Performed services on account of 180 how would it affect the equation

Increase assets and equity by 180

Performed 450 of services but has not billed customer. Impact on the financial statement?

Bal sh- assets under equity under inc st- revenues under ME

Example of a deferral adjusting entry

Records the usage of office supplies during the period

Purchase office supplies for 800

Debit office supplies credit cash

Common stock 28,000. In what sections would these transactions be recorded?

Non-cash investing and financing activities, $28,000

Accounting information must be complete, neutral, free from material error

Faithful representation concept

The main categories of cash flows activities on the statement of cash flows

Operating, investing, and financing

Posting 2,500 purchase of office supplies on account

Debit office supplies credit accounts payable

Adjusting the accounts is the process of

Update accounts at the end of the period

Situation indicates net loss within income statement

Total debits exceed total credits

Which sequence is right for the accounting process

Journalize, post, trial balance

Payroll 300. End of year falls on Tuesday. Pay on Fridays what is the adjusting entry

Debit salaries expense 120 credit salaries payable 120

Which is not a closing entry

Debit Salaries Payable credit Income Summary

Revenue recognition principle requires

Revenue recorded after the business has satisfied obligation

Order of the subtotals on the multi-step income statement

Gross profit, operating income, other, net income

Operating activities are most closely related to

Current assets and current liabilities

Generally accepted accounting principles (GAAP) are currently formulated by

Financial accounting standards board (FASB)

