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accounting mcq quiz exm




Question;1. For information to have RELEVANCE, IT must?2. Assume the owner's equity account has a beginning balance of $14,000. The owner makes no investments this year, but withdraws 3,700. The ending balance in owner's capital is 27,200. There were no dividends declared or paid during the year. What is the net income or loss for the period?3. The form of business that has a separate legal existence from its owners is?4. The basic accounting equation for the balance sheet is5. Assetsa. posses services potential or utility to their owner expressed in money termsb. economic resources that are ownedc. are things of value that are ownedd. are the share of the business that the owner owns outrighte. a,b,c6. A prepaid expensea. is found in the liability sectionb. is a debtc. is an assetd. is on the income statemente. both c and d10.First in, first out, last in, last out and weighted average formulas are examples of?11. ABC company purchased computer equipment for 1,500 on account. The accounting entry is?12. Western landscapinig cut a large lawn and received a total of 150 in cash as payment for the job. The accounting entry is?13. The following includes all of the accounts for the Kelly company as of Dec 31Account Receivable $2500Supplies Expense $500Cash $6000Drawing account $1500Equipment $3000Advertising Expense $1000Salary Expense $7000Accounts Payable $5200Revenues Earned $6800Capital Account $9500What is the total trail balance on Dec 31st14. Which of the following transactions require a compound journal entry?a. purchace four types of supplies on accountb. purchase two types of supplies on accountc. receive 500 in cash from a customer for services billed in April and Mayd. purchase 1000 of equipment 20% cash and remainder on credit15. The owner of instructional media withdrew 6000 from the business for personal reasons. What is the account entry16. progressive engineering company uses two general ledgers to track finanacial info. This would be an example ofa. a company that is aggressive at keeping track of their financial infpb. a company which has two locations in different statesc. the GAAP principle of actual accountingd. A violation of GAAP, which allows for only one general ledgere. none of the above17. Depreciation expense is an example ofa. current liabilityb. a contra accountc. A method of setting aside money to replace equipment at a later dated. a non-cash expense18. The asset ?land?a. cannot be depreciatedb. depreciated if it is held for future corp. growthc. is an example of an intangible assetd. is an example of a current assete. none of the above19. On Dec 5 Arnold delivery received $2000 from a customer in payment of future delivery services. The journal entry debited cash. If one fourth of the $2000 in the Unearned delivery fees account has been earned by Dec 31 the adjusting entry on Dec 31 is?20. The cash flow statement is dived into three main categories. They are which of the following?a. Cash over and short, account receivables and accounts payable, cash and accrualsb. assets, liabilities, owners equityc. revenues, cost of goods sold, and operating expensesd. Cash from operating activities, cash from investing activities, cash from financing ac21. The Case company had revenues of $115,000 for the year MR Case withdrew $15,000 from the business during the year. The accounting entry to close the owners drawing account is?. debt income summary $15,000, credit Mr Case drawing $15,000b. debit Mr Case drawing $15,000, credit income summary $15,000c. debit Mr Case drawing $15,000, MR Case credit capital $15,000d. debit Mr Case capital $15,000, credit Mr Case drawing $15,00022. From time to time auditors may uncover an error or irregularity. What if any is the differenace between the two?a. none, they are the sameb. An error is an unintentional mistake an irregularity is an intentional manipulation of the company accountsc. an error is an intentional manipulation of the company accounts and an irregularity is unintentional mistaked. An error is an mistake found on the income statement and irregularity is a mistake found on the balance sheet23. CMU corporation has $200,000 of accounts receivable and has found an average 4% of its credit sales are uncollectable. Suppose CMU Corp determines that a customer owing $3000 will never pay what would be the journal entry?24. Row INc. has a contract to construct a building for a price of $200,000 of cost and it estimates and additional $20,000 will be needed to finish the building. How much profit can be recognized using the % of completion method?25. In a manufacturing company, inventory typically consist of three components. They area. raw materials, supplies, and indirect salariesb. supplies, factory overhead, cost of goods soldc. raw materials, work in process, and finished goodsd. direct labor, supplies, raw material26. Identify the advantage of recognizing revenue at the time of sale?a. there is no alternative methodb. this only applies to cash sales, not credit salesc. risk of loss due to price decline or destruction of the goods has passed to the buyerd. none of the above27. Allowance for doubtful accounts and allowance for accumulated depreciation are both examples of?28. Common size financial statements refer to?29. An example of a general, selling, or administrative expense would b?a. raw material used in manufacturingb. insurance expense on the corpaorate headquartered buildingc. direct labor used in manufacturingd. boxes used to pack the finished product in for shipment to the retailer30. Sell returns and allowances are sometime founda. on the balance sheet as a contra accountb. on the sources and uses a fund statement as a use of fundsc. under the title of the operating income on the income statementd. as a deduction from the gross sales on the income statement31. A used in accounting and finance, source documents includea. only documents received as hard copiesb. only documents received electronicallyc. information such as cash register tapes, which would be posted to the accounting recordsd. income statements but not balance sheets32. A manufacturer has beginning and ending finsished goods inventory of $200,000 and $50,000 respectively. Also the cost of goods manufactured is $400,000. What is the cost of goods sold?33. From a merchadisers income statement you know the sales revenue is $500,000 and the gross margin is 15% what is the cost of good sold?34. All of the following a GAAP sanctioned methods of depreciation except35. The GAAP principle of conservatism is best illustrated by which of the following36. The major difference between a manufacturing income statement and a service company is37. As used in financial dealings with corporation working capital is38. When a plant asset is retired from productive service that originally cost $150,000 and had accumalted depreication of $30,000 the correct accounting treatment is39 $3,000,000 and the # XXXXX common shares is 1,000,000 what would be the EPS39.What would be the correct journal entries to record $8.00 depletion40. Smith Corp sold 50 shares of 20$ per value common stock for 30$ per share. What would be the correct journal entry41. Parking Corp earned net income from operating before interest expense of $15,000,000 last year if the tax rate was 33 1/3% Interest expense="background-color:>="background-color:>="background-color:>="background-color:>="background-color:>="background-color:>="background-color:>="background-color:>


Paper#41820 | Written in 18-Jul-2015

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