Coursehero - Coursehero > Minnesota > South Central...

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

View Full Document Right Arrow Icon
Coursehero >> Minnesota >> South Central College >> ACC 220 Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support. Test Achievement 2: Chapters 3 and 4 Financial Accounting, 5e Name _________________________ Instructor ______________________ Section # _______ Date _________ Part Points Score I 39 II 12 III 24 IV 8 V 17 Total 100 PART I -- MULTIPLE CHOICE (39 points) Instructions: Designate the best answer for each of the following questions. ____ 1. The Accumulated Depreciation account is a(n) a. contra asset. b. liability. c. asset. d. operating expense. ____ 2. A post-closing trial balance contains a. real and nominal accounts. b. permanent and temporary accounts. c. balance sheet or permanent accounts. d. balance sheet and owner`s equity statement accounts. ____ 3. Which of the following is false with regard to a work sheet? a. Before the adjusting entries are recorded in the General Journal, they are recorded in the adjustments columns of the work sheet. b. A work sheet is a required step in the accounting cycle. c. When a work sheet is used, the preparation of financial statements is still required. d. If a credit is needed to balance the income statement columns on the work sheet, a debit will be needed to balance the balance sheet columns ____ 4. On January 1, Altillo borrowed $10,000 at 6% interest for 1 year. Altillo accrues interest on the note monthly. If no adjusting entry is made at the end of January, what will be the impact on the financial statements? a. Revenues will be overstated by $50 b. Expenses will be understated by $600 c. Liabilities will be understated by $1,000 d. Net Income will be overstated by $50 ____ 5. What is the purpose of a post-closing trial balance? a. Prove that all income statement accounts have been properly posted. b. Prove the equality of income statement account balances. c. Prove the equality of all account balances. d. Prove the equality of permanent account balances. AT2- 2 Test Bank for Accounting Principles, Seventh Edition ____ 6. The average time that is required to go from "cash to cash" in producing revenues is referred to as the a. business cycle. b. operating cycle. c. fiscal year cycle. d. accounting cycle. ____ 7. On February 2, Reedy's Printing Service received a payment of $3,000 for contracted printing work that will completed over the next 3 months. As of the end of February, the company had completed 1/3 of the work. The adjusting journal entry at the end of February for prepaid revenue will include a. a debit to Unearned Revenue for $3,000 b. a credit to Unearned Revenue for $2,000 c. a credit to Printing Revenues for $1,000 d. a debit to Cash for $1,000 ____ 8. On February 1, Andrews Company purchased printing supplies of $2,500. A month end inventory shows that the company has supplies of $900 on hand. The adjusting entry for this prepaid expense will include a. a debit to Supplies for $900 and a credit to Supplies
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.

This note was uploaded on 03/06/2012 for the course ACCOUNTING ACC 220 taught by Professor Someaccountant during the Spring '09 term at South Central College: Faribault Campus.

Page1 / 3

Coursehero - Coursehero > Minnesota > South Central...

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