Details of this Paper

accounting help for jos.m

Description

solution


Question

1) Anytime an owner removes any asset for personal use it is recorded as;A) a withdrawal.;B) payment of a liability.;C) an investment.;D) an expense.;2) The increase or decrease in the owner?s equity is reported on the;A) statement of owner?s equity.;B) income statement.;C) balance sheet.;D) all of these;3) The purpose of the accounting process is to provide financial information on;A) large corporations.;B) small businesses.;C) individuals.;D) All of these answers are correct.;4) Which of the following is not a business organization form?;A) Corporation;B) Sole proprietorship;C) Operation;D) Partnership;5) Owner?s withdrawals;A) increase expenses.;B) increase liabilities.;C) increase assets.;D) decrease owner?s equity.;6) Cater Right, with total assets of $50,000, borrows $15,000 from the bank.;Which of the following is a True statement upon borrowing the money?;A) Total assets are now $35,000.;B) Owner?s equity is $15,000 more.;C) Total assets are now $50,000.;D) Total assets are now $65,000.;7) Mark paid $500 rent for the month. Identify the accounts affected.;A) Cash and Rent Expenses increase.;B) Cash and Capital increase.;C) Cash decreases, and Rent Expense decreases.;D) Cash decreases, and Rent Expense increases.;8) If Suite Dream Toys? revenues are less than its expenses during the account-;ing period;A) the business will incur a loss.;B) owner?s withdrawals decrease owner?s equity.;C) owner withdrawals decrease net income.;D) net income causes liabilities to decrease.;9) The financial statement that shows revenue and expenses for a period of time;is the;A) statement of owner?s equity.;B) balance sheet.;C) statement of liabilities and capital.;D) income statement.;10) The purchase of a truck with a down payment was recorded as a pure cash;purchase. This error would cause;A) liabilities were understated.;B) assets were overstated.;C) owner?s equity was overstated.;D) None of the above are correct.;11) The business provided services to a credit customer.;A) Assets and owner?s equity increase.;B) Assets and revenue increase.;C) Liabilities and owner?s equity increase.;D) None of the above are correct.;12) Which of the following transactions would cause an asset to increase and the;owner?s equity to increase?;A) The business bought supplies on account.;B) The owner invested cash in the business.;C) The business incurred an expense on credit.;D) The owner withdrew cash from the business.;13) Which of the following would result if the business provided services to a;customer collecting cash?;A) Cash would increase and Revenue would decrease.;B) Since the cash was collected there is no need to record this.;C) Cash would increase and Capital would increase.;D) Cash would increase and Revenue would increase.;14) A formal account that has columns for date, explanation, post reference;debit, and credit is called the;A) T account.;B) ledger.;C) chart of accounts.;D) standard account form.;15) A credit may signify a(n);A) decrease in revenues.;B) decrease in assets.;C) decrease in capital.;D) decrease in liabilities.;16) A listing of all the accounts from the ledger with their ending balances is;called a;A) normal balance.;B) trial balance.;C) footing.;D) chart of accounts.;17) Accounts Payable had a normal starting balance of $600. There were debit;postings of $350 and credit postings of $200 during the month. The ending;balance is;A) $950 credit.;B) $450 debit.;C) $450 credit.;D) $750 debit.;18) The beginning balance in Cash was $400. Additional cash of $800 was;received. Checks were written for $900. The cash balance is;A) $400.;B) $300.;C) $700.;D) $900.;19) Given the following list of accounts with normal balances, what are the trial;balance totals of the debits and credits?;Cash $500;Accounts Receivable 100;Capital 300;Withdrawals 100;Service Fees 700;Rent Expense 300;A) $800 debit, $800 credit;B) $1,200 debit, $1,200 credit;C) $900 debit, $900 credit;D) $1,000 debit, $1,000 credit;20) A credit to an asset account was posted to an owner?s equity account. This;error would cause;A) assets were overstated.;B) owner?s equity was overstated.;C) liabilities