WorksheetsAccounting Cycle 2
Total questions: 32
Worksheet time: 16mins
Name
Class
Date
1.
Revenue accounts are closed when they are credited.
a)
True
b)
False
2.
The Retained Earnings account is closed into Capital account.
a)
True
b)
False
3.
Adjustments are prepared and posted before closing the books.
a)
True
b)
False
4.
Expense accounts are closed by crediting them.
a)
True
b)
False
5.
After closing the ledger, only the permanent accounts have balances.
a)
True
b)
False
6.
The post-closing trial balance is a list of temporary accounts.
a)
True
b)
False
7.
A journal with two amount columns in which all kinds of entries can be recorded.
a)
General Journal
b)
Sales Journal
c)
Purchases Journal
d)
Cash Payments Journal
8.
Action by a board of directors to distribute corporate earnings to stockholders.
a)
Paying Dividends
b)
Declaring Dividends
c)
Board of Directors
d)
None of the Above
9.
Earnings distributed to stockholders
a)
Allowance
b)
Shares
c)
Profit
d)
Dividends
10.
Net income increases a corporation’s total stockholders’ equity.
a)
True
b)
False
11.
A corporation’s Dividends account is a temporary account.
a)
True
b)
False
12.
A sales return that credits the customer’s account is recorded in the general journal.
a)
True
b)
False
13.
Transactions that cannot be recorded in a special journal are recorded in a general journal.
a)
True
b)
False
14.
A return of merchandise to the vendor results in
a)
debit to Purchases.
b)
credit to Purchases Returns and Allowances.
c)
credit to Purchases.
d)
debit to Purchases Returns and Allowances.
15.
Employer payroll taxes are business expenses.
a)
True
b)
False
16.
Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.
a)
True
b)
False
17.
If the employee's accumulated earning are $6,500, and the employee earns another $1,500, the amount of new earnings subject to unemployment tax is $1,500.
a)
True
b)
False
18.
The source document for paying employee income tax and social security and Medicare tax is
a)
a check
b)
a receipt
c)
a memorandum
d)
none of these
19.
A business deposits the total of gross wages in a separate payroll checking account.
a)
True
b)
False
20.
Until the amounts withheld from employee salaries are paid by the employer, they are recorded as
a)
assets
b)
liabilities
c)
salary expenes
d)
revenue
21.
Employers are required to furnish each employee with an annual statement of earnings and withholdings before
a)
January 15 of the following year.
b)
January 1 of the following year.
c)
January 31 of the following year.
d)
December 31 of the current year
22.
Accrued interest income on notes receivable is calculated using all of the following information except the
a)
principal.
b)
term of the note
c)
annual interest rate.
d)
date of the note.
23.
The contra account to Office Equipment is
a)
Allowance for Uncollectible Accounts
b)
Accumulated Depreciation Store Equipment
c)
Office Equipment Expense
d)
Accumulated Depreciation - Office Equipment
24.
A business can use any 12-month period for reporting its financial performance.
a)
True
b)
False
25.
The difference between an asset’s account balance and its related contra account is called book value.
a)
True
b)
False
26.
The value of the insurance coverage used is recorded as a debit to Insurance Expense.
a)
True
b)
False
27.
All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.
a)
True
b)
False
28.
There will be a net loss if the Income Statement Debit column total is larger than the Income Statement Credit column total.
a)
True
b)
False
29.
The book value of accounts receivable
a)
is equal to the balance in the Accounts Receivable controlling account.
b)
reflects the amount the business expects to collect in the future.
c)
is calculated as Accounts Receivable less Uncollectible Accounts Expense.
d)
can be obtained from a single general ledger account.
30.
When a semimonthly payroll is paid, the credit to Cash is equal to the
a)
total earnings of all employees.
b)
total deductions for income tax, SS, and Medicare.
c)
total deductions.
d)
net pay of all employees.
31.
What is a business paper from which information is obtained for a journal entry?
a)
Journal
b)
General Journal
c)
Memorandum
d)
Source Document
32.
What is the effect of providing for depriciation?
a)
It increases profit
b)
It reduces profit
c)
It extends the life of non-current assets
d)
It increases the cash balance
100 %
