Question;Question 1;The normal balance of any account is the;right side.;side which decreases that account.;side which increases that account.;left side.;Question 2;Which one of the following represents the expanded basic accounting equation?;Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. Assets ? Liabilities ? Owner's Drawings = Owner's Capital + Revenues ? Expenses. Assets = Liabilities + Owner's Capital + Owner's Drawings ? Revenue ? Expenses. Assets = Revenues + Expenses ? Liabilities.;Question 3;Which of the following is not true of the terms debit and credit? They can be abbreviated as Dr. and Cr. They can be interpreted to mean left and right.;They can be used to describe the balance of an account.;They can be interpreted to mean increase and decrease.;Question 4;Assets normally show debit balances. debit or credit balances. credit balances. debit and credit balances.;Question 5;When an owner makes a withdrawal;it doesn't have to be cash, it could be another asset. the drawing account will be decreased with a debit. the drawing account will be increased with a credit. the capital account will be directly increased with a debit.;Question 6;During 2010, its first year of operations, Yaspo's Bakery had revenues of $60,000 and expenses of $33,000. The business had owner drawings of $18,000. What is the amount of owner's equity at December 31, 2010?;$18,000 debit;$0;$9,000 credit;$27,000 credit;Question 7;A complete journal entry does not show the new balance in the accounts affected by the transaction.;the date of the transaction.;a brief explanation of the transaction.;the accounts and amounts to be debited and credited.;Question 8;Robitaille Company received a cash advance of $500 from a customer. As a result of this event;assets increased by $500.;owner's equity increased by $500.;liabilities decreased by $500.;assets increased by $500 and owner's equity increased by $500.;Question 9;Posting;is accomplished by examining ledger accounts and seeing which ones need updating.;should be performed in account number order.;accumulates the effects of journalized transactions in the individual accounts.;involves transferring all debits and credits on a journal page to the trial balance.;Question 10;Customarily, a trial balance is prepared;at the end of each day.;after each journal entry is posted.;only at the inception of the business.;at the end of an accounting period.;Question 11;The revenue recognition principle dictates that revenue should be recognized in the accounting records;when cash is received.;when it is earned.;in the period that income taxes are paid.;at the end of the month.;Question 12;Under accrual-basis accounting;cash must be received before revenue is recognized.;net income is calculated by matching cash outflows against cash inflows.;events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.;the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.;Question 13;Unearned revenues are;earned and recorded as liabilities before they are received.;earned but not yet received or recorded.;earned and already received and recorded.;received and recorded as liabilities before they are earned.;Question 14;As prepaid expenses expire with the passage of time, the correct adjusting entry will be a;debit to an expense account and a credit to an expense account.;debit to an expense account and a credit to an asset account. debit to an asset account and a credit to an expense account.;debit to an asset account and a credit to an asset account.;Question 15;The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the;market value of the asset.;depreciated difference of the asset.;book value of the asset.;blue book value of the asset.;Question 16;Speedy Clean Laundry purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is;Debit Laundry Supplies Expense, $4,500, Credit Laundry Supplies, $4,500.;Debit Laundry Supplies Expense, $2,000, Credit Laundry Supplies, $2,000.;Debit Laundry Supplies, $2,000, Credit Laundry Supplies Expense, $2,000.;Debit Laundry Supplies, $4,500, Credit Laundry Supplies Expense, $4,500.;Question 17;Henry-K Company purchased a computer system for $3,600 on January 1, 2010. The company expects to use the computer system for 3 years. It has no salvage value. Monthly depreciation expense on the asset is;$1,200. $0. $3,600. $100.;Question 18;Niagara Corporation purchased a one-year insurance policy in January 2010 for $66,000. The insurance policy is in effect from March 2010 through February 2011. If the company neglects to make the proper year-end adjustment for the expired insurance;Net income and assets will be understated by $55,000.;Net income and assets will be overstated by $55,000.;Net income and assets will be understated by $11,000.;Net income and assets will be overstated by $11,000.;Question 19;Betty Carson has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Betty make?;Debit Unearned Revenue and credit Service Revenue;Debit Cash and credit Unearned Revenue;Debit Accounts Receivable and credit Unearned Revenue;Debit Accounts Receivable and credit Service Revenue;Question 20;Becki Jean Corporation issued a one-year, 9%, $200,000 note on April 30, 2010. Interest expense for the year ended December 31, 2010 was;$13,500. $10,500.;$12,000.;$18,000.;Question 21;The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is;flexibility.;cost effectiveness.;useful output. implementation.;Question 22;To be useful, the information outputs of a system should be reliable, flexible, understandable and timeless. such that one report meets all different users needs. relevant, reliable, timely, and accurate.;distributed only to management personnel.;Question 23;Which of the following is a true statement about manual and electronic accounting systems? Few small companies begin with manual systems.;The design and structure of manual and electronic systems are fundamentally different.;The design and structure of manual and electronic systems are essentially the same. Many companies convert from electronic to manual systems.;Question 24;In which journal would a cash purchase of merchandise inventory be recorded?;Purchase journal;General journal;Cash payments journal None of these.;Question 25;A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a;cash payments journal.;multi-column purchases journal. general journal.;one column purchases journal.;Question 26;adjusting entries are recorded;only on the worksheet. only in the general ledger. in the special journals. in the general journal.;Question 27 Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the;sales journal. cash payments journal. purchases journal. cash receipts journal.;Question 28 Principles of an efficient and effective accounting information system include all of the following except cost effectiveness. flexibility. useful output. All of these options are principles.;Question 29 Cross-footing a cash receipts journal means;the equality of debits and credits in the journal have been proved.;each line of the journal has a horizontal total.;the columns of the journal have been cross-referenced. all necessary postings have been completed.;Question 30;All of the following are advantages of using subsidiary ledgers except they;make possible a division of labor. eliminate errors in individual accounts.;show, in a single account, transactions affecting one customer or one creditor.;free the general ledger of excessive details.
Paper#44255 | Written in 18-Jul-2015Price : $22