Name:     ID: 
 
    Email: 

Accounting-Quiz #1

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

Profit is the difference between:
a.
assets and liabilities
b.
assets and equities
c.
the assets purchased with cash contributed by the owner and the cash spent to operate the business
d.
the assets received for goods and services and the amounts used to provide the goods and services
 

 2. 

The initials GAAP stand for:
a.
General Accounting Auditing Procedures
b.
Generally Accepted Auditing Principles
c.
Generally Accepted Accounting Principles
d.
Generally Accepted Audit Practices
 

 3. 

All of the following are financial statement(s) of a proprietorship except the:
a.
statement of retained earnings
b.
statement of owner's equity
c.
income statement
d.
statement of cash flows
 

 4. 

Which of the following accounts is an asset account?
a.
Salaries Expense
b.
Drawing
c.
Accounts Payable
d.
Cash
 

 5. 

Which of the following accounts is a liability account?
a.
Notes Payable
b.
Prepaid Insurance
c.
Capital
d.
Cash
 

 6. 

Which of the following accounts is an owner's equity account?
a.
Cash
b.
Accounts Payable
c.
Prepaid Insurance
d.
Julia Davis, Capital
 

 7. 

The gross increases in owner's equity attributable to business activities are called:
a.
assets
b.
liabilities
c.
revenues
d.
net income
 

 8. 

An account is said to have a debit balance if:
a.
the amount of the debits exceeds the amount of the credits
b.
there are more entries on the debit side than on the credit side
c.
its normal balance is debit without regard to the amounts or number of entries on the debit side
d.
the first entry of the accounting period was posted on the debit side
 

 9. 

Which of the following types of accounts have a normal credit balance?
a.
Drawing
b.
Assets
c.
Expense
d.
Liability
 

 10. 

Which of the following types of accounts have a normal debit balance?
a.
Assets and expenses
b.
Liabilities
c.
Revenue and expenses
d.
Assets and liabilities
 

 11. 

A credit signifies a decrease in:
a.
drawing
b.
liabilities
c.
capital
d.
revenue
 

 12. 

Which of the following describes the classification and normal balance of the accounts receivable account?
a.
Asset, debit
b.
Liability, credit
c.
Owner's equity, credit
d.
Revenue, credit
 

 13. 

Which of the following describes the classification and normal balance of the owner's capital account?
a.
Owner's equity, debit
b.
Revenue, credit
c.
Liability, credit
d.
Owner's equity, credit
 

 14. 

Which of the following describes the classification and normal balance of the cash account?
a.
Asset, debit
b.
Liability, debit
c.
Capital, credit
d.
Revenue, credit
 

 15. 

Which of the following describes the classification and normal balance of the fees earned account?
a.
Asset, credit
b.
Liability, credit
c.
Owner's equity, debit
d.
Revenue, credit
 

 16. 

Which of the following entries records the withdrawal of cash by Joe, owner of a proprietorship, for personal use?
a.
debit Joe, Capital; credit Cash
b.
debit Joe, Drawing; credit Cash
c.
debit Salaries Expense; credit Cash
d.
debit Salaries Expense; credit Salaries Payable
 

 17. 

Which of the following entries records the acquisition of office supplies on account?
a.
Office Supplies, debit; Cash, credit
b.
Cash, debit; Office Supplies, credit
c.
Office Supplies, debit; Accounts Payable, credit
d.
Accounts Receivable, debit; Office Supplies, credit
 

 18. 

Which of the following entries records the payment of rent for the current month?
a.
Cash, debit; Rent Expense, credit
b.
Rent Expense, debit; Cash, credit
c.
Rent Expense, debit; Accounts Receivable, credit
d.
Accounts Payable, debit; Rent Expense, credit
 

 19. 

Which of the following entries records the billing of patients for services performed?
a.
Accounts Receivable, debit; Fees Earned, credit
b.
Accounts Payable, debit; Cash, credit
c.
Fees Earned, debit; Accounts Receivable, credit
d.
Fees Earned, debit; Cash, credit
 

 20. 

Accrued expenses have:
a.
not yet been incurred, paid, or recorded
b.
been incurred, not paid, but have been recorded
c.
been incurred, not paid, and not recorded
d.
been paid but have not yet been incurred
 

 21. 

Accrued revenue has:
a.
been earned and cash received
b.
been earned and not recorded as revenue
c.
not been earned but recorded as revenue
d.
not been recorded as revenue but cash has been received
 

 22. 

Deferred expenses have:
a.
not yet been recorded as expenses or paid
b.
been recorded as expenses and paid
c.
been incurred and paid
d.
not yet been recorded as expenses
 

 23. 

Deferred revenue is revenue that is:
a.
earned and the cash has been received
b.
earned but the cash has not been received
c.
not earned and the cash has not been received
d.
not earned but the cash has been received
 

 24. 

The balance in the prepaid rent account before adjustment at the end of the year is $20,000, which represents four months' rent paid on December 1.  The adjusting entry required on December 31 is:
a.
debit Rent Expense, $15,000; credit Prepaid Rent, $15,000
b.
debit Prepaid Rent, $15,000; credit Rent Expense, $15,000
c.
debit Rent Expense, $5,000; credit Prepaid Rent, $5,000
d.
debit Prepaid Rent, $5,000; credit Rent Expense, $5,000
 

 25. 

