Grade 12 Accounting Quiz
Annual reports / the accounting cycle
- 1.Which of the following lists the steps of the accounting cycle in the correct order?
- A.
Journal, ledger, trial balance, adjustments, closing entries, financial statements
- B.
Journal, ledger, adjustments, trial balance, financial statements, closing entries
- C.
Journal, ledger, financial statements, trial balance, adjustments, closing entries
- D.
Journal, ledger, trial balance, adjustments, financial statements, closing entries
- 2.What type of account is unearned revenue?
- A.
Asset
- B.
Liability
- C.
Revenue
- D.
Expense
- 3.What is the best type of auditor's report a company can earn?
- A.
Clean / unqualified
- B.
Qualified
- C.
Adverse
- 4.What is the purpose of the general ledger?
- A.
To provide a chronological record of transactions
- B.
To categorize transactions by account
- C.
To communicate the company's financial position and results of operations
- D.
To update capital for net income and to prepare the accounts for the next fiscal period
- 5.Which of the following is an adjustment for an accrued revenue?
- A.
Debit salaries expense, credit salaries payable
- B.
Debit insurance expense, credit prepaid insurance
- C.
Debit unearned revenue, credit fees earned
- D.
Debit accounts receivable, credit fees earned
- 6.Which of the following is a TRANSACTION, not an ADJUSTMENT?
- A.
Debit interest expense, credit interest payable
- B.
Debit unearned rent, credit fees earned
- C.
Debit prepaid rent, credit cash
- D.
Debit amortization expense, credit accumulated amortization
- 7.Which of the following lists the sections of an annual report from MOST GENERAL to MOST SPECIFIC
- A.
Notes to financial statements, financial statements, auditor's report, MD&A, letter to shareholders
- B.
MD&A, letter to shareholders, auditor's report, notes to financial statements, financial statements
- C.
Auditor's report, letter to shareholders, financial statements, notes to financial statements, MD&A
- D.
Letter to shareholders, MD&A, auditor's report, financial statements, notes to financial statements
- 8.What does MD&A stand for?
- A.
Management Debits & Assets
- B.
Management Discussion & Analysis
- C.
Mandated Discussion & Analysis
- D.
None of the above
- 9.Which of the following best describes an accrued expense?
- A.
An expense that has been paid in advance but hasn't been used yet
- B.
An expense that was paid in advance but has been used up now
- C.
An expense that is owed but hasn't been billed or paid yet
- D.
An expense that has been billed and paid
- 10.When does ACCRUAL accounting record revenues and expenses?
- A.
Revenue when it is earned; expenses when they help earn revenue
- B.
Revenue when it is received; expenses when they are paid
- C.
Revenue when it is earned; expenses when they are paid
- D.
Revenue when it is received; expenses when they help earn revenue
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