A Quiz To Test Your Accounting Knowledge!

19 Questions | By Spoiledbrat23 | Last updated: Mar 19, 2022 | Total Attempts: 227

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A Quiz To Test Your Accounting Knowledge! - Quiz

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1.

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
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.

All of the following below are need for the celebration of straight-line depreciation except:
- 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.

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
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.

Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. determine the 2nd year's depreciation using straight-line depreciation.
- A.
  
  $26,000
- B.
  
  $24,800
- C.
  
  $12,400
- D.
  
  $13,000