To view this notification widget you need to have JavaScript enabled. This notification widget was easily created with NotifySnack.
  Loading... Please wait...

A02 Principles of Accounting I All Exams Answers (Ashworth College)

Price:
$49.99


Product Description

A02 Principles of Accounting I All Exams Answers (Ashworth College)

EXAM 1

Part 1 of 1 -

100.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

Which of the following would result if the business purchased supplies on credit?

 

 

 

A. Supplies would increase and Cash would decrease.

 

 

B. Supplies would increase and Capital would increase.

 

 

C. Supplies would increase and Accounts Payable would increase.

 

 

D. The purchase of supplies is not a business transaction.

 

 

Question 2 of 20

5.0/ 5.0 Points

The purchase of supplies for cash would affect which account category?  

 

 

 

A. assets

 

 

B. liabilities

 

 

C. capital

 

 

D. expense

 

 

Question 3 of 20

5.0/ 5.0 Points

Mary invested cash in her new business. What effect will this have?

 

 

 

A. increase an asset and increase a liability

 

 

B. decrease an asset and increase a liability

 

 

C. increase an asset and increase owner's equity

 

 

D. increase an asset and decrease owner's equity

 

 

Question 4 of 20

5.0/ 5.0 Points

A legal firm would be considered a __________.

 

 

 

A. merchandise company

 

 

B. manufacturer

 

 

C. service company

 

 

D. None of the above answers are correct.

 

 

Question 5 of 20

5.0/ 5.0 Points

If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount?

 

 

 

A. increase of $2,000

 

 

B. decrease of $2,000

 

 

C. increase of $10,000

 

 

D. decrease of $10,000

 

 

Question 6 of 20

5.0/ 5.0 Points

A corporation __________.

 

 

 

A. can continue indefinitely

 

 

B. is owned by stockholders

 

 

C. has limited risk to stockholders

 

 

D. All of these answers are correct.

 

 

Question 7 of 20

5.0/ 5.0 Points

Bonnie's Baskets purchases $4,000 worth of office equipment on account. This causes

 

 

 

A. Cash and Capital to decrease.

 

 

B. Office Equipment and Accounts Payable to increase.

 

 

C. Office Equipment to decrease and Accounts Payable to increase.

 

 

D. Accounts Payable to increase and Capital to decrease.

 

 

Question 8 of 20

5.0/ 5.0 Points

Which of the following transactions would cause one asset to increase and another asset to decrease?

 

 

 

A. The owner invested cash in the business.

 

 

B. The business paid a creditor.

 

 

C. The business incurred an expense on credit.

 

 

D. The business bought supplies for cash.

 

 

Question 9 of 20

5.0/ 5.0 Points

How does the purchase of office equipment on account affect the accounting equation?  

 

 

 

A. assets increase; liabilities decrease

 

 

B. assets increase; owner's equity increases

 

 

C. assets increase; liabilities increase

 

 

D. liabilities increase; owner's equity decreases

 

 

Question 10 of 20

5.0/ 5.0 Points

Katie's Vegetarian Restaurant, with total assets of $90,000, borrows $15,000 from the bank. Which of the following is a true statement upon borrowing the money?

 

 

 

A. Total assets are now $105,000.

 

 

B. Total assets are now $80,000.

 

 

C. Total assets are now $15,000.

 

 

D. Total assets are now $75,000.

 

 

Question 11 of 20

5.0/ 5.0 Points

Which of the following will be recorded in the owner's equity column as an increase?

 

 

 

A. an exchange of assets

 

 

B. the purchase of an asset on credit

 

 

C. an investment by the owner

 

 

D. a withdrawal by the owner

 

 

Question 12 of 20

5.0/ 5.0 Points

The type of business organization that can continue indefinitely is known as a __________.

 

 

 

A. sole proprietorship

 

 

B. partnership

 

 

C. corporation

 

 

D. None of the above answers are correct.

 

 

Question 13 of 20

5.0/ 5.0 Points

A purchase of a vehicle for cash would have what effect on the accounting equation?

 

 

 

A. Total asset amount remains the same.

 

 

B. Total liabilities are overstated.

 

 

C. Total owner's equity is overstated.

 

 

D. Both A and B are correct.

 

 

Question 14 of 20

5.0/ 5.0 Points

Logan's Motor Sports buys $30,000 of equipment on credit. Which of the following is a true statement?

 

 

 

A. Total assets increase.

 

 

B. Total assets are unchanged.

 

 

C. Total liabilities decrease.

 

 

D. Total liabilities are unchanged.

 

 

Question 15 of 20

5.0/ 5.0 Points

The purpose of the accounting process is to provide financial information about __________.

 

 

 

A. sole proprietorships

 

 

B. small businesses

 

 

C. large corporations

 

 

D. All of these answers are correct.

 

 

Question 16 of 20

5.0/ 5.0 Points

The claims of creditors against the assets are __________.

 

 

 

A. expenses

 

 

B. revenues

 

 

C. liabilities

 

 

D. owner's equity

 

 

Question 17 of 20

5.0/ 5.0 Points

Which of the following is a characteristic of a sole proprietorship?

 

 

 

A. business owned by more than one person

 

 

B. easy to form

 

 

C. each stockholder acts as an owner of the company

 

 

D. can continue indefinitely

 

 

Question 18 of 20

5.0/ 5.0 Points

Which of the following is not a type of business organization?

 

 

 

A. corporation

 

 

B. partnership

 

 

C. sole proprietorship

 

 

D. operation

 

 

Question 19 of 20

5.0/ 5.0 Points

If total liabilities are $1,000 and total assets are $8,000, owner's equity must be __________.

 

 

 

A. $7,000

 

 

B. $3,000

 

 

C. $10,000

 

 

D. $13,000

 

 

Question 20 of 20

5.0/ 5.0 Points

If total assets are $30,000 and total liabilities are $18,000, Capital must equal __________.

