Acct Quiz Qs

The ending retained earnings balance appears on: A. The income statement and the retained earnings statement B. The balance sheet only C. Both the retained earnings statement and the balance sheet D. The retained earnings statement only

C.

Unearned revenue is a(n) _______ .a) revenue b) equity c) liability d) asset

C.

A company that receives money in advance of performing a service A. debits Cash and credits Unearned Service Revenue. B. debits Unearned Service Revenue and credits Accounts Payable C. debits Cash and credits Prepaid Insurance. D. debits Cash and credits Accounts Receivable.

A.

Accrued expenses are: A. incurred but not yet paid or recorded. B. paid and recorded in an asset account after they are used or consumed. C. paid and recorded in an asset account before they are used or consumed. D. incurred and already paid or recorded.

A.

An account will have a credit balance if the A. credits exceed the debits. B. first transaction entered was a credit. C. debits exceed the credits. D. last transaction entered was a credit.

A.

Which of the following accounts is a permanent account? a) Income Summary b) Salary Expense c) Retained Earnings d) Dividends

C.

Fitness First has a new client who prepaid $600 for a package of six training sessions. Fitness First had provided four training sessions as of year end. Which of the following amounts should Fitness First report on its income statement? A. Service Revenue of $400 B. Service Revenue of $600 C. Unearned Service Revenue of $400 D. Unearned Service Revenue of $600

A.

Fitness First has a new client who prepaid $600 for a package of six training sessions. Fitness First had provided four training sessions as of year end. Which of the following amounts should Fitness First report on its income statement? a) Service Revenue of $400 b) Service Revenue of $600 c) Unearned Service Revenue of $400 d) Unearned Service Revenue of $600

A.

Listan Company has Cash of $800, Accounts Receivable of $750, Office Supplies of $500, and Plant Assets of $2,000. Listan owes $390 of Accounts Payable and Salaries Payable of $600. Calculate the current ratio. a) 2.07 b) 1.56 c) 1.31 d) 4.09

A.

Prepaid expenses are: A. paid and recorded in an asset account before they are used or consumed. B. paid and recorded in an asset account after they are used or consumed. C. incurred but not yet paid or recorded. D. incurred and already paid or recorded.

A.

Svelte Living Inc. earned revenue on account of 75000 and incurred and paid expenses of 25000. Calculate net income or net loss A. Net income of 50000 B. Net loss of 50,000 C. Net income of 750000 D. Net loss of 75000

A.

The accounting equation may be expressed as: A. Assets = Liabilities + Stockholders' Equity B. Assets + Liabilities = Stockholders' Equity C. Assets = Stockholders' Equity - Liabilities D. Assets + Stockholders' Equity = Liabilities

A.

The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________. A. closing entries B. opening entries C. adjusting entries D. temporary accounts

A.

The income statement of an organization summarizes A. Revenues and expenses for a a specific period B. total assets and liabilities on a specific date C. Retained earnings on a specific date D. cash flows from investing and financing activities

A.

When collection is made on Accounts Receivable, A. total assets will remain the same. B. stockholders equity will increase. C. total assets will increase. D. total assets will decrease.

A.

Which of the following accounts will be closed by crediting the Income Summary account? A. Service Revenue B. Depreciation Expense C. Accounts Payable D. Accumulated Depreciation

A.

Which of the following is the last step in the accounting cycle? a) Preparing the post-closing trial balance b) Preparing the financial statements c) Preparing the adjusted trial balance d) Journalizing and posting the closing entries

A.

Which of the following would not appear on the income statement? A. Dividends paid B. Interest expense C. Net income D. Service revenue

A.

Which of the following are the two basic categories of adjusting entries? a) Net income and net loss b) Expenses and revenues c) Deferrals and accruals d) Cash and noncash

C.

Which of the following is an asset? A. Mortgage payable B. Investments C. Common stock D. Retained earnings

B

Dividends are reported on the A. income statement. B. retained earnings statement. C. balance sheet. D. income statement and balance sheet.

B.

If total liabilities decreased by $4,000, then A. stockholders' equity must have decreased by $4,000. B. assets must have decreased by $4,000, or stockholders' equity must have increased by $4,000. C. assets and stockholders' equity each increased by $2,000. D. assets must have increased by $4,000.

B.

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period? A.$100,000 increase B.$50,000 decrease C.$50,000 increase D. $75,000 decrease

B.

SansomInc. reported assets of $291,562, liabilities of $221,587, and equity of $69,975. Calculate Sansom's debt ratio. a) 52% b) 76% c) 132% d) 100%

B.

The _______ account is a temporary account into which revenues and expenses are transferred prior to their final transfer into the Retained Earnings account. a) Common Stock b) Income Summary c) Plant Assets d) Dividends

B.

The revenue recognition principle directs accountants to: A. divide time into annual periods to measure revenue properly. B. record revenue only after it has been earned. C. value the revenue earned at historical cost of the inventory. D. record revenue after the cash is received.

B.

The revenue recognition principle directs accountants to: a) divide time into annual periods to measure revenue properly. b) record revenue only after it has been earned. c) value the revenue earned at historical cost of the inventory. d) record revenue after the cash is received.

B.

