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WorksheetsAccounting I Review
Total questions: 60
Worksheet time: 30mins
Name
Class
Date
1.
An amount recorded on the right side:
a)
Debit.
b)
Credit.
c)
An increase.
d)
A decrease.
2.
When a business buys an asset on one date and agrees to pay on a later date, the transaction is:
a)
delayed.
b)
on account.
c)
increased.
d)
none of these.
3.
The source document for cash payments is a:
a)
check.
b)
memorandum.
c)
receipt.
d)
sales invoice.
4.
A ______ is used as a source document for recording a sale on account.
a)
invoice
b)
check
c)
receipt
d)
memorandum
5.
A business form giving written acknowledgement for cash received is called a:
a)
receipt.
b)
check.
c)
invoice.
d)
memorandum.
6.
A _________ is used as a source document when there is no other source document for a transaction.
a)
memorandum
b)
receipt
c)
check
d)
calculator tape
7.
When journalizing transactions in the Cash Receipts Journal you need ____________ as your source document.
a)
memorandum
b)
check
c)
sales invoice
d)
receipt
8.
If a customer buys $300.00 worth of merchandise and the sales tax is 8%, the total bill the customer must pay is:
a)
$300.00
b)
$304.00
c)
$324.00
d)
$342.00
9.
In the United States, recording business transactions in dollars is an application of the accounting concept :
a)
Unit of Measurement.
b)
Business Entity.
c)
Going Concern.
d)
Separation of Records.
10.
What does 3/15, n/30 mean?
a)
3% discount if paid by the 15th otherwise due by the 30th
b)
3% discount if paid in 15 days otherwise due in 30 days
c)
15% discount when paid in 30 days
d)
3% due in 15 days rest due in 30 days
11.
When the owner withdraws cash for personal use:
a)
liabilities increase and assets decrease
b)
assets decrease and owner's equity increases
c)
assets decrease and owner's equity decreases
d)
abilities decrease and assets decrease
12.
An amount owed by a business:
a)
Capital.
b)
Owner's Equity.
c)
Asset.
d)
Liability.
13.
The normal balance side of any revenue account is:
a)
the debit side.
b)
the credit side.
c)
the left side.
d)
none of these.
14.
When journalizing a replenish petty cash transaction you need to use the following accounts:
a)
petty cash, cash, and accounts from source documents.
b)
petty cash and accounts from source documents.
c)
cash and accounts from source documents .
d)
cash and petty cash.
15.
When merchandise is withdrawn by an owner, the:
a)
transaction will increase the balance of the drawing account and decrease the balance of the purchases account.
b)
balance of the purchases account is in check.
c)
other partner must also take an equal amount of merchandise out of the business for personal use.
d)
source document for the transaction is a check.
16.
If a business paid cash for repairs to equipment, this would:
a)
increase owner's equity.
b)
increase liabilities.
c)
decrease owner's equity.
d)
decrease liabilities.
17.
A sale on account transaction:
a)
increases the balance of the accounts payable account.
b)
increases the amount to be collected later from a customer.
c)
decreases the amount to be collected later from a customer.
d)
decreases the balance of the accounts receivable account.
18.
The journal entry to adjust Supplies is:
a)
debit Supplies, credit Supplies Expense.
b)
debit Supplies Expense, credit Supplies.
c)
debit Income Summary, credit Supplies.
d)
debit Supplies Expense, credit Income Summary.
19.
When cash is paid for an expense:
a)
assets increase, owner's equity increases.
b)
assets decrease, owner's equity decreases.
c)
assets decrease, owner's equity increases.
d)
none of these.
20.
When cash is paid on account:
a)
two assets are changed.
b)
one asset and owner's equity are changed.
c)
one liability and owner's equity are changed.
d)
one asset and one liability are changed.
21.
The account used to summarize the owner's equity in a business:
a)
Owner's Equity.
b)
Asset.
c)
Capital.
d)
Accounts Payable.
22.
Liabilities are :
a)
listed on the right side of the balance sheet
b)
listed on the left side of the balance sheet
c)
listed on both sides of the balance sheet
d)
not listed on the balance sheet
23.
Total assets are $19,500.00. Cash is paid for $1,500.00 of supplies. The total assets are now:
a)
$19,500.00
b)
$21,000.00
c)
$18,000.00
d)
$22,500.00
24.
If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is:
a)
increased by $2,000.00
b)
decreased by $2,000.00
c)
increased by $1,000.00
d)
not changed.
