WorksheetsAccountingMidtermReview
Total questions: 95
Worksheet time: 55mins
Name
Class
Date
1.
What is the normal balance for assets?
a)
DEBIT
b)
CREDIT
c)
None of these responses are correct
2.
What is the normal balance for liabilities?
a)
DEBIT
b)
CREDIT
c)
None of these responses are correct
3.
What is the normal balance for the owner's capital account?
a)
DEBIT
b)
CREDIT
c)
None of these responses are correct
4.
TRUE OR FALSE: ASSETS DECREASE ON THE CREDIT SIDE.
a)
TRUE
b)
FALSE
5.
TRUE OR FALSE: NORMAL BALANCE IS THE SIDE OF THE ACCOUNT THAT IS DECREASED WHEN THERE IS A TRANSACTION.
a)
TRUE
b)
FALSE
6.
TRUE OR FALSE: LIABILITIES DECREASE ON THE CREDIT SIDE.
a)
TRUE
b)
FALSE
7.
TRUE OR FALSE: OWNER'S CAPITAL ACCOUNT INCREASES ON THE CREDIT SIDE AND DECREASES ON THE DEBIT SIDE.
a)
TRUE
b)
FALSE
8.
CASH IS:
a)
An Asset
b)
A Liability
c)
Owner's Equity
d)
None of these responses are correct
9.
ACCOUNTS RECEIVABLE IS:
a)
An Asset
b)
A Liability
c)
Owner's Equity
d)
None of these responses are correct
10.
How many accounts are affected when a transaction is made?
a)
One
b)
Two
c)
Zero
d)
None of these responses are correct
11.
SUPPLIES ARE:
a)
ASSETS
b)
LIABILITIES
c)
CAPITAL
d)
None of these responses are correct
12.
EQUIPMENT IS:
a)
AN ASSET
b)
A LIABILITY
c)
CAPITAL
d)
None of these responses are correct
13.
ACCOUNTS PAYABLE IS:
a)
AN ASSET
b)
A LIABILITY
c)
OWNER'S EQUITY
d)
None of these responses are correct
14.
CAPITAL IS:
a)
AN ASSET
b)
A LIABILITY
c)
OWNER'S EQUITY
15.
The account used to summarize the owner's equity in the business:
a)
Owner's Equity
b)
Capital
c)
Asset
16.
In accounting, a DEBIT is a(n):
a)
Entry on the LEFT side of an account
b)
Entry on the RIGHT side of an account
c)
A small plastic card we carry in our wallet and use to make purchases
d)
None of these responses are correct
17.
In accounting, a CREDIT is a(n):
a)
entry on the LEFT side of an account
b)
entry on the RIGHT side of an account
c)
A small plastic card we carry in our wallets and use to make purchases
d)
None of these responses are correct
18.
Why do accountants use T Accounts?
a)
It's an electronic system which groups transaction
b)
It list all accounts used by a business
c)
It's a tool that helps accountants analyze the parts of a business transaction.
d)
None of these are correct
19.
If you want to know all of the accounts used by a business, simply look at the
a)
Debit
b)
Credit
c)
Chart of Accounts
d)
T Account
20.
The NORMAL BALANCE side of CASH IN BANK is
a)
Debit
b)
Credit
c)
T Account
d)
None of these responses are correct
21.
Assets taken out of a business for the owner's personal use
a)
capital
b)
withdrawals
c)
equities
d)
revenue
22.
Planning, recording, analyzing, and interpreting financial information
a)
accounting
b)
ethics
c)
transaction
d)
revenue
23.
A decrease in owner's equity resulting from the operation of a business
a)
account
b)
capital
c)
asset
d)
expense
24.
A planned process for providing financial information that will be useful to management
a)
accounting system
b)
ethics
c)
transaction
d)
capital
25.
A sale for which cash will be received at a later date
a)
revenue
b)
withdrawal
c)
sale on account
d)
expense
26.
Organized summaries of a business's financial activities
a)
equities
b)
accounting records
c)
liability
d)
transaction
27.
