Question 1 (1 point)

A description should accompany each entry made in the ____________________.

Question 1 options:

	general journal
	general ledger
	trial balance
	chart of accounts

Question 2 (1 point)

A(n) ____________________ entry is recorded when there is an error in data that has been journalized and posted

Question 2 options:

	expanded
	imbalanced
	compound
	correcting

Question 3 (1 point)

Which of the following statements is NOT correct?

Question 3 options:

	The description of a journal entry should include a reference to the source of the information contained in the entry.
	If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.
	The credit portion of a general journal entry is always recorded first.
	A firm should be able to trace amounts through the accounting records and back to their source documents.

Question 4 (1 point)

The journal entry to record the sale of services on credit should include:

Question 4 options:

	a debit to Accounts Receivable and a credit to Capital.
	a debit to Cash and a credit to Accounts Receivable.
	a debit to Fees Income and a credit to Accounts Receivable.
	a debit to Accounts Receivable and a credit to Fees Income

Question 5 (1 point)

The journal entry to record the payment of the monthly rent at the end of the month due would include

Question 5 options:

	a debit to Rent Expense and a credit to Capital.
	a debit to Capital and a credit to Cash.
	a debit to Rent Expense and a credit to Accounts Receivable.
	a debit to Rent Expense and a credit to Cash.

Question 6 (1 point)

Which of the following accurately defines the audit trail?

Question 6 options:

	a master reference file for the accounting system
	a financial record for entering all types of business transactions
	a series of steps performed during each accounting period to classify, record, and summarize data for a business
	a chain of references that makes it possible to trace information, locate errors, and prevent fraud

Question 7 (1 point)

The journal entry to record a payment made in January for rent for the months of February and March would include:

Question 7 options:

	a debit to Rent Expense, and a credit to Sue Snow, Capital.
	a debit to Prepaid Rent and a credit to Cash
	a debit to Rent Expense and a credit to Cash.
	a debit to Sue Snow, Drawing and a credit to Rent Expense.

Question 8 (1 point)

Identify the entry below that records the payment of an amount owed as a result of the purchase of equipment two months earlier.

Question 8 options:

	debit Cash; credit Accounts Payable
	debit Equipment; credit Cash
	debit Accounts Payable; credit Cash
	debit Cash; credit Equipment

Question 9 (1 point)

On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is

Question 9 options:

	debit Cash, $865; credit Income from Services, $865
	debit Cash, $865; credit Accounts Payable, $865
	debit Accounts Receivable, $865; credit Cash, $865
	debit Cash, $865; credit Accounts Receivable, $865

Question 10 (1 point)

A purchase of office equipment for cash is journalized as:

Question 10 options:

	Debit Office Equipment; Credit Accounts Payable
	Debit Cash; Credit Office Equipment
	Debit Equipment Expense; Credit Cash
	Debit Office Equipment; Credit Cash

Question 11 (1 point)

Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:

Question 11 options:

	Debit Fees Income $2,500; Credit Accounts Receivable $2,500
	Debit Cash $1,000; Credit Fees Income $1,000
	Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500
	Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500

Question 12 (1 point)

The journal entry to record the withdrawal of cash by the owner (Brian Thomas) is:

Question 12 options:

	debit B. Thomas, Drawing; credit Cash
	debit Cash; credit B. Thomas Drawing
	debit Accounts Receivable, credit B. Thomas Drawing
	debit B. Thomas, Drawing; credit Accounts Receivable

Question 13 (1 point)

A company purchased equipment costing $15,100. They paid $1,090 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

Question 13 options:

	a debit to Equipment for $15,100 and a credit to Cash for $15,100.
	a debit to Equipment for $1,090 and a credit to Cash for $1,090.
	a debit to Equipment for $14,010 and a credit to Accounts Payable for $14,010.
	a debit to Equipment for $15,100, a credit to Cash for $1,090 and a credit to Accounts Payable for $14,010.

Question 14 (1 point)

Which of the following is the correct order or accounts within the general ledger?

Question 14 options:

	assets, liabilities, owner's equity, revenue, expenses
	revenue, expenses, assets, liabilities, owner's equity
	owner's equity, revenue, expenses, assets, liabilities
	liabilities, owner's equity, revenue, expenses, assets

Question 15 (1 point)

Colors Company purchased a piece of machinery for $4,000. The company paid $1,500 at the time of the purchase, and agreed to pay the remaining $2,500 one month later. The entry to record this transaction would include which of the following elements?

