Accounting Final
A local accounting firm wrote in a recommendation for Mary that she possess a great deal of integrity and has excellent basic skills in literacy and computation. This is classified as which skill? A) Foundation Skills B) Workplace Skills C) 21st Century Skills D) Communication Skills
A
Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column. What will he do NEXT? A) Rule a single line below the last amount in each column. B) Write the account balance in either the debit or credit column. C) Write the heading. D) Write the account titles of all general ledger account that have balances in the Account Title column.
A
Carl's CDs purchased store supplies on account from Mason Supply for $425. What is the journal entry for Carl's CDs to record this transaction? A) Debit Supplies $425; Credit Accounts Payable/Mason Supply for $425. B) Debit Supplies $425; Credit Accounts Receivable/Mason Supply for $425. C) Debit Accounts Receivable/Mason Supply D) Debit Accounts Payable/Mason Supply $425; credit Supplies $425.
A
City Observer received $48 cash from Kevin Grayson for payment on account. Kevin Grayson took a $2 discount for paying early. What is the journal entry for City Observer to record this transaction? A) Debit Cash, $48, debit Sales Discounts $2; credit Accounts Receivable/Kevin Grayson, $50. B) Debit Cash, $48; credit Sales Discounts $2; credit Accounts Receivable/Kevin Grayson, $46. C) Debit Sales Discounts $2; Debit Accounts Receivable/Kevin Grayson, $46; credit Cash, $48. D) Debit Accounts Receivable/Kevin Grayson, $50, credit Cash, $48; credit Sales Discounts $2.
A
If the beginning balance prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet it to debit: A) Insurance Expense and credit Prepaid Insurance $1,200. B) Prepaid Insurance and credit Insurance Expense $800. C) Insurance Expense and credit Prepaid Insurance $800. D) Prepaid Insurance $1,200 and credit Insurance Expense $1,200.
A
If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit: A) Insurance Expense and credit Prepaid Insurance $2,200. B) Prepaid Insurance and credit Insurance Expense $2,200. C) Prepaid Insurance and credit Insurance Expense for $1,200. D) Insurance Expense and credit Prepaid Insurance $1,200.
A
In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an: A) invoice. B) receipt. C)check stub. D) memorandum.
A
Marvin's Motorcycles received $125 cash from Stewart's Rides for payment on his account. Stewart's Rides took a $25 sales discount for paying early. What is the journal entry for Marvin's Motorcycles to record this transaction? A) Debit Cash, $125, debit Sales Discounts $25; Credit Accounts Receivable/Stewart's Rides, $150. B) Debit Cash, $125; credit Sales Discounts $25; credit Accounts Receivable/Stewart's Rides, $100. C) Debit Sales Discounts $25; Debit Accounts Receivable/Stewart's Rides, $100; credit Cash, $125. D) Debit Accounts Receivable/Stewart's Rides, $150, credit Cash, $125; credit Sales Discounts $25.
A
Mary is closing the Income Summary account. Her company had a net loss of $2,000. The correct journal entry is to debit: A) Owner's Equity and credit Income Summary $2,000. B) Income Summary and credit Drawing $2,000. C) Sales and credit Income Summary $2,000. D) Drawing and credit Income Summary $2,000.
A
Mary is preparing a Balance Sheet. What must she do after she completes the heading information? A) Prepare the Asset section. B) Double rule across the left and right columns. C) Prepare the Owner's Equity section. D) Write the titles of all the liability accounts.
A
Michael's Hardware purchased merchandise on account from Hardware Supply for $690. What is the journal entry for Michael's Hardware to record this transaction? A) Debit Purchases $690; credit Accounts Payable/Hardware Supply $690. B) Debit Accounts Payable/Hardware Supply $690; credit Purchases $690. C) Debit Purchases $690; credit Accounts Receivable/Hardware Supply $690. D) Debit Accounts Receivable/Hardware Supply $690; credit Purchases $690.
