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Accounting Challenge Exam Review (for Rose State college credit) Flashcards | StudBud
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Accounting Challenge Exam Review (for Rose State college credit)
Accounting Challenge Exam Review (for Rose State college credit)
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This Quiz will help prepare students for the Rose State Accounting Challenge Exam
Flashcards
55 cards
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Questions
55
Answers
1
What financial statement show the financial condition of your company on that day?
Statement of Cash Flows
Income Statement
Trial Balance
Balance Sheet
2
You purchased a truck for $50,000, added a towing packing for $10,000, what would be the asset value?
$60,000
$50,000
$100,000
$10,000
3
We received a $2,000 invoice dated 6/21/21, shipping terms 2/10, n 30; it is 6/30/21, what will be the payment amount?
$2,000
$1,960
$1,940
$0
4
Which accounts are included on a Balance Sheet?
Assets, Liabilities, and Stockholder's Equity
Revenue and Expenses
Assets and Stockholder's Equity
Assets and Liabilities
5
The Statement of Stockholder's Equity reports increases & decreases in ALL equity accounts including Retained Earnings.
True
False
6
The figures from the Statement of Retained Earnings are included in the Statement of Stockholder's Equity
False
True
7
Revenues are reported on the income statement in the period in which the cash is earned and expenses are purchased
Corporation Basis
Cash Basis
Financial Basis
Accural Basis
8
Accumulated Depreciation, Equipment is classified as a(an) ________________________ and has a ________ normal balance.
Contra Asset, Credit
Contra Asset, Debit
Asset, Credit
Expense, Debit
9
Jan. 1 Merch. Inventory is $85,000 and the Dec. 31 Merch. Inventory. is $82,500. Journalize the adjusting entry for MI.
Debit Merchandise Inventory $2,500 and Credit Income Summary $2,500
Debit Income Summary $2,500 and Credit Merchandise Inventory $2,500
10
Business must record the cost of inventory at whichever cost is lower – the original cost or its current market price
Original of cost or market (OCM)
Lower of cost or market (LCM)
Equal current market price (ECM)
Higher of cost or market (HCM)
11
Payee wishes to sign a check over to another person, signing their name and Pay to the order of the new person.
Special Endorsement
Signature Endorsement
Blank Endorsement
Restrictive Endorsement
12
Adjunct Account is the reverse of a Contra Account which reduces the balance of the account with which it is paired.
False
True
13
Calculate depreciation expense for display case costing $6,270; estimated salvage value, $550.00; useful life, 4 years.
$550
$1,430
$5,720
$6,270
14
When a perpetual inventory system is used, purchases of merchandise are accounted for directly to _____________________.
Merchandise Inventory
Cash
Accounts Payable
Purchases
15
Display case cost $6,270; est. salvage value, $550; useful life, 4 years. What is the book value at the end of year two?
$0
$6,270
$1,430
$3,410
16
Portion of a plant asset’s cost that is transferred to an expense acct in each fiscal period during asset’s useful life.
plant expense
deduction expense
depreciation expense
useful life expense
17
____________ with a useful life of more than one year that is used in producing revenues in a business's operations.
Long Term Liabilities
Long Term Assets
Plant Assets
Expenses
18
According to the Chart of Accounts numbering system, the 3000 division consist of which accounts?
Revenue
Cost of Goods Sold
Liabilities
Stockholder's Equity
19
Determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise
Periodic inventory
Perpetual inventory
20
According to the Chart of Accounts numbering system, the 5000 division consist of which accounts?
Expenses
Operational Revenue
Assets
Cost of Goods Sold
21
A
___
is filled out that identifies what is to be paid for, the amount to be paid, and the account number to be charged.
voucher
bill
general ledger
invoice
22
On June 1, $1,000 purchased merchandise on account with credit terms of 2/10, n/30. What is the transaction?
Debit Merchandise Inventory $1,000 and Credit Cash $1,000
Debit Accounts Payable $1,000 and Credit Cash $1,000
Debit Purchases $1,000 and Credit Accounts Payable $1,000
Debit Purchases Discount $20 and Purchases $980, Accts Payable $1,000
23
6/1/21 purchased $1,000 merchandise, terms of 2/10, n/30. What is the transaction if the invoice is paid on 6/9/21?
Debit Sales Discount $20 and Cash $980, Credit Accts Receivable $1,000
Debit Purchases $980 and Purchase Discount $20, Credit Cash $1,000
Debit Purchases $1,000 and Credit Cash for $1,000
Debit Accts Payable $1,000, Credit Purchase Discount $20 and Cash $980
24
An
internal document that verifies the accuracy of records maintained by the depositor and the financial institution.
Bank Statement
Trial Balance
Balance Sheet
Bank Reconciliation
25
(Cash + Cash equivalents) / Total current liabilities =
Cash ratio
Current equity
Debt ratio
Retained Earnings
26
Bank Reconciliation - the record/company balance is adjusted for service charges and interest earned.
