WorksheetsSemester 2 Accounting Final Review
Total questions: 88
Worksheet time: 44mins
Name
Class
Date
1.
All stock issued by the company is called
a)
stock subscribed
b)
common stock
c)
preferred stock
d)
capital stock
2.
The balance of accounts receivable in the general ledger should equal the total on the
a)
worksheet
b)
Schedule of Accounts Payable
c)
Schedule of Accounts Recievable
d)
Accounts Receivable Debit column on the Cash Receipts Journal
3.
A __ is an account in the general ledge that summarizes all accounts in a subsidiary ledger.
a)
controlling account
b)
contra account
c)
cost account
d)
liability
4.
A __ is owned by stockholders.
a)
sole proprietorship
b)
partnership
c)
corporation
d)
non-profit organization
5.
One of the largest costs for a company that sells a product is the __.
a)
utilities expense
b)
rent expense
c)
cost of merchandise sold
d)
payroll expense
6.
__ refers to the amount you paid to purchase inventory items to sell in your store.
a)
Cost of merchandise sold
b)
Inventory expense
c)
Purchases
d)
Expenses
7.
Cash and any other company asset that will be turned into cash within one year is called a
a)
plant assets
b)
liabilities
c)
liquidity
d)
current assets
8.
A list of all vendors that we still owe money to is called a __.
a)
schedule of vendors
b)
schedule of accounts payable
c)
schedule of accounts receivable
d)
post-closing trial balance
9.
Which type of assets depreciate?
a)
plant assets
b)
current assets
10.
Depreciation refers to
a)
an increase in value
b)
an amount owed
c)
an amount received
d)
a decrease in value
11.
__ are a share of the profit paid to the stockholders
a)
dividends
b)
retained earnings
c)
capital stock
12.
The total original price of all merchandise sold during the a fiscal period is
a)
cost of merchandise sold
b)
inventory value
c)
market price
d)
markup
13.
Amount owed to stockholders when dividends are declared
a)
dividends
b)
dividends payable
c)
retained earnings
d)
capital stock
14.
An error in posting to a ledger
a)
will cause the cash to prove
b)
will not affect the trial balance
c)
may cause the trial balance to be out of balance
d)
none of these
15.
The withholding allowances of an employee affect
a)
social security tax withheld
b)
federal income tax withheld
c)
federal unemployment tax owed
d)
state unemployment tax owed
16.
Some businesses deposit employee net pay directly to each employee's bank account by using
a)
payroll checks
b)
payroll registers
c)
EFT
d)
none of these
17.
Which of the following is the correct formula for the straight-line method of depreciation?
a)
Salvage Value - (Cost/Useful Life)
b)
(Cost-Useful Life)/Salvage Value
c)
Original Cost - (Salvage Value)/Useful Life
18.
Recording expenses in the fiscal period in which the expenses contribute to earning revenue is an application the the accounting concept
a)
Historical Cost
b)
Matching Expenses with Revenue
c)
Adequate Disclosure
d)
Accounting Period Cycle
19.
An amount of an prepaid insurance that is not expired/used up at the end of a fiscal period represents a(n)
a)
liability
b)
expense
c)
asset
d)
revenue
20.
An amount of an asset that is expired/used up at the end of a fiscal period represents a(n)
a)
asset
b)
liability
c)
revenue
d)
expense
21.
Which of the following will increase gross profit on sales?
a)
increase revenue
b)
decrease inventory
c)
decrease cost of merchandise sold
d)
all of these
22.
Which of the following is NOT a permanent account?
a)
expense
b)
asset
c)
liability
d)
retained earnings
23.
What does it mean to close an account?
a)
delete it from the chart of accounts
b)
pay it off
c)
make it have a zero balance
d)
none of these
24.
Which accounts would have to be closed?
a)
expenses
b)
revenue
c)
dividends
d)
all of these
25.
a report prepared to give details about an item on a principal financial statement is called
a)
balance sheet
b)
income statement
c)
post-closing trial balance
d)
supporting schedule
26.
A __ shows all accounts that are still open at the end of the accounting period.
a)
post-closing trial balance
b)
worksheet
c)
trial balance
d)
none of these
27.
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable is called
a)
allowance
b)
sales allowance
c)
purchases returns
d)
purchases allowance
28.
a ledger that is summarized in a single general ledger account
a)
subsidiary ledger
b)
general ledger
c)
general journal
d)
none of these
29.
Which of the following is an example of a subsidiary ledger?
a)
accounts receivable ledger
b)
general ledger
c)
post-closing trial balance
d)
worksheet
30.
a business form used to record details affecting payments made to an individual employee
a)
employee earnings record
b)
payroll register
c)
check stub
d)
none of these
31.
a federal tax paid for hospital insurance
a)
health insurance premiums payble
b)
Medicare tax
c)
Social Security tax
d)
hospital insurance
32.
