Question 1 A company paid cash for an amount owed to a creditor. This transaction decreased cash and Points out of 1.00 P Flag question Select one: a decreased liabilities O b decreased revenues. c decreased expenses d. increased expenses A company paid cash for employee wages. This transaction Question 2 Not yet answered Points out of 1.00 Select one a. Increased cash and decreased expenses b. increased cash and increased expenses. c. decreased cash and increased expenses O d decreased cash and decreased revenues. Question 3 A record of all the changes in a particular asset, liability or stockholders' equity during a period is called a (n) Select one: O a journal b. account c. transaction d trial balance Question 4 A revenue that has been eamed, but not yet collected is a(n) Not yet answered Points out of 100 P Flag question Select one a uneared expense b. accrued expense c prepaid expense. d. accrued revenue According to the revenue principle, revenue should be recorded Question 5 Not yet answered Points out of 1.00 P Flag gestion Select one a before it has been earned. b. whenever the company needs to record the revenue. c. when the cash is received d. when it has been eamed Accounting information is subject to the constraints of Question 6 Not yet answered Points out of 100 P ag question Select one: a relevance and faithful representation. O b. comparability and consistency c. materiality and cost O d comparability and verifiability Question 7 Adjusting entries are Net need Points out of 1.00 P Flag question Select one: O a prepared at the end of the accounting period to update certain accounts O b prepared at the beginning of the accounting period to update all accounts c. prepared at the option of the accountant d not needed under the accrual basis of accounting. Points out of 100 Flag question Advantages of a corporation include: Select one: O a mutual agency b. a single owner o c . limited liability of the stockholders. O d the double taxation of distributed profits Question 9 All of the following are characteristics of useful accounting information EXCEPT Not yet answered Points out of 1.00 P Flag question Select one: a comparability O b informative O c. timeliness o d verifiability Question 10 All of the following are purposes of internal control EXCEPT Not yet answered Points out of 1.00 Select one: a to encourage adherence to company policies. b. to safeguard assets Flag question 0 C to ensure accurate and reliable accounts records O d to promote operational inefficiency. Question 11 All of the following are true statements about the Accumulated Depreciation account EXCEPT that it Not yet answered Points out of 1.00 Select one a. is a contra asset account with a normal debit balance. P Flag question O b. always has a normal balance opposite that of its companion account c. is a contra asset account with a normal credit balance shows the sum of all depreciation expense from using the asset. O d Question 12 Current assets are assets expected to be converted to cash, sold, or consumed within the next Not yet answered Points out of 1.00 p Flag question Select one O a. 6 months O b. 24 months O c. 12 months or within the business's normal operating cycle if less than a year. o d 12 months or within the business's normal operating cycle if longer than a year. Question 13 Differences between the amount of cash reported on a company's bank statement and the balance in the company's Cash account before the bank reconciliation are primarily due to: Not yet answered Points out of 1.00 P Flag question o Select one: O a the timing difference in recording transactions b differences between the cash basis and accrual basis of accounting O Cerrors made by the bank d errors in the accounting process by the company. O Question 14 For which form of business ownership are the owners of a business legally distinct from the business? Points out of 100 Hagestion Select one: a Proprietorship o b Corporation c. Partnership d. All of the above Question 15 If the debit amount of an entry to record the purchase of supplies on account was not posted Points out of 1.00 P Flag question Select one O a assets would be overstated o b.assets would be understated clabilities would be overstated o d liabilities would be understated Question 16 In relation to the cash flow statement, purchases and sales of long-term assets are examples of Points out of 100 Select one O a accrual activities b. Investing activities O c. financing activities. O d operating activities Question 17 Not yet answered On August 1 of the current year, Jamie Simmons received $5,400 for legal services to be performed avenly throughout the next se months. The adjusting entry on December 31 of the current year would include a Points out of 100 P Pag question Select one: a debit to Service Revenue of $900 O b credit to Service Revenue of $4.500 c. debit to Uneared Service Revenue of $900. o d credit to Uneared Service Revenue of $4,500 Question 18 On December 31, 2010, salaries owed to employees total 54,150. These will be paid on January 4, 2011 An adjusted trial balance prepared on December 31, 2010, includes which of the following? Not yet red Points out of 100 P Flagston Select one a Salaries Expense. 54.150 b. Unearned Salaries, 54,150 O c Both Unearned salaries, S4,150 and Salaries Payable, $4.150 O d Salaries Payable, 54.150 Question 19 Prepaid expense accounts appear on: Not yet answered Points out of 100 P Flag question Select one O a the Statement of Retained Earnings and on the Income Statement O b the Income Statement. O c. the Balance Sheet d. both the Income Statement and Balance Sheet Question 20 Receivables are classified as Points out of 1.00 Select one: a decreases in earnings O b. assets c. Increases in earnings d liabilities Question 21 Receiving a check from a customer on account would include a credit to Not yet answered Points out of 100 Flag question Select one a Accounts Payable O b. Accounts Receivable. O c. Cash d. Sales Revenue. Question 22 Revenues are: Not yet answered Points out of 1.00 O P Flag question Select one a decreases in assets resulting from delivering goods or services to customers o b. decreases in retained earnings resulting from delivering goods or services to customers. C . Increases in liabilities resulting from delivering goods or services to customers d increases in retained earnings resulting from delivering goods or services to customers. O Question 23 The accounting equation can be stated as Points out of 1.00 P Flag question Select one a Assets + Stockholders' Equity = Liabilities b. Assets - Stockholders' Equity + Liabilities - Zero