 

 

 

A. $12,000

 

 

B. $28,000

 

 

C. $8,000

 

 

D. $20,000

 

 

 

EXAM 2

Part 1 of 1 -

100.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

Which of the following items are on both the balance sheet and the statement of owner's equity?

 

 

 

A. Net loss

 

 

B. Capital

 

 

C. Additional owner's investments

 

 

D. Owner's withdrawals

 

 

Question 2 of 20

5.0/ 5.0 Points

An expense should be recorded when __________.

 

 

 

A. the bill is paid

 

 

B. the expense is incurred

 

 

C. a bill is received in the mail

 

 

D. None of the above answers are correct.

 

 

Question 3 of 20

5.0/ 5.0 Points

A revenue should be recorded when __________.

 

 

 

A. it is earned

 

 

B. payment is received

 

 

C. the invoice is sent to the customer

 

 

D. None of the above answers are correct.

 

 

Question 4 of 20

5.0/ 5.0 Points

If a company's revenues are higher than its expenses, it will cause __________.

 

 

 

A. an increase in owner's equity

 

 

B. a decrease in owner's equity

 

 

C. an increase in assets

 

 

D. no effect on owner's equity

 

 

Question 5 of 20

5.0/ 5.0 Points

The statement of owner’s equity contains the __________.

 

 

 

A. owner’s capital for the beginning of the period

 

 

B. liabilities of the company

 

 

C. total amount owed by credit customers

 

 

D. balance in the cash account

 

 

Question 6 of 20

5.0/ 5.0 Points

Expenses __________.

 

 

 

A. are costs the company incurs in carrying on operations

 

 

B. are a subdivision of owner's equity

 

 

C. record personal expenses not related to the business

 

 

D. Both A and B are correct.

 

 

Question 7 of 20

5.0/ 5.0 Points

If beginning capital was $110,000, ending capital is $95,000, and the owner's withdrawals were $10,000, the amount of net income or net loss was __________.

 

 

 

A. net income of $5,000

 

 

B. net income of $15,000

 

 

C. net loss of $15,000

 

 

D. net loss of $5,000

 

 

Question 8 of 20

5.0/ 5.0 Points

Vic's Mart collects $700 of its accounts receivable. The expanded accounting equation impact is __________.

 

 

 

A. cash and capital increase $700

 

 

B. cash and revenue increase $700

 

 

C. cash increases and accounts receivable decreases $700

 

 

D. accounts receivable decreases and capital increases $700

 

 

Question 9 of 20

5.0/ 5.0 Points

A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company’s total assets is __________.

 

 

 

A. $875

 

 

B. $1,750

 

 

C. $2,875

 

 

D. $3,750

 

 

Question 10 of 20

5.0/ 5.0 Points

Which accounts are affected when the company buys supplies on account?

 

 

 

A. assets and capital

 

 

B. liabilities and capital

 

 

C. assets and liabilities

 

 

D. None of the above answers are correct.

 

 

Question 11 of 20

5.0/ 5.0 Points

The financial statement that shows revenue and expenses for a period of time is the __________.

 

 

 

A. balance sheet

 

 

B. income statement

 

 

C. statement of owner's equity

 

 

D. statement of cash flows

 

 

Question 12 of 20

5.0/ 5.0 Points

Which of the following is not one of the four basic financial statements?

 

 

 

A. Statement of Cash Flows

 

 

B. Income Statement

 

 

C. Statement of Company Position

 

 

D. Balance Sheet

 

 

Question 13 of 20

5.0/ 5.0 Points

When services are rendered but payment is not made, which account would be increased?

 

 

 

A. accounts receivable

 

 

B. accounts payable

 

 

C. cash

 

 

D. withdrawal

 

 

Question 14 of 20

5.0/ 5.0 Points

The financial statement that shows business results in terms of revenue and expenses is __________.

 

 

 

A. an income statement

 

 

B. a balance sheet

 

 

C. a statement of owner's equity

 

 

D. the statement of cash flows

 

 

Question 15 of 20

5.0/ 5.0 Points

Which financial statement is considered a link between the income statement and balance sheet?

 

 

 

A. Statement of Cash Flows

 

 

B. Statement of Company Assets

 

 

C. Statement of Company Liquidity

 

 

D. Statement of Owner’s Equity

 

 

Question 16 of 20

5.0/ 5.0 Points

Which statement is prepared for only one date?

 

 

 

A. Income Statement

 

 

B. Statement of Cash Flows

 

 

C. Balance Sheet

 

 

D. Statement of Owner’s Equity

 

 

Question 17 of 20

5.0/ 5.0 Points

Which financial statement is prepared first?

 

 

 

A. Statement of Owner's Equity

 

 

B. Balance Sheet

 

 

C. Income Statement

 

 

D. None of the above

 

 

Question 18 of 20

5.0/ 5.0 Points

BPK Industries has a net income for the period of $2,500. The balance in the Owner’s Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owner’s Capital account at the end of the period will be __________.

 

 

 

A. $5,850

 

 

B. $7,500

 

 

C. $850

 

 

D. $9,150

 

 

Question 19 of 20

5.0/ 5.0 Points

The payment of accounts payable would __________.

 

 

 

A. increase both assets and liabilities

 

 

B. increase assets and decrease liabilities

 

 

C. decrease both assets and liabilities

 

 

D. decrease assets and increase liabilities

 

 

Question 20 of 20

5.0/ 5.0 Points

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period, then __________.

 

 

 

A. owner's withdrawals decrease net income

 

 

B. net income causes liabilities to decrease

 

 

C. the business will incur a loss

 

 

D. owner's withdrawals increase owner's equity

 

 

 

EXAM 3

Part 1 of 1 -

100.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

One asset would be debited and another credited if __________.

