2 Interactive Quiz A

2 Interactive Quiz A - Interactive Quiz A

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Interactive Quiz A (See related pages) Results Reporter Out of 25 questions, you answered 3 correctly with a final grade of 12% 3 correct (12%) 21 incorrect (84%) 1 unanswered (4%) Your Results: The correct answer for each question is indicated by a . 1 INCORRECT A proprietorship employs one full-time accountant. This person is considered an employee. On the desk in front of her are five different business documents. Which one of the following would not be considered an original source document from the proprietorship's point of view? A) A bank receipt for $10,000 evidencing yesterday's cash receipts deposited in the bank. B) The original copy of the insurance policy taken out by the proprietorship to insure the vehicle it purchased during its first month of operations. The annual insurance premium of $500 was printed within the contract. C) The invoice received by the proprietorship from Samsung Electronics when the proprietorship purchased its first lot of inventory to be sold to its customers. D) A cancelled check for $500 representing payment in full for the annual insurance premium mentioned in item B above. E) A copy of the Balance Sheet at the end of the company's first year of existence. Feedback: Although a balance sheet is certainly a type of business document, in financial accounting it would be considered one of the end products of the accounting cycle. It is not a business source document. 2 INCORRECT Oftentimes, the specific name of an account can give you a clue as to whether an account is an asset, liability, or owner's equity account. Other times, the name of the account seems to be vague or is only rendered clear after some further explanation. A proprietorship's Chart of Accounts has 125 accounts in it. The names of three of these accounts are Prepaid Rent, Unearned Service Revenue, and Interest Income Earned. In order, these accounts would be classified as which types of accounts? A) liability, asset, and revenue accounts in that order B) revenue, asset, and liability accounts in that order C) liability, revenue, and asset accounts in that order D) asset, revenue, and liability accounts in that order E) asset, liability, and revenue accounts in that order Feedback: When the adjective "Prepaid" is used as part of the account name, it signifies an asset account. When the adjective "Unearned" is used as part of the account name, it signifies a liability account. And, when the adjective "Earned" is used as part of the account name, it signifies a revenue account. Thus, the correct order for these three accounts is asset, liability, and revenue. 3 INCORRECT What is the difference between the following two sets of accounts: (1) Accounts Receivable versus Notes Receivable, and (2) Accounts Payable versus Notes Payable? A)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

2 Interactive Quiz A - Interactive Quiz A

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online