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Accounting 280




;;1. Business can take the following form(s);A. Sole proprietorship.;B. Common stock.;C. Partnership.;D. A and C only.;E. All of these.;2. The cost concept;A. Requires that revenue be recognised when earned.;B. Prescribes the accounting information is based on actual cost.;C. Means the business records should be kept separately from the owner?s financial record.;D. Requires the partnerships have written agreement.;E. Requires expenses to be recognised when earned.;3. The below items has a normal debit balance on Adjusted Trail Balance except;A. Prepaid Insurance;B. Rent Expense;C. Unearned revenue;D. Cash;4. The matching principle dictates that;A. All debits equal credits in an entry.;B. That the trial balance must balance;C. Assets of a time period must be matched in the same time period as the liabilities and equity of the same time period.;D. expense of the time period must be matched in the same time period as the revenues of that time.;5. Unearned revenue is listed on the;A. Statement of owner equity;B. Revenue Statement;C. Balance Sheet;D. Income Statement;6. If owner Equity is $76,000 and liabilities are $85,000, then assets equals;A. $143,000;B. $161,000;C. $103,000;D. $100,000;E. $60,000;(76,000+85,000=161,000);7. Unearned revenue is classified as a/ an;A. Asset;B. Revenue;C. Liability;D. Equity;E. Expense;8. Prior to adjusting entries, the office supplies account had a $555 debit balance while a physical account shows of supplies showed $110 of unused supplies on hand. Thus the required adjusting entry is;A. Debit office supplies $110 and credit office supplies expense $110;B. Debit office supplies expense $110 and credit office supplies $110;C. Debit office supplies expense $445 and credit office supplies $445;D. Debit office supplies $445 and credit office supplies $445;E. some other entry;9. The excess of revenue over expense for a period is;A. Net Assets;B. Equity;C. Net Loss;D. Net Income;E. A Liability;10. The Fast Forward company balance sheet shows cash $8,000, account receivable $10,000, office equipment $ 4,000 and account payable $ 10,000. What is the amount of owner?s equity?;A. $1,000;B. $ 11,000;C. $12,000;D. $15,000;E. 19,000;(8,000+10,000+4,000-11,000=12,000);11. If expenses exceeds the revenues the company has incurred;A. Net Assets;B. Equity;C. Net Loss;D. Net Income;E. A Liability;12. The principle that requires every business to be accounted for separately and directly from its owners or owner is known as the;A. Objective principle;B. Business entity principle;C. Going-concern principle;D. Revenue recognition principle;13. If a parcel of land is offered for sale at $50,000, is assessed for tax purpose at $25,000, is recognised by its purchasers as easily being worth $55,000, and is purchased for $45,000 the land should be recorded in purchaser?s book at;A. $20,000;B. $34,000;C. $36,000;D. $45,000;E. $54,000;14. The simple Accounting Equation is;A. Net Income = Assets - Liabilities;B. Liabilities = Equity + Assets;C. Business Equation;D. Return on Equity Ratio;E. Assets = Liabilities + Owner Equity;15. A corporation reported stockholder?s equity of $45,000 on its December 31 st, 19X1, balance sheet. The following information is available for year ended December 31 st,19X2;Revenues $73,000;Expenses $ 59,000;Liabilities $ 11,000;What are the total Assets of corporation for year ended December 31 st, 19X2?;A. $25,000;B. $45,000;C. $48,000;D. $57,000;E. $70,000;(Revenue- expense= net income, 73,000-59,000=14,000);(Equity + net Income+ Liabilities= Total Assets, 45,000+14,000+11,000=70,000);16. The right side of an account is;A. The credit;B. The income side;C. The debit;D. Recorded as an asset in the accounting records;E. The left side.;17. A list of all accounts used by a company, including the identification number assigned to each account is called a;A. Ledger;B. Journal;C. Trial Balance;D. Charts of Accounts;E. General Journal;18. The difference between total debits and credits for an account, including beginning balance is;A. The normal balance;B. The account balance;C. The credit;D. The normal balance of an expense account;E. All of above statements are correct.;19. On September 1, the cash account of Blue Company had a normal balance of $2,300. During September, the account was debited for $5,400 and credited for a total of $ 3,900. What was the balance in cash account at the end of September?;A. A $-0- balance;B. An $3,800 debit balance;C. An $4,600 credit balance;D. A $3,600 debit balance;E. A $ 3,800 credit balance;(2300+5400-3900=3800)


Paper#74122 | Written in 18-Jul-2015

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