 

 

 

A. the business provided services to a cash customer

 

 

B. the business paid a creditor

 

 

C. the business bought supplies paying cash

 

 

D. the business provided services to a credit customer

 

 

Question 2 of 20

5.0/ 5.0 Points

A debit increases the balance in all of the following accounts, except __________.

 

 

 

A. cash

 

 

B. withdrawals

 

 

C. expenses

 

 

D. accounts payable

 

 

Question 3 of 20

5.0/ 5.0 Points

The beginning balance in the Computers account was $2,000. The company purchased an additional $1000 worth of computers. The balance in the account is __________.

 

 

 

A. debit of $2,000

 

 

B. credit of $3,000

 

 

C. debit of $3,000

 

 

D. credit of $2,000

 

 

Question 4 of 20

5.0/ 5.0 Points

A liability would be credited and an expense debited if __________.

 

 

 

A. the business paid a creditor

 

 

B. the business incurred an expense and did not pay the expense immediately

 

 

C. the business bought supplies on account

 

 

D. the business bought supplies for cash

 

 

Question 5 of 20

5.0/ 5.0 Points

Jim Walton performed services on credit for $2,450. A debit for this transaction should be recorded to __________.

 

 

 

A. revenue

 

 

B. accounts receivable

 

 

C. accounts payable

 

 

D. cash

 

 

Question 6 of 20

5.0/ 5.0 Points

Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is __________.

 

 

 

A. $55 debit

 

 

B. $55 credit

 

 

C. $95 debit

 

 

D. $95 credit

 

 

Question 7 of 20

5.0/ 5.0 Points

A debit balance is a normal balance for which type of account?

 

 

 

A. accounts payable

 

 

B. revenue

 

 

C. accounts receivable

 

 

D. owner’s capital

 

 

Question 8 of 20

5.0/ 5.0 Points

A chart of accounts __________.

 

 

 

A. is set up in alphabetical order

 

 

B. includes account balances

 

 

C. is a listing of all the accounts used by a company

 

 

D. All of the above answers are correct.

 

 

Question 9 of 20

5.0/ 5.0 Points

The left side of any account is the __________.

 

 

 

A. debit side

 

 

B. credit side

 

 

C. ending balance

 

 

D. footings

 

 

Question 10 of 20

5.0/ 5.0 Points

What would be the effect on accounts if the owner withdrew cash?

 

 

 

A. An asset would be debited and an expense credited.

 

 

B. Withdrawals would be debited and an asset credited.

 

 

C. An asset would be debited and a revenue credited.

 

 

D. An asset would be debited and Capital credited.

 

 

Question 11 of 20

5.0/ 5.0 Points

An account that would be increased by a credit is __________.

 

 

 

A. cash

 

 

B. accounts receivable

 

 

C. utilities expense

 

 

D. accounts payable

 

 

Question 12 of 20

5.0/ 5.0 Points

The right side of any account is the __________.

 

 

 

A. debit side

 

 

B. credit side

 

 

C. ending balance

 

 

D. footings

 

 

Question 13 of 20

5.0/ 5.0 Points

Which of the following types of accounts has a normal credit balance?

 

 

 

A. withdrawals

 

 

B. assets

 

 

C. expenses

 

 

D. revenues

 

 

Question 14 of 20

5.0/ 5.0 Points

Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is __________.

 

 

 

A. $500 credit

 

 

B. $1,000 debit

 

 

C. $500 debit

 

 

D. $1,000 credit

 

 

Question 15 of 20

5.0/ 5.0 Points

The owner invested personal equipment in the business. To record this transaction __________.

 

 

 

A. debit Equipment and credit Accounts Payable

 

 

B. debit Accounts Payable and credit Equipment

 

 

C. debit Equipment and credit Capital

 

 

D. credit Equipment and debit Capital

 

 

Question 16 of 20

5.0/ 5.0 Points

Which of the following entries records the investment of cash by John, owner of a sole proprietorship?

 

 

 

A. debit John, Capital; credit Cash

 

 

B. debit Cash; credit John, Withdrawals

 

 

C. debit John, Withdrawals; credit Cash

 

 

D. debit Cash; credit John, Capital

 

 

Question 17 of 20

5.0/ 5.0 Points

The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1100. The balance of the account is __________.

 

 

 

A. $800 debit

 

 

B. $800 credit

 

 

C. $2,600 credit

 

 

D. $2,600 debit

 

 

Question 18 of 20

5.0/ 5.0 Points

The owner of BobCats R Us paid his personal MasterCard bill using a company check. The correct entry to record the transaction is __________.

 

 

 

A. credit Cash; debit Capital

 

 

B. credit Cash; debit Supplies Expense

 

 

C. credit Cash; debit Withdrawals

 

 

D. credit Cash; debit Accounts Receivable

 

 

Question 19 of 20

5.0/ 5.0 Points

An asset would be debited and a liability credited if __________.

 

 

 

A. the business bought supplies for cash

 

 

B. the business incurred an expense and paid it

 

 

C. the business incurred an expense and did not pay for the expense immediately

 

 

D. the business bought equipment on account

 

 

Question 20 of 20

5.0/ 5.0 Points

A liability would be credited and an expense debited if __________.

 

 

 

A. the business paid a creditor

 

 

B. the business incurred an expense and did not pay the expense immediately

 

 

C. the business bought supplies on account

 

 

D. the business bought supplies for cash

 

 

 

EXAM 5

Part 1 of 2 - Lesson 4 Questions

45.0/ 50.0 Points

 

Question 1 of 40

2.5/ 2.5 Points

A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. assets to be understated

 

 

C. liabilities to be overstated

 

 

D. liabilities to be understated

 

 

Question 2 of 40

0.0/ 2.5 Points

A credit to an asset account was posted to a revenue account. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. revenue to be overstated

 

 

C. expenses to be overstated

 

 

D. Both A and C are correct.

 

 

Question 3 of 40

2.5/ 2.5 Points

An account that would be increased by a debit is __________.

