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Intro To Accounting

21 Questions
Accounting Quizzes & Trivia

Solidfy concepts learned

Questions and Answers
  • 1. 
    Many current liabilities are affected by accrual accounting entries. This happens because:
    • A. 

      Liabilities are usually paid when they are incurred.

    • B. 

      Accrual accounting involves recognizing liabilities before they are paid.

    • C. 

      The only way to reduce a liability account balance is with an adjusting entry.

    • D. 

      Accrual accounting frequently involves recognizing liabilities before they are incurred.

  • 2. 
    An Accounts Payable could result from which of the following transactions?
    • A. 

      Purchasing supplies for cash.

    • B. 

      Purchasing property, plant and equipment for cash.

    • C. 

      Purchasing goods and services from suppliers on credit.

    • D. 

      All of the above.

  • 3. 
    Retained earnings represents:
    • A. 

      Cash that is available for dividends.

    • B. 

      The total net income of the firm since the beginning of the year.

    • C. 

      Net income (minus dividends) that has been reinvested in the company

    • D. 

      Net income plus gains (or minus losses) on treasury stock transactions.

  • 4. 
    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. 

      True

    • B. 

      False

  • 5. 
    A contra-asset will increase with a debit.
    • A. 

      True

    • B. 

      False

  • 6. 
    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................$350,000 AR...................$350,000 Sales......................$750,000 COGS...............$250,000 Inventory.................$250,000
    • A. 

      True

    • B. 

      False

  • 7. 
    The journal entry to record employee wage expenses, which you will not pay yet, would be: Wage Expense.........$xx,xxx Wages Payable.............$xx,xxx
    • A. 

      True

    • B. 

      False

  • 8. 
    The entry to record depreciation expense:
    • A. 

      Increases a contra long-term asset and decreases net income.

    • B. 

      Decreases a contra long-term asset and decreases net income.

    • C. 

      Decreases working capital and decreases net income.

    • D. 

      Decreases a long-term asset and increases a contra long-term asset.

  • 9. 
    An accounts receivable results from the sale of:
    • A. 

      Property, plant and equipment for cash.

    • B. 

      Goods and services to customers on account.

    • C. 

      Goods and services to customers for cash.

    • D. 

      The firm's common stock.

  • 10. 
    Beg. Retained Earnings = 175,000 Ending Retained Earnings = 125,000 Assume that there were no dividends declared. What is Net Income/Loss for the year?
    • A. 

      25,000

    • B. 

      (45,000)

    • C. 

      65,000

    • D. 

      (50,000)

    • E. 

      55,000

  • 11. 
    Which of the following is an Asset?
    • A. 

      Accumulated Depreciation

    • B. 

      Wages Payable

    • C. 

      Net Sales

    • D. 

      Depreciation Expense

    • E. 

      Contributed Capital

  • 12. 
    Beg. Retained Earnings = 110,000 Ending Retained Earnings = 225,000 Assume that there were 50,000 in dividends declared. What is Net Income for the year?
    • A. 

      115,000

    • B. 

      65,000

    • C. 

      75,000

    • D. 

      165,000

    • E. 

      Not enough Data to answer this question.

  • 13. 
    Total Assets = 350,000 Total Liabilities = 200,000 Contributed Capital = 50,000 Retained Earnings = ?
    • A. 

      75,000

    • B. 

      100,000

    • C. 

      55,000

    • D. 

      90,000

    • E. 

      Not enough data to answer the question

  • 14. 
    The Statement of Cash Flows:
    • A. 

      Shows how cash changed during the period.

    • B. 

      Is an optional financial statement.

    • C. 

      Shows the change in the market value of the entity's common stock during the period.

    • D. 

      Shows the dividends that will be paid in the future.

  • 15. 
    The accounting equation is: Assets = Liabilities + Retained Earnings
    • A. 

      True

    • B. 

      False

  • 16. 
    The time frame associated with an income statement is:
    • A. 

      A point in time in the past.

    • B. 

      A past period of time.

    • C. 

      A future period of time.

    • D. 

      A function of the information included in it.

  • 17. 
    The time frame associated with a balance sheet is:
    • A. 

      A point in time in the past.

    • B. 

      A one-year past period of time.

    • C. 

      A single date in the future.

    • D. 

      A function of the information included in it.

  • 18. 
    The accounting equation is Assets = Liabilities - Owners Equity.
    • A. 

      True

    • B. 

      False

  • 19. 
    A debit
    • A. 

      Always increases assets.

    • B. 

      Always increases liabilities.

    • C. 

      Increases an expense account.

    • D. 

      Increases a revenue account.

  • 20. 
    Under most circumstances, in order to recognize revenue:
    • A. 

      Cash must have been received.

    • B. 

      The entity mhttps://online.uen.org/webct/urw/lc257461621151.tp0/cobaltMainFrame.dowebctust expect to receive cash in the future.

    • C. 

      The entity must have paid for all expenses incurred in generating the revenue.

    • D. 

      The revenue must be realized or realizable, and earned

  • 21. 
    In order for me to pass this class
    • A. 

      I need to read/study the material prior to coming to class.

    • B. 

      Won't take much - I'm sure this guy will generate a huge curve.

    • C. 

      Won't take much - he always tells us that he passes everyone.

    • D. 

      Will be a piece of cake - he told us that his final is easier than the midterm.