Which of the following is true

Accounts payable is increased with a credit

What does the balance sheet report

Financial position on a specific date

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Accounting 1 Final

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Accounting 1

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Questions 80

Answers

1
Performed services on account of 180 how would it affect the equation
Increase assets and liabilities by 180
Decrease liabilities 180 and increase equity 180
Increase assets and equity by 180
Increase liabilities and equity by 180
2
Net income 57,000 ded 5,000 Current assets dec 4000 cur liab inc 8000. Net cash by OA
74,000
40,000
48,000
66,000
3
Net income 570. Total beginning assets 4,520 and ending 4,180. Calculate return on assets
13.6
12.6
13.1
7.63
4
AR beg. 20,000 AR end 54,000. Revenue for year 116,000. How much cash was collected
116,000
82,000
62,000
150,000
5
Performed 450 of services but has not billed customer. Impact on the financial statement?
Bal. Sheet- assets under equity over inc. St- expense under
Bal. Sh- liabilities over equity under in St- revenue under
Bal sh- assets under equity under inc st- revenues under ME
Bal sh- assets over equity under. inc st-expenses under
6
Sales Revenue 90,000 COGS 58,000. What was the gross profit percentage?
17%
64%
3.4 times
36%
7
Document that explains difference between companys cash and banks figures
Electronic funds transfer
Bank reconciliation
Bank statement
Bank collection
8
Example of a deferral adjusting entry
Records revenue that has been earned but not received
Records interest expense incurred on notes payable
Records the usage of office supplies during the period
Records salaries expense for employees to be paid
9
Total assets 3,630 and equity 2,280. What are the liabilities
1,350
2,280
5,910
3,630
10
Purchase office supplies for 800
Deb it accounts payable credit cash
Debit office supplies credit cash
Debit cash credit accounts payable
Debit accounts payable credit accounts receivable
11
Company increases fixed costs, the contribution margin per unit will
More info needed
Decrease
Remain the same
Increase
12
Common stock 28,000. In what sections would these transactions be recorded?
Financing activities cash receipt, $28,000
Financing activities payment of note, $(28,000)
Both a and b are correct
Non-cash investing and financing activities, $28,000
13
Accounting information must be complete, neutral, free from material error
Cost principle
Faithful representation concept
Economic entity assumption
Going concert assumption
14
Ending balance 650. Serv ch 29. NSF check 150. Deposit in transit 240. Checks outstanding 420
471
829
470
291
15
The main categories of cash flows activities on the statement of cash flows
Non-cash investing and financing
Direct and indirect
Operating, investing, and financing
Current and long term
16
The detailed record of the changes in a particular asset, liability, or equity is called
Trial balance
Ledger
Journal
Account
17
Separation of duties is important because
Cash payments
Cash receipts
Both
Neither
18
Which of the following is NOT part of the definition of internal control
Promote operational efficiency
Encourage employees to follow company policies
Safeguard assets
Separation of duties
19
Which account does a merchandiser use that a service company does not
All of the above
Sales Revenue
Merchandise Inventory
Cost of Goods Sold
20
Depreciation on a truck
Variable
Fixed
Mixed
21
Assets 800 equity 480 what is the debt ratio
40%
60%
Not enough info
67%
22
Assets are listed on the balance sheet in what order
Adjustments
Liquidity
Balance
Purchase date
23
Fixes cost 90,000 variable per 45 tickets 75 what is break even point in units
350,000
525,000
7,000
210,000
24
Petty cash 100. Its has 20 on hand and receipts of 75 for office supplies. Entry to replenish?
Credit cash short & over 5
Credit petty cash 80
Debit cash short & over 5
Debit petty cash 80
25
Posting 2,500 purchase of office supplies on account
Debit office supplies credit accounts payable
Debit office supplies credit cash
Debit accounts payable credit office supplies
Debit office supplies credit accounts receivable
26
Adjusting the accounts is the process of
Zeroing out account balances to prep for next period
Subtracting expenses from revenue to measure net income
Update accounts at the end of the period
Record transactions as the occur in the period
27
Why is check better than cash
Before signing, official reviews the invoice
Both
Check must be signed by an authorized official
Neither
28
A management account who avoids conflicts of interest meets ethical standard
Credibility
Integrity
Confidentiality
Competence
29
13,000 per month 3 per passenger. Total reservation cost if 200,000 passengers go
3.07
13,000
613,000
600,000
30
Situation indicates net loss within income statement
Total debits equal total credits
None of the above
Total credits exceed total debits
Total debits exceed total credits
31
Which sequence is right for the accounting process
Joirnalize, trial balance, post
Journalize, post, trial balance
Trial balance, journalize, post
Post, journalize, trial balance
32
Payroll 300. End of year falls on Tuesday. Pay on Fridays what is the adjusting entry
No adjustment needed
Debit salaries payable 300 credit salaries expense 300
Debit salaries expense 120 credit cash 120
Debit salaries expense 120 credit salaries payable 120
33
Expect to receive benefit when it start its budgeting process
Motivate employees for sales growth and cost reduction
Provides managers a benchmark to comp results for evaluation
Managers foresee/avoid problems before they occur
All of the above
34
Which of the following accounts is a liability
Prepaid Rent Expense
Service Revenue
Unearned Revenue
Accounts Receivable
35
Two main inventory accounting systems are
Perpetual and periodic
Returns and allowances
Cash and accrual
Purchase and sale
36
Purchases inventory 5300. Freight 260. Returns 45%. 2% discount. What is the final cost
2857
3117
2337
2997
37
Which is not a closing entry
Debit Service Revenue credit Income Summary
Debit Income summary credit Rent expense
Debit RE credit Dividends
Debit Salaries Payable credit Income Summary
38
What do closing entries accomplish
Transfer revenue expense and dividend to Retaindd Earnings
Bring RE account to its correct ending balance
All of the above
Zero out revenue, expense, dividends
39
Which of the following is not an external user of a business's financial information
Customers
Investors
Employees
Taxing authorities
40
Revenue recognition principle requires
Revenue recorded after the business has satisfied obligation
Expenses matched with revenue of the period
Time to be divided into annual periods to measure revenue
Revenue recorded after the cash is received