A
The transaction, PAID CASH FOR INSURANCE, would result in which journal entry? A) Debit Prepaid Insurance and Credit Cash B) Debit Cash and credit Insurance Expense C) Debit Cash and credit Prepaid Insurance D) Debit Insurance Expense and credit Cash
A
The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry? A) Debit Cash and Credit Legal Fees B) Debit Miscellaneous Expense and credit Legal Fees C) Debit Legal Fees and Credit Cash D) Debit Cash and Credit Legal Expenses
A
The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry? A) Debit Cash and credit Frank Harper, Capital B) Debit Frank Harper, Capital and credit Cash C) Debit Cash and credit Frank Harper, Drawing D) Debit Frank Harper, Drawing and credit Cash
A
What is an example of an account that has a normal debit balance? A) Accounts Receivable/Oakdale School B) Sales C) Mary Johnson, Capital D) Accounts Payable/Jones Supply
A
What is the correct journal entry for the transaction PAID CASH FOR MISCELLANEOUS EXPENSE, $400? A) Debit Miscellaneous Expense and credit Cash B) Debit Supplies and credit Miscellaneous Expense C) Debit Cash and debit Miscellaneous Expense D) Debit Cash and credit Miscellaneous Expense
A
What is the correct journal entry for the transaction, PAID CASH FOR PRINTER CARTRIDGES? A) Debit Supplies and credit Cash B) Debit Owner's drawing and credit Cash
A
What is the correct journal entry for the transaction, PAID THE TELEPHONE BILL, $125? A) Debit Utilities Expense and credit Cash B) Debit Cash and credit Equipment C) Debit Equipment and credit Cash D) Debit Cash and credit Utilities Expense
A
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $150? A) Debit Cash and credit Sales B) Debit Sales and credit Cash C) Debit Miscellaneous Expense and credit Sales D) Debit Sales and credit Cash
A
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $2500? A) Debit Cash and credit Sales B) Debit Sales and credit Sales C) Debit Cash and credit Accounts Payable D) Debit Accounts Payable and credit Cash
A
What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, $800? A) Debit Cash and credit Accounts Receivable/Burke Supply B) Debit Accounts Receivable/Burke Supply and credit Jane Smith, Capital C) Debit Cash and debit Accounts Receivable/Burke Supply D) Debit Accounts Receivable/Burke Supply and credit Cash
A
What is the effect when $200 cash is paid to an advertising agency for advertisements for the business? A) Assets decrease $200 and owner's equity decrease $200. B) Assets increase $200 and owner's equity increases $200. C) Liabilities increase $200 and owner's equity decreases $200. D) Assets increase $200 and owner's equity decreases $200.
A
What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply? A) Assets decrease $300 and liabilities decrease $300. B) Assets increase $300 and liabilities decreases $300. C) Assets decrease $300 and liabilities increase $300. D) Assets decrease $300 and owner's equity decreases $300.
A
When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step? A) Double rule across both account columns. B) Single rule across both the amount columns below the last amount. C) Write each columns total beneath the single line. D) Add each column to verify that debits equal credits.
A
Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. This example is a violation of which key principle for ethics in accounting? A) Objectivity B) Independence C) Confidentiality D) Competence
B
Cash, Office Equipment, and Prepaid Insurance are all classified as: A) owner's equity. B) assets. C) liabilities. D) revenue.
B
If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit: A) Supplies and credit Supplies Expense $1,000. B) Supplies Expense and credit Supplies $1,500. C) Supplies and credit Supplies Expense $500. D) Supplies Expense and credit Supplies $500.
B
If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the work sheet is to debit: A) Supplies and credit Supplies Expense $700. B) Supplies Expense and credit Supplies $1,500. C) Supplies Expense and credit Supplies $700. D) Supplies and credit Supplies Expense $1,500.
B
In preparing adjustment entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT? A) Write the title of the account credited in the Account Title column. B) Record the debit amount in the General Debit column. C) Write the title of the account debited in the Account Title column. D) Record the credit amount in the General Credit column.
B
In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an: A) check stub. B) invoice. C) memorandum. D) receipt
B
James discovered that a transaction for an Advertising Expense was journalized and posted in error as a debit to Miscellaneous Expense, $200. What is the entry to correct the error? A) Debit Miscellaneous Expense, $200; credit Advertising Expense, $200 Correct! B) Debit Advertising Expense, $200; credit Miscellaneous Expense, $200 C) Debit Cash, $200; credit Advertising Expense, $200 D) Debit Advertising Expense, $200; credit Cash,
B
Mary has applied for a position as an accounting clerk for a local company. She listed as her qualifications that she is a problem-solver and needs little direction to complete assigned tasks. This is classified as which skill? A) Communication Skills B) 21st Century Skills C) Workplace Skills D) Foundation Skills
B
ON a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a: A) Net income of $2,000. B) Net income of $400. C) Net loss of $2,000. D) Net loss of $400.
