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| 1 | |
At the end of an accounting period, adjusting entries are made to: |
| | A) | To ensure a profit |
| | B) | Bring the accounts up to date |
| | C) | Debit or credit the checking account |
| | D) | Prove that debits equal credits |
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| 2 | |
Which one of the following is not a financial statement? |
| | A) | Statement of Cash Flows |
| | B) | Profit & Loss |
| | C) | Trial Balance |
| | D) | Balance Sheet |
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| 3 | |
Accrued Revenues are: |
| | A) | Revenues that have been earned, but not collected |
| | B) | Payment received in advance of receiving the service |
| | C) | Revenues that have been collected, but not yet earned |
| | D) | Revenues that have been recorded |
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| 4 | |
The financial accounting definition of depreciation is the: |
| | A) | Loss of value of the asset over time |
| | B) | Estimation of the physical wear of an asset |
| | C) | Allocation of the asset's cost to periods used |
| | D) | Recovery of the asset's cost through depreciation deductions |
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| 5 | |
The tax definition of depreciation is the: |
| | A) | Loss of value of the asset over time |
| | B) | Estimation of the physical wear of an asset |
| | C) | Allocation of the asset's cost over time |
| | D) | Recovery of the asset's cost through depreciation deductions |
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| 6 | |
Sales are recorded under cash basis accounting when: |
| | A) | The goods or services are provided regardless of whether the payment is collected from customers |
| | B) | The costs are incurred to earn the revenue |
| | C) | The cash is collected from customers |
| | D) | The bookkeeper has time to record the transactions |
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| 7 | |
Sales are recorded under accrual basis accounting when: |
| | A) | The goods or services are provided regardless of whether the payment is collected from customers |
| | B) | The costs are incurred to earn the revenue |
| | C) | The actual cash is collected from customers |
| | D) | The bookkeeper has time to record the transactions |
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| 8 | |
The Balance Sheet lists: |
| | A) | Assets, Revenues, and Owner's Equity |
| | B) | Assets, Liabilities, and Owner's Equity |
| | C) | Revenues, Expenses, and Net Income |
| | D) | Revenues, Liabilities, and Net Income |
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| 9 | |
Which one of the following classifications is not found on the Statement of Cash Flows? |
| | A) | Cash Flows from Selling Activities |
| | B) | Cash Flows from Financing Activities |
| | C) | Cash Flows from Investing Activities |
| | D) | Cash Flows from Operating Activities |
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| 10 | |
Which of the following is correct? |
| | A) | Statement of Cash Flows is reported on a particular date |
| | B) | The Income Statement is reported on a particular date |
| | C) | The Balance Sheet is reported on a particular date |
| | D) | The Balance Sheet is reported for a specific time period |
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