 

 

 

A. cash

 

 

B. fees earned

 

 

C. capital

 

 

D. accounts payable

 

 

Question 4 of 40

2.5/ 2.5 Points

The chart of accounts __________.

 

 

 

A. is a numbered list of all of the business' accounts

 

 

B. allows accounts to be located quickly

 

 

C. can be expanded as the business grows

 

 

D. All of the above answers are correct.

 

 

Question 5 of 40

2.5/ 2.5 Points

A credit customer paid $850 toward his accounts receivable. The accountant recorded a credit to the revenue account. This error would cause __________.

 

 

 

A. revenue to be understated

 

 

B. cash to be overstated

 

 

C. accounts receivable to be overstated

 

 

D. liabilities to be understated

 

 

Question 6 of 40

2.5/ 2.5 Points

A debit to an expense account was posted to a revenue account. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be overstated

 

 

C. revenue to be understated

 

 

D. None of the above answers are correct.

 

 

Question 7 of 40

2.5/ 2.5 Points

A withdrawal by the owner was posted to an expense account. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. withdrawals to be overstated

 

 

D. expenses to be overstated

 

 

Question 8 of 40

2.5/ 2.5 Points

Which of the following errors would cause the trial balance to be out of balance?

 

 

 

A. An entry is posted twice.

 

 

B. An entry is not posted at all.

 

 

C. A debit is entered as $200 and the credit is entered at $2,000.

 

 

D. None of the above answers are correct.

 

 

Question 9 of 40

2.5/ 2.5 Points

Which of the following is not a financial statement?

 

 

 

A. Balance sheet

 

 

B. Income statement

 

 

C. Statement of owner's equity

 

 

D. Trial balance

 

 

Question 10 of 40

2.5/ 2.5 Points

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Cash

$1000

Equipment

500

Accounts Payable

350

Capital

900

Service Fees

1000

Salaries Expense

750

 

 

 

 

A. $3,250 debit, $3,250 credit

 

 

B. $1,125 debit, $1,125 credit

 

 

C. $4,500 debit, $4,500 credit

 

 

D. $2,250 debit, $2,250 credit

 

 

Question 11 of 40

2.5/ 2.5 Points

A credit to an asset account was posted to a liability account. This error would cause __________.

 

 

 

A. assets to be understated

 

 

B. liabilities to be overstated

 

 

C. capital to be understated

 

 

D. None of the above answers are correct.

 

 

Question 12 of 40

2.5/ 2.5 Points

A credit to an asset account was posted to the capital account. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be overstated

 

 

C. capital to be understated

 

 

D. Both A and C are correct.

 

 

Question 13 of 40

2.5/ 2.5 Points

The business provided services to a cash customer. To record this __________.

 

 

 

A. an asset is debited and a liability is credited

 

 

B. an asset is debited and a revenue is credited

 

 

C. an expense is debited and Capital is credited

 

 

D. None of the above answers are correct.

 

 

Question 14 of 40

2.5/ 2.5 Points

A credit to a liability account was posted to an expense account. This error would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be overstated

 

 

C. expenses to be overstated

 

 

D. None of the above answers are correct.

 

 

Question 15 of 40

2.5/ 2.5 Points

Which of the following groups of accounts have a normal credit balance?

 

 

 

A. revenue, liabilities, and capital

 

 

B. assets, capital, and withdrawals

 

 

C. liabilities, expenses, and assets

 

 

D. assets, expenses, and withdrawals

 

 

Question 16 of 40

2.5/ 2.5 Points

A debit to an asset account was posted to an expense account. This error would cause __________.

 

 

 

A. liabilities to be overstated

 

 

B. expenses to be overstated

 

 

C. assets to be understated

 

 

D. Both B and C are correct.

 

 

Question 17 of 40

2.5/ 2.5 Points

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Cash

$1,100

Accounts Receivable

800

Capital

1,900

Withdrawals

500

Service Fees

1,000

Rent Expense

500

 

 

 

 

A. $2,900 debit, $2,900 credit

 

 

B. $3,900 debit, $3,900 credit

 

 

C. $2,000 debit, $2,000 credit

 

 

D. $1,200 debit, $1,200 credit

 

 

Question 18 of 40

2.5/ 2.5 Points

A credit to a liability account was posted to an asset account. This error would cause __________.

 

 

 

A. liabilities to be overstated

 

 

B. liabilities to be understated

 

 

C. revenues to be overstated

 

 

D. revenues to be understated

 

 

Question 19 of 40

0.0/ 2.5 Points

The business incurred an expense and paid it immediately. To record this __________.

 

 

 

A. an expense is debited and a liability is credited

 

 

B. an expense is debited and an asset is credited

 

 

C. an expense is debited and Capital is credited

 

 

D. None of the above answers are correct.

 

 

Question 20 of 40

2.5/ 2.5 Points

Which of the following is prepared last?

 

 

 

A. Balance Sheet

 

 

B. Income Statement

 

 

C. Statement of Owner's Equity

 

 

D. Trial Balance

 

 

 

Part 2 of 2 - Lesson 5 Questions

47.5/ 50.0 Points

 

Question 21 of 40

2.5/ 2.5 Points

Revenue is traditionally recognized in the accounting records when __________.

 

 

 

A. cash is received

 

 

B. services are rendered

 

 

C. it is incurred

 

 

D. None of the above answers are correct.

 

 

Question 22 of 40

2.5/ 2.5 Points

A credit to an asset account was posted to a revenue account. This would cause __________.