B
On a worksheet, the Income Statement credit totals $2.150 and the Income Statement debit totals $2,400. The company had a: A) net loss of $4.550 B) net loss of $250 C) net income of $250 D) net income of $4,550
B
Piggy's Butcher House received $114 cash from Jimmy's Barbeque for payment on account. What is the journal entry for Piggy's Butcher House to record this transaction? A) Debit Accounts Receivable/Jimmy's Barbeque, $114; credit Cash, $114. B) Debit Cash, $114; credit Accounts Receivable/Jimmy's Barbeque, $114. C) Debit Sales, $114; credit Cash, $114. D) Debit Cash, $114; credit Sales, $114
B
Sharon takes responsibility and initiative for her own work at Accounting Temps. This is an example of which 21st Century Skill? A) Information and communication ! B) Self-direction C) Interpersonal D) Thinking and problem solving
B
Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT? A) Write the account balance in either the debit or credit column. B) Write the account titles of all general ledger accounts that have balances in the Account Title column. C) Write the account totals. D) Rule a single line below the last amount in each column.
B
The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry? A) Debit Supplies Expense and credit Supplies B) Debit Supplies and credit Accounts Payable/Davis Supply Store C) Debit Accounts Payable/Davis Supply Store and credit Supplies D) Debit Supplies and Credit Supplies Expense
B
The transaction, PAID CASH FOR RENT, would result in which journal entry? A) Debit Cash and credit Miscellaneous Expense B) Debit Rent Expense and credit Cash C) Debit Cash and credit Rent Expense D) Debit Miscellaneous Expense and credit Cash
B
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry? A) Debit Supplies and credit Cash B) Debit Cash and credit Accounts Receivable/Parker, Inc. C) Debit Cash and credit Supplies D) Debit Accounts Receivable/Parker, Inc., and credit Cash
B
What is an example of an account that has a normal credit balance? A) Advertising Expense B) Delivery Revenue C) Samuel Johnson, Drawing D) Accounts Receivable/Davis Company
B
What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, $200? A) Debit Cash and credit Insurance Expense B) Debit Prepaid Insurance and credit Cash C) Debit Cash and credit Prepaid Insurance D) Debit Insurance Expense and credit Cash
B
What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY, $500? A) Debit Cash and credit Owner's Drawing B) Debit Accounts Payable/Avis Supply Company and credit Cash C) Debit Accounts Receivable/Avis Supply Company and credit Cash D) Debit Cash and credit Owner's Capital
B
When closing the Miscellaneous Expense account, debit: A) Miscellaneous Expense and credit Income Summary. B) Income Summary and credit Miscellaneous Expense. C) Owner's Equity and credit Miscellaneous Expense. D) Miscellaneous Expense and credit Owner's Equity.
B
A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit, $350; Cash Debit, $1,000; Cash Credit, $950. This means that the: A) General credit column is incorrect. B) Cash debit column is incorrect. C) Journal proves. D) Journal does not prove.
C
Bill's Grocery sold merchandise on account to Jones High Booster Club for $237. What is the journal entry for Bill's Grocery to record this transaction? A) Debit Sales $237; Credit Accounts Receivable/Jones High Booster Club, $237. B) Debit Accounts Payable/Jones High Booster Club, $237; Credit Sales $237. C) Debit Accounts Receivable/Jones High Booster Club, $237; Credit Sales $237. D) Debit Sales $237; Credit Accounts Payable/Jones High Booster Club, $237.
C
Christina's Curtains paid cash for the telephone bill $110. What is the journal entry for Cristina's Curtains to record this transaction? A) Debit Cash $110; credit Telephone Expense $110. B) Debit Cash $110; credit Purchases $110. C) Debit Telephone Expense $110; credit Cash $110. D) Debit Purchases $110; credit Cash $110.
C
Mary is preparing a Balance Sheet. What must she do after she completes the Assets section? A) Double rule across the left and right columns. B) Prepare the Expense section. C) Prepare the Liabilities section. D) Prepare the Owner's Equity section.
C
Mary is preparing a Balance Sheet. When she completes the Owner's Equity section, what should the end result be? A) The Total Assets are less than the Owner's Equity. B) The Total Assets plus Total Liabilities equal Owner's Equity. C) The Total Assets should equal the Total Liabilities plus the Owner's Equity. D) The Total Assets are greater than the Total Liabilities.
C
Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT? A) Journalize an entry to transfer net income or net loss to the Owner's Capital account and close the Income Summary account. B) Journalize an entry to close income statement accounts that have a credit balance. C) Journalize an entry to close the owner's Drawing account. D) Journalize an entry to close income statement accounts that have a debit balance.
