Theretainedearningsstatementdoesnotshow:
Answer
theretainedearningsbeginning
balance.
revenuesandexpenses.
dividends.
theendingretainedearningbalance.
Question2
2points
1. 1.
Thecorrectadjustingentryforrecordingthedepreciationofofficeequipmentwouldbe:
Answer
debitDepreciationExpenseandcreditOfficeEquipment
debitOfficeEquipmentandcreditAccumulatedDepreciation
debitDepreciationExpenseandcreditAccumulatedDepreciation
debitOfficeEquipmentandcreditDepreciationExpense
2points
Question3
1.
Liabilitiesofacompanyrepresentmoneyowedto:
Answer
customers.
owners.
creditors.
stockholder
s
Question4
2points
1.
Ifthebookvalueofanassetis$12,500andtheaccumulateddepreciationis$3,500,theoriginalcostoftheasset
is:
Answer
$16,00
0
$9,500
$9,000
$7,500
2points
Q uestion5
1.
Netincomewillresultduringatimeperiodwhen:
Answer
assetsexceedliabilities.
assetsexceedrevenues.
expensesexceedrevenues.
revenuesexceedexpenses.
Question6
2points
1.
Whichofthefollowingaccountsisnotclosedout(i.e.,reducedtozero)atyearend?
Answer
SalesRevenue
DepreciationExpense
AccumulatedDepreciation
RentExpense
2points
Question7
1.
Trademarkswouldappearinwhichbalancesheetsection?
Answer
Intangibles
Investments
Property,plant,and
equipment
CurrentAssets
Question8
2points
1.
Whichofthefollowingaccountswouldbeclosedattheendoftheyear?
Answer
AccountsReceivable
Accumulated
Depreciation
AccountsPayable
DepreciationExpense
2points
Q uestion9
1.
Whichofthefollowingwouldhaveadebitnormalbalance?
Answer
DepreciationExpense
CommonStock
SalesRevenue
Alloftheabove
2points
Question10
1.
RentExpenseisincreasedwitha:
Answer
Debit
Credit
Bothaandbarecorrect
Noneoftheaboveare
correct
2points
Question11
1.
ThefollowinginformationwastakenfromtheyearendbalancesheetofAbleAutoSupplies,Inc.:
Cash
$50,000
AccountsPayable
65,000
PrepaidInsurance
30,000
SalariesPayable
10,000
AccountsReceivable
60,000
MortgagePayable
90,000 MortgagePayableisdueis5years
Inventory
70,000
Landheldforfutureuse
80,000
Land
95,000
Building
100,000
AccummulatedDepr.
(20,000)
Trademark
70,000
CommonStock
120,000
RetainedEarnings
250,000
AbleAutoSupplies,Inc.sworkingcapitalis
Answer
$215,000
.
$135,00
0.
$40,000.
$60,000.
2points
Question12
1.
Reportinganetincomeof$95,000will:
Answer
increaseretained
earnings.
decreaseretainedearnings.
increasecommonstock.
decreasecommonstock.
Question13
2points
1.
Whichpairofthelistedaccountshavetheoppositenormalbalance?
Answer
Salaryexpenseandnotespayable
Commonstockandunearnedrent
Prepaidrentandadvertising
expense
Servicerevenueandaccounts
payable
2points
Question14
1.
Ifexpensesarepaidincash,then
Answer
assetswillincrease.
liabilitieswilldecrease.
stockholders'equitywill
increase.
assetswilldecrease.
Question16
2points
1.
Whichofthefollowingtypesofaccountsarelistedinachartofaccounts?
Answer
Revenue
Assets
Expenses
Liabilities
Alloftheabovearelistedinachartof
accounts
2points
Question15
1.
Whatisthecorrectaccountclassificationandnormalbalanceoftheunearnedrevenueaccount?
Answer
Asset,debit
Liability,
credit
Revenues,
credit
Expense,debit
2points
Question17
1.
Evidencethatwouldnotbeasourcedocument?
Answer
cashregistertape.
salesslip.
advertising
brochure.
check.
Question18
2points
1.
TheprocessoftransferringthedebitsandcreditsfromtheGeneralJournaltotheGeneralLedgeraccountsis
knownas
Answer
footing
posting
balancing
journalizin
g
Question19
2points
1.
Atrialbalanceproves:
Answer
themathematicalequalityofdebitsandcreditsaftertheposting
process.
allcheckswererecordedcorrectly.
allemployeesreportedforworkontime.
allcustomershavebeeninformedaboutcreditterms.
2points
Question20
1.
Achartofaccountsforabusiness:
Answer
isagraph.
indicatestheamountofprofitorlossfortheperiod.
listsallofthecompanysaccounts.
showsthebalanceofeachaccountinthegeneral
ledger.
Question21
2points
1.
ThenormalbalanceofInventoryis:
Answer
credit
debit
bothaandbarecorrect
noneoftheaboveare
correct
2points
Question22
1.
Whenacorporationdistributesadividendthe:
Answer
mostcommonformofdistributionisacash
dividend.
Dividendsaccountwillbeincreasedwithacredit.
RetainedEarningsaccountwillbeincreasedwitha
debit.
Dividendsaccountwillbedecreasedwithadebit.
Question23
2points
1.
ReceivingapaymentonaccountforaportionofanAccountsReceivablewill:
Answer
notaffecttotalassets.
increaseliabilities.
increasestockholders'equity.
decreasenetincome.
2points
Question24
1.
Acustomersimmediatepaymentofcashforservicesrenderedwouldhavewhichofthefollowingaffectsonthe
companysaccounts?
Answer
increaseassetsandliabilities.
increasesassetsandstockholders'equity.
increasesassetsanddecreasesstockholders'
equity.
leavestotalassetsunchanged.
Question25
2points
1.
Whichofthefollowingaccountsisconsideredacontraaccount?
Answer
Cash
AccountsPayable
SalesRevenue
AccumulatedDepreciation
2points
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