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ACCT 1-2 Semester 2 Final Exam Review

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

How is the accounting equation most often stated?

a)

Assets = Liabilities - Owner's Equity

b)

Assets = Liabilities + Owner's Equity

c)

Assets + Liabilities = Owner's Equity

d)

Liabilities = Assets + Owner's Equity

2.

How does an expense affect owner's equity?

a)

increase with a debit

b)

decrease with a debit

c)

increase with a credit

d)

decrease with a credit

3.

What is the account classification when a business owes money (Accounts Payable)?

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Revenue

4.

How does revenue affect owner's equity?

a)

increase with a debit

b)

decrease with a debit

c)

increase with a credit

d)

decrease with a credit

5.

When the owner investments cash in a business, how is the owner's capital account affected?

a)

increase with a debit

b)

decrease with a debit

c)

increase with a credit

d)

decrease with a credit

6.

What is the journal entry when services are sold on account?

a)

Debit Accounts Receivable; Credit Sales

b)

Debit Sales; Credit Accounts Receivable

c)

Debit Accounts Payable; Credit Sales

d)

Debit Sales; Credit Accounts Payable

7.

The procedure for transferring information from a journal entry to a ledger account is called:

a)

Journalizing

b)

Ledgering

c)

Posting

d)

Proving Cash

8.

What is the account classification for the account number 120?

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Revenue

9.

What is it called when determining that the amount of cash agrees with the accounting records?

a)

Journalizing

b)

Posting

c)

Ledgering

d)

Proving Cash

10.

An amount of cash kept on hand and used for making small payments is called:

a)

Petty Cash

b)

On Hand Cash

c)

Small Cash

d)

Mini Cash

11.

What document is prepared each time cash or checks are placed in a bank account?

a)

check stub

b)

deposit slip

c)

check

d)

receipt

12.

What information is NOT recorded on a deposit slip?

a)

date

b)

currency

c)

checks

d)

endorsement

13.

The business form used to order a bank to pay cash from a bank account is called a:

a)

memorandum

b)

check

c)

receipt

d)

deposit slip

14.

If Supplies on trial balance is $800 and supplies on hand is $450, what is adjustment amount?

a)

$800

b)

$450

c)

$1250

d)

$350

15.

If Supplies on trial balance is $800 and supplies on hand is $450, what would the adjusting entry be for this adjustment?

a)

Debit Supplies $350; Credit Supplies Expense $350

b)

Debit Supplies $450; Credit Supplies Expense $450

c)

Debit Supplies Expense $350, Credit Supplies $350

d)

Debit Supplies Expense $450; Credit Supplies $450T

16.

Where is net income reported on a work sheet?

a)

In the Trial Balance column

b)

Income Statement Debit & Balance Sheet Credit columns

c)

Income Statement Credit & Balance Sheet Debit columns

d)

Adjustments column

17.

What is the formula for calculating net income ratio?

a)

Total Sales ÷ Net Income

b)

Net Income ÷ Total Sales

c)

Total Sales + Net Income

d)

Total Sales - Net Income

18.

If total sales are $5000 and net income is $500, what is the net income ratio?

a)

0.1%

b)

1%

c)

10%

d)

100%

19.

What financial statement indicates the financial condition of a business on a specific date?

a)

Income Statement

b)

Balance Sheet

c)

Work Sheet

d)

Schedule of Accounts Receivable

20.

Calculate current capital if Capital balance is $5000, Net Income is $1000 and Drawing is $500:

a)

$5000

b)

$6500

c)

$5500

d)

$4500

21.

What type of accounts are used to accumulate information from one fiscal period to the next?

a)

temporary accounts

b)

permanent accounts

c)

accumulated accounts

d)

fiscal accounts

22.

Which accounts are needed to prepare a post-closing trial balance?

a)

all general ledger accounts

b)

only general ledger accounts with a debit balance

c)

only general ledger accounts with a credit balance

d)

only general ledger accounts that have balances

23.

The series of activities included in recording financial information for a fiscal period:

a)

accounting system

b)

accounting cycle

c)

accounting period

d)

accounting equation

24.

After closing entries are posted, the capital account balance should be the same as on the:

a)

Income Statement

b)

Balance Sheet

c)

Work Sheet

d)

none of the above

25.

If Assets are $30,000 and Liabilities are $12,000, what is the amount of Owner's Equity?

a)

$12,000

b)

$18,000

c)

$30,000

d)

$42,000

26.

After posting, which account is equal to the total of all accounts in the subsidiary ledger?

a)

controlling account

b)

contra account

c)

temporary account

d)

permanent account

27.

If $50 of merchandise is returned from an original invoice of $500, how much should be paid?

a)

$50

b)

$450

c)

$500

d)

$550

28.

How is net pay calculated?

a)

regular earnings + overtime earnings

b)

total earnings + total deductions

c)

total earnings - total deductions

d)

regular earnings - overtime earnings

29.

What does 2/10, n/30 mean on a sales invoice?

a)

2/10 discount if paid in 30 days

b)

10% discount if paid in 2 days

c)

2% discount if paid in 10 days

d)

2% discount if paid in 30 days

30.

A 2/10, n/30 invoice for $500 dated March 2 is paid on March 9. How much should be paid?

a)

$10

b)

$490

c)

$500

d)

$510

31.

A ledger that is summarized in a single general ledger account:

a)

a general ledger

b)

a subsidiary ledger

c)

a journal ledger

d)

a special ledger

32.

A listing of vendor accounts, account balances, and total amount due to all vendors:

a)

Trial Balance

b)

Schedule of Accounts Payable

c)

Schedule of Accounts Receivable

d)

Balance Sheet

33.

How are employee regular earnings calculated?

a)

regular hours divided by regular rate

b)

total hours plus overtime rate

c)

overtime hours times overtime rate

d)

regular hours times regular rate

34.

The form provided by an employer to an employee to report annual earnings and withholdings:

a)

Form W-2

b)

Form W-4

c)

Form 941

d)

Form 1040

35.

Bank statement bal $5,500; outstanding checks $600; outstanding deposits $400. Adjusted bal is?

a)

$4900

b)

$5300

c)

$5700

d)

$6500

36.

If the bal on check stub is $1500, what is new bal after deposit of $500 and check for $165?

a)

$835

b)

$1165

c)

$1835

d)

$2165

37.

Which of the following is true when merchandise is sold on account and sales tax is collected?

a)

Accts Receivable is debited for the total sale & sales tax

b)

Accts Receivable is credited for the total sale & sales tax

c)

Sales is debited for the total sale and sales tax

d)

Sales and Sales Tax Payable are both debited

38.

Why should a business post purchases on acct transactions to accts payable ledger frequently?

a)

to avoid errors in posting

b)

to ensure that the business pays bills on time

c)

to ensure customers pay on time

d)

to follow generally accepted tax procedures

39.

Replenished petty cash: supplies $72; advertising $40; miscellaneous $33. Amount to replenish?

a)

$65

b)

$72

c)

$112

d)

$145

40.

How is an expense account affected when cash is paid for the expense?

a)

increased by a debit

b)

increased by a credit

c)

decreased by a debit

d)

decreased by a credit