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WorksheetsPre-Test Part 1 - Advanced Accounting
Total questions: 24
Worksheet time: 20mins
Name
Class
Date
1.
A transaction recorded in a journal is not considered a permanent record.
a)
True
b)
False
2.
A balance sheet reports financial information for a period of time.
a)
True
b)
False
3.
The source document for an electronic funds transfer is a memorandum.
a)
True
b)
False
4.
The drawing account is a permanent account.
a)
True
b)
False
5.
A transaction for the sale of goods or services results in a decrease in owner’s equity
a)
True
b)
False
6.
The formula for calculating net income is total revenue minus total expenses.
a)
True
b)
False
7.
If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.
a)
True
b)
False
8.
Adjusting entries must be posted to the general ledger accounts.
a)
True
b)
False
9.
Temporary accounts are used to accumulate information until it is transferred to the owner’s capital account.
a)
True
b)
False
10.
If an error is recorded in a journal entry,
a)
a. cancel the error by drawing a neat line through the error.
b)
b. correct the entry by writing the correct item above the canceled error.
c)
c. do not erase the incorrect item.
d)
d. all of these.
11.
The first step in the posting procedure is writing the
a)
a. entry date in the Date column of the account.
b)
b. journal page number in the Post. Ref. column of the journal.
c)
c. account number in the Post. Ref. column of the account.
d)
d. entry amount in the Debit or Credit column of the account.
12.
Income Summary is a(n)
a)
a. asset account.
b)
b. liability account.
c)
c. temporary account.
d)
d. permanent account.
13.
Assets taken out of a business for the personal use of the owner are called
a)
a. net income.
b)
b. net loss.
c)
c. investments.
d)
d. withdrawals.
14.
The entry to establish a $200.00 petty cash fund is
a)
a. debit Petty Cash, $200.00; credit Cash, $200.00.
b)
b. debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00.
c)
c. debit Miscellaneous Expense, $200.00; credit Cash, $200.00.
d)
d. debit Cash, $200.00; credit Petty Cash, $200.00.
15.
If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is
a)
a. increased.
b)
b. decreased.
c)
c. unaffected.
d)
d. correct.
16.
On a work sheet, the balance of the owner’s drawing account is extended to the
a)
a. Income Statement Debit column.
b)
b. Income Statement Credit column.
c)
c. Balance Sheet Debit column.
d)
d. Balance Sheet Credit column.
17.
Information needed to prepare an income statement’s Revenue section is obtained from a work sheet’s Account Title column and
a)
a. Income Statement Debit column.
b)
b. Income Statement Credit column.
c)
c. Balance Sheet Debit column.
d)
d. Balance Sheet Credit column.
18.
When cash is paid for insurance,
a)
a. Prepaid Insurance is decreased.
b)
b. Prepaid Insurance is credited.
c)
c. Prepaid Insurance is increased.
d)
d. none of these.
19.
The first digit in the account number 410 means that the account is in the
a)
a. Assets division of the general ledger.
b)
b. Liabilities division of the general ledger.
c)
c. Revenue division of the general ledger.
d)
d. Expenses division of the general ledger.
20.
The journal entry to close Income Summary when there is a net income is
a)
a. debit Sales; credit Income Summary.
b)
b. debit owner’s capital; credit Income Summary.
c)
c. debit Income Summary; credit Sales.
d)
d. debit Income Summary; credit owner’s capital.
21.
Asset accounts include Cash, Prepaid Insurance, and
a)
a. Accounts Payable.
b)
b. Accounts Receivable.
c)
c. Sales.
d)
d. Utilities Expense.
22.
The formula for calculating the net income ratio is
a)
a. net income divided by total sales.
b)
b. total sales divided by total expenses.
c)
c. total sales minus total expenses divided by net income.
d)
d. none of these.
23.
Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept
a)
a. Matching Expenses with Revenue.
b)
b. Accounting Period Cycle.
c)
c. Consistent Reporting.
d)
d. Going Concern
24.
The normal balance side of any expense account is
a)
a. the debit side.
b)
b. the credit side.
c)
c. the right side.
d)
d. either the debit side or credit side.
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