An increase in owner's equity resulting from the operation of a business
a)
asset
b)
expense
c)
withdrawl
d)
revenue
28.
When a business uses credit to buy items, it is buying ______________.
a)
Financial Statements
b)
On Account
c)
Expenses
d)
Equities
29.
The account used to summarize the owner's equity in a business
a)
account
b)
expense
c)
capital
d)
revenue
30.
A business that performs an activity for a fee
a)
proprietorship
b)
service business
c)
capital
d)
asset
31.
The amount in an account
a)
account title
b)
revenue
c)
account balance
d)
accounting records
32.
A business owned by one person
a)
service business
b)
revenue
c)
expense
d)
proprietorship
33.
The name given to an account
a)
account title
b)
capital
c)
expense
d)
revenue
34.
Anything of value that is owned
a)
account
b)
asset
c)
withdrawal
d)
expense
35.
A business activity that changes assets, liabilities, or owner's equity
a)
transaction
b)
expense
c)
revenue
d)
sale on account
36.
Financial rights to the assets of a business
a)
ethics
b)
withdrawals
c)
accounting records
d)
equities
37.
Amount owed by a business
a)
liability
b)
asset
c)
capital
d)
account
38.
How do revenue and investments affect owner's equity?
a)
Both INCREASE owner's equity
b)
Both DECREASE owner's equity
c)
ONLY revenue affects owner's equity and it decreases account.
d)
Only INVESTMENTS affects owner's equity, it increases account.
39.
What account categories are affected when an owner withdraws money?
a)
Assets and Liabilities
b)
Assets and Assets
c)
Assets and Owner's Equity
d)
Liabilities and Owner's Equity
40.
What are the two types of financial claims to property?
a)
Creditor's and Owner's
b)
Asset and Owner
c)
Liability and Asset
d)
No one has financial claims over property
41.
Which of the following would NOT be considered PROPERTY?
a)
Buildings we own
b)
Loans we owe
c)
Equipment we own
d)
Cars we own
42.
If owner's equity is $20,500, and assets are $80,000, liabilities are
a)
$100,500
b)
$59,500
c)
$80,000
d)
$20,,500
43.
If owner's equity is $10,500, and assets are $80,000, liabilities are
a)
$90,500
b)
$80,500
c)
$69,500
d)
$10,500
48.
What is owner's equity?
a)
The amount of money the owner's owes (debt)
b)
The stock options
c)
The assets
d)
The assets minus the liabilities of a business
45.
What is the accounting equation
a)
assets = liabilities = Owners Equity
b)
assets + liabilities = Owners Equity
c)
assets = liabilities + Owners Equity
d)
Assets = assets + liabilities
46.
What is assets?
a)
Cash in the business
b)
Anything that a creditor has financial claim to
c)
What remains after liabilities are paid
d)
any item or property owned by the business
47.
What is liabilities?
a)
Cash in the business
b)
What remains in the assets
c)
Anything a creditor has financial claim to
d)
Any item of property owned
48.
What is owner's equity?
a)
The amount of money the owner's owes (debt)
b)
The stock options
c)
The assets
d)
The assets minus the liabilities of a business
49.
Which of the following would NOT be considered PROPERTY?
a)
Buildings we own
b)
Loans we owe
c)
Equipment we own
d)
Cars we own
50.
What are the two types of financial claims to property?
a)
Creditor's and Owner's
b)
Asset and Owner
c)
Liability and Asset
d)
No one has financial claims over property
51.
What account categories are affected when an owner withdraws money?
a)
Assets and Liabilities
b)
Assets and Assets
c)
Assets and Owner's Equity
d)
Liabilities and Owner's Equity
52.
How do revenue and investments affect owner's equity?
a)
Both INCREASE owner's equity
b)
Both DECREASE owner's equity
c)
ONLY revenue affects owner's equity and it decreases account.
d)
Only INVESTMENTS affects owner's equity, it increases account.
53.
Franchise, Proprietor, Corporation, Partnership have the following in common:
a)
Owner has total control
b)
Training and support is provided
c)
Its a way to form a business and be an entrepreneur
d)
Limited liability
54.
