ACCT 411 FINAL PREP

Question 1

Question

The correct statement order is:

Answer

Income Statement, Statement of O/E. Balance Sheet, Trial Balance

Trial Balance, Income Statement, Balance Sheet, Statement of O/E

Trial Balance, Income Summary, Statement of O/E, Balance Sheet

Trial Balance, Income Statement, Statement of O/E, Balance Sheet

Answer 1

Question

The correct statement order is:

Answer

Question 1 - Correct Answer4
Trial Balance, Income Statement, Statement of O/E, Balance Sheet

Question 2

The book of accounts is the:
Answer

journal

ledger

Trial Balance

Income Sumamry

Answer 2

The book of accounts is the:
Answer

ledger

Question 3

What is an unwritten promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Accounts Payable

Accounts Receivable

Notes Payable

Notes Receivable

Answer 3

What is an unwritten promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Question 3 - Correct Answer2

Accounts Receivable

Question 4

Expenses get closed out to what account?
Answer

Revenue

Income Summary

Capital

Cash

Answer 4

Expenses get closed out to what account?
Answer

Question 4 - Correct Answer2

Income Summary

Question 5

An entry on the debit side of an asset means the account has been:
Answer

increased

decreased

Answer 5

An entry on the debit side of an asset means the account has been:
Answer
Question 5 - Correct Answer1

increased

Question 6

Another term for net worth is:
Answer

Asset

Liability

Cash

Capital

Answer 6

Another term for net worth is:
Answer
Question 6 - Correct Answer4

Capital

Question 7

What is the entry to record a purchase of office equipment on credit?
Answer

Dr. Accounts Payable, Cr. Cash

Dr. Cash, Cr. Office Equipment

Dr. Office Equipment, Cr. Accounts Payable

Dr. Office Equipment, Cr. Cash

Answer 7

What is the entry to record a purchase of office equipment on credit?
Answer

Question 7 - Correct Answer3

Dr. Office Equipment, Cr. Accounts Payable

Question 8

The capital account gets closed out to:
Answer

Revenue

Expenses

Income Summary

The capital account does not get closed out

Answer 8

The capital account gets closed out to:
Answer

Question 8 - Correct Answer4

The capital account does not get closed out

Question 9

Which of the following is a liability account?
Answer

Cash

Loans Payable

Notes Receivable

Capital

Answer 9

Which of the following is a liability account?
Answer

Question 9 - Correct Answer2

Loans Payable

Question 10

An entry on the debit side of a liability means the account has been:
Answer

increased

decreased

Answer 10

An entry on the debit side of a liability means the account has been:
Answer
Question 10 - Correct Answer2

decreased

Question 11

What is the entry to record the expensing of a prepaid asset?
Answer

Dr. Expense, Cr. Prepaid Asset

Dr. Prepaid Asset, Cr. Cash

Dr. Cash, Cr. Prepaid Asset

Dr. Prepaid Asset, Cr. Expense

Answer 11

What is the entry to record the expensing of a prepaid asset?
Answer
Question 11 - Correct Answer1

Dr. Expense, Cr. Prepaid Asset

Question 12

What is the entry to record the payment of the monthly electric expense?

Answer

Dr. Electric Expense, Cr. Cash

Dr. Electric Expense, Cr. Accounts Payable

Dr. Cash, Cr. Electric Payable

Dr. Capital, Cr. Cash

Answer 12

What is the entry to record the payment of the monthly electric expense?

Answer
Question 12 - Correct Answer1

Dr. Electric Expense, Cr. Cash

Question 13

Accounts payable has a _____________ balance.
Answer

debit

credit

Answer 13

Accounts payable has a _____________ balance.
Answer

Question 13 - Correct Answer2

credit

Question 14

What is the entry to record a funeral service done on account?
Answer

Dr. Cash, Cr. Revenue

Dr. Accounts Receivable, Cr. Revenue

Dr. Revenue, Cr. Cash

Dr. Revenue. Cr. Accounts Receivable

Answer 14

What is the entry to record a funeral service done on account?
Answer

Question 14 - Correct Answer2

Dr. Accounts Receivable, Cr. Revenue

Question 15

Which of the following is an example of an asset?
Answer

Salaries Expense

Drawing Account

Mortgage Payable

Land

Answer 15

Which of the following is an example of an asset?
Answer

Question 15 - Correct Answer4

Land

Question 16

The Banker’s method assumes
Answer

365 days

265 days

360 days

3600 days

Answer 16

The Banker’s method assumes
Answer

Question 16 - Correct Answer3

360 days

Question 17

Money paid for the use of money is:
Answer

revenue

cash

interest

equity

Answer 17

Money paid for the use of money is:
Answer

Question 17 - Correct Answer3

interest

Question 18

Debts owed by a business are:
Answer

assets

liabilities

Capital

Revenue

Answer 18

Debts owed by a business are:
Answer
Question 18 - Correct Answer2

liabilities

Question 19

Which of the following is the accounting equation?
Answer

Assets=Liabilities+Owner’s Equity

Assets+Liabilities=Owner’s Equity

Assets+Owner’s Equity+Liabilities

Revenue-Expenses

Answer 19

Which of the following is the accounting equation?
Answer
Question 19 - Correct Answer1