 

 

 

A. assets to be understated

 

 

B. liabilities to be understated

 

 

C. capital to be understated

 

 

D. revenue to be overstated

 

 

Question 23 of 40

2.5/ 2.5 Points

Posting is performed by transferring information from the journal to the __________.

 

 

 

A. ledger

 

 

B. trial balance

 

 

C. balance sheet

 

 

D. income statement

 

 

Question 24 of 40

2.5/ 2.5 Points

The purpose of posting is to __________.

 

 

 

A. list the transactions in chronological order in the journal

 

 

B. provide an explanation of the transaction

 

 

C. update the account balances in the ledger

 

 

D. correct a previous entry

 

 

Question 25 of 40

2.5/ 2.5 Points

The general journal __________.

 

 

 

A. is the book of original entry

 

 

B. is the book of final entry

 

 

C. contains account balances

 

 

D. is completed after the general ledger

 

 

Question 26 of 40

2.5/ 2.5 Points

A credit to an asset account was posted to a liability account. This would cause __________.

 

 

 

A. assets to be understated

 

 

B. liabilities to be overstated

 

 

C. capital to be overstated

 

 

D. revenue to be overstated

 

 

Question 27 of 40

2.5/ 2.5 Points

A debit to an expense account was posted to an asset account. This would cause __________.

 

 

 

A. assets to be understated

 

 

B. liabilities to be understated

 

 

C. capital to be understated

 

 

D. expenses to be understated

 

 

Question 28 of 40

2.5/ 2.5 Points

A journal entry affecting three or more accounts is called a __________.

 

 

 

A. multi-level entry

 

 

B. multi-step entry

 

 

C. compound entry

 

 

D. simple entry

 

 

Question 29 of 40

2.5/ 2.5 Points

The journal entry to record a withdrawal by the owner would most commonly include __________.

 

 

 

A. a debit to Wage Expense and a credit to Cash

 

 

B. a debit to Capital and a credit to Cash

 

 

C. a debit to Withdrawals and a credit to Cash

 

 

D. a debit to Cash and a credit to Wage Expense

 

 

Question 30 of 40

2.5/ 2.5 Points

The first step of the accounting cycle is __________.

 

 

 

A. recording journal entries

 

 

B. posting to the ledger

 

 

C. preparing a trial balance

 

 

D. analyzing business transactions

 

 

Question 31 of 40

2.5/ 2.5 Points

The posting reference column on the general journal __________.

 

 

 

A. shows which transactions have been posted to the ledger

 

 

B. displays to which accounts the transactions have been posted

 

 

C. allows us to cross reference to the general ledger

 

 

D. All of the above answers are correct.

 

 

Question 32 of 40

0.0/ 2.5 Points

The posting reference column in the journal is used for __________.

 

 

 

A. recording the source documents identification number

 

 

B. recording the account number to which the entry was posted

 

 

C. recording the time when the entry was posted

 

 

D. recording the initials of the person who did the posting

 

 

Question 33 of 40

2.5/ 2.5 Points

The process that begins with recording business transactions and includes the completion of the financial statements is the __________.

 

 

 

A. calendar year

 

 

B. natural business year

 

 

C. fiscal year

 

 

D. accounting cycle

 

 

Question 34 of 40

2.5/ 2.5 Points

The posting reference column in the ledger is __________.

 

 

 

A. used to record the journal and page number the transactions originated

 

 

B. used to record the ledger number

 

 

C. used to record the date

 

 

D. not used

 

 

Question 35 of 40

2.5/ 2.5 Points

The twelve-month period a business chooses for its accounting period is a(n. __________.

 

 

 

A. calendar year

 

 

B. accounting period

 

 

C. fiscal year

 

 

D. accounting cycle

 

 

Question 36 of 40

2.5/ 2.5 Points

A debit to a liability account was posted to an expense account. This would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. owner's equity to be overstated

 

 

D. expenses to be overstated

 

 

Question 37 of 40

2.5/ 2.5 Points

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is __________.

 

 

 

A.  

Cash

600

Accounts Receivable

600

 

 

 

B.  

Accounts Payable

600

Cash

600

Equipment

1,200

 

 

 

C.  

Supplies

1,200

Cash

600

Accounts Payable

600

 

 

 

D.  

Equipment

1,200

Accounts Payable

600

Cash

600

 

 

 

Question 38 of 40

2.5/ 2.5 Points

A credit to an asset account was posted to an expense account. This would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. capital to be understated

 

 

D. expenses to be overstated

 

 

Question 39 of 40

2.5/ 2.5 Points

A credit to a liability account was posted to an owner's equity account. This would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be understated

 

 

C. owner's equity to be understated

 

 

D. net income to be overstated

 

 

Question 40 of 40

2.5/ 2.5 Points

A debit to a liability account was posted to a revenue account. This would cause __________.

 

 

 

A. assets to be overstated

 

 

B. liabilities to be overstated

 

 

C. capital to be overstated

 

 

D. revenue to be overstated

 

 

 

 

EXAM 7

Part 1 of 2 - Lesson 6 Questions

47.5/ 50.0 Points

 

Question 1 of 40

2.5/ 2.5 Points

If the Supplies account is not adjusted __________.

 

 

 

A. assets will be overstated and expenses will be understated

 

 

B. assets will be overstated and expenses will be overstated

 

 

C. assets will be understated and expenses will be overstated

 

 

D. assets will be understated and expenses will be understated

 

 

Question 2 of 40

2.5/ 2.5 Points

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand, the adjustment for Supplies would be __________.

 

 

 

A. $450

 

 

B. $550

 

 

C. $350

 

 

D. $900

 

 

Question 3 of 40

2.5/ 2.5 Points

The order of the steps to prepare the worksheet are __________.