Which of the following is NOT a career opportunity in the field of accounting
a)
Auditing
b)
Budget Analysts
c)
Correction Officer
d)
All of these are careers in the field of accounting
55.
A CPA (certified Public Accountant) is best described as a person that has:
a)
An accounting degree and works for a big accounting firm
b)
A minimum of a B.S., specific number of accounting and business courses and passed a state board exam
c)
An accounting degree from a four year university and passed an accounting class final
d)
A B.S. in accounting took a state board exam
56.
Which of the following has limited liability?
a)
Franchise
b)
Sole proprietor
c)
Partnership
d)
Corporation
57.
Organized summaries of a business's financial activities
a)
accounting records
b)
financial statements
c)
sale on account
d)
account balance
58.
Which of the following is NOT considered one of the "Big Four"
a)
JP Morgan Chase
b)
PWC
c)
Deloitte
d)
EY
59.
A business owned by one person
a)
proprietorship
b)
corporation
c)
partnership
d)
s-corporation
60.
Written in the accounting books or records in their chronological order
a)
Interpreting
b)
Recording
c)
Summarizing
d)
Classifying
61.
Which of the following business organizations best describe a FRANCHISE
a)
a business owned by one person
b)
one business owned by two or more persons.
c)
a business considered to have a life of its own.
d)
a business in which a person buys the rights from a parent company to sell its products/services
62.
Which of the following has unlimited liability?
a)
Corporation
b)
Sole proprietor
c)
Franchise
d)
Partnership
63.
Financial reports that summarize the financial conditions and operations of a business
a)
financial statements
b)
accounting records
c)
accounting system
d)
sale on account
64.
Which of the following business types is considered to have a life of its own?
a)
Sole Proprietor
b)
Partnership
c)
Corporation
d)
Merchandising
65.
Anything of value that is OWNED
a)
asset
b)
liability
c)
revenue
d)
equities
66.
A business that buys raw materials, uses labor and machinery to transform them into finished products:
a)
Merchandising business
b)
manufacturing business
c)
goods producing industry
d)
Service business
67.
A planned process for providing financial information that will be useful to management
a)
accounting system
b)
accounting record
c)
financial statements
d)
sale on account
68.
An entrepreneur is
a)
a person who organizes and prepares a business plan
b)
a person that dreams of one day starting his/her own business
c)
A person that works for a big accounting firm like KPMG
d)
a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so
69.
A business activity that changes assets, liabilities, or owner's equity
a)
accounting equation
b)
transaction
c)
equities
d)
asset
70.
Planning, recording, analyzing, and interpreting financial information
a)
accounting
b)
financial statements
c)
sale on account
d)
transaction
71.
Preparing financial statements takes place in the ____________phase of accounting.
a)
Recording
b)
Interpreting
c)
Summarizing
d)
Service business
72.
Temporary accounts include assets, expenses, and the owner’s drawing account.
a)
True
b)
False
73.
The balances of the liability accounts must be reduced to zero to prepare the accounts for the next period.
a)
True
b)
False
74.
Permanent accounts are used to accumulate information until it is transferred to the owner’s capital account.
a)
True
b)
False
75.
The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.
a)
True
b)
False
76.
The series of accounting activities included in recording financial information for a fiscal period is called an accounting cycle.
a)
True
b)
False
77.
The drawing account is a ________ account.
a)
permanent
b)
temporary
c)
normal
d)
revenue
78.
At the end of a fiscal period, the balances of permanent accounts are summarized and transferred to the owner’s capital account.
a)
True
b)
False
79.
Income Summary is a(n)
a)
asset account
b)
temporary account.
c)
liability account.
d)
permanent account.
80.
Accounts used to accumulate information from one fiscal period to the next are
a)
revenue accounts.
b)
permanent accounts.
c)
temporary accounts.
d)
expense accounts.
81.
Temporary accounts begin each new fiscal period with a
a)
debit balance.
b)
credit balance.
c)
zero balance.
d)
balance equal to the net income.
