Description
1.On the trial balance, which of the following should
have the balances listed in the debit column?
A.Assets, dividends, and expenses
B.Liabilities, revenues, and common stock
C.Liabilities, revenues, and dividends
D.Assets, revenues, and dividends
2.The unadjusted trial balance for depreciation expense
shows a $780 balance. The expense was adjusted
by $235. The adjusted trial balance figure
for depreciation expense is now a
A.$545 debit.
B.$1,015 debit.
C.$1,015 credit.
D.$545 credit.
3.The balance sheet is used to report
A.the financial position on a specific date.
B.results of operations for a specific period.
C.results of operations for a specific date.
D.the financial position for a specific period.
4.Which business form is similar to a corporation in
regard to owner liability?
A.Sole proprietorship
B.Limited liability company
C.Partnership
D.Limited liability corporation
5.A T-account has a $509 debit balance. This account is
most likely not
A.advertising expense.
B.land.
C.common stock.
D.dividends.
6.A T-account has which major parts?
A.A title, a debit side, and a credit side
B.A debit side, a credit side, and a balance
C.A debit side, a credit side, and a total column
D.A title, a current date, and a balance
7.By definition, which type of organization has
stockholders?
A.Sole proprietorships
B.Corporations
C.Limited liability companies
D.Partnerships
8.Supplies on hand were $900 at the start of the year.
At the end of the year, it was determined that $350 of supplies had been used.
What is the adjusting entry for supplies?
A.Debit supplies, $350; credit supplies
expense, $350.
B.Debit supplies expense, $550; credit supplies, $550.
C.Debit supplies, $550; credit supplies expense, $550.
D.Debit supplies expense, $350; credit supplies, $350.
9.Beginning retained earnings are $31,000; sales are
$46,800; expenses are $43,500; and dividends paid are $2,800. How much is the
net income or loss for the company?
A.($3,300)
B.$3,300
C.$500
D.$34,300
10.The closing entries show a debit to retained earnings
of $350 and a credit to retained earnings of $750. There was also a credit to
dividends payable of $100. This company had a
A.net income of $400.
B.net loss of $400.
C.net income of $500.
D.net loss of $500
11.The account “Cash” had the following
changes: increase of $250, decrease of $75, increase of $113,
and decrease of $35. The final balance is a
A.debit balance of $363.
B.debit balance of $253.
C.credit balance of $110.
D.credit balance of $253.
12.The matching principle in accounting requires the
matching of revenue earned with the
A.expenses incurred to produce the revenue.
B.liabilities used to produce the revenue.
C.assets used less the liabilities incurred.
D.assets used to produce the revenue.
13.Which financial statement illustrates the accounting
equation?
A.Statement of cash flows
B.Balance sheet
C.Income statement
D.Statement of retained earnings
14.Beginning retained earnings are $65,000; sales are
$29,500; expenses are $33,000; and dividends paid are $3,500. How much is the
net income or loss for the company?
A.($3,500)
B.($7,000)
C.$26,000
D.$0
15.Rick owns a sporting goods store. In his initial
accounting records, he included his personal computer and all of his personal
sporting gear. Rick is violating which principle of accounting?
A.Reliability
B.Entity
C.Going concern
D.Cost
16.Which of the following is a disadvantage of the
corporate form of business?
A.Ease of raising capital
B.Double taxation
C.Limited liability
D.Limited resources
17.Dividends are paid with cash to shareholders.
Dividends are in which category of the chart of accounts?
A.Liabilities
B.Stockholders’ equity
C.Assets
D.Revenue
18.Collecting rent from a client three months in advance
would be an example of a/an
A.accrued revenue.
B.accrued expense.
C.deferred expense.
D.deferred revenue.
19.The income statement is used to report
A.the financial position on a specific date.
B.results of operations for a specific period.
C.results of operations for a specific date.
D.the financial position for a specific period.
20.Office equipment was purchased for $2,400 on account
to Business Furniture Company. The journal entry would include a
A.debit to Office Equipment and a credit to Accounts
Payable.
B.credit to Cash and a debit to Office Equipment
Expense.
C.debit to Office Equipment and a credit to Cash.
D.debit to Accounts Payable and a credit to
Cash.
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