A financial statement that shows changes in a corporation's ownership for a fiscal period is called
a)
income statement
b)
balance sheet
c)
statement of stockholder's equity
d)
cash flow statement
33.
a source document that shows amount of cash and credit card sales for a given time period
a)
terminal summary
b)
check
c)
receipt
d)
memo
34.
__ are recorded so that the accounts are zeroed out and ready for the next fiscal period.
a)
closing entries
b)
adjusting entries
c)
both of these
d)
none of these
35.
charge customers do not pay and the company gives up on collecting the amount owed
a)
uncollectible accounts
b)
accounts receivable
c)
accounts payable
d)
none of these
36.
a deduction from total earnings for each person legally supported by a taxpayer, including the employee
a)
W-4
b)
employee withholding allowance
c)
federal income tax
d)
social security
37.
The withholding allowance is used to determine the amount of __ to withhold
a)
Social Security
b)
Medicare
c)
Health Insurance
d)
Federal Income Tax
38.
difference between total revenue and total expenses when total revenue is larger
a)
net loss
b)
net income
c)
gross profit on sales
d)
gross pay
39.
Adjusting and closing entries are recorded in the
a)
cash payments journal
b)
cash receipts journal
c)
sales journal
d)
general journal
40.
When making the adjusting entries for supplies and prepaid insurance you get the numbers
a)
from the trial balance of the worksheet
b)
by taking the trial balance number and subtracting the number given in the directions
c)
by adding the trial balance number and the number in the directions
d)
by copying the number from the directions
41.
When making the adjusting entries for supplies and prepaid insurance, you need to determine the
a)
amount used
b)
amount left
c)
amount you started with
d)
none of these
42.
The purpose of the post-closing trial balance is to prove the general ledger equality of debits and credits in the general ledger
a)
True
b)
False
43.
Preparing the general ledger for the next fiscal period is an application of which accounting concept?
a)
Business Entity
b)
Consistent Reporting
c)
Matching Expenses with Revenue
d)
Historical Cost
44.
The closing entry for income statement accounts with debit balances closes only the expense accounts.
a)
True
b)
False
45.
Information needed for journalizing adjusting entries is taken from the adjustments column of the worksheet.
a)
True
b)
False
46.
Information needed for journalizing closing entries is taken from the adjustments columns of the worksheet
a)
True
b)
False
47.
On a worksheet, the amount in the income summary account is
a)
extended to the income statement column
b)
extended to the balance sheet columns
c)
not extended
48.
A temporary account used for closing entries is called
a)
Merchandise Inventory
b)
Capital Stock
c)
Income Summary
d)
Retained Earnings
49.
The column totals of an employee earnings record provide the debit and credit amounts needed to journalize a payroll.
a)
True
b)
False
50.
The higher the net income of a corporation, the lower the TAX RATE of federal income tax they will pay.
a)
True
b)
False
51.
When the earnings per share is high, this means that a company is more profitable.
a)
True
b)
False
52.
A customer must ship damaged goods back to the vendor to obtain a purchase allowance.
a)
True
b)
False
53.
A corporation has the same legal rights as a person.
a)
True
b)
False
54.
The amount of net income after federal income tax belonging to a single share of stock is called
a)
earnings per share
b)
price-earnings ratio
c)
dividends
d)
retained earnings
55.
Net Income after federal income tax divided by Number of Shares Outstanding is used to find
a)
price earnings ratio
b)
cost of merchandise sold
c)
earnings per share
d)
component percentage
56.
A list of vendor accounts where you post journal entries is called
a)
accounts receivable ledger
b)
accounts payable ledger
c)
post-closing trial balance
d)
journal
57.
The revenue remaining after cost of merchandise sold has been deducted
a)
Gross Profit on Sales
b)
Net Income Before Tax
c)
Net Income After Tax
d)
Cost of Merchandise Available for Sale
58.
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decease in the customer's accounts payable is known as
a)
Purchases returns
b)
Purchases allowances
c)
Sales returns
d)
Sales allowances
59.
When a business keeps its accounting records on the assumption that it will make money and continue indefinitely, it is applying the concept called
a)
Adequate Disclosure
b)
Matching Expenses with Revenue
c)
Going Concern
d)
Historical Cost
60.
An error in posting may cause the income to be overstated or understated on the income statement.
a)
True
b)
False
61.
Payroll taxes WITHHELD represent a(n) ___ for an employer until payment is made.
a)
asset
b)
liability
c)
revenue
d)
expense
62.
