Quiz - Business Accounting - 39758

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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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