25.
When a business pays cash for supplies:
a)
liabilities increase.
b)
assets and liabilities increase.
c)
assets and liabilities decrease.
d)
assets increase and assets decrease.
26.
When journalizing cash short and over you need to record shorts as a:
a)
a debit.
b)
a credit.
c)
neither a debit or credit.
27.
Anything of value that is owned:
a)
Capital.
b)
Owner's Equity.
c)
Asset.
d)
Liability.
28.
On May 4 you bought $3,400 merchandise with a 25% trade discount on account with 2/10 n/30 payment terms. On May 10 you returned $120 in merchandise. On May 15 you pay the amount in full. What was the amount of the check?
a)
$2,430.00
b)
$2,381.40
c)
$3,214.40
d)
$2,499.00
29.
Two transactions that decrease owner's equity are
a)
expenses and withdrawals.
b)
expenses and investments.
c)
withdrawals and liabilities.
d)
liabilities and expenses.
30.
An amount recorded on the left side:
a)
debit.
b)
credit.
c)
increase.
d)
decrease.
31.
If a business received $2,000.00 from sales, this would:
a)
increase assets and increase owner's equity
b)
increase assets and decrease liabilities
c)
increase liabilities and decrease owner's equity
d)
decrease assets and decrease owner's equity
32.
The amount added to the cost of merchandise to establish the selling price.:
a)
Sales Amount.
b)
Markup.
c)
Sales Tax Amount.
33.
Michael wants to establish a $500 petty cash fund for his business. He has requested a check for $500. What is the correct journal entry to record the transaction?
a)
Debit Cash $500 and credit Petty Cash $500
b)
Debit Miscellaneous Expense $500 and credit Cash $500
c)
Debit Petty Cash $500 and credit Cash $500
d)
Debit Petty Cash $500 and credit Miscellaneous Expense $500
34.
The transaction, PAID CASH FOR RENT, would result in which journal entry?
a)
Debit Cash and credit Miscellaneous Expense
b)
Debit Cash and credit Rent Expense
c)
Debit Miscellaneous Expense and credit Cash
d)
Debit Rent Expense and credit Cash
35.
What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000?
a)
Debit Cash and credit Dana Jackson, Capital
b)
Debit Cash and credit Dana Jackson, Drawing
c)
Debit Dana Jackson Capital and credit Cash
d)
Debit Miscellaneous Expense and credit Dana Jackson, Capital
36.
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $2500?
a)
Debit Cash and credit Accounts Payable
b)
Debit Accounts Payable and credit Cash
c)
Debit Cash and credit Sales
d)
Debit Sales and credit Sales
37.
What is the correct entry for the transaction, PAID CASH FOR NEWSPAPER ADVERTISEMENT, $200?
a)
Debit Cash and credit Advertising Expense
b)
Debit Cash and credit Miscellaneous Expense
c)
Credit Cash and credit Advertising Expense
d)
Debit Advertising Expense and credit Cash
38.
What is an example of an account that has a normal debit balance?
a)
Mary Johnson, Capital
b)
Accounts Payable/Ray's Office Equipment
c)
Rent Expense
d)
Sales
39.
Cash, Office Equipment, and Prepaid Insurance are all classified as:
a)
assets.
b)
liabilities.
c)
owner's equity.
d)
revenue.
40.
The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
a)
Debit Cash and credit Miscellaneous Expense
b)
Debit Cash and debit Miscellaneous Expense
c)
Debit Miscellaneous Expense and credit Cash
d)
Debit Supplies and credit Miscellaneous Expense
41.
What is the correct entry for the transaction, PAID $150 FOR ADVERTISING?
a)
Credit Cash and credit Advertising Expense
b)
Debit Advertising Expense and credit Cash
c)
Debit Cash and credit Advertising Expense
d)
Debit Cash and credit Miscellaneous Expense
42.
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?
a)
Debit Accounts Receivable/Parker INC., and credit Cash
b)
Debit Cash and credit Accounts Receivable/Parker, INC.
c)
Debit Cash and credit Supplies
d)
Debit Supplies and credit Cash
43.
