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Intro to Accounting MCQs

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Question;Question 1 of 30 3.3334 Points;The business bought supplies on account. To record this: A. an asset is debited and a liability is credited.;B. an asset is debited and an asset is credited.;C. an expense is debited and a liability is credited.;D. None of these are correct. Question 2 of 30 3.3334 Points;Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?;Cash $1000;Equipment 500;Accounts Payable 350;Capital 900;Service Fees 1000;Salaries Expense 750;A. $4,500 debit, $4,500 credit;B. $3,250 debit, $3,250 credit;C. $1,125 debit, $1,125 credit;D. $2,250 debit, $2,250 credit Question 3 of 30 3.3334 Points;Which of the following is prepared first?;A. Trial balance;B. Statement of owner's equity;C. Income statement;D. Balance sheet Question 4 of 30 3.3334 Points;Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?;Cash $1,100;Accounts Receivable 800;Capital 1,900;Withdrawals 500;Service Fees 1,000;Rent Expense 500;A. $1,200 debit, $1,200 credit;B. $2,900 debit, $2,900 credit;C. $3,900 debit, $3,900 credit;D. $2,000 debit, $2,000 credit Question 5 of 30 3.3334 Points;A liability would be credited and an expense debited if;A. the business paid a creditor.;B. the business bought supplies on account.;C. the business incurred an expense and did not pay the expense immediately.;D. the business bought supplies for cash.;Question 6 of 30 3.3334 Points;An asset would be debited and a liability credited if;A. the business incurred an expense and did not pay for the expense immediately.;B. the business bought equipment on account.;C. the business bought supplies for cash.;D. the business incurred an expense and paid it. Question 7 of 30 3.3334 Points;Which of the following errors would cause the trial balance to be out of balance?;A. An entry is not posted at all.;B. A debit is entered as $200 and the credit is entered at $2,000.;C. An entry is posted twice.;D. None of these answers are correct. Question 8 of 30 3.3334 Points;Which of the following is not a financial statement?;A. Statement of owner's equity;B. Trial balance;C. Income statement;D. Balance sheet Question 9 of 30 3.3334 Points;One asset would be debited and another credited if;A. the business provided services to a credit customer.;B. the business paid a creditor.;C. the business provided services to a cash customer.;D. the business bought supplies paying cash. Question 10 of 30 3.3334 Points;The owner invested personal equipment in the business. To record this transaction;A. debit Equipment and credit Accounts Payable.;B. credit Equipment and debit Capital.;C. debit Equipment and credit Capital.;D. debit Accounts Payable and credit Equipment. Question 11 of 30 3.3334 Points;A journal entry affecting three or more accounts is called a;A. simple entry.;B. multi-step entry.;C. multi-level entry.;D. compound entry. Question 12 of 30 3.3334 Points;If Accounts Payable has been credited, it is most likely that;A. a payment was made on account.;B. a correcting entry was made for the overstatement of the purchase of equipment on account.;C. a purchase was made on account.;D. None of these are possible. Question 13 of 30 3.3334 Points;When the trial balance includes a debit column total of $10,350 and a credit column total of $11,350, it is probable that;A. a transposition error occurred.;B. a $500 debit was recorded twice.;C. a $500 debit was recorded as a credit.;D. a $500 credit was recorded twice. Question 14 of 30 3.3334 Points;The posting reference column in the journal is used for;A. recording the account number to which the entry was posted.;B. recording the time when the entry was posted.;C. recording the initials of the person who did the posting.;D. recording the source documents identification number. Question 15 of 30 3.3334 Points;The journal entry to record a withdrawal by the owner would most commonly include;A. a debit to Wage Expense and a credit to Cash.;B. a debit to Withdrawals and a credit to Cash.;C. a debit to Capital and a credit to Cash.;D. a debit to Cash and a credit to Wage Expense. Question 16 of 30 3.3334 Points;The general journal;A. is completed after the general ledger.;B. is the book of final entry.;C. contains account balances.;D. is the book of original entry.;Question 17 of 30 3.3334 Points;Which of the following entries records the owner taking cash for personal use?;A. Capital, debit, Cash, credit;B. Wage Expense, debit, Cash, credit;C. No entry is necessary since the owner owns the cash and the entire business.;D. Withdrawals, debit, Cash, credit Question 18 of 30 3.3334 Points;Interim