82.
What type of accounts are revenues, expenses, and withdrawals?
a)
temporary
b)
permanent
c)
assets
d)
liabilities
83.
When should revenue be recognized?
a)
on the date earned, even if cash has not been received
b)
once the cash is received NOT on the date earned
c)
revenue should never be recognized
d)
none of these responses are correct
84.
Each of the following is a business expense except a payment for
a)
advertising
b)
rent
c)
equipment
d)
utility bills
85.
An expense account has normally what type of balance?
a)
Credit
b)
Debit
c)
normal
d)
equal
86.
What is the withdrawal account's purpose?
a)
to record money or assets an owner takes out of the business to continue growing the business
b)
to record money or assets an owner takes invests in the business
c)
to record money or assets an owner takes out of the business for his personal use
d)
to record money or assets that the business has lost due to low sales and a poor economy
87.
Does a credit to a revenue increase or decrease the account balance? why?
a)
increases, because revenue accounts normally have credit balances
b)
increases, because revenue accounts normally have debit balances
c)
decreases, because revenue accounts normally have credit balances
d)
decreases, because revenue accounts normally have debit balances
88.
If the owner of a company takes merchandise for personal use, what account is debited?
a)
Owner's Capital
b)
Owner's withdrawal
c)
Purchases
d)
Cash
89.
What is the correct journal entry for the transaction PAID CASH FOR AN OFFICE FILE CABINET?
a)
Debit Cash and credit Office Equipment
b)
Debit Cash and debit Office Equipment
c)
Debit Office Supplies and credit Cash
d)
Debit Office Equipment and credit Cash
90.
What is the correct journal entry for the transaction RECEIVED CASH FROM SALES, $1,000?
a)
A. Debit Cash and credit Sales
b)
Debit Cash and debit Sales
c)
Debit Sales and credit Cash
d)
Debit Sales and credit Owner's Capital
91.
What is the correct journal entry for the transaction PAID CASH FOR CITY WATER?
a)
Debit Cash and credit Office Equipment
b)
Debit Cash and debit Utilities Expense
c)
Debit Office Equipment and credit Cash
d)
Debit Utilities Expense and credit Cash
92.
What is the correct journal entry for the transaction PAID CASH ON ACCOUNT TO ADAMS SUPPLY COMPANY, $1,200?
a)
Debit Accounts Payable/Adams Supply Company and credit Cash
b)
Debit Accounts Payable/Adams Supply Company and credit Cash
c)
Debit Cash and credit Accounts Payable/Adams Supply Company
d)
A. Debit Supplies and credit Cash
93.
What is the correct journal entry for the transaction BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY, $500?
a)
Debit Accounts Payable/Jones Supply Company and credit Cash
b)
Debit Accounts Payable/ Jones Supply Company and credit Supplies
c)
A. Debit Supplies and credit Accounts Payable/ Jones Supply Company
d)
Debit Supplies and credit Cash
94.
The Mercantile Company has Sales of $20,000. The company has the following expenses:
Advertising Expense - $200
Insurance Expense - $500
Rent Expense - $800
Supplies Expense - $700
Utilities Expense - $1251.
What percent of the sales will go towards paying expenses? approximate
Advertising Expense - $200
Insurance Expense - $500
Rent Expense - $800
Supplies Expense - $700
Utilities Expense - $1251.
What percent of the sales will go towards paying expenses? approximate
a)
5%
b)
12%
c)
17%
d)
20%
95.
The Mercantile Company has Sales of $20,000. The company has the following expenses:
Advertising Expense - $200
Insurance Expense - $500
Rent Expense - $800
Supplies Expense - $700
Utilities Expense - $1251.
After paying all expense, what percent of the sales does the company keep (profits)? approximate
Advertising Expense - $200
Insurance Expense - $500
Rent Expense - $800
Supplies Expense - $700
Utilities Expense - $1251.
After paying all expense, what percent of the sales does the company keep (profits)? approximate
a)
50%
b)
65%
c)
74%
d)
83%
100 %
