This question's due date has already passed. You may post a tutorial, but there's no guarantee that the original asker will purchase the tutorial. But other people might!

Question

# \$5.00Accounting Multiple Choice Test: Need Answers for 33 questions, I want to make sure ALL my answers are correct. Thanks.

• Closed, but you can still post tutorials
• Due on Mar. 10, 2009
• Asked on Mar. 10, 2009 at 12:55:05AM

Rating :No Rating
Tutorials Posted: 1,
Earned: \$0.00

Q:
This is a Multiple Choice Test that goes over Chapters 1-5 in College Accounting: A practical Approach, tenth Edition with new statements added by: Jeffrey Slater

1.Carr Hardware has total assets of \$75,000. What are the total assets if new baking equipment is purchased for \$10,000 cash?

A. \$85,000
B. \$65,000
C. \$10,000
D. \$75,000

2.Which of the following sequence of actions describes the proper order in the accounting cycle?

A. Journalize, post, close, prepare financial statements, adjust, and analyze transactions.
B. Prepare financial statements, journalize, post, adjust, analyze transactions, close.
C. Analyze transactions, journalize, post, adjust, prepare financial statements, and close.
D. Post, close, prepare financial statements, adjust, analyze transactions, and journalize.

3.Items owned by the business such as land, supplies, and equipment are its:

A. assets.
B. liabilities.
C. owner's equity.
D. revenue.

4.The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed:

A. liability.
B. contra asset.
C. book value.
D. market value.

5.Ellen's Bakery collects \$3,500 of its account receivables. The expanded accounting equation changes include:

A. Cash and Ellen, Capital increases, \$3,500
B. Cash and Revenue increases, \$3,500
C. Cash increases and Accounts Receivable decreases, \$3,500
D. Accounts Receivable decreases and Ellen, Capital increases, \$3,500

6. A \$600 check written for supplies was journalized as \$60. The entry to correct this error is:

A. debit Supplies, \$540; credit Cash, \$540
B. debit Cash, \$540; credit Supplies, \$540
C. debit Supplies, \$60; credit Cash, \$60
D. debit Cash, \$60; credit Cash, \$60

7.On which financial statement would you find Salaries Expense?

A. Income Statement
B. Balance Sheet
C. Statement of owner's equity
D. It does not appear on a financial statement.

8.Residual value is the:

A. value of the asset when it is purchased.
B. value of the asset at the end of its useful life.
C. cost of the asset.
D. allocation of the cost.

9.An acceptable variation of the accounting equation is:

A. Assets - Liabilities = Owner's Equity.
B. Assets + Owner's Equity = Liabilities.
C. Assets = Liabilities - Owner's Equity.
D. All of the above.

10. Which type of account would not be reported on the income statement?

A. Revenue
B. Expenses
C. Withdrawals
D. None of the above.

11. In the normal accounting cycle the:

A. financial statements are prepared after the adjusting entries are posted.
B. financial statements are prepared before the adjusting entries are posted.
C. adjusting and closing entries are journalized before the financial statements are prepared.
D. post-closing trial balance is prepared before the closing entries are posted.

12. Which of the following is most likely to result in an adjusting entry at the end of the period?

A. Payment of two months' insurance in advance.
B. Payment of one month's rent.
C. Owner's withdrawals.
D. Payment for routine maintenance on the company van.

13. Which of the following columns of the worksheet are referred to when preparing closing entries to the Income Summary?

B. Balance Sheet columns.
D. Income Statement columns.

14.Motel 10 received and paid a utility bill for \$550 for the month of November. This transaction will:

A. increase cash \$550 and increase Utility Expense \$550.
B. decrease Cash \$550 and increase Utility Expense \$550.
C. increase Cash \$550 and decrease Utility Expense \$550.
D. increase expenses and decrease withdrawal.

15. Amy flew to Philadelphia on a business trip. The purchase price of the ticket was \$400 on account. The entry to record the transaction is:

A. debit Accounts Payable, \$400; credit Travel Expense, \$400.
B. debit Travel Expense, \$400; credit Accounts Payable, \$400.
C. debit Capital, \$400; credit Accounts Payable, \$400.
D. debit Travel Expense, \$400; credit Cash, \$400.