The marital status and withholding allowances of an employee affect the amount of __ withheld.
a)
Social Security Tax
b)
Medicare Tax
c)
Retirement Contribution
d)
Federal Income Tax
63.
The amount recorded in Income Summary is extended to the __ column.
a)
Balance Sheet
b)
Income Statement
c)
Trial Balance
d)
Adjustment
64.
The balance of Merchandise Inventory in the __ columns of the worksheet represents the beginning balance plus all purchases of merchandise made in the fiscal period.
a)
Trial Balance
b)
Adjustments
c)
Balance Sheet
d)
Income Statement
65.
When you are calculating component percentages, you always divide the number by which amount?
a)
Sales
b)
Net Income
c)
Assets
d)
Total expenses
66.
A higher earnings per share means that a company is more profitable than a company with a lower earnings per share.
a)
True
b)
False
67.
Assets that will be used for a number of years are known as __.
a)
Current Assets
b)
Plant Assets
c)
Fixed Expenses
d)
Variable Expenses
68.
A __ has the legal rights of person.
a)
sole proprietorship
b)
partnership
c)
retail business
d)
corporation
69.
A subsidiary ledger that has the charge customers listed is called the
a)
Accounts Payable
b)
Accounts Receivable
c)
General
70.
The total shares of ownership in a corporation are known as
a)
Shares Issued
b)
Shares Outstanding
c)
Capital Stock
d)
Par Value
71.
A business form used to record payroll information is called the
a)
payroll register
b)
employee earnings record
c)
general journal
d)
general ledger
72.
A business form used to record details affecting payments made to an employee is called the
a)
payroll register
b)
employee earnings record
c)
general ledger
d)
post-closing trial balance
73.
A report prepared to give details about an item on a principal financial statement
a)
supporting schedule
b)
subsidiary ledger
c)
schedule of accounts receivable
d)
schedule of accounts payable
74.
The report that summarizes the cash and credit card sales of a point-of sale terminal
a)
batch report
b)
income statement
c)
statement of stockholder's equity
d)
terminal summary
75.
The Accumulated Earnings column of the employee earnings record
a)
is the total earnings since the first of the year
b)
shows net pay for one quarter
c)
shows net pay for the year
d)
is the gross earnings for one quarter
76.
An error in posting to a ledger
a)
may cause the trial balance to be out of balance
b)
will not affect the trial balance
c)
will cause the cash to prove
d)
will only affect the worksheet
77.
When someone has their pay deposited directly in to their bank account, this is known as
a)
EFT
b)
payroll check processing
c)
payroll deposit
78.
Preparing a worksheet at the end of each fiscal period is an application of
a)
Accounting Period Cycle
b)
Adequate Disclosure
c)
Matching Expenses with Revenue
d)
Historical Cost
79.
Recording expenses in the fiscal period in which expenses contribute to earning revenue is the application of
a)
Historical Cost
b)
Adequate Disclosure
c)
Matching Expenses with Revenue
d)
Accounting Period Cycle
80.
On a worksheet Purchases is extended to the
a)
Income Statement Debit column
b)
Income Statement Credit Column
c)
Balance Sheet Debit column
d)
Balance Sheet Credit Column
81.
After adjusting and closing entries have been posted, a
a)
balance sheet is prepared
b)
trial balance is prepared
c)
post-closing balance sheet is prepared
d)
post-closing trial balance is prepared
82.
After closing entries have been posted, the accounts that remain open are the
a)
asset, liability, capital stock, and retained earnings accounts
b)
asset, liability, and cost accounts
c)
asset, liability, and dividends accounts
d)
asset, liability, and expense accounts
83.
Calculate the straight-line depreciation for an asset that was purchased for $5,000 and has a useful life of 5 years. The salvage value is $500.
a)
$900
b)
$4500
c)
$1,000
d)
$1,500
84.
To close expense and cost accounts,
a)
debit the expense accounts and credit the capital accounts
b)
debit Income Summary; credit the expense accounts and cost accounts
c)
debit the expense and cost accounts; credit Income Summary
85.
Each revenue account must begin each fiscal period with a
a)
debit balance
b)
credit balance
c)
zero balance
d)
balance reflecting net income from the previous period
86.
To record the declaring of a divident,
a)
debit Dividends expense and credit dividends payable
b)
debit Retained Earnings and credit Dividends Payable
c)
debit Dividends; credit cash
d)
Debit Dividends Payable and Credit Dividends
87.
The par value of common stock is reported on the
a)
statement of stockholder's equity
b)
income statement
c)
balance sheet
d)
post-closing trial balance
88.
A form used to post to journal entries listing all charge customers is called
a)
accounts receivable ledger
b)
accounts payable ledger
c)
general ledger
d)
post-closing trial balance
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