Accounting FBLA
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When you have sixty minutes to do an exam you may find yourself consumed by doubts instead of taking the exam. Fight the pre exam jitters by taking the revision quiz for the FBLA and time yourself as you tackle these simple questions. Give it a try and believe in yourself.
- 1.When a business uses a petty cash fund, the fund is debited each time it is replaced.
- A.
True
- B.
False
- 2.A debit to an account is always an increase.
- A.
True
- B.
False
- 3.
- A.
True
- B.
False
- 4.4. To determine the interest on a promissory note, the accountant will need to know principal, interest, rate, and term.
- A.
True
- B.
False
- 5.5. A payee is the person or business to whom a check is payable.
- A.
True
- B.
False
- 6.6. Today the Federal Tax Reform Law only requires persons who are over two years old to have a social security number.
- A.
True
- B.
False
- 7.7. A bonus, rather than a commission, is an amount paid to an employee as a percentage of sales.
- A.
True
- B.
False
- 8.8. Depreciation is allocating the cost of a plant asset over the asset�s useful life.
- A.
True
- B.
False
- 9.9. When the accountant debits the withdrawals account, this will result in a decrease to the account.
- A.
True
- B.
False
- 10.10. Straight-line depreciation is allocating the cost of a plant equally over its useful life.
- A.
True
- B.
False
- 11.11. The basic accounting equation may be expressed as
- A.
A. A + E
- B.
B. A = OE - L
- C.
C. Assets = Liabilities + Owner’s Equity
- D.
D. Assets + Liabilities = Owner’s Equity
- 12.12. The year and month are written in a general journal
- A.
A. on each journal page.
- B.
B. for each entry on each journal page.
- C.
C. only at the top of page one of the journal page.
- D.
D. at the bottom of each journal page.
- 13.13. Debts that are not required to be paid within the next accounting period are called
- A.
A. wages.
- B.
B. liabilities.
- C.
C. taxes.
- D.
D. long-term liabilities.
- 14.
- A.
A. $500 salary payment posted as a $500 debit to cash and a $500 credit to salaries expense.
- B.
B. $200 check from a customer in payment of his/her account posted as $200 debit to cash and a $200 credit to accounts receivable.
- C.
C. $75 cash from a customer in payment of his/her account posted as a $75 debit to cash and a $57 credit to cash.
- D.
D. $50 cash purchase of office supplies posted as a $50 debit to office equipment and a $50 credit to cash
- 15.15. At the close of the fiscal year in June, Bernard�s Novelty had a cash balance of $8,000. What was the cash balance on June 1 if Bernard�s cash receipts for June were $15,526 and his disbursements were $12,200?
- A.
A. $3,326
- B.
B. $7,526
- C.
C. $4,200
- D.
D. $4,674
- 16.16. Assume that Bernard�s Novelty is a partnership. Which transaction would occur if Partner A withdraws cash for personal use to purchase an automobile?
- A.
A. Debit salary expense and credit cash
- B.
B. Debit cash and credit Partner A, withdrawal
- C.
C. Debit Partner A, withdrawal and credit cash
- D.
D. Debit capital and credit cash
- 17.17. The accountant will write off a customer as a bad debt using the direct-write method by
- A.
A. debiting bad debts expense and crediting accounts receivable/customer in the general journal.
- B.
B. posting to the bad debts expense and accounts receivable accounts.
- C.
C. posting to the customer’s account showing it to be uncollectible.
- D.
D. All of the above
- 18.
- A.
A. debit the account and credit the related expense account.
- B.
B. debit the depreciation account and credit the accumulated depreciation account.
- C.
C. debit the accumulated depreciation account and credit the depreciation expense account.
- D.
D. debit the depreciation account and credit the owner’s equity account.
- 19.19. Which tax is paid by both employer and employee on the employee�s gross wages?
- A.
A. Federal income tax
- B.
B. FICA tax
- C.
C. State income tax
- D.
D. State unemployment tax
- 20.20. Which of the following accounts needs no closing entries?
- A.
A. Capital
- B.
B. Supplies expense
- C.
C. Fees owed
- D.
D. All of the above
- 21.21. Ending inventory is merchandise a business has on hand at the
- A.
A. beginning of the fiscal period
- B.
B. end of the fiscal period.
- C.
C. during the fiscal period.
- D.
D. midpoint of the fiscal period.
- 22.
