Know About Accounting Quiz

19 Questions

Settings
Please wait...
Accounting Quizzes & Trivia

As a new accounting student it is important to properly understand the basics before you dive into the complex parts. The quiz below is set in a way that it tests what you covered in the first class and helps you know which parts didn’t stick with you. Give it a try!


Questions and Answers
  • 1. 
    • A. 

      Due and receivable within one year

    • B. 

      Due and to be paid out of current assets within one year

    • C. 

      Due, but not payable for more than one year

    • D. 

      Payable if a possible subsequent event occurs

  • 2. 
    Which of the following would most likely be classified as a current liability?
    • A. 

      Two-yr notes payable

    • B. 

      Bonds payable

    • C. 

      Mortgage payable

    • D. 

      Unearned rent

  • 3. 
    When a 30,000, 90-day 5% interest bearing note payable matures, total payment will amount to
    • A. 

      31,500

    • B. 

      1,500

    • C. 

      30,375

    • D. 

      375

  • 4. 
    The current portion of a long term debt should
    • A. 

      Be classsified as a long term liability

    • B. 

      Not be separated from the long term portion of debt

    • C. 

      Be paid immediately

    • D. 

      Be reclassified as a current liability

  • 5. 
    The amount of federal income taxes withheld from an employee's goes pay is recorded as an
    • A. 

      Payroll expense

    • B. 

      Contra account

    • C. 

      Asset

    • D. 

      Liability

  • 6. 
    Land acquired so it can be resold in the future is listed in the balance sheet as an
    • A. 

      Fixed asset

    • B. 

      Current asset

    • C. 

      Investment

    • D. 

      Intangible asset

  • 7. 
    Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following
    • A. 

      Salvage and functional

    • B. 

      Physical and functional

    • C. 

      Residual and salvage

    • D. 

      Functional and residual

  • 8. 
    A fixed asset's estimated value at the time it is to be retired from service
    • A. 

      Book value

    • B. 

      Residual value

    • C. 

      Market value

    • D. 

      Carrying value

  • 9. 
    • A. 

      Cost

    • B. 

      Residual value

    • C. 

      Estimated life

    • D. 

      Units produced

  • 10. 
    The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is
    • A. 

      Units-of-production

    • B. 

      Declining-balance

    • C. 

      Straight- line

    • D. 

      Time-valuation

  • 11. 
    Current liabilities are
    • A. 

      Due and receivable within one year

    • B. 

      Due and to be paid out of current assets within one year

    • C. 

      Due, but not payable for more than one year

    • D. 

      Payable if a possible subsequent event occurs

  • 12. 
    Which of the following would most likely be classified as a current liability?
    • A. 

      Two-yr notes payable

    • B. 

      Bonds payable

    • C. 

      Mortgage payable

    • D. 

      Unearned rent

  • 13. 
    • A. 

      31,500

    • B. 

      1,500

    • C. 

      30,375

    • D. 

      375

  • 14. 
    The current portion of long term debt should
    • A. 

      Be classified as a long term liability

    • B. 

      Not be separated from the long-term portion of debt

    • C. 

      Be paid immediately

    • D. 

      Be reclassified as a current liability

  • 15. 
    The formula for depreciable cost is
    • A. 

      Initial cost + residual value

    • B. 

      Initial cost - residual value

    • C. 

      Initial cost - accumulated depreciation

    • D. 

      Depreciable cost = initial cost

  • 16. 
    Expected useful life is
    • A. 

      Calculated when the asset is sold

    • B. 

      Estimated at the time that the asset is placed in service

    • C. 

      Determined each year that the depreciation calculation is made

    • D. 

      None of the answers are correct

  • 17. 
    The calculation for annual depreciation using the straight-line depreciation method is
    • A. 

      Initial cost / estimated useful life

    • B. 

      Depreciable cost / estimated useful life

    • C. 

      Depreciable cost * estimated useful life

    • D. 

      Initial cost * estimated useful life

  • 18. 
    The calculation for annual depreciation using the units-of-production method is
    • A. 

      (initial cost/ estimated output) * the actual year output

    • B. 

      (depreciable cost/ yearly output) * estimated output

    • C. 

      Depreciable cost/ yearly output

    • D. 

      (depreciable cost/ estimated output) * the actual yearly output

  • 19. 
    • A. 

      $26,000

    • B. 

      $24,800

    • C. 

      $12,400

    • D. 

      $13,000