The balance in the prepaid rent account before adjustment at the end of the year is $20,000, which represents five months' rent paid on November 1.  The adjusting entry required on December 31 is:
a.
debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
b.
debit Rent Expense, $12,000; credit Prepaid Rent, $12,000
c.
debit Prepaid Rent, $20,000; credit Rent Expense, $20,000
d.
debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
 

 26. 

What is the proper adjusting entry at May 31, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $9,500, and unexpired amounts per analysis of policies, $4,500?
a.
debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500
b.
debit Prepaid Insurance, $5,000; credit Prepaid Insurance, $5,000
c.
debit Insurance Expense, $13,500; credit Prepaid Insurance, $13,500
d.
debit Insurance Expense, $5,000; credit Prepaid Insurance, $5,000
 

 27. 

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a supplies account balance before adjustment, $9,000, and supplies inventory on June 30, $2,000?
a.
debit Supplies, $7,000; credit Supplies Expense, $7,000
b.
debit Supplies Expense, $7,000; credit Supplies, $7,000
c.
debit Supplies Expense, $2,000; credit Supplies, $2,000
d.
debit Supplies, $2,000; credit Supplies Expense, $2,000
 

 28. 

The supplies account has a balance of $1,150 at the beginning of the year and was debited during the year for $1,800, representing the total of supplies purchased during the year.  If $500 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is:
a.
$2,950
b.
$500
c.
$2,450
d.
$3,450
 

 29. 

The unearned rent account has a balance of $20,000.  If $5,000 of the $20,000 is unearned at the end of the accounting period, the amount of the adjusting entry is:
a.
$5,000
b.
$10,000
c.
$15,000
d.
$20,000
 

 30. 

The work sheet is a:
a.
formal statement issued to creditors
b.
working paper often used by accountants to summarize adjusting entries
c.
replacement for the ledger
d.
replacement for a set of financial statements
 

 31. 

Which of the following appears in the Balance Sheet columns of the work sheet?
a.
Equipment
b.
Fees Earned
c.
Depreciation Expense
d.
Supplies Expense
 

 32. 

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns are $39,750 and $21,750, respectively. What is the amount of net income or net loss for the period?
a.
$18,000 net income
b.
$18,000 net loss
c.
$39,750 net income
d.
$21,750 net income
 

 33. 

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns are $30,750 and $69,750, respectively. What is the amount of net income or net loss for the period?
a.
$39,000 net income
b.
$39,000 net loss
c.
$30,750 net income
d.
$69,750 net income
 

 34. 

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $89,900 and $67,600, respectively. What is the amount of the net income or net loss for the period?
a.
$22,300 net income
b.
$22,300 net loss
c.
$89,900 net income
d.
$67,600 net loss
 

 35. 

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $92,300 and $67,600, respectively. What is the amount of the net income or net loss for the period?
a.
$24,700 net income
b.
$24,700 net loss
c.
$92,300 net income
d.
$92,300 net loss
 

 36. 

Unearned Fees appears on the:
a.
balance sheet
b.
statement of owner's equity
c.
income statement
d.
statement of cash flows
 

 37. 

Depreciation Expense appears on the:
a.
balance sheet
b.
statement of owner's equity
c.
income statement
d.
statement of cash flows
 

 38. 

Accounts Receivable appears on the:
a.
balance sheet
b.
statement of owner's equity
c.
income statement
d.
statement of cash flows
 

 39. 

Which one of the fixed asset accounts listed below will not have a related contra asset account?
a.
Office Equipment
b.
Land
c.
Delivery Equipment
d.
Building
 

 40. 

Closing entries are dated in the journal as of:
a.
the date they are actually journalized, although they are generally prepared after the end of the accounting period
b.
the last day of the accounting period, although they are actually journalized after the end of the accounting period
c.
the first day of the accounting period, although they are actually journalized after the end of the accounting period
d.
the first day of the subsequent accounting period
 

 41. 

The entry to close the appropriate insurance account at the end of the accounting period is debit:
a.
Income Summary; credit Prepaid Insurance
b.
Prepaid Insurance; credit Income Summary
c.
Insurance Expense; credit Income Summary
d.
Income Summary; credit Insurance Expense
 

 42. 

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:

Accumulated Depreciation
$ 6,000
Fees Earned
25,000
Depreciation Expense
1,500
Insurance Expense
1,000
Prepaid Insurance
4,000
Supplies
500
Supplies Expenses
4,500

Net income for the period is:
a.
$18,000
b.
$7,500
c.
$8,000
d.
$19,000
 

 43. 

A summary of selected ledger accounts appear below for Martinez Auto Services for the 2000 calendar year end.

J. V. Martinez, Capital
12/31
5,000
1/1
3,000
  
12/31
20,000
    
R. V. Martinez, Drawing
6/30
1,000
12/31
5,000
11/30
4,000
  
    
Income Summary
12/31
5,000
12/31
25,000
12/31
20,000
  

Net income for the period is:
a.
$20,000
b.
$23,000
c.
$5,000
d.
$20,000
 

 44. 

A fiscal year:
a.
ordinarily begins on the first day of a month and ends on the last day of the following twelfth month
b.
for a business is determined by the federal government
c.
always begins on January 1 and ends on December 31 of the same year
d.
should end at the height of the business's annual operating cycle
 

 45. 

In the normal accounting cycle the:
a.
financial statements are prepared after the adjusting entries are posted
b.
financial statements are prepared before the closing entries are posted
c.
adjusting and closing entries are journalized after the financial statements are prepared
d.
post-closing trial balance is prepared before the closing entries are posted
 



 
Submit          Reset Help