Summative_Quiz_-_U2_L5-11_-_revised - Quiz # 2 - Unit 2,...

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Unformatted text preview: Quiz # 2 - Unit 2, Lessons 5 - 11 Mulitple Choice: Read each statement carefully and record the most appropriate answer in the space provided. Answer 1. (a) a credit to a revenue account (b) a debit to an expense account (c) a credit to an asset account (d) a credit to a liability account 2. (a) Year ended August 31, 20-7 (b) Income Statement (c) December 31, 20-7 (d) Rodney's Clothiers 3. (a) numbering system (b) balance sheet (c) journal (d) chart of accounts 4. (a) the balances of all of a company's accounts (b) information about a company's net income or net loss for a period (c) a chronological list of transactions (d) information about a transaction in different places (e) all of the above 5. (a) a purchase invoice is issued by the vendor (b) a bank credit advice indicates that the business must debit its bank account (c) a cheque received from a customer is used as a source document (d) almost all of a business' cash payments are made by cheque 6. After a business transaction has been analyzed and entered into the book of original entry, the (a) the bank (b) the ledger (c) the trial balance (d) the financial statements (d) the owner's equity account 7. (a) appraisal value (b) market value (c) sale price (d) price paid The owner's equity is increased by: (K/U) Which of the following would not be correct in the heading of an Income Statement? (K/U) A listing of the company's accounts their account numbers is known as a: (K/U) A journal provides: (K/U) Which of the following statements is false? (K/U) next step is to transfer the information to: (K/U) The cost principle states that when assets are acquired, they must be recorded at: (K/U) (e) none of the above 8. (a) owner's capital, assets, liabilities, revenue, expenses, and drawings (b) assets, liabilities, capital, revenue, expenses, and drawings (c) assets, liabilities, drawings, capital, revenue, expenses (d) assets, liabilities, capital, drawings, revenue, expenses 9. (a) all the journal entries for purchase invoices are the same (b) the name of the vendor is printed at the top of the purchase invoice (c) terms of the sale are indicated on the purchase invoice (d) the purchase invoice for the purchaser is the same as the sales invoice for the vendor (e) all of the above statements are true 10. (a) entries appearing in the ledger accounts can be traced back to the journal (b) entries appearing in the journal can be traced to the accounts in the ledger (c) the accountant will know where to resume posting if the process has been interrupted (d) all of the above 11. (a) debit Bank, credit PST Payable (b) debit PST Payable, credit Bank (c) debit PST Recoverable, credit Bank (d) debit PST Payable, credit Accounts Payable 12. A business purchased a new building 3 years ago for $195,000. Last week, the business was offered $250,000 for the building. The real estate agent suggested that the current market value o the building, today, is actually $275,000. According to GAAPs, what should be the value of the...
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This note was uploaded on 07/15/2011 for the course AFM 102 taught by Professor Aa during the Summer '07 term at Court Reporting Institute of Dallas.

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Summative_Quiz_-_U2_L5-11_-_revised - Quiz # 2 - Unit 2,...

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