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WorksheetsAccounting Exam
Total questions: 95
Worksheet time: 6hrs 14mins
Name
Class
Date
1.
The use of ethics in making business decisions
a)
business ethics
b)
sale on account
c)
accounting records
d)
accounting systems
2.
Planning, recording, analyzing, and interpreting financial information
a)
accounting
b)
financial statements
c)
sale on account
d)
transaction
3.
A business activity that changes assets, liabilities, or owner's equity
a)
accounting equation
b)
transaction
c)
equities
d)
asset
4.
An equation that shows the relationship among assets, liabilities, and owner's equity.
a)
Accounting equation
b)
account balance
c)
accounting system
d)
account records
5.
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
6.
The amount in an account
a)
account balance
b)
withdrawals
c)
transaction
d)
expense
7.
The account used to summarize the owner's equity in the business.
a)
capital
b)
revenue
c)
sale on account
d)
asset
8.
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
a)
owner's equity
b)
liability
c)
account balance
d)
expense
9.
A record summarizing all the information pertaining to a single item in the accounting equation.
a)
account
b)
asset
c)
capital
d)
transaction
10.
A business owned by one person
a)
proprietorship
b)
corporation
c)
partnership
d)
s-corporation
11.
Organized summaries of a business's financial activities
a)
accounting records
b)
financial statements
c)
sale on account
d)
account balance
12.
Anything of value that is OWNED
a)
asset
b)
liability
c)
revenue
d)
equities
13.
A sale for which cash will be received at a later date
a)
sale on account
b)
accounts payable
c)
liability
d)
withdrawals
14.
Assets taken out of a business for the owner's personal use
a)
withdrawals
b)
revenue
c)
expenses
d)
assets
15.
Financial rights to the assets of a business
a)
equities
b)
ethics
c)
expenses
d)
liability
16.
An increase in owner's equity resulting from the operation of a business
a)
revenue
b)
expenses
c)
withdrawals
d)
accounting system
17.
A business that performs an activity for a fee
a)
service business
b)
manufacturing business
c)
goods producing industry
d)
farming
18.
The principles of right & wrong that guide an individual in making decisions
a)
ethics
b)
liability
c)
society
d)
equities
19.
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
20.
An amount OWED by a business
a)
liability
b)
asset
c)
owner's equity
d)
capital
21.
a decrease in owner's equity resulting from the operation of a business
a)
expense
b)
asset
c)
revenue
d)
withdrawal
22.
After each transaction, the accounting equation must remain in balance.
a)
True
b)
False
23.
Total assets are the amount the owner has invested in the business
a)
True
b)
False
24.
When 2 asset accounts are changed in a transaction, there must be an increase and a decrease.
a)
True
b)
False
25.
Detailed information about changes in owner's equity is needed by owners and managers to make sound business decisions.
a)
True
b)
False
26.
When items are bought and paid for at a future date, another way to state his is to say these items are bought on account.
a)
True
b)
False
27.
When financial records for a business and for its owner's personal belongings are not mixed, this is an application of the Business Entity accounting concept.
a)
True
b)
False
28.
The capital account is the owner's liability account.
a)
True
b)
False
29.
Payments for advertising, equipment repairs, utilities and rent are expense transactions.
a)
True
b)
False
30.
The most common type of withdrawal by an owner from a business is the withdrawal of cash.
a)
True
b)
False
31.
When an owner withdrawals cash from the business, the transaction affects both assets and owner's equity.
a)
True
b)
False
32.
A withdrawal is an expense.
a)
True
b)
False
33.
Paid cash on account to Lee's Supplies would result in which of the following
a)
decrease in cash, decrease in accounts payable- Lee's supplies
b)
decrease in cash, increase in accounts payable- Lee's supplies
c)
decrease in cash, decrease in Owner's equtiy
d)
increase in cash, increase in accounts receivable- Lee's supplies
34.
Sold services on account to Jones Computers would result in which of the following?
a)
increase in Accounts Receivable- Jones Computers, increase in Owner's Equity
b)
increase in Accounts Receivable- Jones Computers, decrease in Owner's Equity
c)
Increase in cash, Increase in Owner's Equity
d)
Increase in Cash, Increase in Accounts Payable- Jones Computers
35.