True
False
27
A set of 12 rules that encompass the details, complexities, and legalities of business and corporate accounting.
GAAP - Generally Associated Accounting Practices
GAAP - Good Accounting Associate Practices
GAAP - Generally Accepted Accounting Principles
GAPP - General Accounting Priorities and Principles
28
A set of rules that encompass the details, complexities, and legalities of business and corporate accounting.
GAPP - General Accounting Practices and Principles
GAAP - Generally Associated Accounting Practices
GAAP - Generally Accepted Accounting Principles
GAAP - Good Accounting Associate Practices
29
Accounting method where revenues and expenses are reported in the period when they are received or paid out.
Cash Basis
Accural Basis
Financial Basis
Corporation Basis
30
Purchased $22,500 truck on May 7, useful life 10 years, $500 salvage value. What is the depreciation amount for year 1?
$2,200
$0
$500
$1,466.64
31
Double Entry Accounting means every transaction has at least one debit and one credit
True
False
32
Sales Discount & Sales Returns/Allowances are both classified as Contra Revenue accounts and have a ________ balance.
Credit
Debit
33
Transport In/Freight In - the shipping cost to be paid by the buyer of merchandise when the terms are
FOB ____________
.
Shipping Point
Destination
34
To calculate the Statement of Retained Earnings: beginning balance Ret. Earnings + Net Income - Dividends Declared = ?
Stockholder's Equity (end of the month)
Retained Earning (end of the month)
Owner's Equity (end of the month)
Cash (end of the month
35
When a periodic inventory system is used, purchases of merchandise are accounted for by debiting ___________________.
Accounts Payable
Purchases
Merchandise Inventory
Cash
36
Highly liquid investments (money market accts or gov securities) that can be converted into cash in three months or less
Stockholder's Equity
Stock and Bonds
Retained Earnings
Cash Equivalents
37
A method for authorizing the disbursement of cash
cash system
voucher system
invoice system
approval system
38
_____________ tracking a company's financial transactions by recording, summarizing, and presenting financial statement.
Non-Profit Accounting
Automated Accounting
Managerial Accounting
Financial Accounting
39
Freight-in is considered to be part of the cost of the merchandise and should be included in inventory cost.
True
False
40
Receivables are a .................... Payables are a ..................
Debit; Credit
Debit; Debit
Credit; Credit
Credit; Debit
41
Accounts Receivable is classified as a ___________; Equipment is classified as a ___________.
Current Asset; Plant Asset
Plant Asset; Current Asset
Equity Accounts
Long Term Assets; Short Term Assets
42
Accounts Receivables increase on the
credit side
left side
debit side
right side
43
What is the preparation order for the Financial Statements?
Balance Sheet, Income Statement, Statement of Stockholder's Equity
Income Statement, Statement of Stockholder's Equity, Balance Sheet
Profit Loss Statement, Trial Balance, Balance Sheet
Statement of Stockholder's Equity, Balance Sheet, Income Statement
44
Bond Premium is an adjunct account since its credit balance is
added
to the amount in Bonds Payable.
False
True
45
Controls can either be preventative, deterring fraud/mistakes, or detective, identifying issues after they happen.
Polices and Procedures
Internal Controls
Fraud Controls
Internal Policies Controls
46
Bank Reconciliation - the balance on the
bank
statement is adjusted for outstanding checks and uncleared deposits.
False
True
47
What is the Fundamental Accounting Equation?
Debits = Credits
Assets = Liabilities = Owner's Equity
Assets = Liabilities + Owner's Equity
Assets + Liabilities = Owner's Equity
48
Which accounts are included on an Income Statement?
Assets, Liabilities and Stockholder's Equity
Equity
Revenue and Expenses
Assets and Liabilities
49
______ discounts are deductions that aim to motivate customers to pay their bills within a certain time frame.
Bulk
Cash
Trade
Vendor
50
An ______________ account refers to an account that leads to INCREASE in the book value of a liability account.
contra
equity
expense
adjunct
51
When you reversed two digits in a number. You wrote $540 when the amount is $450.
Division Error
Slide Error
Transposition Error
Reversal Error
52
Which financial statement shows the results of the operation over a period of time (month or year)?
Trial Balance
Balance Sheet
Statement of Cash Flows
Income Statement
53
Source documents for Sales Returns and Allowances are _______________________.
Credit Memorandums
Debit Memorandums
Return Invoices
Return Slips
54
On June 1, $800 of goods are sold with terms of 1/10, n/30. How much will the seller receive if the buyer pays on June 8
$10
$790
$792
$800
55
Total depreciation expense for office equipment, $4,250. Journalize the adjusting entries for accumulated depreciation.
Debit Accumulated Depreciation Office Equipment and Credit Office Equipment
Debit - Accumulated Depreciation OE and Credit Depreciation Expense OE
none of the above
Debit Depreciation Expense OE and Credit Accumulated Depreciation OE