41
Order of the subtotals on the multi-step income statement
Other, operating income, gross profit, net income
Gross profit, operating income, net income, other
Gross profit, operating income, other, net income
Operating income, gross profit, net income, other
42
Operating activities are most closely related to
Dividends and treasury stock
Long term liabilities and stockholders equity
Long term assets
Current assets and current liabilities
43
Generally accepted accounting principles (GAAP) are currently formulated by
Financial accounting standards board (FASB)
Institute of management accountants (IMA)
Securities and exchange commission (SEC)
American institute of certified public accountants (AIPCA)
44
The left side of a t-account is used to record what
Debits
Increases
Credits
Debit/credit depends on account
45
Which of the following is true
Prepaid expenses are decreased with a debit
Unearned revenue is increased with a debit
Accounts payable is increased with a credit
Rent expense is increased with a credit
46
What does the balance sheet report
Results of operations on a specific date
Financial position on a specific date
Financial position for a specific period
Results of operations for a specific period
47
DM Used 120,000 DL Incurred 150,000 Manu OH Incurred 75,000 Selling/Admin Expense 175,000
270,000
175,000
250,000
345,000
48
Which type of business is owned by only one owner
Corporation
All above
Partnership
Sole proprietorship
49
Cash 10,000 cash equivalent 8,850 AR 3,700 current liabilities 29,000. What is the cash ratio
.78
.65
1.54
.34
50
Company increases sales price per unit, the new break even point will
Increase
Decrease
More info needed
Remains the same
51
Following accounts that would be closed using the perpetual inventory
Accounts Receivable
Cost of Goods Sold
Merchandise Inventory
Accounts Payable
52
Net cash 160,000, equipment 83,000 stock 24,000. What is free cash flow
83,000
77,000
53,000
160,000
53
Accounting is the information system that
Processes information into reports
Measures business activities
All of the above
Communicates the results to decision makers
54
Sold inventory 300,000 terms 2/10 n/30. COGS was 152,000. How much sales revenue?
152,000
148,960
294,000
300,000
55
What is a worksheet
Journal used to record transactions
Financial statement that reports net income during the per.
Ledger listing account balances and changes in the accounts
Internal doc helps sum data for prep of financial statement
56
Which best describes a corporation
Stockholders not personally liable for entity's debts
Not taxed
Not a separate tax entity
Business with one owner
57
5 year budget, considered a
Flexible budget
Strategic budget
Master budget
Operational budget
58
Cornerstone of a master budget
Sales budget
Balance sheet budget
Selling/Admin expense budget
Production budget
59
A person collects the money, then she posts the collection. What is her company weak in?
Separation of duties
Assignment of responsibilities
Computer controls
Ethics
60
Accounts in PPE
Mortgage payable
Office supplies
Land held for investment
Accumulated depreciation
61
Receives 540 for 6 sessions in advance. What will be reported on the income statement
Service revenue 360
Cash 180
Service revenue 540
Unearned service revenue 360
62
Debited cash and credited accounts payable. What will trial balance show
Expenses are overstated
Liabilities are overstated
Cash is overstated
The trial balance will not balance
63
Perpetual inventory system journal
Debit merchandise inventory credit cash
Debit Merchandise Inventory credit accounts payable
Debit Merchandise Inventory Credit Accounts Receivable
Debit Accounts Payable credit Merchandise Inventory
64
Performed services on account for 6,400 and expenses of 2,500. What is not income/loss
Net loss 3,900
Income 6,400
Income 8,900
Income 3,900
65
Which of the steps of the accounting cycle is NOT completed at the end of the period
Journalize transactions as they occur
Prepare financial statements
Journalize and post closing entries
Prepare the post closing trial balance
66
Which account does a manu company that have a service company does NOT have
Cost of goods sold
Accounts receivable
Salaries payable
Advertising expense
67
Purpose of statement of cash flows
Predict future cash flows
All of the above
Determine ability to pay debts and dividends
Evaluate management decisions
68
Which is NOT a part of manu OH for making a computer
Manufacturing plant property taxes
Depreciation on delivery trucks
Manufacturing plant utilities
Insurance on plant/equipment
69
Purchase office supplies on account for 2,500
Debit office supplies credit accounts payable
Debit cash credit accounts payable
Debit office supplies credit accounts receivable
Debit accounts payable credit office supplies
70
Which is true for accrual and cash basis accounting
All above
Accrual is not allowed under GAAP
Cash records all transactions
Accrual records revenue only when it is earned
71
Sarbanes-Oxley Act
Requires an outside auditor to evaluate the internal control
Stipulates that violators may serve 20 years in prison
Created the Private Company Accounting Board
Allows accountants to audit and consult for a company
72
Which of the following accounts is not closed
Depreciation expense
Accumulated depreciation
Service revenue
Dividends
73
Which is a direct cost of manu a sports boat
Cost of customer hotline
Salary of an engineer who rearranges plant layout
Dep on plant/equipment
Cost of the boat engine
74
Accrued increases. Which is true using a spreadsheet to complete statement of cash flows?
Accrued liabilities would be debited
None are correct
Increase Accrued liabilities would be debited
Increase Accrued liabilities would be credited
75
Which item does NOT appear on a statement of cash flows prepared by the indirect method
Depreciation expense
Net income
Gain on sale of land
Collections from customers
76
Cash 600 AR 900 Supplies 400. 500 AP SP 200. What's the current ratio
2.5
.37
.63
2.71
77
Which accounts may appear on a post closing trial balance
Cash, salaries payable, salaries expense
Cash, salaries payable, service revenue
Cash, salaries payable, and retained earnings
Cash, service revenue, salaries expense
78
What is encryption
Avoids the need for separation of duty
Creates a firewall to protect data
Rearrange messages by a special process
Cannot be broken by hackers
79
Which is NOT a characteristic of managerial accounting information
Focuses on the future
Emphasizes relevance
Provides detailed info about individual parts of company
Emphasizes the external financial statements
80
What does the adjusted trial balance show
Revenues and expenses only
Assets and liabilities only
Account balances after adjustments
Amounts that may be out of balance

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