Which is unearned Revenue?

Tickets sold for next month's performance

When is the Statement of Owner's Equity prepared?

after the I/S and before the B/S

Generally Accepted Accounting Principles

Adjusting entries always involve

at least one income statement account and one balance sheet account

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2024 Accounting Final Review

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Questions 28

Answers

1
Which account will NOT be closed at the end of the year?
Fees Earned
Accounts Payable
Salary Expense
Depreciation Expense
2
What is the accounting equation?
A = L - OE
A + L = OE
A = L + OE
A + OE = L
3
What is the classification and normal balance of fees earned?
liability, credit
asset, credit
revenue, credit
owner's equity, debit
4
Which of the following should NOT have a credit balance?
Accounts Payable
Salary Expense
Fees earned
Peter Penn, capital
5
Depreciation Expense and Accumulated Depreciation are
contra asset and expense
asset and contra liability
revenue and asset
expense and contra asset
6
Merchandise inventory is a
current asset
long-term liability
long-term asset
current liability
7
Resources owned by a business are
equities
liabilities
assets
revenues
8
Net income results when revenues (credits) < expenses (debit)
False
True
9
Which financial statement shows if a company was profitable or not?
statement of cash flows
income statement
balance sheet
statement of owner's equity
10
Which is unearned Revenue?
Tickets sold yesterday on credit
Tickets sold for tonight's performance
Tickets not sold for the current performance
Tickets sold for next month's performance
11
An inventory system that continuously updates accounting records is called
retial
physical
periodic
perpetual
12
Which accounts have a normal credit balance?
revenues and liabilities
assets and liabilities
liabilities and expenses
capital and drawing
13
When is the Statement of Owner's Equity prepared?
Before the I/S and B/S
after the I/S and before the B/S
before the I/S and after the B/S
after the I/S and B/S
14
GAAP stands for
Generally Accepted Auditing Principles
Generally Accepted Accounting Principles
General Accounting Auditing Procedures
Generally Accepted Audit Practices
15
Freight is another word for
interest expense
cost of goods sold
purchase price
shipping costs
16
Sales Revenue - CGS =
Gross Sales
Income from Operations
Gross Profit
Net Income
17
Which financial statement reports information AS OF as specific date?
income statement
statement of owner's equity
balance sheet
statement of cash flows
18
What best describes accounting?
Language of the world
only used by government
Language of business
only used for tax returns
19
Which is NOT an asset?
Inventory
Notes Payable
Cash
Investments
20
Who pays freight when terms are FOB Destination?
either the seller or the buyer
the buyer
the seller
the ultimate customer
21
What asset is created when a business makes a sale "on account"?
Accounts Receivable
Unearned Revenue
Accounts Payable
Prepaid Expense
22
Adjusting entries always involve
only income statement accounts
only balance sheet accounts
the cash account
at least one income statement account and one balance sheet account
23
Who pays freight when terms are FOB Shipping Point?
the seller
the ultimate customer
either the seller or the buyer
the buyer
24
Which is NOT a liability?
Wages Payable
Accounts Payable
Accounts Receivable
Unearned Revenue
25
Which is NOT an accelerated method of depreciation?
Double Declining Balance
Sum of the Year's Digits
Straight-line
26
What does the "1" represent in credit terms 1/10, n/30
number of days until the invoice is due
percent of the cash discount
number of days in the discount period
full amount of the invoicec
27
A weak internal control system is when 1 employee is responsible for collecting and recording cash.
True
False
28
Public accountants are normally
Forensic Accountants
Certified Management Accountants
Certified Public Accountants
Certified Internal Auditors

2024 Accounting Final Review Flashcards | StudBud