Accounting I Post-Test Study Guide

1. Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.

• True

• False

Which of the following can a corporation do? Choose all that apply.

• Own property

• Incur liabilities

• Enter into contracts in its own name

• None of these

Which of the following accounts are temporary accounts? Choose all that apply.

• Cash

• Accounts Payable

• Sales

• Cash Short and Over Expense

Errors found in the process of totaling and proving a journal page do not need to be corrected until the end of a fiscal period.

• True

• False

Sales Taxes are stated as a percentage of

• Accounts Receivable

• Accounts Payable

• Taxable Sales

• Taxable Purchases

Which of the following accounts have a normal debit balance? Choose all that apply.

• Salary Expense

• Sales Tax Payable

• Cash

• Dividends Payable

What happens when cash is received on account?

• Cash is increased and A/R is decreased

• A/R is increased and Cash is increased

• A/P is decreased and Cash is increased

• None of these is correct.

A listing of customer accounts, account balances, and total amount due from all customers is called

• Schedule of Accounts Payable

• Schedule of Accounts Receivable

• Post-Closing Trial Balance

• Chart of Accounts

The balance of the controlling account Accounts Payable equals

• the total of all customer account balances in the accounts receivable subsidiary ledger.

• the total of all vendor account balances in the accounts payable subsidiary ledger.

• the total of all account balances in the general ledger

• none of these is correct

The money paid for employee services is

• a salary

• wages

• payroll

• earnings