closing entries.;B.;incurred a net loss.;C.;incurred a net income.;D.;had more expenses than revenue.;How do you close the expense accounts?;A.;Debit Capital, credit the expense accounts;B.;Credit Income Summary, debit the expense accounts;C.;Debit Income Summary, credit the expense accounts;D.;Credit Capital, debit the expense accounts;How do you close a revenue account?;A.;Credit Income Summary, debit Revenue;B.;Credit Capital, debit Revenue;C.;Debit Income Summary, credit Revenue;D.;Debit Capital, credit Revenue;The adjusting entry to record the expired;rent would be to;A.;debit Prepaid Rent, credit Cash.;B.;debit Cash, credit Prepaid Rent.;C.;debit Prepaid Rent, credit Rent Expense.;D.;debit Rent Expense, credit Prepaid Rent.;Closing entries;A.;need not be posted if the financial statements are prepared from the;worksheet.;B.;must be journalized and posted.;C.;are not needed if adjusting entries are prepared.;D.;need not be journalized since they appear on the worksheet.;Which of the following accounts would;appear on the post-closing trial balance?;A.;Owner's Capital;B.;Fees Earned;C.;Income Summary;D. Rent Expense;M. Smuts showed a net income of $6,000. The;entry to close the Income Summary account would include a;A.;debit to M. Smuts Capital, $6,000.;B.;credit to M. Smuts Capital, $6,000.;C.;debit to Income Summary, $6,000.;D.;Both B and C are correct.;Which of the following accounts will be;directly closed to Capital at the end of the fiscal year?;A.;Withdrawals;B.;Salaries Expense;C.;Fees Revenue;D.;Depreciation Expense;Which of the following accounts would not;be considered a permanent account?;A.;Accounts Payable;B.;Salaries Expense;C.;Accounts Receivable;D.;Office Supplies;Which of the following sequence of actions;describes the proper order in the accounting cycle?;A.;Analyze transactions, journalize, post, adjust, prepare financial statements;close;B.;Journalize, post, close, prepare financial statements, adjust, and analyze;transactions;C.;Prepare financial statements, journalize, post, adjust, analyze transactions;close;D.;Post, close, prepare financial statements, adjust, analyze transactions, and;journalize;The adjusting entry for accrued salaries is;to;A.;debit Salaries Payable, credit Salaries Expense.;B.;debit Salaries Expense, credit Cash.;C.;debit Salaries Expense, credit Salaries Payable. D. debit Cash, credit Salaries;Expense.


Paper#38283 | Written in 18-Jul-2015

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