 

 

 

A. prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns

 

 

B. complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns

 

 

C. extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance

 

 

D. prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns

 

 

Question 4 of 40

2.5/ 2.5 Points

If the adjustment for Supplies used during the period was not made __________.

 

 

 

A. expenses would be too low

 

 

B. assets would be too low

 

 

C. expenses would be too high

 

 

D. revenue would be too high

 

 

Question 5 of 40

2.5/ 2.5 Points

If Prepaid Rent for the period is not adjusted __________.

 

 

 

A. assets will be overstated and expenses will be overstated

 

 

B. assets will be overstated and expenses will be understated

 

 

C. assets will be understated and expenses will be overstated

 

 

D. assets will be understated and expenses will be understated

 

 

Question 6 of 40

2.5/ 2.5 Points

Which of the following would cause total assets to decrease and total expense to increase?

 

 

 

A. recording the depreciation of equipment

 

 

B. recording the consumption of supplies

 

 

C. recording the expiration of prepaid rent

 

 

D. All of the above would have that effect.

 

 

Question 7 of 40

2.5/ 2.5 Points

When historical cost is used in the accounting records, the book value of the asset is __________.

 

 

 

A. the original cost

 

 

B. the market value

 

 

C. original cost less accumulated depreciation

 

 

D. closed out

 

 

Question 8 of 40

2.5/ 2.5 Points

At the start of this year 18 months’ rent was paid. At the year's end, how will this affect the balance sheet?

 

 

 

A. Assets will be decreased.

 

 

B. Liabilities will be increased.

 

 

C. Owner's equity will be increased.

 

 

D. This has no effect on the period end balance sheet.

 

 

Question 9 of 40

2.5/ 2.5 Points

As Prepaid Rent is used, the asset becomes a(n. __________.

 

 

 

A. liability

 

 

B. expense

 

 

C. contra-asset

 

 

D. revenue

 

 

Question 10 of 40

2.5/ 2.5 Points

Which of the following would cause a contra-asset to be credited and an expense debited?

 

 

 

A. recording an accrued expense

 

 

B. recording the consumption of supplies

 

 

C. recording the building depreciation

 

 

D. All of the above would have that effect.

 

 

Question 11 of 40

2.5/ 2.5 Points

The entry to record the expiration of part of the prepaid rent will __________.

 

 

 

A. decrease total assets and increase total expenses at the end of the month

 

 

B. decrease total assets and decrease total expenses at the end of the month

 

 

C. increase total assets and increase total expenses at the end of the month

 

 

D. increase total assets and decrease total expenses at the end of the month

 

 

Question 12 of 40

2.5/ 2.5 Points

Which of the following would cause a liability to be credited and an expense to be debited?

 

 

 

A. recording the adjustment for the expiration of rent

 

 

B. recording the depreciation of equipment

 

 

C. recording the accrual of salaries incurred

 

 

D. purchasing equipment

 

 

Question 13 of 40

2.5/ 2.5 Points

Bringing account balances up to date before preparing financial reports is called __________.

 

 

 

A. posting

 

 

B. adjusting

 

 

C. journalizing

 

 

D. analyzing

 

 

Question 14 of 40

2.5/ 2.5 Points

When historical cost is used to record equipment, it would appear as the __________.

 

 

 

A. original cost on the balance sheet

 

 

B. residual value on the income statement

 

 

C. residual value on the balance sheet

 

 

D. original cost on the income statement

 

 

Question 15 of 40

2.5/ 2.5 Points

It is the year end, but not the pay period end. How will this affect the balance sheet?

 

 

 

A. Assets will be increased.

 

 

B. Liabilities will be increased.

 

 

C. Owner's equity will be increased.

 

 

D. This has no effect on the period end balance sheet.

 

 

Question 16 of 40

2.5/ 2.5 Points

The capital balance amount shown in the balance sheet column of the worksheet represents __________.

 

 

 

A. the beginning capital plus net income

 

 

B. the beginning capital plus net income less withdrawal

 

 

C. the beginning capital less withdrawals

 

 

D. the beginning capital plus any investments to capital that occurred during the period

 

 

Question 17 of 40

2.5/ 2.5 Points

It's the end of the accounting period and no electric bill has been received (but the expense has been incurred.; you should record an entry that __________.

 

 

 

A. increases the total assets and increases the total expenses

 

 

B. decreases the total assets and increases the total expenses

 

 

C. increases the total liabilities and increases the total expenses

 

 

D. decreases the total liabilities and increases the total expenses

 

 

Question 18 of 40

2.5/ 2.5 Points

The adjustment to record supplies used during the period would be __________.

 

 

 

A. debit Supplies; credit Supplies Expense

 

 

B. debit Supplies Expense; credit Cash

 

 

C. debit Supplies Expense; credit Supplies

 

 

D. debit Supplies; credit Cash

 

 

Question 19 of 40

2.5/ 2.5 Points

Not recording the Prepaid Rent used causes __________.

 

 

 

A. assets to be too high

 

 

B. assets to be too low

 

 

C. expenses to be too high

 

 

D. revenue to be too high

 

 

Question 20 of 40

0.0/ 2.5 Points

The adjusted trial balance columns __________.

 

 

 

A. help to ensure the ledger is still in balance

 

 

B. help to identify any errors that may have been made during adjustment

 

 

C. show updated account balances to aid in preparation of the financial statements

 

 

D. All of the above answers are correct.

 

 

 

Part 2 of 2 - Lesson 7 Questions

45.0/ 50.0 Points

 

Question 21 of 40

2.5/ 2.5 Points

Debt management ratios measure __________.

 

 

 

A. how effectively a company is using its cash

 

 

B. how well a company is using debt versus equity position

 

 

C. a company's ability to earn profit

 

 

D. a company's ability to meet payable obligations

 

 

Question 22 of 40

2.5/ 2.5 Points

Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?

