Accounting Quiz 2 2nd Period

20 Questions | Total Attempts: 158

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Period Quizzes & Trivia

Questions and Answers
  • 1. 
    Is a list of all accounts with their balances at a point in time.
    • A. 

      Temporary accounts

    • B. 

      Trial balance

    • C. 

      Tangible assets

  • 2. 
    Are closed at the end of each period. These are mostly income statement accounts, except for a distribution account that is equity statement account.
    • A. 

      Trial balance

    • B. 

      Tangible assets

    • C. 

      Temporary accounts

  • 3. 
    Are those which one can touch and include natural recourses, machinery, tools, equipment, buildings and land, among others.
    • A. 

      Temporary accounts

    • B. 

      Trial balance

    • C. 

      Tangible assets

  • 4. 
    Is portion of an asset cost that is expected to be recovered at the end of its useful life.
    • A. 

      Salvage value

    • B. 

      Product costs

    • C. 

      Tangible assets

  • 5. 
    Are costs required to produce inventory and make it ready for sale. Such costs are directly associated with inventory production.
    • A. 

      Account receivable

    • B. 

      Cash inflows

    • C. 

      Product costs

  • 6. 
    Is used to keep track of cash paid for insurance coverage that has not been expensed. 
    • A. 

      Product costs

    • B. 

      Prepaid insurance

    • C. 

      Notes receivable

  • 7. 
    Is a collection of all accounts a business maintains in its accounting system.  
    • A. 

      External users

    • B. 

      Ledger

    • C. 

      Recognition

  • 8. 
    Is a liability account that shows future interest payments for using somebody's money
    • A. 

      Retained earnings

    • B. 

      Interest payable

    • C. 

      Liabilities

  • 9. 
    Are claims that require a formal instrument as proof of the debt and usually provide for payment of interest by the debtor. 
    • A. 

      Notes receivable

    • B. 

      Source document

    • C. 

      Tax

  • 10. 
    May be represented by a piece of paper or document. The real value of such assets is the rights and privileges extended to their owners. Examples of intangible assets can be patents, trademarks and customer lists.
    • A. 

      Interest payable

    • B. 

      Ledger

    • C. 

      Intangible assets

  • 11. 
    Is the process of converting discounts on notes payable to interest expense over a specified period of time
    • A. 

      Discount amortization

    • B. 

      Intangible assets

    • C. 

      Interest payable

  • 12. 
    Occur when only asset accounts are engaged in a transaction. 
    • A. 

      Discount amortization

    • B. 

      Intangible assets

    • C. 

      Asset exchange transactions

  • 13. 
    Result in a decrease in an asset account and in one of the claim accounts (liability or equity accounts).
    • A. 

      Asset use transactions

    • B. 

      Equity

    • C. 

      Cash accounting

  • 14. 
    Result in an increase in an asset account and in one of the claim accounts (liability or equity accounts).
    • A. 

      Discount amortization

    • B. 

      Asset source transactions

    • C. 

      Losses

  • 15. 
    Is a component of equity resulting from contributions of capital resources from owners.
    • A. 

      Contributed capital

    • B. 

      Cost of goods sold (COGS)

    • C. 

      Double-entry bookkeeping rule

  • 16. 
    Is the difference between the cost of goods available for sale and the cost of goods on hand at period end. This cost represents the cost of goods sold by the company during the period.
    • A. 

      Cost of goods sold (COGS)

    • B. 

      Contributed capital

    • C. 

      Asset source transactions

  • 17. 
    States that any transaction is recorded at least twice.
    • A. 

      Double-entry bookkeeping rule

    • B. 

      Accounts receivable

    • C. 

      Cash basis

  • 18. 
    Provides for the equality of total debits and total credits
    • A. 

      Double-entry bookkeeping rule

    • B. 

      Contributed capital

    • C. 

      Double-entry recording system

  • 19. 
    Is a process through which companies communicate information to the public.
    • A. 

      Cost of goods sold (COGS)

    • B. 

      Financial reporting

    • C. 

      Contributed capital

  • 20. 
    Is the amount of interest earned. Interest revenue (or just interest) may be earned on an investment such as a savings account or certificate of deposit.
    • A. 

      Interest payable

    • B. 

      Asset source transactions

    • C. 

      Interest revenue

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