 |
| 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 | |
The collection of all of the accounts is kept together in the: |
| | A) | journal, only. |
| | B) | ledger, only. |
| | C) | trial balance, only. |
| | D) | both the journal and the ledger. |
|
|
|
| 3 | |
Which of the following is not true about the normal balance of the accounts or account categories shown below? |
| | A) | Assets normally have a debit balance. |
| | B) | Liabilities normally have a credit balance. |
| | C) | Owners’ equity accounts normally have a credit balance. |
| | D) | Accounts receivable normally has a credit balance. |
|
|
|
| 4 | |
Consider the following:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/007802577x/1036574/CH03_Q4.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (40.0K)</a>]]>
Which line of the schedule correctly reflects the Debit-Credit rules? |
| | A) | Line A |
| | B) | Line B |
| | C) | Line C |
| | D) | Line D |
|
|
|
| 5 | |
Recording a $100,000 investment by owners on January 1 for capital stock of the company will result in which of the following? |
| | A) | Increase an asset and decrease owner’s equity |
| | B) | Increase an asset and increase a liability |
| | C) | Increase an asset and increase owners’ equity |
| | D) | Increase an asset and decrease a liability |
|
|
|
| 6 | |
Revenue can be described as which of the following? |
| | A) | Net income for the accounting period |
| | B) | Gross increase in owners’ equity resulting from operation of the business |
| | C) | Sales of services less the expenses related to the sales |
| | D) | All of the above |
|
|
|
| 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? |
| | A) | March 1 |
| | B) | April 1 |
| | C) | May 1 |
| | D) | April 15 |
|
|
|
| 8 | |
Consider the following:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/007802577x/1036574/CH03_Q8.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (18.0K)</a>]]>
Which of the lines in the schedule are correct? |
| | A) | Line A, only |
| | B) | Line B, only |
| | C) | Lines B and C, only |
| | D) | All of the lines are correct. |
|
|
|
| 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? |
| | A) | An account was not posted |
| | B) | An account was posted twice |
| | C) | An account was posted for an incorrect amount |
| | D) | Any of the above might have occurred |
|
|
|
| 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? |
| | A) | Ask for a raise in exchange for the risk involved in the fraud being disclosed. |
| | B) | Not record the transaction, and report the request to a higher supervisor. |
| | C) | Record the transaction, adding a note about the circumstances. |
| | D) | Record the transaction as part of the normal journalizing routine. |
|
|
.