- A.
A. Debit sales discounts for $250, credit accounts receivable/customer.
- B.
B. Credit sales returns and allowances for $150, debit accounts receivable/customer.
- C.
C. Debit sales returns and allowances for $150, credit accounts receivable/customer
- D.
D. Debit sales discounts for $150, credit accounts receivable/customer
- 23.___________ stock is the type of stock issued by a corporation when only one class of stock is issued.
- A.
Preferred
- B.
Common
- C.
Capital
- D.
Dividend
- 24.Retained earnings are earnings of a ________ and will be shown on the ______________.
- A.
Sole proprietorship, balance sheet
- B.
Partnership, income statement
- C.
Corporation, balance sheet
- D.
Corporation, income statement
- 25.The balance sheet will show
- A.
Asset accounts only on a specific date
- B.
Preliminary balances of all the asset and liability accounts on a specific date.
- C.
Final balances of all accounts on a specific date.
- D.
Final balances in all asset, liability, and owner’s equity accounts
- 26.
- A.
$1,800; insurance expense and prepaid insurance
- B.
$1,200; insuracne expense and prepaid insurance
- C.
$600; insurance expense and prepaid insurance
- D.
$600; prepaid insurance and insurance expense
- 27.To calculate the cost of merchandise sold, the accountant will
- A.
Add ending inventory to the beginning inventory and deduct gross purchases.
- B.
Determine transportation costs, purchase discounts, and purchase returns and allowances; add the next amount to beginning inventory; deduct the ending inventory from the total.
- C.
Add only purchases to beginning inventory and deduct ending inventory
- D.
Complete the steps in item C, but consider only the amount of Transportation In plus purchases to determine the net amount.
- 28.In a corporation, the capital stock account is to the corporation what the ____________ account is to a sole proprietorship.
- A.
Partner’s equity
- B.
Owner’s equity
- C.
Stockholder’s equity
- D.
Retained earnings
- 29.A price reduction given to a customer would affect which account?
- A.
Capital
- B.
Purchase allowance
- C.
Sales allowance
- D.
Purchase return
- 30.A form for recording accounting information in a chronological order is called a
- A.
Journal
- B.
Ledger
- C.
General Ledger
- D.
All of the above
- 31.
- A.
Balance sheet
- B.
Income statement
- C.
General ledger
- D.
A and B
- 32.
- A.
An accounting system in which each transaction affects and is recorded in two or more accounts with unequal debits and equal credits.
- B.
An accounting system in which each transaction affects and is recorded in two or more accounts with total debits equal to total credits.
- C.
An accounting system in which the sum of the debit account balances never equal the sum of the credit account balances.
- D.
an accounting system in which errors never occur
- 33.The financial position of a business reflected on a balance sheet shows how a business is doing
- A.
Over a specific period of time
- B.
For 12 months
- C.
On a specific date.
- D.
All of the above
- 34.Which of the following is classified as a long-term liability?
- A.
Wages
- B.
Bond payable
- C.
Taxes payable
- D.
Note payable due in 15 months
- 35.You are given the following information: cost of merchandise sold, $404,000; operating expenses, $785,122; and net sales, $557,225. What is the company’s gross profit on sales?
- A.
$381,122
- B.
$227,897
- C.
$267,135
- D.
$153,225
- 36.June earns $8.50 per hour. She is paid overtime for hours worked over 40. One week, she worked 42.5 hours. Her gross earnings for the week are
- A.
$375.00
- B.
$357.00
- C.
$371.88.
- D.
$372.00
- 37.Beginning inventory is
- A.
Merchandise a business has on hand at the beginning of the fiscal period.
- B.
Merchandise a business sells during the fiscal period
- C.
Merchandise a business has on hand at the end of the fiscal period.
- D.
Merchandise a business purchases during the fiscal period.
- 38.The difference between net sales and the cost of merchandise sold is called
- A.
Gross profit
- B.
Gross profit on sales
- C.
Net income on sales.
- D.
Difference between gross income and operating expense.
- 39.Asset accounts from the worksheet are extended to the
- A.
Income statement
- B.
Balance sheet
- C.
Trial balance
- D.
Statement of owner’s equity
- 40.The amount of interest on a 90-day, $7,500 interest-bearing note at 8.5% is
- A.
$637.50.
- B.
$157.19.
- C.
$1,746.58.
- D.
174.66
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