Accounting Quiz

If total liabilities are $75,000 and owner’s equity is $150,000, total assets must be

• $75,000.

• $150,000.

• $250,000.

• $225,000.

Jackson Company received cash on account from customers, $2,300. The accountant would record a

• debit to income from services, $2,300.

• credit to income from services, $2,300.

• debit to accounts receivable, $2,300.

• credit to accounts receivable, $2,300.

Kaufman Company had a beginning normal balance of $15,000 in the accounts payable account. The accountant posted a $5,000 credit on May 6, a $2,500 credit on May 14, and a $8,000 debit on May 26. What is the balance of accounts payable in the general ledger?

• $15,500 credit

• $4,500 debit

• $14,500 credit

• $15,500 debit

In the accounting process, the second step is to

• record the information from a source document.

• record the account numbers in the journal.

• post entries to the ledger accounts.

• prepare a trial balance.

Anderson’s Architectural Design works a five-day workweek and pays $30,000 in salaries every Friday. If the accounting period ended on a Wednesday, which of the following would be the proper adjusting entry?

• Debit Salaries Expense $12,000; credit Salaries Payable $12,000

• Debit Salaries Expense $18,000; credit Salaries Payable $18,000

• Debit Salaries Expense $24,000; credit Salaries Payable $24,000

• Debit Salaries Expense $30,000; credit Salaries Payable $30,000

If the Income Statement Debit and Credit columns on a worksheet are not equal after adding the respective columns,

• the company either generated a net income or incurred a net loss.

• an error has been made.

• the liabilities must exceed the assets.

• the company incurred a net loss.

After journalizing and posting adjusting entries to the general ledger, the balances in the accounts should agree with the balances shown on the

• trial balance.

• income statement.

• chart of accounts.

• adjusted trial balance.

Which of the following is not a result of the closing process?

• The owner’s capital account has a zero balance.

• The owner’s drawing account has a zero balance.

• The revenue account has a zero balance.

• Expense accounts have zero balances.

When transferring a net income for the period to the owner’s capital account,

• the Net Income account is debited.

• the owner’s capital account is credited.

• the Net Income account is credited.

• the Income Summary account is credited.

The Income Statement column on the work sheet for Heidi’s Swiss Chocolates had the following expenses: Wage Expense 2,600, Utilities Expense 1,400, Depreciation Expense 1,500. Which of the following is true regarding the closing of these accounts?

• Income Summary will be debited for $5,500.

• Income Summary will be credited for $5,500.

• Owner’s Capital will be credited for $5,500.

• Owner’s Capital will be debited for $5,500.