16. C. Miller service purchased a microscope for \$1,500. It has an expected life of 30 months and no residual value. The adjusting journal entry for the month is:

A. debit Depreciation Expense \$50, credit Accumulated Depreciation \$50.
B. debit Depreciation Expense \$500, credit Accumulated Depreciation \$500.
C. debit Accumulated Depreciation \$50, credit Depreciation Expense \$50.
D. debit Accumulated Depreciation \$500, credit Equipment \$500.

17.A contra asset is:

A. in reality a liability.
B. an asset with a debit balance.
C. an asset account with a credit balance.
D. an account that increases the asset.

18. Which of the following accounting cycle steps comes after the others?

A. Preparing the financial statements.
B. Journalizing and posting closing entries.
C. Preparing the worksheet.
D. Journalizing and posting adjusting entries.

A. Limited personal risk.
B. Can continue indefinitely.
C. Owner makes all the decisions.
D. All of the above.

20. Susan Mitchell Law Firm purchases \$1,000 worth of office equipment on account. This causes:

A. Cash and Mitchell, Capital to decrease by \$1,000.
B. Office Equipment and Accounts Payable to increase by \$1,000.
C. Office Equipment to decrease and Accounts Payable to increase by \$1,000.
D. Accounts Payable to increase and Mitchell, Capital to decrease by \$1,000.

21.The Income Statement credit column of the worksheet showed the following revenues: Catering Fees \$900 and Cleaning Fees \$850. The journal entry to close the revenue accounts is:

A. debit Income Summary \$1,750; credit Catering fees \$900 and Cleaning Fees \$850.
B. debit Catering Fees \$900 and Cleaning Feels \$850; credit Income Summary \$1,750.
C. debit all Revenues \$1,750; credit Income Summary \$1,750.
D. none of the above.

22.A debit may signify a(n):

A. decrease in asset accounts.
B. decrease in liability accounts.
C. increase in the capital account.
D. decrease in expense accounts.

23.Which of the following is prepared first?

A. Balance Sheet.
B. Income Statement.
C. Statement of Owner's Equity.
D. Trial Balance.

24. Carmen's catered a reception. The total price was \$1,200. The customer paid \$200 cash and charged the remainder. The journal entry to record this transaction is:

A. debit Cash \$200 and Accounts Receivable \$1,000; credit Catering Service Fees \$1,200.
B. debit Cash \$200; credit Accounts Receivable \$200.
C. debit Cash \$1,000 and Accounts Receivable \$200; credit Catering Service Fees \$1,200.
D. debit Accounts Receivable \$1,200; credit Cash \$200 and Catering Service Fees \$1,000.

25.The left column of a financial statement is often used to:

A. show debits.
B. show credits.
C. show totals.
D. subtotal numbers.

26. An account is said to have a debit balance if:

A. the amount of the debits exceeds the amount of the credits.
B. there are more entries on the debit side than on the credit side.
C. its normal balance is debit without regard to the amounts or number of entries on the debit side.
D. the last entry of the accounting period was posted on the debit side.

27. Sun Glow Glass estimated depreciation for office equipment is \$100. The adjusting entry would include:

A. a credit to Accumulated Depreciation for \$100.
B. a credit to Depreciation Expense for \$100.
C. a debit to Accumulated Depreciation for \$100
D. a credit to Office Equipment for \$100.

28. Adjusting journal entries are prepared from:

A. source documents.
B. the balance sheet.
C. the income statement.
D. the adjustment columns of the worksheet.

29.When the balance of the Income Summary account is a credit, the entry to close this account is:

A. debit Capital, credit Income Summary.
B. debit Income Summary, credit Revenue.
C. debit Income Summary, credit Capital.
D. debit Revenue, credit Income Summary.

30.Which of the following accounts would be considered a temporary account?

A. Revenue.
B. Assets.
C. Liabilities.
D. Owner's Equity.

31.A corporation is a business which is:

A. easy to form.
B. ends with the death of a stockholder.
C. owned by stockholders.
D. none of the above.

32. The entry to record the payment of office salaries would be:

A. debit to Cash, credit to Accounts Receivable.
B. debit to Cash, credit to Salaries Expense.
C. debit to Salaries Expense, credit to Accounts Payable.
D. debit to Salaries Expense, credit to Cash.

33. On a worksheet, the Balance Sheet debit column total is \$25,000 and the credit column total is \$15,000. Which of the following statements is correct?

A. The company had a net income of \$3,000.
B. The company had a net income of \$10,000.
C. The company's expenses were greater than revenues.
D. None of the above are correct statements.