 

 

 

A. income summary

 

 

B. owner's capital

 

 

C. accounts payable

 

 

D. depreciation expense

 

 

Question 23 of 40

2.5/ 2.5 Points

The final step in the accounting cycle is __________.

 

 

 

A. preparing the post-closing trial balance

 

 

B. preparing the financial statements

 

 

C. journalizing the closing entries

 

 

D. journalizing the adjusting entries

 

 

Question 24 of 40

2.5/ 2.5 Points

An account in which the balance is not carried over from one accounting period to the next is called a __________.

 

 

 

A. permanent account

 

 

B. real account

 

 

C. temporary account

 

 

D. zero account

 

 

Question 25 of 40

2.5/ 2.5 Points

Income Summary __________.

 

 

 

A. is a temporary account

 

 

B. is a permanent account

 

 

C. summarizes revenue and expenses and transfers the balance to Capital

 

 

D. Both A and C are correct.

 

 

Question 26 of 40

2.5/ 2.5 Points

Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called __________.

 

 

 

A. comparative financial statements

 

 

B. common-size statements

 

 

C. cash flow analysis

 

 

D. horizontal analysis

 

 

Question 27 of 40

2.5/ 2.5 Points

Which of the following assets would not be classified as property, plant, and equipment?

 

 

 

A. delivery truck

 

 

B. copyright

 

 

C. land

 

 

D. furniture

 

 

Question 28 of 40

2.5/ 2.5 Points

A common-size comparative statement shows __________.

 

 

 

A. percentages

 

 

B. dollar increases/decreases

 

 

C. whole dollar amounts

 

 

D. None of the above answers are correct.

 

 

Question 29 of 40

2.5/ 2.5 Points

To close the Withdrawals account __________.

 

 

 

A. debit Withdrawals; credit Capital

 

 

B. debit Capital; credit Withdrawals

 

 

C. debit Withdrawals; credit Income Summary

 

 

D. debit Income Summary; credit Withdrawals

 

 

Question 30 of 40

2.5/ 2.5 Points

Closing entries __________.

 

 

 

A. need not be journalized since they appear on the worksheet

 

 

B. need not be posted if the financial statements are prepared from the worksheet

 

 

C. are not needed if adjusting entries are prepared

 

 

D. must be journalized and posted

 

 

Question 31 of 40

2.5/ 2.5 Points

The current ratio for a company with current assets of $70,000, current liabilities of $50,000, total assets of $150,000, and net sales of $80,000, would be __________.

 

 

 

A. 1.4

 

 

B. 0.714

 

 

C. 3.0

 

 

D. 0.875

 

 

Question 32 of 40

2.5/ 2.5 Points

Profitability ratios measure __________.

 

 

 

A. a company's ability to earn profits

 

 

B. a company's ability to meet short-term obligations

 

 

C. how well a company is using debt versus equity

 

 

D. how effectively a company is using its assets

 

 

Question 33 of 40

2.5/ 2.5 Points

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, and close

 

 

C. analyze transactions, journalize, post, adjust, prepare financial statements, and close

 

 

D. post, close, prepare financial statements, adjust, analyze transactions, and journalize

 

 

Question 34 of 40

2.5/ 2.5 Points

If current assets are $75,000 and current liabilities are $15,000, the current ratio is __________.

 

 

 

A. 5:1

 

 

B. 0.2:1

 

 

C. 0.5:1

 

 

D. None of the above answers are correct.

 

 

Question 35 of 40

0.0/ 2.5 Points

The balance in the Rent Expense account on the worksheet was $120. The journal entry to close the Rent Expense account is __________.

 

 

 

A.

 

 

 

B.

 

 

 

C.

 

 

 

D.

 

 

 

Question 36 of 40

2.5/ 2.5 Points

If management wishes to know the ability to pay off the upcoming debts of a business, they could use the __________.

 

 

 

A. debt to total assets

 

 

B. current ratio

 

 

C. inventory turnover ratio

 

 

D. times interest earned

 

 

Question 37 of 40

2.5/ 2.5 Points

The current ratio determines the ability of a company to __________.

 

 

 

A. pay off all payables

 

 

B. pay off current payables

 

 

C. manage its ability to earn profit

 

 

D. use its equity

 

 

Question 38 of 40

2.5/ 2.5 Points

For vertical analysis purposes, a base item on a balance sheet is __________.

 

 

 

A. total assets

 

 

B. total equity

 

 

C. total liabilities

 

 

D. net equity

 

 

Question 39 of 40

2.5/ 2.5 Points

Liquidity ratios measure __________.

 

 

 

A. how effectively a company is using its equity

 

 

B. how effectively a company is using its liabilities

 

 

C. a company's ability to pay shareholders

 

 

D. a company's ability to pay off short-term debts

 

 

Question 40 of 40

0.0/ 2.5 Points

The income statement debit column of the worksheet showed the following expenses:

 

The journal entry to close the expense accounts is __________.

 

 

 

A.

 

 

 

B.

 

 

 

C.

 

 

 

D.

 

 

 

 

 

EXAM 8

Part 1 of 1 -

75.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

Endorsing a check __________.

 

 

 

A. guarantees payment

 

 

B. transfers the right to deposit or transfer cash

 

 

C. cancels the transaction

 

 

D. All of these answers are correct.

 

 

Question 2 of 20

5.0/ 5.0 Points

Advantages of on-line banking include __________.

 

 

 

A. convenience

 

 

B. transaction speed

 

 

C. effectiveness

 

 

D. All of the above answers are correct.

 

 

Question 3 of 20

5.0/ 5.0 Points

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

 

 

 

A. They would be added to the balance of the bank statement.

 

 

B. They would be subtracted from the balance of the bank statement.

 

 

C. They would be added to the balance per books.

 

 

D. They would be ignored.

 

 

Question 4 of 20

0.0/ 5.0 Points

Which of the following bank reconciliation items would be reflected in a journal entry?