Question 15 options:

	The Accounts Payable account displayed on the top line
	The Machinery account displayed on the line immediately above the description
	The Cash account indented about one-half inch from the left margin
	The Accounts Payable account indented about one inch from the left margin

Question 16 (1 point)

On December 1, the Accounts Receivable account had a $19,200 debit balance. During December the business earned $10,600 in revenue on account and collected $14,600 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is

Question 16 options:

	a $25,200 credit balance.
	a $26,200 debit balance.
	a $15,200 debit balance.
	a $26,200 credit balance.

Question 17 (1 point)

The Cash account has a $22,800 debit balance. A $3,500 credit entry and a $4,000 debit entry are posted to the account. The final balance of the Cash account is

Question 17 options:

	a $7,500 debit balance.
	a $30,300 debit balance.
	a $8,500 debit balance.
	a $23,300 debit balance.

Question 18 (1 point)

A firm purchased telephone equipment for cash. By mistake, the accountant debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain:

Question 18 options:

	a debit to Office Equipment and a credit to Cash.
	a debit to Office Equipment and a credit to Utilities Expense.
	a debit to Cash and a credit to Office Equipment.
	a debit to Utilities Expense and a credit to Cash.

Question 19 (1 point)

Constantine Corporation reported Net Income for the year ended December 31, 20X1, of $23,620 then discovered that the entry to pay the rent for December in the amount of $1,400 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

Question 19 options:

	$23,620
	$22,220
	$25,020
	$20,820

Question 20 (1 point)

A total of $3,500 in supplies was purchased during the year. At the end of the year $820 of the supplies were left. The adjusting entry needed at the end of the year is:

Question 20 options:

	debit Supplies $1,300; credit Supplies Expense $1,300
	debit Supplies Expense $2,680; credit Supplies $2,680
	debit Supplies Expense $820; credit Supplies $820
	debit Supplies $2,680; credit Supplies Expense $2,680

Question 21 (1 point)

MacGyver Company bought equipment on January 3, 20X1, for $34,600. At the time of purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $1,120. Using the straight-line method, the amount of one year's depreciation is

Question 21 options:

	$1,120
	$5,767
	$465
	$5,580

Question 22 (1 point)

Machinery costing $15,000 with an estimated salvage value of $1,080 and an estimated life of 4 years was purchased on October 31, 20X1. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 20X1?

Question 22 options:

	$290
	$580
	$3,480
	$1,080

Question 23 (1 point)

Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Question 23 options:

	Debit Accumulated Depreciation; credit Depreciation Expense
	Debit Depreciation Expense; credit Equipment
	Debit Depreciation Expense; credit Accumulated Depreciation
	Debit Equipment; credit Depreciation Expense

Question 24 (1 point)

On January 1, 20X1, Johnson Consulting purchased a truck for $37,200. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 20X2

Question 24 options:

	$7,440
	$14,880
	$22,320
	$29,760

Question 25 (1 point)

On September 1, 20X1, Upholstery Masters purchased a one-year insurance policy for $720. The correct adjusting entry on December 31, 20X1, is:

Question 25 options:

	debit Insurance Expense $60; credit Prepaid Insurance $60
	debit Insurance Expense $240; credit Prepaid Insurance $240
	debit Prepaid Insurance $60; credit Insurance Expense $60
	debit Prepaid Insurance $240; credit Insurance Expense $240

Question 26 (1 point)

On November 1, 20X1, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjusting entry on December 31, 20X1, to show the amount of rent that had expired would include:

Question 26 options:

	debit Rent Expense $400; credit Prepaid Rent $400
	debit Rent Expense $800; credit Prepaid Rent $800
	debit Prepaid Rent $400; credit Rent Expense $400
	debit Prepaid Rent $800; Credit Rent Expense $800

Question 27 (1 point)

Equipment cost $45,600 and is expected to be useful for 4 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Question 27 options:

	95
	912
	950
	9,120

Question 28 (1 point)

If long-term assets are not depreciated, expenses on the income statement:

Question 28 options:

	will not be affected.
	will be overstated.
	will be understated.
	may be either overstated or understated.

Question 29 (1 point)

On October 25, 20X1, the company paid $33,600 rent in advance for the six-month period November 20X1 through April 20X2. On December 31, 20X1, the adjustment for expired rent would include:

Question 29 options:

	a $11,200 debit to Rent Expense.
	a $33,600 credit to Cash.
	a $11,200 credit to Rent Expense.
	a $5,600 credit to Prepaid Rent.

Question 30 (1 point)

The adjusting entry to account for the use of supplies consists of:

Question 30 options:

	a debit to Supplies Expense and a credit to Supplies.
	a debit to Supplies and a credit to Supplies Expense.
	a debit to Supplies and a credit to Accumulated Depreciation
	a debit to Accumulated Depreciation and a credit to Supplies.

Question 31 (1 point)

Which of the following statements is not correct?

