Accounting Quiz

A General Ledger account numbered 42 would be a(n): a.asset account b.liability account c.dividend account d.revenue account e.expense account

D

In a journal entry, a credit increases which of the following accounts? a. supplies expense b. common stock c. accounts payable d. both b. and c.

D

Hazlett Corporation's Income Statements for the two years ended December 31, 2018 and 2017: 2018 2017 Fees earned. $. 455,000 $ 407,600 Wages expense (191,000). (175,000) Utilities expense (104,000). (96,000) Rent expense (71,500). (68,200) Insurance expense (22,400). (21,800) Depreciation expense (18,200). (18,200) Total expenses (417,100). (379,200) Net income$ 37,900 $ 28,400 1. Vertical analysis shows that: a. wages expense in 2018 was 42% of fees earned b. insurance expense in 2017 was 77% of net income c. rent expense in 2018 was 17% of total expenses d. all of the above 2. Horizontal analysis shows that: a. utilities expense increased 7.7% from 2017 to 2018 b. utilities expense increased 8.3% from 2017 to 2018 c. net income increased 25% from 2017 to 2018 d. both a. and c.

1. A 2. B

In 2016, Link Corporation recorded $4,000 of advertising expense. In 2017, advertising expense was $6,200. Horizontal analysis of Link's income statements reveal that Link's advertising expense: a. increased 55.0% b. increased 35.5% c. decreased 55.0% d. decreased 35.5%

A

Loomis Corporation recorded the following end-of-period adjusting journal entry: [Wages Expense. 6,750 Wages Payable. 6,750] This is a(n): a. accrued expense b. deferred expense c. accrued revenue d. deferred revenue

A

The account Unearned Revenue is credited when a business: a. receives cash in advance of performing services b. performs services after it receives cash c. receives cash in the same period it performs services d. spends cash for amounts it has yet to earn

A

Which of the following is an external capital market user of financial accounting information?a.creditor b.manager c.customer d.employee

A

In a journal entry, a debit increases which of the following accounts? a. fees earned b. supplies c. note payable d. both a. and c.

B

Which form of business offers its owners limited personal liability for business debts? a.proprietorship b.corporation c.partnership d.all of the above

B

Which of the following accounts is most likely to need an end-of-period adjusting journal entry? a. land b. supplies c. common stock d. accounts payable

B

In a journal entry, a debit decreases which of the following accounts? a. cash b. supplies expense c. accounts payable d. both a. and b.

C

Sherman Corporation completed a business transaction. The following T-accounts visualize the transaction: Accounts Receivable: Debit 15,500 Fees Earned: Credit 15,500 The T-accounts show that Sherman Corporation: a.received $15,500 from customers for services performed this month b.spent $15,500 for legal fees incurred this month c.billed customers $15,500 for services performed this month d.billed customers $15,500 for services performed in a prior month

C

Which of the following is NOT a correct statement of the accounting equation? a.Assets = Liabilities + Equity b.Assets - Equity = Liabilities c.Assets = Liabilities - Equity d.Equity = Assets - Liabilities

C

Winkler Corporation recorded the following journal entry: [Cash. 5,000 Common Stock. 5,000] Winkler Corporation: a.received $5,000 cash from customers b.spent $5,000 to purchase common stock c.received $5,000 from investors d.received $5,000 by borrowing from a bank

C

Depreciation of a long-term asset such as equipment is the: a. amount of the equipment's decline in market value over the period b. book value of the equipment at the end of the period c. cost of equipment if it were replaced today d. portion of the equipment cost used during the period

D

Harris Company buys finished goods from suppliers and sells them to customers. What type of business is Harris? a.a corporate business b.a service business c.a manufacturing business d.a merchandising business e.both a. and d.

D

Morris Corporation received $4,500 from customers for services rendered (fees earned) this period. This transaction was incorrectly journalized as: [Cash. 4,500 Accounts Receivable. 4,500] Which of the following is the correcting journal entry Morris must record to fix the mistake? a. [Cash. 4,500 Fees Earned 4,500] b. [Fees Earned 4,500 Cash. 4,500] c. [Accounts Receivable 4,500 Cash 4,500] d. [Accounts Receivable 4,500 Fees Earned 4,500]

D

[Cash. 5,000 Common Stock. 5,000] This transaction has what effect on Winkler's accounting equation? a.assets increase and liabilities increase b.liabilities increase and equity increases c.assets decrease and liabilities decrease d.assets increase and equity increases

D

Which of the following accounts has a debit normal balance? a. cash b. common stock c. accounts payabled.supplies expense e.both a. and d. f.both b. and c.

E

Which of the following accounts has a debit normal balance? a. cash b. common stock c. accounts payable d. supplies expense e. both a. and d. f. both b. and c.

E

Which of the following accounts has a debit normal balance? a. cash b. common stock. c. accounts payable d.supplies expense e.both a. and d. f.both b. and c.

E

Which of the following would be a result if Loomis Corporation had failed to record the end-of-period adjusting journal entry in question #1? a. revenue overstated $6,750 b. assets understated $6,750 c. liabilities understated $6,750 d. net income overstated $6,750 e. both a. and b. f. both c. and d.

F