Accounting - Test #2

26 Questions | Total Attempts: 170

Settings
Please wait...
Accounting Quizzes & Trivia

Questions and Answers
  • 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