On April 16, Caldwell Company received notice from the bank of a dishonored check from Hickory Hosiery in the amount of $55.00. The bank charged a service fee of $25.00. What is the correct journal entry for Caldwell Company to record the dishonored check?
a)
Debit Accounts Receivable-Hickory Hosiery $55.00, debit Bank Service Charge $25.00; credit Cash $80.00
b)
Debit Accounts Receivable-Hickory Hosiery $80.00, Credit Bank Service Charge $25.00, Credit Cash
$55.00
$55.00
c)
Debit Accounts Receivable-Hickory Hosiery $80.00; credit Cash $80.00
d)
Debit Cash $80.00; credit Accounts Receivable-Hickory Hosiery $80.00
44.
What is the correct journal entry for the transaction, PAID CASH FOR REPAIRS, $95?
a)
Debit Cash and credit Miscellaneous Expense
b)
Debit Cash and credit Repair Expense
c)
Debit Miscellaneous Expense and credit Cash
d)
Debit Repair Expense and credit Cash
45.
What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
a)
Decreased by $1,000
b)
Decreased by $2,000
c)
Increased by $1,000
d)
Increased by $2,000
46.
What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, $75?
a)
Debit Accounts Payable/Steinman Company and credit Cash
b)
Debit Accounts Payable/Steinman Company and credit Supplies
c)
Debit Supplies and credit Accounts Payable/Steinman Company
d)
Debit Supplies and credit Cash
47.
What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER?
a)
Debit Cash and credit Owner's Capital
b)
Debit Owner's Drawing and credit Cash
c)
Debit Miscellaneous Expense and credit Cash
d)
Debit Supplies and credit Cash
48.
The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal
entry?
entry?
a)
Debit Accounts Receivable/Beth Parker and credit Cash
b)
Debit Accounts Receivable/Beth Parker and credit Sales
c)
Debit Cash and credit Accounts Receivable/Beth Parker
d)
Debit Cash and credit Sales
49.
Rent, the telephone bill, and advertising costs are all classified as:
a)
assets.
b)
expenses.
c)
liabilities.
d)
revenue.
50.
What is an example of an account that has a normal credit balance?
a)
Cash
b)
Accounts Payable/Jones Supply
c)
Prepaid Insurance
d)
Supplies
51.
Scott wants to replenish the $225 petty cash fund. He has receipts for the following total payments: supplies, $35; and repairs, $15. A cash count shows $175 in the petty cash box. What is the correct journal entry to record the transaction?
a)
Debit Cash $50 and credit Miscellaneous Expense $50
b)
Debit Miscellaneous Expense $50 and credit Cash $50
c)
Debit Repair Expense $15, debit Supplies $35 and credit Cash $50
d)
Debit Repair Expense $15, debit Supplies $35 and credit Petty Cash $50
52.
The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
a)
Debit Accounts Payable/Davis Supply Store and credit Supplies
b)
Debit Supplies and credit Accounts Payable/Davis Supply Store
c)
Debit Supplies and credit Supplies Expense
d)
Debit Supplies Expense and credit Supplies
53.
What is the correct journal entry for the transaction, RECEIVED BIKE RENTAL FEES, $375?
a)
Debit Cash and credit Rental Fees
b)
Debit Miscellaneous Expense and credit Cash
c)
Debit Rental Fees and credit Cash
d)
Debit Rental Fees and credit Miscellaneous Expense
54.
Sales is classified as:
a)
assets.
b)
expenses.
c)
liabilities.
d)
revenue.
55.
What is an example of an account that has a normal debit balance?
a)
Accounts Receivable/Oakdale School
b)
Accounts Payable/Jones Supply
c)
Mary Johnson, Capital
d)
Sales
56.
What is an example of an account that has a normal credit balance?
a)
Case
b)
Office Equipment
c)
Sales
d)
Supplies
57.
The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?
a)
Debit Cash and credit Utilities Expense
b)
Debit Cash and credit Ted Bright, Drawing
c)
Debit Ted Bright, Drawing and credit Cash
d)
Debit Utilities Expense and credit Cash
58.
The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?
a)
Debit Cash and credit Legal Expenses
b)
Debit Cash and credit Legal Fees
c)
Debit Legal Fees and credit Cash
d)
Debit Miscellaneous Expense and credit Legal Fees
59.
The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
a)
Debit Accounts Payable/Davis Supply Store and credit Supplies
b)
Debit Supplies and credit Accounts Payable/Davis Supply Store
c)
Debit Supplies and credit Supplies Expense
d)
Debit Supplies Expense and credit Supplies
60.
The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
a)
Debit Cash and credit Insurance Expense
b)
Debit Cash and credit Prepaid Insurance
c)
Debit Insurance Expense and credit Cash
d)
Debit Prepaid Insurance and credit Cash
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