C
Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure? A) Write the account number B) Write the debit amount C) Record the account number that the entry was posted to in the journal in the post reference column. D) Record the source document in the Document Number Column.
C
On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT? A) Record the debit amount in the General Debit column. B) Write the title of the account credited in the Account Title column. C) Write the title of the account debited in the Account Title column. D) Record the credit amount in the General Credit column.
C
Rent, the telephone bill, and advertising costs are all classified as: A) revenue. B) assets. C) expenses. D) liabilities.
C
Rubber Compounds sold merchandise for cash to The Shoe Maker for $773, plus sales tax of $56. What is the journal entry for Rubber Compounds to record this transaction? A) Debit Cash, $829; Credit Accounts Receivable/The Shoe Maker, $829. B) Debit Sales, $773, Sales Tax Payable, $56; Credit Cash, $829. C) Debit Cash, $829; Credit Sales, $773, Sales Tax Payable, $56. D) Debit Accounts Receivable/The Shoe Maker, $829; Credit Cash, $829.
C
Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST thing Samuel will do in preparing this statement? A) Prepare the revenue section. B) Calculate the net income or net loss. Correct! C) Calculate the component percentages. D) Write the name of the company.
C
Susan discovered that a sale on account to Michelle Company on February 12 for $800 was incorrectly charged to the account of Michael Company. What is the journal entry to correct this error? A) Debit Accounts Payable/Michelle Company $800 and credit Accounts Payable/Michael Company $800 B) Debit Accounts Receivable/Michael Company $800 and credit Accounts Receivable/Michelle Company $800 C) Debit Michelle Company $800 and credit Michael Company $800 D) Debit Michael Company $800 and credit Michelle Company $800
C
The ABC Manufacturing Company's Income Statement worksheet show total debits of $600 and credits of $750. ABC Manufacturing has a: A) Net loss of $150. B) Net income of $1,350. C) Net income of $150. D) Net loss of $1,350.
C
The Good Morning Shop purchased merchandise on account from The Donut Plant for $300. What is the journal entry for The Good Morning Shop to record this transaction? A) Debit Purchases $300; Credit Accounts Receivable/The Donut Plan $300. B) Debit Accounts Receivable/The Donut Plant $300; credit Purchases $300. C) Debit Purchases $300; credit Accounts Payable/The Donut Plant $300. D) Debit Accounts Payable/The Donut Plant $300; credit Purchases $300.
C
The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry will be to debit: A) Prepaid Insurance and credit Insurance Expense $3,700. B) Insurance Expense and credit Prepaid Insurance $3,700. C) Insurance Expense and credit Prepaid Insurance $1,500. D) Prepaid Insurance and credit Insurance Expense $1,500.
C
The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit: A) Supplies and credit Supplies Expense $100. B) Supplies and credit Supplies Expense $2,300. C) Supplies Expense an credit Supplies $100. D) Supplies Expense and credit Supplies $2,300.
C
The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry? A) Debit Cash and credit Utilities Expense B) Debit Ted Bright, Drawing and credit Cash C) Debit Utilities Expense and credit Cash D) Debit Cash and credit Ted Bright, Drawing
C
The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry? A) Debit Supplies and credit Miscellaneous Expense B) Debit Cash and credit Miscellaneous Expense C) Debit Miscellaneous Expense and credit Cash D) Debit Cash and debit Miscellaneous Expense
C
Wally's Wallets paid cash to Leather Products Supply $437; covering Purchase Invoice No. 1284 for $460, less a 5% discount $23. What is the journal entry for Wally's Wallets to record this transaction? A) Debit Accounts Payable/Leather Products Supply $437; credit Cash $437. B) Debit Accounts Payable/Leather Products Supply $460; credit Cash $460. C) Debit Accounts Payable/Leather Products Supply $460; credit Purchases Discount $23 and credit Cash $437. D) Debit Purchases Discount $23 and debit Cash $437; credit Accounts Payable/Leather Products Supply $460.
