Question
1 The accounting cycle consists of which of the following number of specific steps? A) Three B) Four C) Five D) Eight E) Ten 2
| 1 |
| The accounting cycle consists of which of the following number of specific steps? | ||
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| A) | Three | ||
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| B) | Four | ||
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| C) | Five | ||
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| D) | Eight | ||
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| E) | Ten | ||
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| 2 |
| The collection of all of the accounts is kept together in the: | ||
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| A) | journal, only. | ||
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| B) | ledger, only. | ||
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| C) | trial balance, only. | ||
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| D) | both the journal and the ledger. | ||
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| 3 |
| Which of the following is not true about the normal balance of the accounts or account categories shown below? | ||
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| A) | Assets normally have a debit balance. | ||
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| B) | Liabilities normally have a credit balance. | ||
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| C) | Owners equity accounts normally have a credit balance. | ||
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| D) | Accounts receivable normally has a credit balance. | ||
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| 4 |
| Consider the following: If you have $5,000 in Savings and a Car that is worth $10,000 and you still owe $3,000 on the car, what is your equity. | ||
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| A) | $5,000 | ||
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| B) | $15,000 | ||
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| C) | $12,000 | ||
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| D) | $18,000 | ||
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| 5 |
| Recording a $100,000 investment by owners on January 1 for capital stock of the company will result in which of the following? | ||
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| A) | Increase an asset and decrease owners equity | ||
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| B) | Increase an asset and increase owner's equity | ||
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| C) | Increase an asset and increase liability | ||
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| D) | Increase an asset and decrease a liability | ||
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| 6 |
| Revenue can be described as which of the following? | ||
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| A) | Net income for the accounting period | ||
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| B) | Sales minus expenses | ||
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| C) | Gross increase in owners' equity resulting from operation of the business | ||
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| D) | All of the above | ||
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| 7 |
| An advertising program was paid in advance on March 1 for delivery through newspaper advertisements beginning on April 1 and ending on April 15. The advertising program cost $5,000. When should the expense of the advertising program be recognized? | ||
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| A) | April 1 | ||
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| B) | March 1 | ||
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| C) | May 1 | ||
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| D) | April 15 | ||
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| 8 |
| If revenue is $50,000 and cost of goods sold was $20,000 and Salaries for the company was $15,000, and taxes are $5,000 how much is net income | ||
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| A) | $30,000 | ||
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| B) | $10,000 | ||
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| C) | $15,000 | ||
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| D) | $5,000 | ||
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| 9 |
| The debit balance of the trial balance is $456,000 and the credit balance of the trial balance is $465,000. This indicates which of the following? | ||
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| A) | An account was not posted | ||
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| B) | An account was posted twice | ||
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| C) | An account was posted for an incorrect amount | ||
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| D) | Any of the above might have occurred | ||
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| 10 |
| If, in fulfilling your duties as a bookkeeper or accountant, you are requested by a superior to record a nonexistent transaction that will reflect favorably on the financial position of the company, you should do which of the following? | ||
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| A) | Not record the transaction, and report the request to a higher supervisor | ||
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| B) | Ask for a raise in exchange for the risk involved in the fraud being disclosed | ||
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| C) | Record the transaction, adding a note about the circumstances. | ||
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| D) | Record the transaction as part of the normal journaliz | ||
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