were overstated.;D) Both a and c are correct.;21) A debit to an asset account was posted to an expense account. This error;would cause;A) assets were overstated;B) expenses were overstated.;C) liabilities were overstated.;D) None of the above are correct.;22) The owner withdrew cash from the business. To record this;A) Capital is debited and an asset is credited.;B) an expense is debited and an asset is credited.;C) Withdrawals is debited and an asset is credited.;D) None of these are correct.;23) One asset would be debited and another credited if;A) the business paid a creditor.;B) the business provided services to a cash customer;C) the business bought supplies paying cash.;D) the business provided services to a credit customer;24) Paid the rent for the next six months.;A) An asset would be debited and an expense credited.;B) An asset would be debited and a revenue credited.;C) Capital would be debited and a revenue credited.;D) An asset would be debited and an asset credited.;25) The journal described as the simplest form is a (an);A) accounting journal.;B) general journal.;C) special journal.;D) interim journal.;26) The process of initially recording business transactions in a journal is;A) posting.;B) sliding.;C) journalizing.;D) transposing.;27) In the month of June, Davis Computers paid three months? rent in advance.;The journal entry to record this transaction is;A) Rent Expense Cash;B) Cash Prepaid Rent;C) Cash Rent Expense;D) Prepaid Rent Cash;28) Antonio?s catered a reception. The total price was $1,200. The customer paid;$200 cash and charged the remainder. The journal entry to record this trans-;action is;A) Cash 200;Accounts Receivable 200;B) Cash 200;Accounts Receivable 1,000;Catering Service Fees 1,200C) Cash 1,000;Accounts Receivable 200;Catering Service Fees 1,200;D) Accounts Receivable 1,200;Cash 200;Catering Service Fees 1,000;29) M. Sands, CPA, collected fees of $650 not previously billed or recorded. The;journal entry to record the collection would be;A) Accounting Fees 650;Cash 650;B) Accounts Receivable 650;Cash 650;C) Cash 650;Accounting Fees 650;D) Cash 650;M. Sands, Capital 650;30) When a number is recorded as 856 instead of 865 it is called a;A) slide.;B) rearrangement.;C) composition;D) transposition.;31) A $600 check written for supplies was journalized as $60. The entry to;correct this error is;A) debit Supplies, $540, credit Cash, $540.;B) debit Supplies, $60, credit Cash, $60.;C) debit Cash, $540, credit Supplies, $540.;D) debit Cash, $60, credit Cash, $60.;32) 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) all of the information from the journal was correctly transferred to the ledger.;C) only that the debit dollar amounts equal the credit dollar amounts.;D) only the ledger is accurate, the journal may be incorrect.;33) A debit to a revenue account was posted to an asset account. This would;cause;A) revenue to be understated.;B) liabilities to be understated.;C) expense to be understated.;D) assets to be overstated.;34) The general journal entry to record an exchange of assets would most com-;monly include;A) A debit to Cash and a credit to Fees Earned.;B) A debit to Fees Earned and a credit to Accounts Receivable.;C) A debit to Supplies and a credit to Accounts Payable.;D) A debit to Cash and a credit to Accounts Receivable.;35) If Cash has been debited, it is most likely that;A) the business borrowed cash from the bank.;B) a charge customer made a payment.;C) the owner made an investment.;D) All of these are possible.;36) If you had purchased $500 of supplies during the month and at the end of;the month you had $300 on hand, the adjustment for Supplies would be;A) $100.;B) $300.;C) $200.;D) $500.;37) If the adjustment for Supplies used during the period was not made;A) expenses would be too high.;B) revenue would be too high.;C) expenses would be too low.;D) asset Office Supplies would be too low.;38) Andrew Antiques showed store supplies available during the year of $400. A;count of the supplies on hand as of May 31 is $150. The adjusting entry for;Store Supplies would include;A) a debit to Store Supplies for $150.;B) a credit to Store Supplies Expense for $250.;C) a debit to Store Supplies