Junior Accountant Position, Am Inc. Part 1
Choose the best answer, this is a pre-qualification examination for the Junior Accountant.
- 1.Basic Accounting Concept: A debit may signify a(n):
- A.
Decrease in asset accounts.
- B.
Decrease in liability accounts.
- C.
Increase in the capital account.
- D.
Decrease in expense accounts.
- 2.Basic Accounting Concept: Which is an advantage of a sole proprietorship form of business?
- A.
Limited personal risk.
- B.
Can continue indefinitely
- C.
Owner makes all the decisions.
- D.
All of the above.
- 3.Basic Accounting Concept: A corporation is a business which is:
- A.
Easy to form.
- B.
Ends with the death of a stockholder.
- C.
Owned by stockholders.
- D.
None of the above.
- 4.Basic Accounting Concept: The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed:
- A.
Liability
- B.
Contra asset
- C.
Book value
- D.
Market value
- 5.Basic Accounting Concept: Who is the person in charge, most of the time, with the fulfillment with GAAP.
- A.
CFO
- B.
Senior Accountant
- C.
CEO
- 6.Basic Accounting Concept: The amount of net sales minus the amount of cost of goods sold measures:
- A.
Gross profit
- B.
Net profit
- C.
Financial leverage
- D.
Operating leverage
- 7.Basic Accounting Concept: On which financial statement would you find Salaries Expense?
- A.
Income Statement
- B.
Balance Sheet
- C.
Statement of owner's equity
- D.
It does not appear on a financial statement
- 8.Basic Accounting Concepts: Which of the following statements is incorrect?
- A.
Assets - Liabilities = Capital
- B.
Assets - Capital = Liabilities
- C.
Liabilities + Capital = Assets
- D.
Liabilities + Assets = Capital
- 9.Basic Accounting Concepts: Which of the following best describes a trial balance?
- A.
It is a list of balances on the books
- B.
Shows the financial position of a business
- C.
It is a special account
- D.
Shows all the entries in the books
- 10.Basic Accounting Concept: Which type of account would not be reported on the income statement?
- A.
Revenue
- B.
Expenses
- C.
Withdrawals
- D.
None of the above
- 11.Basic Accounting Concept: Who is the person in charge to sets the direction and oversees the operations of an organization?
- A.
CFO
- B.
Senior Accountant
- C.
CEO
- 12.Basic Accounting Concept: Who is the person responsible for managing the financial analisys, establishing the financial planning and managing the financial risk of the corporation?
- A.
CFO
- B.
Senior Accountant
- C.
CEO
- 13.Basic Accounting Concept: Which of the following accounts would be considered a temporary account?
- A.
Revenue.
- B.
Assets.
- C.
Liabilities.
- D.
Owner's Equity.
- 14.Basic Accounting Concept: Is it true that the trial balance totals should agree?
- A.
No, there are sometimes good reasons why they differ
- B.
No, because it is not a balance sheet
- C.
Yes, except where the trial balance is extracted at the year end
- D.
Yes, always
- 15.Basic Accounting Concept: The entry to record the payment of office salaries would be:
- A.
Debit to Cash, credit to Accounts Receivable.
- B.
Debit to Cash, credit to Salaries Expense.
- C.
Debit to Salaries Expense, credit to Accounts Payable.
- D.
Debit to Salaries Expense, credit to Cash.
- 16.Basic Accounting Concept: Items owned by the business such as land, supplies, and equipment are its
- A.
Assets
- B.
Liabilities
- C.
Owner's equity
- D.
Revenue
- 17.Basic Accounting Concept: Residual value is the:
- A.
Value of the asset when it is purchased
- B.
Value of the asset at the end of its useful life
- C.
Cost of the asset
- D.
Allocation of the cost
- 18.Basic Accounting Concept: Which of the following is most likely to result in an adjusting entry at the end of the period?
- A.
Payment of two months' insurance in advance.
- B.
Payment of one month's rent.
- C.
Owner's withdrawals.
- D.
Payment for routine maintenance on the company van.
- 19.Basic Accounting Concepts: Which of the following is correct?
- A.
Capital can only come from profit
- B.
Profit does not alter capital
- C.
Profit increases capital
- D.
Profit reduces capital
- 20.Basic Accounting Concept: Who is the person in charge to carry out the strategic plans and policies as established by the board of directors?
- A.
CFO
- B.
Senior Accountant
- C.
CEO
- 21.Basic Accounting Copcept: Which of the following would not be reported as a separate component on the income statement?
- A.
Income from continuing operations
- B.
Discontinued operations
- C.
Prior period adjustment
- D.
Extraordinary item
- 22.Accounting Application: C. Miller service purchased a microscope for $1,500. It has an expected life of 30 months and no residual value. The adjusting journal entry for the month is:
- A.
Debit Depreciation Expense $50, credit Accumulated Depreciation $50.
- B.
Debit Depreciation Expense $500, credit Accumulated Depreciation $500.
- C.
Debit Accumulated Depreciation $50, credit Depreciation Expense $50.
- D.
Debit Accumulated Depreciation $500, credit Equipment $500.
- 23.Accounting Application: Amy flew to Philadelphia on a business trip. The purchase price of the ticket was $400 on account. The entry to record the transaction is:
- A.
Debit Accounts Payable, $400; credit Travel Expense, $400.
- B.
Debit Travel Expense, $400; credit Accounts Payable, $400.
- C.
Debit Capital, $400; credit Accounts Payable, $400.
- D.
Debit Travel Expense, $400; credit Cash, $400.
- 24.Accounting Application: Carmen's catered a reception. The total price was $1,200. The customer paid $200 cash and charged the remainder. The journal entry to record this transaction is:
- A.
Debit Cash $200 and Accounts Receivable $1,000; credit Catering Service Fees $1,200.
- B.
Debit Cash $200; credit Accounts Receivable $200.
- C.
Debit Cash $1,000 and Accounts Receivable $200; credit Catering Service Fees $1,200
- D.
Debit Accounts Receivable $1,200; credit Cash $200 and Catering Service Fees $1,000.
- 25.Accounting Application: Carr Hardware has total assets of $75,000. What are the total assets if new baking equipment is purchased for $10,000 cash?
- A.
$85,000
- B.
$65,000
- C.
$10,000
- D.
$75,000
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