Grade 12 Accounting Quiz

10 Questions | Total Attempts: 341

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Grade 12 Accounting Quiz

Annual reports / the accounting cycle


Questions and Answers
  • 1. 
    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

  • 2. 
    What is the best type of auditor's report a company can earn?
    • A. 

      Clean / unqualified

    • B. 

      Qualified

    • C. 

      Adverse

  • 3. 
    What does MD&A stand for?
    • A. 

      Management Debits & Assets

    • B. 

      Management Discussion & Analysis

    • C. 

      Mandated Discussion & Analysis

    • D. 

      None of the above

  • 4. 
    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

  • 5. 
    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

  • 6. 
    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

  • 7. 
    What type of account is unearned revenue?
    • A. 

      Asset

    • B. 

      Liability

    • C. 

      Revenue

    • D. 

      Expense

  • 8. 
    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

  • 9. 
    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

  • 10. 
    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