Accounting - Test #2
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- 1.To increase a cash account we have to credit it
- A.
True
- B.
False
- 2.To increase accounts receivable we have to debit it
- A.
True
- B.
False
- 3.To increase an expense we have to credit it
- A.
True
- B.
False
- 4.To increase Revenue we to have to debit it
- A.
True
- B.
False
- 5.To decrease accounts payable we have to credit it
- A.
True
- B.
False
- 6.To increase Owner's drawings we have to debit it
- A.
True
- B.
False
- 7.To increase common shares we have to credit it
- A.
True
- B.
False
- 8.The chart of accounts is a listing of all the accounts being used by all businesses with a standard set of numbers
- A.
True
- B.
False
- 9.
- A.
In the proper order of account numbers used
- B.
Alphabetically
- C.
Chronologically
- D.
It depends on the business
- 10.
- A.
True
- B.
False
- 11.The document which records all the accounts of the business and activities and balances of each specific account is called a:
- A.
Journal
- B.
General Ledger
- C.
Trial Balance
- D.
General Journal
- 12.Which of the following statements about posting to the general ledger is true?
- A.
It involves the transfer of journal entries to the ledger accounts
- B.
It involves the transfer from the trial balance to the financial statements
- C.
It normally occurs before entering transactions into a journal
- D.
It involves the transfer from the trial balance to the general ledger
- 13.Tne importance of the trial balance is...
- A.
Making sure all transactions have been recorded
- B.
Making sure the total debits equals the total credits
- C.
Making sure there are no errors in the accounting records
- D.
Making sure the journal entries have been posted only once
- 14.Click on each box that corresponds to an account that will not show on the post-closing trial balance
- A.
Service Revenue
- B.
Cash
- C.
Expenses
- D.
Accounts Receivable
- 15.By debiting the income statament balances you are...
- A.
Closing the revenue accounts for the year
- B.
Closing the expense accounts for the year
- C.
Closing the drawings account for the year
- D.
You are not closing any account
- 16.After posting the closing entries, a company must prepare a(n)
- A.
Posting trial balance
- B.
Post-closing trial balance
- C.
Unadjusted trial balance
- D.
Adjusted trial balance
- 17.Zero balances will be found in some accounts in the new accounting period - these are...
- A.
Cash and Revenue
- B.
Revenue and Accounts Receivable
- C.
Revenue and Expenses
- D.
Expenses and bank loans
- 18.A post-closing trial balance contains:
- A.
Liabilities and Assets Only
- B.
Assets and Owner's equity Only
- C.
Liabilities and Owner's equity Only
- D.
Assets, Liabilities, and Owner's equity Only
- 19.After closing revenues and expenses, but before closing the income summary account a successful company would show a
- A.
A credit balance in the income summary account
- B.
A debit balance in the income summary account
- C.
A zero balance in the income summary account
- D.
The income summary account in this transaction is not relevant
- 20.Check all the boxes that correspond to temporary accounts
- A.
Cash
- B.
Bank Loans
- C.
Rent Expense
- D.
Revenue
- 21.The income statement and the balance sheet is linked by:
- A.
The statement of owner's equity
- B.
The journal and the ledger
- C.
Debits and Credits
- D.
The ledger and the trial balance
- 22.The statement of Owner's equity:
- A.
Reports any chances in equity over the reporting period
- B.
Is used to calculate ending Owner's equity so that it can be transferred to the income statement
- C.
Is Used to determine the sources and uses of cash
- D.
Reflects increases due to losses and decreases due to profits
- 23.Check all applicable boxes for the following statement - Owner's drawings...
- A.
Decreases Owner's equity
- B.
Decreases Cash
- C.
Increases by debiting it
- D.
Is an account to record money that the owner is withdrawing for their personal use
- 24.A company has 60,000 loan to be paid of in 20 months. Principal payments are 2,000 per month. The current and non-current portions of the loan after three months are...
- A.
24,000 Current and 30,000 non current
- B.
36,000 Current and 24,000 non current
- C.
30,000 Current and 24,000 non current
- D.
24,000 Current and 36,000 non current
- 25.At the end of June, a company has total assets of 150,000. Non current assets are worth 42,500. The current portion of the bank loan is 2,000. The expenses were 5,500. The Service Revenue account has a balance of 5,500. What is the net profit of the company for the previous month?
- A.
5,500
- B.
0
- C.
100,000
- D.
105,500
- 26.How are you finding this quizzes?
- A.
Very helpful
- B.
A bit helpful
- C.
Doesn't do anything for me
- D.
Useless
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