Accounting 2 Multiple Choice Question

21 Questions | Total Attempts: 179

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Accounting Quizzes & Trivia

Accounting is a fun topic to learn and as you are in your second level you have been able to gather a lot of knowledge. The multiple choice quiz is set in a way that it covers all you should know up to this point. Give it a try and see where you stand.


Questions and Answers
  • 1. 
    Rent received in advance is a liability until the rented space is actually
    • A. 

      Paid for

    • B. 

      Rented

    • C. 

      Used

    • D. 

      None of these

  • 2. 
    At the end of a fiscal period, a business must show how much rent received in advance has become
    • A. 

      An asset

    • B. 

      A revenue

    • C. 

      An expense

    • D. 

      None of these

  • 3. 
    When a business actually recieves cash in advance for rent, the amount is recorded as
    • A. 

      A liability

    • B. 

      A revenue

    • C. 

      Either a liability or a revenue

    • D. 

      None of these

  • 4. 
    When a business actually receives cash in advance for rent, and intially records unearned revenue as revenue, the account credited is
    • A. 

      Cash

    • B. 

      Notes receivable

    • C. 

      Rent income

    • D. 

      None of these

  • 5. 
    Recording an adjusting entry for accrued interest income is an application of the accountng concept
    • A. 

      Objective evidence

    • B. 

      Historical cost

    • C. 

      Consistent reporting

    • D. 

      Matching expenses with revenue

  • 6. 
    When unearned revenue is initially recorded as a liability, the accounts affected by an entry for receipt of rent income in advance are
    • A. 

      Cash debit; rent income credit

    • B. 

      Cash debit; unearned rent credit

    • C. 

      Cash debit; unearned rent debit

    • D. 

      Rent income debit; unearned rent credit

  • 7. 
    If a note is dishonored, the account debited is:
    • A. 

      Notes receivable

    • B. 

      Interest income

    • C. 

      Accounts receivable

    • D. 

      Allowance for notes receivable

  • 8. 
    When a dishonored note is paid, the additional interest is calculated on the :
    • A. 

      Principle of the note

    • B. 

      Original value of the note

    • C. 

      Maturity value of the note

    • D. 

      None of these

  • 9. 
    The maturity date of a 60-day note receivale issued on December 27 is
    • A. 

      Feb 25

    • B. 

      Feb 26

    • C. 

      Feb 27

    • D. 

      None of these

  • 10. 
    The interest on a 3 month, 10%, $1,000.00 note receivable is
    • A. 

      $24.66

    • B. 

      $25.00

    • C. 

      $100.00

    • D. 

      None of these

  • 11. 
    The interest on a 90-day, %10, $2,000.00 note receivable is
    • A. 

      $49.32

    • B. 

      $50.00

    • C. 

      $200.00

    • D. 

      None of these

  • 12. 
    When an account has no special columns in the voucher register, information is recorded in the:
    • A. 

      Delivery expense debit column

    • B. 

      General columns

    • C. 

      Purchases debit column

    • D. 

      Vouchers payable credit column

  • 13. 
    The source document for an entry in a check register is a(n):
    • A. 

      Check

    • B. 

      Voucher

    • C. 

      Memorandum

    • D. 

      None of these

  • 14. 
    The liability account that is used in a voucher system in place of accounts payable is:
    • A. 

      Notes payable

    • B. 

      Vouchers payable

    • C. 

      Vouchers receivable

    • D. 

      None of these

  • 15. 
    The source document for an entry in a voucher register is a(n)
    • A. 

      Voucher

    • B. 

      Debit memorandum

    • C. 

      Invoice

    • D. 

      None of these

  • 16. 
    A check register is similar to and replaces a:
    • A. 

      Purchases journal

    • B. 

      Voucher register

    • C. 

      Cash receipts journal

    • D. 

      Cash payments journal

  • 17. 
    Vouchers to be paid are filed in the unpaid vouchers file according to the:
    • A. 

      Date of the invoice

    • B. 

      Date the voucher must be paid

    • C. 

      Voucher number

    • D. 

      Name of vendor

  • 18. 
    Goodwill is recortded on a partnership's records:
    • A. 

      If the partners agree that a new partner's investment results in goodwill.

    • B. 

      If a new partner invests assets with a value less than the share of equity received

    • C. 

      If the partnership is admitting its third partner.

    • D. 

      None of these

  • 19. 
    An entry to show distribution of goodwill is recorded in a partnership's:
    • A. 

      General journal

    • B. 

      Cash receipts journal

    • C. 

      Cash payments journal

    • D. 

      None of these

  • 20. 
    A partner's drawing account is located in a general ledger's:
    • A. 

      Asset division

    • B. 

      Liabilities division

    • C. 

      Owners' equity division

    • D. 

      Revenue division

  • 21. 
    The value of a business in excess of the total investment of owners is called:
    • A. 

      Goodwill

    • B. 

      Long-term assets

    • C. 

      Owner's equity

    • D. 

      Net income

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