Accounting

79 Questions  I  By Skijosh on October 7, 2009
Acccounting 1st semester

  
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1.  Financial transactions are summarized in:
A.
B.
C.
D.
2.  Which classification of accounting is most concerned with the use of economic and financial information to plan and control many of the activities of the entity?
A.
B.
C.
D.
3.  The accounting equation is Assets = Liabilities - Owners Equity.
A.
B.
4.  The distinction between a current asset and other assets:
A.
B.
C.
D.
5.  The time frame associated with a balance sheet is:
A.
B.
C.
D.
6.  Owners' equity refers to which to the following?
A.
B.
C.
D.
E.
7.  Which answer describes an internal auditor?
A.
B.
C.
D.
E.
8.  The time frame associated with an income statement is:
A.
B.
C.
D.
9.  The purpose of the income statement is to show the:
A.
B.
C.
D.
10.  The accounting equation is: Assets = Liabilities + Retained Earnings
A.
B.
11.  The accounting equation is: Assets = Liabilities / Owners Equity
A.
B.
12.  The Statement of Cash Flows:
A.
B.
C.
D.
13.  Beg. Retained Earnings = 100,000Ending Retained Earnings = 250,000Assume that there were no dividends declared. What is Net Income for the year?
A.
B.
C.
D.
E.
14.  The accounting equation is: Assets = Liabilities + Contributed Capital
A.
B.
15.  Total Assets = 350,000Total Liabilities = 200,000Contributed Capital = 50,000Retained Earnings = ?
A.
B.
C.
D.
E.
16.  Beg. Retained Earnings = 110,000Ending Retained Earnings = 225,000Assume that there were 50,000 in dividends declared. What is Net Income for the year?
A.
B.
C.
D.
E.
17.  What do the following accounts have in common?Short-term investmentsAccounts payableCash equivalentsWages payable
A.
B.
C.
D.
E.
18.  Which of the following is an Asset?
A.
B.
C.
D.
E.
19.  Total Current Assets = 300,000Total Liabilities = 200,000Contributed Capital = 50,000What is the amount of retained earnings?
A.
B.
C.
D.
E.
20.  The current assets of most companies are usually made up of:
A.
B.
C.
D.
21.  For which of the following reconciling items would an adjusting entry be necessary?
A.
B.
C.
D.
22.  Beg. Retained Earnings = 175,000Ending Retained Earnings = 125,000Assume that there were no dividends declared. What is Net Income/Loss for the year?
A.
B.
C.
D.
E.
23.  A debit
A.
B.
C.
D.
24.  The principal reason for reconciling the cash balance per books with the balance shown on the bank statement is to:
A.
B.
C.
D.
25.  There are transactions that will cause your balance sheet to not balance.
A.
B.
26.  An accounts receivable results from the sale of:
A.
B.
C.
D.
27.  The allowance for doubtful accounts is a(n):
A.
B.
C.
D.
28.  The net book value of a depreciable asset is:
A.
B.
C.
D.
29.  Which of the following statements best describes the process of accounting for depreciation?
A.
B.
C.
D.
30.  Accounts receivable are reported at
A.
B.
C.
D.
31.  The entry to record depreciation expense:
A.
B.
C.
D.
32.  Your company purchased inventory for $470,000 and paid cash. The journal entry to record the transaction would be:Cash..$470,000 Inventory.............$470,000
A.
B.
33.  Sometimes your balance sheet will not balance, and in those situations it is ok.
A.
B.
34.  The journal entry to record employee wage expenses, which you will not pay yet, would be:Wage Expense.........$xx,xxxWages Payable.............$xx,xxx
A.
B.
35.  Sales for the year were $750,000. Half was paid to you on account, half in cash. These sales cost you $250,000. The journal entry would be:Cash................$350,000AR...................$350,000 Sales......................$750,000COGS...............$250,000 Inventory.................$250,000
A.
B.
36.  A contra-asset will increase with a debit.
A.
B.
37.  The purpose of reporting Current Maturities of Long-Term debt is to:
A.
B.
C.
D.
38.  A contra asset will increase with a credit.
A.
B.
39.  A customer of your company has filed for bankruptcy. He owed you $25,000. The journal entry to record the write-off would increase your bad debt allowance.
A.
B.
40.  A magazine publisher has an account called "unearned subscription revenue". The transaction that causes the balance of this account to decrease is:
A.