Assets=Liabilities+Owner’s Equity

Question 20

If assets of a business total $100,000 and the liabilities total $30,000, what is the Owner’s Equity?
Answer

-$70,000

$130,000

$70,000

-$130,000

Answer 20

If assets of a business total $100,000 and the liabilities total $30,000, what is the Owner’s Equity?
Answer

Question 20 - Correct Answer3

$70,000

Question 21

What is the proper entry to close out the Drawing account?
Answer

Dr. Capital, Cr. Drawing Account

Dr. Drawing Account, Cr. Capital

Dr. Cash, Cr. Drawing Account

Dr. Drawing Account, Cr. Cash

Answer 21

What is the proper entry to close out the Drawing account?
Answer
Question 21 - Correct Answer1

Dr. Capital, Cr. Drawing Account

Question 22

If the income summary has a credit balance, the company is operating at a:
Answer

profit

loss

Answer 22

If the income summary has a credit balance, the company is operating at a:
Answer
Question 22 - Correct Answer1

profit

Question 23

What is the entry to record paying salaries?
Answer

Dr. Cash, Cr. Expenses

Dr. Salaries Payable, Cr. Cash

Dr. Salaries Expense, Cr. Cash

Dr. Cash, Cr. Revenue

Answer 23

What is the entry to record paying salaries?
Answer

Dr. Cash, Cr. Expenses

Dr. Salaries Payable, Cr. Cash
Question 23 - Correct Answer3

Dr. Salaries Expense, Cr. Cash

Dr. Cash, Cr. Revenue

Question 24

What is a written promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Account Payable

Account Receivable

Note Payable

Note Receivable

Answer 24

What is a written promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Account Payable

Account Receivable

Note Payable
Question 24 - Correct Answer4

Note Receivable

Question 25

Which of the following is an example of a liability? Answer Accounts Receivable Accounts Payable Cash Revenue

Answer 25

Which of the following is an example of a liability? Answer Accounts Receivable Question 25 - Correct Answer2 Accounts Payable Cash Revenue

Question 26

Capital has a____________balance. Answer debit credit

Answer 26

Capital has a____________balance. Answer debit Question 26 - Correct Answer2 credit

Question 27

Which of the following would NOT have assets on it? Answer Trial Balance Income Statement Balance Sheet

Answer 27

Which of the following would NOT have assets on it? Answer Trial Balance Question 27 - Correct Answer2 Income Statement Balance Sheet

Question 28

Which of the following is an asset account? Answer Rent Expense Prepaid Rent Account Payable Capital

Answer 28

Which of the following is an asset account? Answer Rent Expense Question 28 - Correct Answer2 Prepaid Rent Account Payable Capital

Question 29

The Drawing Account gets closed out to: Answer Revenue Expenses Income Summary Capital

Answer 29

The Drawing Account gets closed out to: Answer Revenue Expenses Income Summary Question 29 - Correct Answer4 Capital

Question 30

When the business receives funds as a result of selling goods or services, which account is credited? Answer Capital Revenue Drawing Account Cash

Answer 30

When the business receives funds as a result of selling goods or services, which account is credited? Answer Capital Question 30 - Correct Answer2 Revenue Drawing Account Cash

Question 31

What is the entry to record a funeral service done on account and signed for? Answer Dr. Notes Receivable, Cr. Cash Dr. Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash Dr. Accounts Receivable, Cr. Revenue

Answer 31

What is the entry to record a funeral service done on account and signed for? Answer Dr. Notes Receivable, Cr. Cash Question 31 - Correct Answer2 Dr. Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash Dr. Accounts Receivable, Cr. Revenue

Question 32

What is the net income of the firm if Revenues are $40,000 and Expenses are $15,000? Answer $25,000 $35,000 $40,000 $15,000

Answer 32

What is the net income of the firm if Revenues are $40,000 and Expenses are $15,000? Answer Question 32 - Correct Answer1 $25,000 $35,000 $40,000 $15,000

Question 33

Which of the following is an example of a liability? Answer Cash Notes Receivable Notes Payable Capital

Answer 33

Which of the following is an example of a liability? Answer Cash Notes Receivable Question 33 - Correct Answer3 Notes Payable Capital

Question 34

What is the entry to record a funeral service that was paid for partially in cash and the balance is owed? Answer Dr. Cash, Accounts Receivable, Cr. Capital Dr. Cash, Accounts Receivable, Cr. Revenue Dr. Cash, Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash. Accounts Receivable

Answer 34

What is the entry to record a funeral service that was paid for partially in cash and the balance is owed? Answer Dr. Cash, Accounts Receivable, Cr. Capital Question 34 - Correct Answer2 Dr. Cash, Accounts Receivable, Cr. Revenue Dr. Cash, Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash. Accounts Receivable

Question 35

If the income summary has a debit balance, the company is operating at a: Answer profit loss

Answer 35

If the income summary has a debit balance, the company is operating at a: Answer profit Question 35 - Correct Answer2 loss

Question 36

Which of the following would NOT have liabilities on it? Answer Trial Balance Income Statement Balance Sheet