Question 31 options:

	Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.
	The book value of a long-term asset is reduced each year as depreciation is recorded.
	Buildings and trucks are examples of long-term assets.
	Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.

Question 32 (1 point)

Which of the following accounts would not appear within the Balance Sheet columns of the worksheet?

Question 32 options:

	Equipment
	Depreciation Expense
	Accumulated Depreciation - Equipment
	Stacey Newman, Capital

Question 33 (1 point)

Which of the following would be reported on the balance sheet for a building?

Question 33 options:

	salvage value
	market value
	book value
	residual value

Question 34 (1 point)

Accumulated Depreciation, Equipment, is shown as:

Question 34 options:

	a deduction from assets on the Balance Sheet.
	a deduction of Capital on the Statement of Owner's Equity.
	an addition to assets on the Balance Sheet.
	an addition to expenses on the Income Statement.

Question 35 (1 point)

The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:

Question 35 options:

	$46,850
	$49,150
	$44,550
	$45,700

Question 36 (1 point)

The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation. What are the total assets after journalizing and posting the adjusting?

Question 36 options:

	$124,700
	$126,400
	$127,900
	$128,000

Question 37 (1 point)

Which of the following is not a goal of the internal controls implemented by owners and managers?

Question 37 options:

	to safeguard assets
	to ensure reliability of accounting data
	to promote compliance with management policies and applicable laws
	to reduce expenses through the use of efficient processes

Question 38 (1 point)

The __________ (GAAP) must be followed by publicly owned companies and are changed and refined in response to changes in the environment in which businesses operate.

Question 38 options:

	general accounting & auditing principles
	generally accepted auditing principles
	governmental accounting & auditing principles
	generally accepted accounting principles

Question 39 (1 point)

Which of the following is NOT an occupation with similar job duties to accountants and auditors?

Question 39 options:

	budget analyst
	cost estimator
	actuary
	personal financial advisor

Question 40 (1 point)

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

Question 40 options:

	sole proprietorship.
	partnership.
	corporation.
	nonprofit organization.

Question 41 (1 point)

Which of the following represents the correct order in which the FASB develops Statements of Financial Accounting Standards?

Question 41 options:

	public heaings, discussion memorandum, exposure draft, vote
	exposure draft, discussion memorandum, public hearings, vote
	discussion memorandum, public hearings, exposure draft, vote
	discussion memorandum, exposure draft, public hearings, vote

Question 42 (1 point)

Which of the following is the purpose of financial statements?

Question 42 options:

	to periodically summarize data about a firm's financial affairs
	to compare a firm's performance to that of its competitors
	to present historical data of a company
	to analyze the future financial prospects of a firm

Question 43 (1 point)

The account used to record amounts that are owed for goods or services purchased on credit is known as __________.

Question 43 options:

	merchandise inventory
	accounts receivable
	accounts payable
	withdrawals

Question 44 (1 point)

The __________ reports the changes that have occurred in the owner's financial interest during the reporting period.

Question 44 options:

	income statement
	statement of owner's equity
	profit and loss statement
	balance sheet

Question 45 (1 point)

If a business issues a check for $100 to purchase office supplies, what is the effect on the accounting equation?

Question 45 options:

	Owner's Equity will increase
	Assets will decrease
	Owner's Equity will decrease
	Total Assets will remain the same

Question 46 (1 point)

If the following are the only accounts of Jones Supply Company, what is the missing Supplies balance? Cash: $8,000 Supplies: ?? Accounts Payable: $2,000 John, Capital: $10,300

Question 46 options:

	$3,700
	$4,300
	$14,300
	$24,300

Question 47 (1 point)

The current balance in the cash account of Williams Company is $947. Which of the following figures, if included on the trial balance as the cash account balance, would represent a transposition error?

Question 47 options:

	$94.70
	$907.00
	$974.00
	$950.00

Question 48 (1 point)

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,350; Prepaid Insurance, $400; Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $17,000; Allen Office Equipment, $14,500. The total amount of Liabilities is:

Question 48 options:

	$31,500
	$17,000
	$14,500
	$28,100

Question 49 (1 point)

At the end of the first month of operations for Jackson's Catering Service, the business had the following accounts: Cash, $21,000; Prepaid Rent, $500; Equipment, $7,500 and Accounts Payable $4,000. By the end of the month, Jackson's had earned $32,000 of Revenues, and used $1,800 of Utilities Expenses, $4,000 of Rent Expense and $3,600 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.

Question 49 options:

	$32,000
	$22,600
	$26,200
	$23,100

Question 50 (1 point)

The classification and normal balance of the accounts receivable account is:

Question 50 options:

	an asset with a credit balance.
	a liability with a debit balance
	an asset with a debit balance.
	a revenue with a debit balance.