B.
C.
D.
41.  Depreciation expense for the year on a given piece of equipment is $100,000. The journal entry to record this would be: Depreciation Expense.........$100,000 Accumulated Depreciation.............$100,000
A.
B.
42.  You recently sold a piece of land for a gain of $250,000. This gain would be included on the income statement in the revenue section.
A.
B.
43.  Retained earnings represents:
A.
B.
C.
D.
44.  A transaction that is likely to cause an increase in a current liability is:
A.
B.
C.
D.
45.  The declaration of a dividend by the company results in:
A.
B.
C.
D.
46.  Which of the following is not an owner's equity account?
A.
B.
C.
D.
E.
47.  With regards to dividends, the declaration date pertains to:
A.
B.
C.
D.
48.  An Accounts Payable could result from which of the following transactions?
A.
B.
C.
D.
49.  Many current liabilities are affected by accrual accounting entries. This happens because:
A.
B.
C.
D.
50.  Which of the following accounts are not usually associated with owners equity?
A.
B.
C.
D.
51.  Gains differ from revenues because gains:
A.
B.
C.
D.
52.  Under most circumstances, in order to recognize revenue:
A.
B.
C.
D.
53.  The concept of matching revenue and expense refers to the fact that:
A.
B.
C.
D.
54.    Most entities satisfy the accounting criteria for recognizing revenue when:
A.
B.
C.
D.
55.  Most entities satisfy the accounting criteria for recognizing an expense when:
A.
B.
C.
D.
56.  Which of the following accounts are not included in the calculation for Gross Profit?
A.
B.
C.
D.
57.  An item that cost $90 is sold for $120. The gross margin for this item is:
A.
B.
C.
D.
58.  An item that cost $240 is to be sold for a price that will yield a gross margin of 20%. The selling price should be:
A.
B.
C.
D.
59.  In order for me to pass this class
A.
B.
C.
D.
60.  In the statement of cash flows, using the indirect method, the amount of depreciation and amortization expense is added back to net income because:
A.
B.
C.
D.
61.  When calculating EPS - which of the following accounts are part of the equation?
A.
B.
C.
D.
62.  Calculate Gross Profit Margin based on the following data.COGS = 73.5%
A.
B.
C.
D.
63.  Calculate Gross Profit based on the following data:Sales $450Cogs 50%Interest Expense 5%Wage Expense 10%Advertising Expense 12%
A.
B.
C.
D.
64.  Calculate Gross Profit for your future projections based on your past history. Your historical COGS is equal to 45%.Your future projections for Sales are $1,000,000
A.
B.
C.
D.
65.  A customer is returning your product for a full refund. Which account below is NOT one of the accounts that will be in your Journal Entry?
A.
B.
C.
D.
E.
66.  An expanded version of the accounting equation could be:
A.
B.
C.
D.
67.  What type of an account is accumulated depreciation?
A.
B.
C.
D.
E.
68.  What is the normal balance for the account "allowance for uncollectable accounts"?
A.
B.
C.
D.
E.
69.  What are the three sections of the Cash Flow Statement?
A.
B.
C.
D.
E.
70.  Who is ultimately responsible for the financial statements of the company?
A.
B.
C.
D.
71.  The role of the auditor is to make sure the financial statements are perfect.
A.
B.
72.  It does not matter if a significant event happens after your balance sheet date, but prior to you releasing your financial statements to the public.  You have no responsibility to your shareholders to disclose such an event.
A.
B.
73.  In your notes section, you need to disclose the valuation methods used by your company so that your investors will be able to compare your data with other companies.
A.
B.
74.  There usually is not difference between GAAP prepared financial statements and tax forms prepared using IRS rules.
A.
B.
75.  There is nothing wrong with recording revenue "too soon" if you have a contract signed with that customer and plan on shipping your product later anyway. It really is just a timing issue so nobody will care.
A.
B.
76.  It is ok to shift current expenses to an earlier or later period, as long as you eventually record them.
A.
B.
77.  The annual report filed with the SEC is called the 10-Q.
A.
B.
78.  The second paragraph of the auditors report is called the opinion paragraph. This is generally the most important paragraph of the entire letter.
A.
B.
79.  In the Independent Auditor's Report, the company hopes to receive a qualified opinion.
A.
B.
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