Answer 36

Which of the following would NOT have liabilities on it? Answer Trial Balance Question 36 - Correct Answer2 Income Statement Balance Sheet

Question 37

An entry on the credit side of a liability account means the account has been: Answer increased decreased

Answer 37

An entry on the credit side of a liability account means the account has been: Answer Question 37 - Correct Answer1 increased decreased

Question 38

Revenue gets closed out to what account? Answer Expenses Income Summary Capital Cash

Answer 38

Revenue gets closed out to what account? Answer Expenses Question 38 - Correct Answer2 Income Summary Capital Cash

Question 39

Which of the following is a temporary owner's equity account? Answer Cash Capital Revenue Land

Answer 39

Which of the following is a temporary owner's equity account? Answer Cash Capital Question 39 - Correct Answer3 Revenue Land

Question 40

Which of the following is an example of an asset? Answer Accounts Payable Notes Receivable Capital Revenue

Answer 40

Which of the following is an example of an asset? Answer Accounts Payable Question 40 - Correct Answer2 Notes Receivable Capital Revenue

Question 41

Revenue has a ___________balance. Answer debit credit

Answer 41

Revenue has a ___________balance. Answer debit Question 41 - Correct Answer2 credit

Question 42

Expenses have____________balances. Answer debit credit

Answer 42

Expenses have____________balances. Answer Question 42 - Correct Answer1 debit credit

Question 43

What is the entry to record the purchase of prepaid insurance? Answer Dr. Cash, Cr. Prepaid Insurance Dr. Cash, Cr, Insurance Expense Dr. Prepaid Insurance, Cr. Cash Dr. Insurance Expense, Cr. Cash.

Answer 43

What is the entry to record the purchase of prepaid insurance? Answer Dr. Cash, Cr. Prepaid Insurance Dr. Cash, Cr, Insurance Expense Question 43 - Correct Answer3 Dr. Prepaid Insurance, Cr. Cash Dr. Insurance Expense, Cr. Cash.

Question 44

Expense accounts are temporary accounts considered part of: Answer Assets Liabilities Owner's Equity

Answer 44

Expense accounts are temporary accounts considered part of: Answer Assets Liabilities Question 44 - Correct Answer3 Owner's Equity

Question 45

Which of the following is an example of an asset? Answer Cash Accounts Payable Capital Revenue

Answer 45

Which of the following is an example of an asset? Answer Question 45 - Correct Answer1 Cash Accounts Payable Capital Revenue

Question 46

The Drawing account is an account used to pay employees. Answer True False

Answer 46

The Drawing account is an account used to pay employees. Answer True Question 46 - Correct Answer - False False

Question 47

The Income Statement is a formal financial statement. Answer True False

Answer 47

The Income Statement is a formal financial statement. Answer Question 47 - Correct Answer - True True False

Question 48

If there is a debit balance in the Income Summary account, the company has a loss. Answer True False

Answer 48

``` If there is a debit balance in the Income Summary account, the company has a loss. Answer Question 48 - Correct Answer - True True False ```

Question 49

The Trial Balance is an informal financial statement. Answer True False

Answer 49

The Trial Balance is an informal financial statement. Answer Question 49 - Correct Answer - True True False

Question 50

The Balance Sheet has expenses on it. Answer True False

Answer 50

The Balance Sheet has expenses on it. Answer True Question 50 - Correct Answer - False False

Question 51

To increase a liability account, you credit the account. Answer True False

Answer 51

To increase a liability account, you credit the account. Answer Question 51 - Correct Answer - True True False

Question 52

If expenses exceed revenues, there is a loss. Answer True False

Answer 52

If expenses exceed revenues, there is a loss. Answer Question 52 - Correct Answer - True True False

Question 53

To increase an asset account, you credit the account. Answer True False

Answer 53

To increase an asset account, you credit the account. Answer True Question 53 - Correct Answer - False False

Question 54

All journal entries must have equal debits and credits. Answer True False

Answer 54

All journal entries must have equal debits and credits. Answer Question 54 - Correct Answer - True True False

Question 55

Accounts Payable normally has a debit balance. Answer True False

Answer 55

Accounts Payable normally has a debit balance. Answer True Question 55 - Correct Answer - False False

Question 56

The amount of wages paid to employees will appear on the Income Statement. Answer True False

Answer 56

The amount of wages paid to employees will appear on the Income Statement. Answer Question 56 - Correct Answer - True True False

Question 57

The Income Statement has revenue and expenses on it. Answer True False

Answer 57

The Income Statement has revenue and expenses on it. Answer Question 57 - Correct Answer - True True False

Question 58

To increase an asset account, you debit the account. Answer True False

Answer 58

To increase an asset account, you debit the account. Answer Question 58 - Correct Answer - True True False

Question 59

The Trial Balance comes after the Balance Sheet. Answer True False

Answer 59

The Trial Balance comes after the Balance Sheet. Answer True Question 59 - Correct Answer - False False

Question 60

The Drawing Account appears on the Trial Balance. Answer True False

Answer 60

The Drawing Account appears on the Trial Balance. Answer Question 60 - Correct Answer - True True False