statements are prepared to;A. notify management of the company's current financial position.;B. allow management to make changes to the business before processing year-end financial statements.;C. notify investors of the company's current financial position.;D. All of the above are correct. Question 19 of 30 3.3334 Points;A debit to the Capital account was posted to an expense account. This would cause;A. liabilities to be understated.;B. capital to be overstated.;C. assets to be overstated.;D. expense to be understated. Question 20 of 30 3.3334 Points;If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error;A. Recording the same transaction more than once;B. Incorrectly calculating the debit side of the trial balance;C. Failure to record a transaction;D. Recording the same erroneous amount for both the debit and the credit sides of a transaction Question 21 of 30 3.3334 Points;Which of the following transactions would cause the trial balance to be out of balance?;A. A credit to Cash and a debit to Supplies for the same amount;B. A debit to Cash and a debit to Equipment for the same amount;C. A debit to Accounts Receivable and a credit to Accounting Fees for the same amount;D. All of these answers are correct. Question 22 of 30 3.3334 Points;The general ledger;A. lists the transactions in chronological order.;B. is the book of final entry.;C. is before the general journal.;D. is the book of original entry.;Question 23 of 30 3.3334 Points;The process of initially recording business transactions in a journal is;A. transposing.;B. journalizing.;C. sliding.;D. posting. Question 24 of 30 3.3334 Points;If Prepaid Rent has been debited, it is likely that;A. a bill for the past month's rent was received.;B. this month's rent was paid.;C. the rent was paid for three months in advance.;D. All of these are possible. Question 25 of 30 3.3334 Points;As Withdrawals increase;A. owner's equity decreases.;B. Cash increases.;C. expense increases.;D. owner's equity increases. Question 26 of 30 3.3334 Points;Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means;A. all accounts have their correct balances in the ledger.;B. only the ledger is accurate, the journal may be incorrect.;C. only that the debit dollar amounts equal the credit dollar amounts.;D. all of the information from the journal was correctly transferred to the ledger. Question 27 of 30 3.3334 Points;The process that begins with recording business transactions and includes the completion of the financial statements is the;A. accounting cycle.;B. fiscal year.;C. calendar year.;D. natural business years. Question 28 of 30 3.3334 Points;The entry to record the payment of office salaries would be;A. Debit Salaries Expense, Credit Cash;B. Debit Cash, Credit Accounts Receivable;C. Debit Cash, Credit Salaries Expense;D. Debit Salaries Expense, Credit Accounts Payable Question 29 of 30 3.3334 Points;The entry to record completing a financial lecture and immediately collecting payment from customers would be;A.;Cash 500;Lecture Fees 500;B.;Cash 500;Accounts Payable 500;C.;Lecture Fees 500;Accounts Payable 500;D.;Lecture Fees 500;Cash 500 Question 30 of 30 3.3334 Points;Antonio's catered a reception. The total price was $500. The customer paid half of the fee in cash and placed the remainder on account. The journal entry to record this transaction is;A.;Cash 500;Catering Service Fees 500;B.;Accounts Receivable 500;Cash 250;Catering Service Fees 250;C.;Cash 250;Accounts Receivable 250;Catering Service Fees 500;D.;Cash 500;Accounts Receivable 500 ASSIGN 8;Question 1 of 20 5.0 Points The entry to replenish the petty cash fund debited Insurance Expense for postage. This would cause;A. Petty Cash to be understated.;B. Postage Expense to be overstated.;C. Insurance Expense to be overstated.;D. Petty Cash to be overstated. 'Question 2 of 20 5.0 Points;The petty cash overage was not recorded. This would cause;A. expenses to be understated.;B. expenses to be overstated.;C. revenues to be overstated.;D. revenues to be understated. Question 3 of 20 5.0 Points;Outstanding checks;A. have not been presented to the bank for payment and have not been subtracted from the checkbook.;B. have been subtracted on the bank records but not the checkbook records.;C. have not been presented to the bank for payment but have been subtracted in the checkbook.;D. have been returned to the business for nonpayment.;Question 4 of 20 5.0 Points;An example of an internal control is;A. all checks are prenumbered.;B. the use of bank account.;C. all checks written must have reference source documents.;D. All of these answers are correct. Question 5 of 20 5.0 Points;The check is written and signed by