C
What is an example of an account that has a normal credit balance? A) Office Equipment B) Cash C) Sales D) Supplies
C
What is an example of an account that has a normal credit balance? A) Prepaid Insurance B) Cash C) Account's Payable/Jones Supply D) Supplies
C
What is the correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, $250? A) Debit Computer Supplies and credit Cash B) Debit Cash and credit Office Equipment C) Debit Office Equipment and Credit Cash D) Debit Cash and debit Office Equipment
C
What is the correct journal entry for the transaction, PAID CASH TO REPAIR OFFICE EQUIPMENT, $250? A) Debit Cash and credit Repair Expense B) Debit Cash and credit Miscellaneous Expense C) Debit Repair Expense and credit Cash D) Debit Miscellaneous Expense and credit Cash
C
What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business? A) Decreased by $1,000 B) Decreased by $2,000 C) Increased by $1,000 D) Increased by $2,000
C
What is the effect on owner's equity when a business receives $2,000 cash from sales? A) Decreased by $2,000 B) Increased by $4,000 C) Increased by $2,000 D) Decreased by $4,000
C
When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement? A) Double rule across the left and right columns. B) Calculate the total of the Liabilities. C) Write the name of the company. D) Prepare the Assets section.
C
William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do? A) Proving cash. B) Balancing the journal. C) Record an account number in the journal. D) Record a new account balance.
C
A journal's column totals are General Debit, $500; General Credit, $200; Sales Credit, $750; Cash Debit $1,000; Cash Credit, $600. This means that the: A) General credit column is incorrect. B) Journal proves. C) Cash debit column is incorrect. D) Journal does not prove.
D
Big Kites Mfg. sold merchandise for $432, plus sales tax of $36, to Mountain Soaring, who paid for the merchandise with a bank credit card at the time of the sale. What is the journal entry for Big Kites Mfg. to record this transaction? A) Debit Sales, $432, Sales Tax Payable, $36; Credit Cash $468. B) Debit Sales, $432, Sales Tax Payable, $36; Credit Accounts Receivable/ Mountain Soaring, $468. C) Debit Accounts Receivable/Mountain Soaring, $468; Credit Cash, $468. D) Debit Cash, $468; Credit Sales, $432, Sales Tax Payable, $36.
D
Corrugated Box Company paid cash to Paper Supply $686; covering Purchase Invoice No. 88 for $700, less a 2% discount, $14. What is the journal entry for Corrugated Box Company to record this transaction? A) Debit Accounts Payable/Paper Supply $700; credit Cash $700. B) Debit Purchases Discount $14 and debit Cash $686; credit Accounts Payable/Paper Supply $700. C) Debit Accounts Payable/Paper Supply $686; credit Cash $686. D) Debit Accounts Payable/Paper Supply $700; credit Purchases Discount $14 and credit Cash $686.
D
Diane's Perfume Wholesale sold merchandise on account to Select Perfumes for $437, plus sales tax of $23. What is the journal entry for Diane's Perfume to record this transaction? A) Debit Sales, $437, Sales Tax Payable, $23; Credit Accounts Receivable/Select Perfumes, $460. B) Debit Sales, $437, Sales Tax Payable, $23; Credit Accounts Payable/Select Perfumes, $460. C) Debit Accounts Payable/Select Perfumes, $460; Credit Sales, $437, Sales Tax Payable, $23. D) Debit Accounts Receivable/Select Perfumes, $460; Credit Sales, $437, Sales Tax Payable, $23.
D
Gill's Grills purchased store supplies on account from Sellers Warehouse for %829. What is the journal entry for Gill's Grills to record this transaction? A) Debit Accounts Payable/Sellers Warehouse $829; credit Supplies $829. B) Debit Supplies $829; Credit Accounts Receivable/Sellers Warehouse $829. C) Debit Accounts Receivable/Sellers Warehouse $829; Credit Supplies $829. D) Debit Supplies $829; credit Accounts Payable/Sellers Warehouse $829
D
In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an: A) calculator tape. B) check stub. C) invoice. D) receipt.
D
James is closing the income summary account, His company had a net income of $900. The correct journal entry is to debit: A) Income Summary and credit Drawing $900. B) Sales and credit Income Summary $900. C) Drawing and credit Income Summary $900. D) Income Summary and credit Owner's Equity $900.
D
Jamie is an accountant. She knows that she is expected to produce accurate financial reports from her audit. She knows when she submits her report to her superiors her friend will suffer consequences for misappropriation of funds. Jamie submits an accurate report and follows which key principle for ethics in accounting? A) Confidentiality B) Competence C) Independence D) Objectivity
D
Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting? A) Independence B) Competence C) Confidentiality D) Integrity
D
John has applied for a position as Chief Financial Officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver and has the ability to plan and resolve issues. This is classified as which skill? A) Communication Skills B) Foundation Skills C) Workplace Skills D) 21st Century Skills
D
John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT? A) Calculate the net income or net loss. B) Double rule across both amount columns. C) Record the balance of the revenue account. D) Write the balance of each expense account.
