Acct Test 2

Acct Test 2 - Financial Accounting 1 Exam 2 S ring 2011 : Q...

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Unformatted text preview: Financial Accounting 1 Exam 2 S ring 2011 : Q --l Date: ID: A Test 2 Spll 5 I Wuitipie Choice / ’a’entify the choice that best completes the statement or answers the question. 1. 6. 7. on Using accrual accounting, revenue is recorded and reported only a. when cash is received without regard to when the services are rendered @ when the services are rendered without regard to when cash is received c. when cash is received at the time services are rendered d. if cash is received after the services are rendered If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? 3. increases the balance of a contra asset account b. increases the balance of an asset account 0. decreases the balance of an stockholders’ equity account d. increases the balance of an expense account Prior to the adjusting process, accrued revenue has a. been earned and cash received 7 b. been earned and not recorded as revenue 0. not been earned but recorded as revenue d. not been recorded as revenue but cash has been received Adjusting entries are a. the same as correcting entries needed to bring accounts up to date and match revenue and expense c. optional under generally accepted accounting principles d. rarely needed in large companies The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a’routin'e entry is” ' " '7 " " " "7 " ' 7' ’ " ' ' a. capital 1 @ deferral v ad‘s accrual — ‘0‘1 d. inventory 0 i Q ‘ Which account would normally n_ot require an adjusting entry? (N a a. Wages Expense b. Accounts Receivable c. Accumulated Depreciation Capital Stock i/‘ The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,500. The amount to be used for the appropriate adjusting entry is a. $3,700 b. $11,900 0. 35,700 d. $6.900 ID: A 8. What is the proper adjusting entry at April 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $16,000, and unexpired amounts per analysis of policies, $6,000? a. debit Insurance Expense, $6,000; credit Prepaid Insurance, $6,000 b. debit Insurance Expense, $16,000; credit Prepaid Insurance, $16,000 c. debit Prepaid Insurance, $10,000; credit Insurance Expense, $10,000 d. debit Ins rance Expense, $10,000; credit Prepaid Insurance, $10,000 9. A business pa 5 weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessa for the business at the end of the fiscal period ending on Tuesday is a. debit Sal ries Payable, $8,000; credit Cash, $8,000 b. debit Sal ry Expense, $8,000; credit Salaries Receivable, $8,000 c. debit Sal ry Expense, $8,000; credit Salaries Payable, $8,000 (I. debit Sal ries Receivable, $8,000; credit Cash, $8,000 10. As time passe , fixed assets other than land lose their capacity to provide useful services. To account for this decrease in us fulness, the cost of fixed assets is systematically allocated to expense through a process called a. equipme tallocation b. depreciat on c. accumulation d. matching 11. Accumulated Depreciation appears on the m e, hilt a. balance sheet in the current assets section ‘0. balance sheet in the property, plant and equipment section c. balance sheet in the long-term liabilities section 11/ income statement as an operating expense 12. Unearned Fees appear on the a. balance sheet in the current assets section balance sheet as a current liability c. balance sheet in the stockholders’ equity section d. income statement as revenue 13. Which one of the fixed asset accounts listed below will mg have a related contra asset account? r» 3. Office Equipment 7 7 b. Land (:3 Delivery Equipment d. Building 14 The Retained Earnings Statement should be prepared a. before the income statement and after the balance sheet b. before the income statement and balance sheet @ after the income statement and balance sheet d. after the income statement and before the balance sheet 15. "the classified Balance Sheet will subsection the assets section as follows a. Current Assets and Other Assets b. Current Assets and Property, Plant, and Equipment c. Current Assets and Investment Revenue (1. Other Assets and Property, Plant and Equipment __ 16. Short-term liabilities are those liabilities that a._.r will be paid in less than one year are due to paid in 5 to 10 years c. are due to be paid in more than one year d. are liabilities owed to stockholders and will never be paid 17. Which of the accounts below would be closed by posting a debit to the account? a. Uneamed Revenue @ Fees Earned c. Dividends d. Rent Expense l8 Which of the following accounts should be closed to Income Summary at the end of the fiscal year? <2) Supplies Expense Accumulated Depreciation c. Prepaid Insurance dc Unearned Rent 19. Which of the following accounts will be closed to the Retained Earnings account at the end of the fiscal year? a. Rent Expense b. Fees Earned GD Income Summary (1. Depreciation Expense 20. Which of the following accounts ordinarily appears in the post-closing trial balance? 3. Fees Earned b. Supplies Expense Dividends d Uneamed Rent ID: A 21. Enroe Consulting is completing the accounting information processing at the end of its first fiscal year, December 31, 2010. The following trial balances are available. _ 13,000 ‘ ash . m_ ‘ — ‘ cumulated 12,000 Depreciation - l I achines Ca - ital Stock — _ _ A. Reconstruct the adjusting entries and give a brief explanation of each. B. What is the amount of net incomeVYK WM Skewfiifigga loo / hwvtifigg Uglfis“ K Problem 22. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for th« year ended March 31 for Boles Athletic Company, joumalize the four closing entries. as ' $ 30,000 ccounts Receivable 45,200 fiifpplies 5,000 Wipment 169,900 Accumulated Depreciation $ 32,000 Accounts Payable . 12,500 flfipital Stock 71,600 Dividends ' 47,000 /F6’es Earfiarp . 510,000 7saiaryfixfiéhse 244,500 r Rent Expense 48,000 / Depreciation Expense 25,000 , Supplies Expense 9,500 / Miscellaneous Expense 2,000 mm 4/ ,, 050m erOOOCjT/ $1125 510,00 MN MW“ '5ngt 1002. ...
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This note was uploaded on 03/01/2011 for the course ACCT 200 taught by Professor Jones during the Spring '11 term at Xavier LA.

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Acct Test 2 - Financial Accounting 1 Exam 2 S ring 2011 : Q...

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