- May 28, 2003
- 5,842
- 2
- 81
1. If total liabilities decreased by $12,000 during a period of time and stockholders? equity increased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period?s change in total assets is:
A. $12,000 increase
B. $18,000 increase
C. $6,000 decrease
D. $6,000 increase
2. The asset created by a business enterprise when it makes a sale on account is termed:
A. accounts payable
B. prepaid expense
C. unearned revenue
D. accounts receivable
3. Which of the following entries records the purchase of office supplies on account?
A. Office Supplies, debit; Cash, credit
B. Cash, debit; Office Supplies, credit
C. Office Supplies, debit; Accounts Payable, credit
D. Office Supplies Expense, debit; Cash, credit
4. If the total debits on a Trial Balance do not equal the total credits on the same Trial Balance, it could be due to the following type of error:
A. failure to record a transaction or to post a transaction
B. recording the same erroneous amount for both the debit and credit parts of a transaction
C. error in determining the account balance, such as a math error
D. recording the same transaction more than once
5. When a company has performed a service but has not yet received payment, it
A. debits accounts receivable and credits revenue from services.
B. debits revenue from services and credits accounts receivable.
C. debits revenue from services and credits accounts payable.
D. makes no entry until the cash is received.
6. A company that receives money in advance of performing a service
A. debits cash and credits prepaid fees.
B. debits unearned fees and credits accounts payable.
C. debits cash and credits unearned fees.
D. debits cash and credits accounts receivable.
7. The balance in the prepaid insurance account before adjustment at the end of the year is $12,000, which represents three months insurance paid on November 1. If no adjusting entry was made on November 30, what is the adjusting entry required on December 31?
A. debit Insurance Expense $8,000; credit Prepaid Insurance $8,000
B. debit Insurance Expense $4,000; credit Prepaid Insurance $4,000
C. debit Prepaid Insurance $8,000; credit Insurance Expense $8,000
D. debit Prepaid Insurance $4,000; credit Insurance Expense $4,000
8. A business pays weekly salaries of $15,000 on Friday for a five-day week ending on Friday. The accounting period ends on a Thursday. What is the required adjusting entry at the end of the accounting period?
A. debit Salaries Payable $12,000; credit Cash $12,000
B. debit Salary Expense $12,000; credit Salaries Payable $12,000
C. debit Salary Expense $12,000; credit Cash $12,000
D. No entry is required
9. At the end of the accounting period, the entry to record supplies used was omitted. Which of the following statements is correct?
A. Supplies expense for the accounting period was overstated.
B. Total liabilities at the end of the accounting period were overstated.
C. Net income for the accounting period was understated
D. Net income for the accounting period was overstated
10. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A. Prepaid Insurance
B. Unearned Revenue
C. Accounts Receivable
D. Supplies Expense
Thanx.
A. $12,000 increase
B. $18,000 increase
C. $6,000 decrease
D. $6,000 increase
2. The asset created by a business enterprise when it makes a sale on account is termed:
A. accounts payable
B. prepaid expense
C. unearned revenue
D. accounts receivable
3. Which of the following entries records the purchase of office supplies on account?
A. Office Supplies, debit; Cash, credit
B. Cash, debit; Office Supplies, credit
C. Office Supplies, debit; Accounts Payable, credit
D. Office Supplies Expense, debit; Cash, credit
4. If the total debits on a Trial Balance do not equal the total credits on the same Trial Balance, it could be due to the following type of error:
A. failure to record a transaction or to post a transaction
B. recording the same erroneous amount for both the debit and credit parts of a transaction
C. error in determining the account balance, such as a math error
D. recording the same transaction more than once
5. When a company has performed a service but has not yet received payment, it
A. debits accounts receivable and credits revenue from services.
B. debits revenue from services and credits accounts receivable.
C. debits revenue from services and credits accounts payable.
D. makes no entry until the cash is received.
6. A company that receives money in advance of performing a service
A. debits cash and credits prepaid fees.
B. debits unearned fees and credits accounts payable.
C. debits cash and credits unearned fees.
D. debits cash and credits accounts receivable.
7. The balance in the prepaid insurance account before adjustment at the end of the year is $12,000, which represents three months insurance paid on November 1. If no adjusting entry was made on November 30, what is the adjusting entry required on December 31?
A. debit Insurance Expense $8,000; credit Prepaid Insurance $8,000
B. debit Insurance Expense $4,000; credit Prepaid Insurance $4,000
C. debit Prepaid Insurance $8,000; credit Insurance Expense $8,000
D. debit Prepaid Insurance $4,000; credit Insurance Expense $4,000
8. A business pays weekly salaries of $15,000 on Friday for a five-day week ending on Friday. The accounting period ends on a Thursday. What is the required adjusting entry at the end of the accounting period?
A. debit Salaries Payable $12,000; credit Cash $12,000
B. debit Salary Expense $12,000; credit Salaries Payable $12,000
C. debit Salary Expense $12,000; credit Cash $12,000
D. No entry is required
9. At the end of the accounting period, the entry to record supplies used was omitted. Which of the following statements is correct?
A. Supplies expense for the accounting period was overstated.
B. Total liabilities at the end of the accounting period were overstated.
C. Net income for the accounting period was understated
D. Net income for the accounting period was overstated
10. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A. Prepaid Insurance
B. Unearned Revenue
C. Accounts Receivable
D. Supplies Expense
Thanx.
Facebook
Twitter