D
Lisa is applying for a position in a small insurance agency. The company is looking to hire an individual that can convert their manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. This is classified as which skill? A) Communication Skills B) Foundation Skills C) Basic Skills D) Workplace Skills
D
Mariah Smith, Capital and Mariah Smith, Drawing are both classified as: A) revenue. B) expenses. C) liabilities. D) owner's equity.
D
Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform? A) Journalize and entry to transfer net income or net loss to the owner's capital account and close the Income Summary account. B) Journalize and entry to close income statement accounts that have a credit balance. C) Journalize an entry to close the owner's drawing account. D) Journalize an entry to close the owner's drawing account.
D
Sales is classified as: A) liabilities. B) assets. C) expenses. D) revenue.
D
The sales account has a balance of $3,875. To close the sales account debit: A) Owner's Equity $3,875 and credit Sales $3,875. B) Sales $3,875 and credit Owner's Equity %3,875. C) Income Summary $3,875 and credit Sales $3,875, D) Sales $3.875 and credit Income Summary $3,875.
D
The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry? A) Debit Cash and credit Accounts Receivable/Beth Parker B) Debit Accounts Receivable/Beth Parker and credit Cash C) Debit Cash and credit Sales D) Debit Accounts Receivable/Beth Parker and credit Sales
D
What is an example of an account that has a normal credit balance? A) Supplies B) Cash C) Joan Brown, Drawing D) Tyler Jackson, Capital
D
What is an example of an account that has a normal debit balance? A) Accounts Payable/Adam's Office Supply B) Sales C) Mary Johnson, Capital D) Advertising Expense
D
What is an example of an account that has a normal debit balance? A) Accounts Payable/Ray's Office Equipment B) Sales C) Mary Johnson, Capital D) Rent Expense
D
What is the correct entry for the transaction, PAID $150 FOR ADVERTISING? A) Credit Cash and credit Advertising Expense B) Debit Cash and credit Advertising Expense C) Debit Cash and credit Miscellaneous Expense D) Debit Advertising Expense and credit Cash
D
What is the correct journal entry for the transaction PAID CASH FOR A DELIVERY (MISCELLANEOUS EXPENSE), $25? A) Debit Cash and credit Miscellaneous Expense B) Debit Supplies and credit Miscellaneous Expense C) Debit Cash and credit Truck Expense D) Debit Miscellaneous Expense and credit Cash
D
What is the correct journal entry for the transaction, PAID CASH FOR REPAIRS, $95? A) Debit Miscellaneous Expense and credit Cash B) Debit Cash and credit Miscellaneous Expense C) Debit Cash and credit Repair Expense D) Debit Repair Expense and credit Cash
D
What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO VENDOR JONES SUPPLY, $1000? A) Debit Cash and credit Accounts Receivable/Jones Supply B) Debit Cash and credit Accounts Payable/Jones Supply C) Debit Supplies and credit Cash D) Debit Accounts Payable/Jones Supply and credit Cash
D
What is the correct journal entry for the transaction, PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, $900? A) Debit Cash and credit Mark Johnson, Capital B) Debit Cash and credit Mark Johnson, Drawing C) Debit Mark Johnson, Capital, and credit Cash D) Debit Mark Johnson, Drawing and credit Cash
D
What is the correct journal entry for the transaction, RECEIVED BIKE RENTAL FEES, $375? A) Debit Rental Fees and credit Cash B) Debit Miscellaneous Expense and credit Cash C) Debit Rental Fees and credit Miscellaneous Expense D) Debit Cash and credit Rental Fees
D
What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000? A) Debit Miscellaneous Expense and credit Dana Jackson, Capital B) Debit Cash and credit Dana Jackson, Drawing C) Debit Dana Jackson Capital and credit Cash D) Debit Cash and credit Dana Jackson, Capital
D
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $250? A) Debit Sales and credit Cash B) Debit Cash and debit Sales C) Debit Miscellaneous Expense and credit Sales D) Debit Cash and credit Sales
D
When closing the Advertising Expense account, debit: A) Owner's equity and credit Advertising Expense. B) Advertising Expense and credit Owner's Equity. C) Advertising Expense and credit Income Summary. D) Income Summary and credit Advertising Expense.
D