 

 

 

A. error made by the bank

 

 

B. outstanding checks

 

 

C. bank service charges

 

 

D. deposit in transit

 

 

Question 5 of 20

5.0/ 5.0 Points

Checks that have been processed by the bank and are no longer negotiable are __________.

 

 

 

A. outstanding checks

 

 

B. canceled checks

 

 

C. checks in process

 

 

D. blank checks

 

 

Question 6 of 20

5.0/ 5.0 Points

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________.

 

 

 

A. increase their cash account on the company's books

 

 

B. decrease their cash account on the company's books

 

 

C. increase the ending cash balance on the bank statement

 

 

D. decrease the ending cash balance on the bank statement

 

 

Question 7 of 20

5.0/ 5.0 Points

The bank statement shows __________.

 

 

 

A. the beginning bank balance of the cash at the start of the month

 

 

B. the checks the bank has paid and any deposits received

 

 

C. any other charges or additions to the bank balance

 

 

D. All of these answers are correct.

 

 

Question 8 of 20

5.0/ 5.0 Points

Outstanding checks __________.

 

 

 

A. have been subtracted on the bank records but not the checkbook records

 

 

B. have not been presented to the bank for payment and have not been subtracted from the checkbook

 

 

C. have not been presented to the bank for payment but have been subtracted in the checkbook

 

 

D. have been returned to the business for nonpayment

 

 

Question 9 of 20

5.0/ 5.0 Points

Which item(s. will require a journal entry to update the balance in the Cash account?

 

 

 

A. checks outstanding and deposits in transit

 

 

B. bank service charges, note collected by the bank, and deposits in transit

 

 

C. bank service charges, note collected by the bank, and error made by Accounting Services

 

 

D. None of these answers are correct.

 

 

Question 10 of 20

5.0/ 5.0 Points

A full endorsement on a check __________.

 

 

 

A. is the same as a blank endorsement

 

 

B. can be endorsed only by the person or company named in the original endorsement

 

 

C. is the safest endorsement for businesses

 

 

D. does none of the above

 

 

Question 11 of 20

0.0/ 5.0 Points

 Calculate, from the following information the adjusted cash balance at the end of April.

 

Bank statement ending cash balance

$2,000

General ledger cash balance ending

3,250

Bank monthly service charge

45

Deposits in transit

2,500

Outstanding checks

1,500

NSF check returned with bank statement

205

 

 

 

A. $3,000

 

 

B. $4,250

 

 

C. $4,000

 

 

D. $5,500

 

 

Question 12 of 20

5.0/ 5.0 Points

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

 

 

 

A. It is added to the bank balance.

 

 

B. It is shown as a debit memo.

 

 

C. It is shown as a credit memo.

 

 

D. None of these answers are correct.

 

 

Question 13 of 20

0.0/ 5.0 Points

Calculate, from the following information the adjusted cash balance at the end of April.

 

Bank statement ending cash balance

$2,000

General ledger cash balance ending

3,250

Bank monthly service charge

45

Deposits in transit

2,500

Outstanding checks

1,500

NSF check returned with bank statement

205

 

 

 

 

A. $3,000

 

 

B. $4,250

 

 

C. $4,000

 

 

D. $5,500

 

 

Question 14 of 20

5.0/ 5.0 Points

 Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information.

 

Cash balance on the bank statement

$2,350

Customer's check returned—NSF

500

Customer's note collected by the bank

600

Deposits in transit, November 30

1,400

Outstanding checks, November 30

2,650

 

 

 

 

A. $1,250

 

 

B. $1,100

 

 

C. $1,550

 

 

D. $1,350

 

 

Question 15 of 20

5.0/ 5.0 Points

The drawee is the __________.

 

 

 

A. person who writes the check

 

 

B. bank that drawer has an account with

 

 

C. the person to whom the check is payable

 

 

D. the person who reconciles the account

 

 

Question 16 of 20

5.0/ 5.0 Points

If the written amount on the check does not match the amount expressed in figures, the bank may __________.

 

 

 

A. pay the amount written in words

 

 

B. return the check unpaid

 

 

C. contact the drawer to see what was meant

 

 

D. All of these answers are correct.

 

 

Question 17 of 20

5.0/ 5.0 Points

The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n. __________.

 

 

 

A. addition to the balance per books

 

 

B. subtraction from the balance per books

 

 

C. addition to the balance per bank

 

 

D. subtraction from the balance per bank

 

 

Question 18 of 20

0.0/ 5.0 Points

Which item should be added to the company's book balance during the bank reconciliation?

 

 

 

A. deposit in transit

 

 

B. check outstanding

 

 

C. bank service charge

 

 

D. note collected by the bank

 

 

Question 19 of 20

5.0/ 5.0 Points

Company policy for internal control should include all of the following EXCEPT for what?

 

 

 

A. Employees will be rotated.

 

 

B. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.

 

 

C. The owner (or responsible employee. signs all checks after receiving authorization to pay from the departments concerned.

 

 

D. At time of payment, all supporting invoices or documents will be stamped "paid."

 

 

Question 20 of 20

0.0/ 5.0 Points

A bank service charge would be included on the bank reconciliation as a(n. __________.

 

 

 

A. addition to the balance per books

 

 

B. subtraction from the balance per books

 

 

C. addition to the balance per bank

 

 

D. subtraction from the balance per bank

 

 

Products by Category

Add to Wish List

Click the button below to add the A02 Principles of Accounting I All Exams Answers (Ashworth College) to your wish list.

You Recently Viewed...