11. Unearned revenues are: (Points : 2)Revenues that have been earned and received in cashRevenues that have been earned...
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11. Unearned revenues are: (Points : 2)
Revenues that have been earned and received in cash
Revenues that have been earned but not yet collected in cash
Liabilities created when a customer pays in advance for products or services before the revenue is earned
Recorded as an asset in the accounting records
12. Which of the following accounting principles dictates when expenses are recognized? (Points : 2)
Revenue recognition principle
Monetary unit principle
Business entity principle
Matching principle
Full disclosure principle
13. If Beginning Retained Earnings was $184,300, the company distributed $46,000 in dividends and Ending Retained Earnings was $345,000, what was the net income for the period? (Points : 2)
$154,700
$206,700
$114,700
$575,300
$160,700
14. The primary objective of financial accounting is: (Points : 2)
To serve the decision-making needs of internal users
To provide financial statements to help external users analyze and interpret an organization's activities
To monitor and control company activities
To provide information on both the costs and benefits of managing products and services
To know what, when and how much to produce
15. An example of a financing activity is: (Points : 2)
Buying office supplies
Obtaining a long-term loan
Buying office equipment
Selling inventory
Buying land
16. On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2011? (Points : 2)
$1,350
$450
$1,012.50
$337.50
$37.50
17. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?
Cash
$ 6,754
Dividends
$ 2,000
Accounts receivable
$ 13,733
Consulting fees earned
$ 13,718
Office supplies
$ 2,625
Rent expense
$ 3,673
Land
$ 37,153
Salaries expense
$ 6,642
Office equipment
$ 14,535
Telephone expense
$ 560
Accounts payable
$ 6,463
Miscellaneous expense
$ 280
Common stock
$ 54,490
Retained Earnings
?
(Points : 2)
$0
$13,718
$13,155
$13,284
18. Which of the following identifies the proper order of the accounting cycle? (Points : 2)
Analyze, Journalize, Unadjusted Trial Balance
Analyze, Post, Unadjusted Trial Balance
Journalize, Post, Adjusted Trial Balance
Unadjusted Trial Balance, Adjusted Trial Balance, Close
Adjusted Trial Balance, Adjustments, Financial Statements
19. Which of the following accounts would not be on the post closing trial balance? (Points : 2)
Accounts Payable
Accounts Receivable
Common Stock
Dividends
20. A trial balance prepared after the closing entries have been journalized and posted is the: (Points : 2)
Unadjusted trial balance
Post-closing trial balance
General ledger
Adjusted trial balance
Work sheet
21. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process is a(n): (Points : 2)
Adjusted trial balance
Work sheet
Post-closing trial balance
Unadjusted trial balance
General ledger
22. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? (Points : 2)
$3,250
$3,500
$4,000
$6,500
$7,000
23. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: (Points : 2)
Debit Prepaid Insurance, $1,800; credit Cash, $1,800
Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440
Debit Prepaid Insurance, $360; credit Insurance Expense, $360
Debit Insurance Expense, $360; credit Prepaid Insurance, $360
Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440
24. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. What is the amount that should be recorded as depreciation on December 31? (Points : 2)
$27,000
$24,900
$29,100
$135,000
25. The adjusted trial balance contains information pertaining to: (Points : 2)
Asset accounts only
Balance sheet accounts only
Income statement accounts only
All general ledger accounts
Revenue accounts only
Revenues that have been earned and received in cash
Revenues that have been earned but not yet collected in cash
Liabilities created when a customer pays in advance for products or services before the revenue is earned
Recorded as an asset in the accounting records
12. Which of the following accounting principles dictates when expenses are recognized? (Points : 2)
Revenue recognition principle
Monetary unit principle
Business entity principle
Matching principle
Full disclosure principle
13. If Beginning Retained Earnings was $184,300, the company distributed $46,000 in dividends and Ending Retained Earnings was $345,000, what was the net income for the period? (Points : 2)
$154,700
$206,700
$114,700
$575,300
$160,700
14. The primary objective of financial accounting is: (Points : 2)
To serve the decision-making needs of internal users
To provide financial statements to help external users analyze and interpret an organization's activities
To monitor and control company activities
To provide information on both the costs and benefits of managing products and services
To know what, when and how much to produce
15. An example of a financing activity is: (Points : 2)
Buying office supplies
Obtaining a long-term loan
Buying office equipment
Selling inventory
Buying land
16. On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2011? (Points : 2)
$1,350
$450
$1,012.50
$337.50
$37.50
17. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?
Cash
$ 6,754
Dividends
$ 2,000
Accounts receivable
$ 13,733
Consulting fees earned
$ 13,718
Office supplies
$ 2,625
Rent expense
$ 3,673
Land
$ 37,153
Salaries expense
$ 6,642
Office equipment
$ 14,535
Telephone expense
$ 560
Accounts payable
$ 6,463
Miscellaneous expense
$ 280
Common stock
$ 54,490
Retained Earnings
?
(Points : 2)
$0
$13,718
$13,155
$13,284
18. Which of the following identifies the proper order of the accounting cycle? (Points : 2)
Analyze, Journalize, Unadjusted Trial Balance
Analyze, Post, Unadjusted Trial Balance
Journalize, Post, Adjusted Trial Balance
Unadjusted Trial Balance, Adjusted Trial Balance, Close
Adjusted Trial Balance, Adjustments, Financial Statements
19. Which of the following accounts would not be on the post closing trial balance? (Points : 2)
Accounts Payable
Accounts Receivable
Common Stock
Dividends
20. A trial balance prepared after the closing entries have been journalized and posted is the: (Points : 2)
Unadjusted trial balance
Post-closing trial balance
General ledger
Adjusted trial balance
Work sheet
21. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process is a(n): (Points : 2)
Adjusted trial balance
Work sheet
Post-closing trial balance
Unadjusted trial balance
General ledger
22. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? (Points : 2)
$3,250
$3,500
$4,000
$6,500
$7,000
23. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: (Points : 2)
Debit Prepaid Insurance, $1,800; credit Cash, $1,800
Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440
Debit Prepaid Insurance, $360; credit Insurance Expense, $360
Debit Insurance Expense, $360; credit Prepaid Insurance, $360
Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440
24. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. What is the amount that should be recorded as depreciation on December 31? (Points : 2)
$27,000
$24,900
$29,100
$135,000
25. The adjusted trial balance contains information pertaining to: (Points : 2)
Asset accounts only
Balance sheet accounts only
Income statement accounts only
All general ledger accounts
Revenue accounts only
