Accounting

21 Questions | Total Attempts: 27

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Accounting Quizzes & Trivia

Questions and Answers
  • 1. 
    In the entry to journalize the employer payroll taxes expense for a semimonthly period, the account debited would be
    • A. 

      Salary Expense

    • B. 

      Payroll Taxes Expense

    • C. 

      Unemployment Tax Payable-Federal

    • D. 

      Cash

  • 2. 
    Recording uncollectible accounts expense at the time the amount is actually known to be uncollectible is known as the ____.
    • A. 

      Adjusting method of recording losses from uncollectible accounts

    • B. 

      Allowance method of recording losses from uncollectible accounts

    • C. 

      Bad debts method of recording losses from uncollectible accounts

    • D. 

      Direct write-off method of recording losses from uncollectible accounts

  • 3. 
    If the departmental margins are 30% of net sales, the company's net income for the fiscal period will normally be ____.
    • A. 

      30% of net sales

    • B. 

      More than 30% of net sales

    • C. 

      Less than 30% of net sales

    • D. 

      Greater than the cost of merchandise sold

  • 4. 
    • A. 

      Zero

    • B. 

      The amount of payroll taxes due

    • C. 

      The total amount of deductions

    • D. 

      Cannot be determined from the information given

  • 5. 
    The sales returns and allowances account is known as a ____.
    • A. 

      Contra cost account

    • B. 

      Contra revenue account

    • C. 

      Contra sales discount account

    • D. 

      Departmental cost account

  • 6. 
    A business that prepares departmental margin statements for two departments should have ____.
    • A. 

      No income summary accounts

    • B. 

      One income summary accounts

    • C. 

      Two income summary accounts

    • D. 

      Three income summary accounts

  • 7. 
    Purchases of equipment are an ____.
    • A. 

      Operating activity and cash inflow

    • B. 

      Operating activity and cash outflow

    • C. 

      Investing activity and cash inflow

    • D. 

      Investing activity and cash outflow

  • 8. 
    Which of the following does not require an entry on the company's books?
    • A. 

      Sales of preferred stock

    • B. 

      Sales of common stock

    • C. 

      Sales of stock by one investor to another investor

    • D. 

      Declaration of dividends

  • 9. 
    • A. 

      Allowance of Uncollectible Accounts

    • B. 

      Collection of Uncollectible Accounts

    • C. 

      Resales

    • D. 

      Uncollectible Accounts Revenue

  • 10. 
    Which accounting concept is applied when it is stated that the earnings of a business must be satisfactory to continue operations.
    • A. 

      Adequate Disclosure

    • B. 

      Consistent Reporting

    • C. 

      Going Concern

    • D. 

      Materiality

  • 11. 
    The adjusting entry to record the estimated uncollectible accounts expense using the percentage of sales method is ____. 
    • A. 

      A debit to Uncollectible Accounts Expense and a credit to Allowance for Uncollectible Accounts

    • B. 

      a debit to Allowance for Uncollectible Accounts and a credit to Uncollectible Accounts Expense

    • C. 

      A debit to Uncollectible Accounts Expense and a credit to Accounts Receivable

    • D. 

      A debit to Allowance for Uncollectible Accounts and a credit to Income Summary

  • 12. 
    In the entry to journalize the employer payroll taxes expense for a semimonthly period, the account debited would be
    • A. 

      Salary Expense

    • B. 

      Payroll Taxes Expense

    • C. 

      Unemployment Tax Payable-Federal

    • D. 

      Cash

  • 13. 
    If a company has a total revenue of $150,000, cost of goods sold of $59,600, and total expenses of $72,985, its gross profit is
    • A. 

      $77,315

    • B. 

      $17,415

    • C. 

      $132,585

    • D. 

      $90,400

  • 14. 
    The amount withheld from employees' total earnings for federal income tax is determined ____.
    • A. 

      By a percentage of total earnings\

    • B. 

      From tax base tables

    • C. 

      From withholding tax tables

    • D. 

      By a percentage of total deductions

  • 15. 
    Recording an adjusting entry for accrued interest income is an application of the accounting concept ____.
    • A. 

      Objective Evidence

    • B. 

      Historical Cost

    • C. 

      Consistent Reporting

    • D. 

      Matching Expenses with Revenue

  • 16. 
    If the cost of ending merchandise inventory is understated, the cost of merchandise sold will be ____.
    • A. 

      Understated

    • B. 

      Overstated

    • C. 

      Not affected

    • D. 

      Undetermined

  • 17. 
    In estimating inventory using the retail method, the estimated inventory at cost equals the inventory at retail times a percentage that is determined by dividing the ____. 
    • A. 

      Net purchases at cost by the net purchases at retail

    • B. 

      merchandise available for sale at cost by the merchandise available for sale at retail

    • C. 

      Net sales at cost by the net sales at retail

    • D. 

      Beginning inventory at cost by the beginning inventory at retail

  • 18. 
    If the principal of a 90-day note is $5,000.00 and the interest due at maturity is $125.00, the interest rate on the note is ____.
    • A. 

      9.0%

    • B. 

      9.5%

    • C. 

      10.0%

    • D. 

      12.0%

  • 19. 
    At the end of a fiscal period, a business must show how much rent received in advance has become ____.
    • A. 

      An expense

    • B. 

      A revenue

    • C. 

      An asset

    • D. 

      A liability

  • 20. 
    Responsibility accounting traces revenues, costs, and expenses to ____.
    • A. 

      The accounting department

    • B. 

      Each employee

    • C. 

      The income statement

    • D. 

      Individual managers who are responsible for making decisions about those revenues, costs, and expenses

  • 21. 
    In the check register, the Bank Balance column indicates the ____
    • A. 

      Balance of cash in the checking account

    • B. 

      Amount of the last credit to Cash

    • C. 

      Amount of the last deposit to the checking account

    • D. 

      Bank balance for reconciling the bank statement