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the A. balance sheet. B. income statement. C. statement of cash flows. D. retained earnings statement.

B.

Wegs Inc. performed 50000 worth of service for a customer on account. How would this transaction affect wega's accounting equation? A. Increase both assets and liabilities by 50,000 B. Increase both assets and stockholders equity by 50,000 C. decrease both liabilites and stockholders equity by 50,000 D. decrease both libabilities and assets by 50000

B.

What does the adjusted trial balance show? a) The amounts that are out of balance and ways to rectify them b) The amounts that are to be used to prepare the financial statements c) The amounts of assets and liabilities only d) The amounts of revenues and expenses only

B.

Which of the following accounting principles or assumptions states that the acquired assets must be recorded at the amount actually paid rather than at the estimated market value? A. Revenue recognition principle B. Cost principle C. economic entity assumption D. Going Concern assumption

B.

Which of the following accounts has a normal debit balance? A. Accounts Payable B. Prepaid Rent C. Retained Earnings D. Common Stock

B.

fashion fusion, Inc. is famous for its wristwatches and leather good. At the end of the year, the company had total assets of 380,000 and stockholders equity of 250000, how much were fashoin fusions liabilities? A. 120K B. 380K C. 130k D. 250K

C.

Why should the income statement be prepared first? The statement of cash flows should be prepared first because it determines the sources of cash. That information is then used in preparing the income statement. A. Net income from the income statement flows into the retained earnings statement. The ending retained earnings balance then flows into the balance sheet. B. The income statement does not have to be prepared first. Financial statements can be prepared in any order. C. None of these answer choices are correct.

B.

An accountant has debited an asset account for $900 and credited a liability account for $600. What can be done to complete the recording of the transaction? A. Debit a stockholders' equity account for $300. B. Debit another asset account for $300. C. Credit a different asset account for $300. D. Nothing further must be done.

C.

Assets and liabilities are listed on the balance sheet in the order of their __________ . a) purchase date b) adjustments c) liquidity d) balance

C.

Assume you paid Fitness First Gyms for a package of eight training sessions. Which of the following types of adjusting entries would you introduce into your records? a) Accrued revenues b) Accrued expenses c) Prepaid expenses d) Unearned revenues

C.

Greese Company purchased office supplies costing $4,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,500 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: A. debit Supplies Expense, $1,500; credit Supplies, $1,500. B. debit Supplies, $2,500; credit Supplies Expense, $2,500. C. debit Supplies Expense, $2,500; credit Supplies, $2,500. D. debit Supplies, $1,500; credit Supplies Expense, $1,500.

C.

If an individual asset is increased, then A. there could be an equal decrease in a specific liability. B. there could be an equal decrease in stockholders' equity. C. there could be an equal decrease in another asset. D. None of these answer choices are correct.

C.

In recording an accounting transaction in a double-entry system A. the number of debit accounts must equal the number of credit accounts. B. there must always be entries made on both sides of the accounting equation. C. the amount of the debits must equal the amount of the credits.

C.

Musings Inc. paid $500 as rent for the current month. While journalizing this entry, which of the following accounts will be debited? a) Prepaid Rent b) Rent Payable c) Rent Expense d) Rent Revenue

C.

Net income results when A. Assets > Liabilities. B. Revenues = Expenses. C. Revenues > Expenses. D. Revenues

C.

On July 1 the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is: A. debit Rent Expense, $18,000; credit Prepaid Rent, $3,000. B. debit Prepaid Rent, $3,000; credit Rent Expense, $3,000. C. debit Rent Expense, $3,000; credit Prepaid Rent, $3,000. D. debit Rent Expense, $18,000; credit Prepaid Rent, $15,000.

C.

Return on assets is calculated by: a. subtracting net income from average total assets b. adding net income and average total assets c. dividing net income by average total assets d. multiplying net income and average total assets

C.

Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies: A. remaining. B. purchased. C. used. D. either used or remaining.

C.

The balance sheet A. summarizes the changes in retained earnings for a specific period of time. B. reports the changes in assets, liabilities, and stockholders' equity over a period of time. C. reports the assets, liabilities, and stockholders' equity at a specific date.

C.

A revenue account A. is increased by debits. B. is decreased by credits. C. has a normal balance of a debit. D. is increased by credits.

D.

Accumulated Depreciation is a(n): A. expense account. B. stockholders' equity account. C. liability account. D. contra asset account.

D.

An account that relates to a particular accounting period and is closed at the end of that period is called a(n) ____ account. A. long-term B. fictitious C. intangible D. temporary

D.

The payment of a liability A. decreases assets and stockholders' equity. B. increases assets and decreases liabilities. C. decreases assets and increases liabilities. D. decreases assets and liabilities.

D.

Unearned revenue is classified as a(n): A. asset account. B. revenue account. C. contra revenue account. D. liability.

D.

Which of the following statements reports assets, liabilities, and stockholders' equity as of the last day of the period? A. Unadjusted trial balance B. Income statement C. Statement of stockholders' equity D. Balance sheet

D.

T/F The Dividends account is a permanent account.

False

T/F The Office Supplies account is a temporary account.

False

T/F The Supplies Expense account is a temporary account

True

For Statement of Retained earnings

add net income, deduct dividends