c. Assets -Liabilities - Stockholders' Equity d. Assets = Liabilities - Stockholders' Equity Question 24 The entry to record the purchase of supplies on account would include a debit to Not yet answered Points out of 1.00 P Flag question Select one: O a Accounts Payable. b. Retained Earnings c. Supplies Expense O d. Supplies Question 25 The income statement Points out of 1,00 P Flag question Select one: Ona may cover a period of time or only one day in time, like a snapshot photograph O b reports the results of operations since the inception of the business o c. covers a defined period of time. O d is not dated. Question 26 The major types of transactions that affect retained earnings are: Not yet answered Points out of 1.00 P ag question Select one O a assets and liabilities O b revenues and liabilities C. revenues, expenses, and dividends. d paid-in capital and common stock Question 27 The normal balance of the Accounts Payable account is a because it is an) account Not yet answered Points out of 100 P Flag question Select one: a credit, liability b. credit, expense c. debit, asset o d debit, stockholders' equity Question 28 Not yet answered The person who prepares the bank reconciliation Points out of 1.00 P Flag question Select one: 0 a. should be responsible for both cash receipts and cash disbursements O b. should have no other cash duties 0 C should also be responsible for cash receipts O d should also be responsible for cash disbursements. Question 29 The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the Not yet answered Points out of 1.00 P Flag question Select one: o a stable dollar principle b. reliability principle. O C. cost principle O d objectivity principle. Question 30 The process of copying the information from the journal to the ledger is called Not yet answered Points out of 1.00 Select one: O a preparing the financial statements O b posting c. journalizing o d summarizing The process of recording a transaction in the journal is called: Question 31 Not yet answered Points out of 1.00 P Flag question Select one: a. summarizing. o b journalizing c. preparing the financial statements. d. posting Question 32 The proper order for the accounting process is: Not yet answered Points out of 1.00 Flag question Select one: a. posting, transaction occurs, journalizing. O b. transaction occurs, posting, journalizing. c. transaction occurs, posting transaction analyzed, journalizing d transaction occurs, transaction analyzed, journalizing, and posting. Question 33 The statement that reports revenues and expenses for the period is the Not yet answered Points out of 1.00 P Flag question Select one: a. Income Statement b. Statement of Cash Flows c Statement of Retained Earnings. d Balance Sheet Question 34 Under accrual accounting, revenue is recorded: Not yet answered Points out of 1.00 Select one: O a. either when the cash is received or the sale is made P Flag question O O b. when the cash is collected, regardless of when the services are performed conly if the cash is received at the same time the services are performed d. when the services are performed, regardless of when the cash is received O Question 35 What is the first step in the journalizing process? Points out of 1.00 Flag question Select one: a. Determine whether each account is increased or decreased by the transaction b. Record the transaction in the journal, c. Post the transaction to the ledger d. Specify each account affected by the transaction and classify each account by type Question 36 Not yet answered When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance? Points out of 100 P Flag question Select one a. Outstanding checks O b. Bank service charges C EFT cash receipts d. Deposits in transit Question 37 When preparing a bank reconciliation, which of the following items should be added to the book balance? Not yet answered Points out of 100 Flag question Select one a. Both EFT receipts and collection items b. EFT receipts c. Collection items o d Deposits in transit Question 38 Which account is debited in the adjusting entry to record salaries owed to employees, but not paid until next accounting period? Not yet answered Points out of 100 Flag question Select one: a. Unearned Salaries b. Deferred Salary o c Salary Expense O d Salary Payable Which accounts are increased by debits? Question 39 Not yet answered Points out of 1.00 P ag Gestion Select one: a Assets, expenses and owners' equity o b. Assets and owners' equity c. Expenses and owners' equity d. Assets, expenses and dividends Question 40 Which financial statement provides a "snapshot photo" of one moment in time for the whole entity? Not yet answered Points out of 1.00 Flag question Select one Toa. Statement of Retained Earnings and Income Statement O b. Statement of Cash Flows only c Income Statement only o d Balance Sheet only Question 41 Which of the following is a limitation of internal control? Not yet answered Points out of 1.00 Flag question Select one a. Operational efficiency b. Safeguarding company assets C. Accurate and reliable accounting records 10 d. Employee collusion O Question 42 Which of the following is NOT an asset? Not yet answered Points out of 1,00 P Flag question Select one O a Accounts receivable O b. Accounts payable o c . Inventory od Cash Question 43 Which statement about a trial balance is NOT true? Points out of 1.00 P Flag Question Select one: 0 aThe trial balance can be prepared at any time, but is generally prepared at the end of the accounting period. b. The trial balance lists asset accounts and their balances first, then liability accounts and their balances, and then stockholders' equity accounts and their balances c. The trial balance lists the income statement accounts and their balances first and then the balance sheet accounts and their balances d. The trial balance is a list of all accounts with their balances Question 44 Which statement about the journal is NOT true? Points out of 100 P Flag question Select one: a. The journal entry lists debits before credits b. The journal entry shows the balance in each account c. The journal lists transactions in chronological order. o d The journal entry shows a complete transaction in one place. Question 45 Which type of account is decreased when a company pays its employees with cash? Points out of 1.00 Flag question Select one: a A prepaid asset b. A liability c An asset O d Owners' equity Who ultimately controls a corporation? Question 46 Not yet answered Points out of 1.00 Flag question Select one: O a. The stockholders o b. Board of Directors c. The President o d. The Chief Executive Officer (CEO)