the;A. drawer.;B. payee.;C. payer.;D. drawee.;Question 6 of 20 5.0 Points;A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?;A. It is shown as a credit memo.;B. It is added to the bank balance.;C. It is shown as a debit memo.;D. None of these answers are correct.;Question 7 of 20 5.0 Points;The bank would issue a credit memorandum to Maria's Life Management when the bank;A. discovered a check that was deposited was returned for nonsufficient funds.;B. collects a note receivable from a customer.;C. received the deposits in transit.;D. None of these answers are correct. Question 8 of 20 5.0 Points;The debit recorded in the journal to establish the petty cash fund is to;A. Petty Cash.;B. Accounts Receivable.;C. Accounts Payable.;D. Cash. Question 9 of 20 5.0 Points;What type of an account is the petty cash fund?;A. Liability;B. Expense;C. Asset;D. Revenue;Question 10 of 20 5.0 Points;Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information;Cash balance on the bank statement $2,350;Customer's check returned NSF 500;Customer's note collected by the bank 600;Deposits in transit, November 30 1,400;Outstanding checks, November 30 2,650;A. $1,350;B. $1,250;C. $1,100;D. $1,550 Question 11 of 20 5.0 Points;The drawee is the;A. the person to whom the check is payable.;B. bank that drawer has an account with.;C. person who writes the check.;D. the person who reconciles the account. Question 12 of 20 5.0 Points;Checks that have been processed by the bank and are no longer negotiable are;A. checks in process.;B. outstanding checks.;C. canceled checks.;D. blank checks. Question 13 of 20 5.0 Points;The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes;1. A check for $200 to pay the electric bill was recorded on the books as $20.;2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.;3. Checks outstanding totaled $260.;4. Bank service charges were $50.;5. Deposits in transit were $2,140.;Which item(s) should be subtracted from the balance per books?;A. Bank service charge;B. Bank service charge and the note collected by the bank;C. Checks outstanding and bank service charge;D. None of the above are correct. Question 14 of 20 5.0 Points;The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes;1. A check for $200 to pay the electric bill was recorded on the books as $20.;2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30;3. Checks outstanding totaled $260.;4. Bank service charges were $50.;5. Deposits in transit were $2,140.;The adjusted cash balance at the end of August should be;A. $7,620.;B. $7,980.;C. $9,810.;D. $8,180. Question 15 of 20 5.0 Points;The person or company to whom a check is payable is called the;A. drawer.;B. payer.;C. drawee.;D. payee. Question 16 of 20 5.0 Points;On a bank reconciliation, deposits added to the bank side are called;A. deposits in transit.;B. deposits on hold.;C. outstanding deposits.;D. late deposits. Question 17 of 20 5.0 Points;Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should;A. decrease the ending cash balance on the bank statement.;B. increase their cash account on the company's books.;C. decrease their cash account on the company's books.;D. increase the ending cash balance on the bank statement. Question 18 of 20 5.0 Points;The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes;1. A check for $200 to pay the electric bill was recorded on the books as $20.;2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.;3. Checks outstanding totaled $260.;4. Bank service charges were $50.;5. Deposits in transit were $2,140.;Which item(s) will require a journal entry to update the balance in the Cash account?;A. Bank service charges, note collected by the bank, and error made by Accounting Services;B. Checks outstanding and deposits in transit;C. Bank service charges, note collected by the bank, and deposits in transit;D. None of these answers are correct. Question 19 of 20 5.0 Points;Samantha's Tutoring Service's $200 petty cash fund has a shortage of $4. The facts are: $80 in valid receipts for expenses, $116 in coins and currency. The journal entry to replenish the petty cash fund would include a;A. credit to Cash for $80.;B. debit to Cash Short/Over for $4.;C. credit to Cash Short/Over for $4.;D. credit to Petty Cash for $84. Question 20 of 20 5.0 Points;Information to calculate the adjusted cash balance for Sam's Gift Wrapping is as follows;Cash balance per general ledger $2,100;Customer's check returned NSF 75;Bank service charges 40;Deposits in transit 500;Outstanding checks 700;Customer's note collected by bank 645;A. $2,430;B. $2,630;C. $2,330;D. $2,230

 

Paper#45515 | Written in 18-Jul-2015

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