Expense for $250.;D) a credit to Store Supplies Expense for $150.;39) Roy purchased a one-year insurance policy for $2,400. The adjusting entry;for one month would include a;A) debit to Prepaid Insurance, $200.;B) credit to Cash, $200.;C) debit to Insurance Expense, $200.;D) None of these answers are correct.;40) The capital balance amount shown in the balance sheet column of the work-;sheet represents;A) beginning capital plus net income.;B) beginning capital plus investments to capital.;C) beginning capital less withdrawals.;D) beginning capital plus net income less withdrawal.;41) When counting the supplies a file cabinet was forgotten and the adjustment;was made based on the incorrect count. This would;A) overstate the period?s net income.;B) overstate the end of period assets.;C) understate the end of period assets.;D) None of these are correct.;42) The adjustment for accrued wages included the entire pay period, some of;which occurs next month. This would;A) understate the end of period liabilities.;B) overstate the period?s net income.;C) overstate the end of period liabilities.;D) None of these are correct.;43) The purchase of equipment will require an adjustment of;A) increasing the total assets and increasing the total expenses at the end of the;month.;B) decreasing the total assets and decreasing the total expenses at the end of;the month.;C) decreasing the total assets and increasing the total expenses at the end of;the month.;D) none of the above.;44) Which of the following would cause an asset to be debited and a liability;credited?;A) Recorded the adjustment for the expiration of the insurance policy;B) Recorded the adjustment for the expiration of rent;C) Purchased supplies on account;D) None of these would have that effect.;45) Which of the following would cause a liability to be credited and an expense;debited?;A) Recorded the adjustment for the accrual of wages;B) It is the end of the month and no utility bill has been received;C) Recorded an accrued expense;D) All of the above would have that effect.;46) The adjusting entries are journalized;A) whenever time permits.;B) before preparing financial reports.;C) before the next accounting period starts.;D) at the beginning of the accounting period.;47) Which of the following accounts would be considered a permanent account?;A) Service Fees;B) Salaries Expense;C) Salaries Payable;D) Depreciation Expense;48) An important purpose of closing entries is to;A) set nominal account balances to zero to begin the next period.;B) adjust the accounts in the ledger.;C) help in preparing financial statement.;D) set real account balances to zero to begin the next period.;49) Which of the following accounts will not be closed to Income Summary at the;end of the fiscal year?;A) Word Processing Fees;B) Smith, Withdrawals;C) Salaries Expense;D) Supplies Expense;50) Which of the following accounts will be directly closed to Capital at the end;of the fiscal year?;A) Depreciation Expense;B) Fees Revenue;C) Salaries Expense;D) Withdrawals;51) Which of the following accounts ordinarily appears in the post-closing trial;balance?;A) Accumulated Depreciation;B) Supplies Expense;C) Fees Revenue;D) Salaries Expense;52) The Income Summary account shows debits of $20,000 and credits of;$18,000. This is a result of a;A) net loss of $38,000.;B) net income of $2,000.;C) net income of $38,000.;D) net loss of $2,000.;53) After closing the revenue, expense, and withdrawal accounts, the capital;increased by $2,000. Which of the following situations could have occured?;A) The owner made withdrawals.;B) The company had a net income of $5,000.;C) The owner invested an additional amount.;D) All of these answers are correct.;54) When the expenses are closed;A) Owner?s Capital will be debited.;B) Income Summary will be credited.;C) Income Summary will be debited.;D) None of these are correct.;55) Closed the Fees Earned account.;A) Owner?s capital would decrease.;B) Owner?s capital would remain the same.;C) Owner?s capital would increase.;D) None of these are correct.;56) A restrictive endorsement on a check;A) can be further endorsed by someone else.

 

Paper#75305 | Written in 18-Jul-2015

Price : $187
SiteLock