Paid Cash for Rent results in which of the following
a)
decrease in Cash, decrease in Owner's Equity
b)
decrease in Cash, decrease in Supplies
c)
Increase in cash, increase in Owner's Equity
d)
decrease in cash, increase in Accounts Payable
36.
When services are sold on account for $500.00,
a)
Sales is decreased with a debit & an accounts receivable account is increased with a credit.
b)
Sales is increased with a debit & Cash is increased with a credit.
c)
Sales is increased with a credit & an accounts receive account is increased with a debit.
d)
Sales is increased with a credit & Cash is increased with a debit.
37.
When $1,500 cash is received on account...
a)
Sales is increased with a credit & Cash is increased with a credit
b)
Accts. Receivable is increased with a debit & Cash is increased with a credit.
c)
Accts. Receivable is decreased with a credit & Cash is increased with a debit.
d)
Accts. Receivable is decreased with a debit & Cash is increased with a debit.
38.
When cash is received from sales, the change in the owner's equity is usually
a)
recorded in a separate revenue account
b)
recorded directly in the owner's capital account
c)
recorded as interest revenue
d)
always recorded on the debit side
39.
The normal balance side of any expense account is the
a)
debit side
b)
credit side
c)
left side none of these
40.
The normal balance side of any revenue account is the
a)
debit side
b)
credit side
c)
left side none of these
41.
The normal balance side of an owner's capital account is the
a)
debit side
b)
credit side
c)
left side none of these
42.
When a business pays cash on account, a liability account is
a)
increased by a debit
b)
increased by a credit
c)
decreased by a debit
d)
decreased by a credit
43.
When the owner invests cash in a business, the owner's capital account is
a)
increased by a debit
b)
increased by a credit
c)
decreased by a debit
d)
decreased by a credit
44.
When cash is paid for rent, Rent Expense is
a)
increased by a debit
b)
increased by a credit
c)
decreased by a debit
d)
decreased by a credit
45.
The right side of a T account is the
a)
debit side
b)
credit side
c)
normal balance side
d)
equity side
46.
When cash is paid for supplies, the supplies account is increased by a debit.
a)
True
b)
False
47.
Advertising expense is increased with a debit.
a)
True
b)
False
48.
Kim Park, Drawing is decreased with a credit.
a)
True
b)
False
49.
A business form giving written acknowledgment for cash received.
a)
receipt
b)
sales invoice
c)
check
d)
memorandum
50.
A form on which a brief message is written describing a transaction.
a)
memorandum
b)
receipt
c)
invoice
d)
check
51.
Information for each transaction recorded in a journal.
a)
entry
b)
journal
c)
source document
d)
special amount column
52.
Recording transactions in a journal
a)
journalizing
b)
double-entry accounting
c)
proving cash
d)
source document
53.
The recording of debit and credit parts of a transaction.
a)
double-entry accounting
b)
journalizing
c)
entry
d)
receipt
54.
A form describing the goods or services sold, the quantity and the price.
a)
invoice
b)
memo
c)
check
d)
journal
55.
A business paper from which information is obtained for a journal entry.
a)
source document
b)
proving cash
c)
journal
d)
entry
56.
Determining the amount of cash agrees with the accounting record
a)
proving cash
b)
double-ruling
c)
invoice
d)
double-entry accounting
57.
When cash is paid for insurance, the
a)
prepaid insurance account is decreased
b)
prepaid insurance account is credited
c)
balance of prepaid insurance account is increased
d)
none of these
58.
The entry to record receipt of cash from the owner as an investment is
a)
debit Capital, credit Cash
b)
debit Cash, credit Capital
c)
debit Cash, credit Accounts Payable
d)
none of these
59.
A journal entry includes
a)
the debit part of a transaction recorded under one date & the credit part recorded at a later date.
b)
the debit & credit parts of a transaction recorded in one place
c)
more debits than credits
d)
none of these
60.
Preparing source documents for each transaction is an example of the accounting concept
a)
Business Entity
b)
Unit of Measurement
c)
Objective Evidence
d)
Going Concern
61.
The last step in the posting procedure is writing the
a)
entry date in the Date column of the account
b)
journal page number in the Post. Ref. column of the account
c)
entry amount in the Debit or Credit column of the account
d)
none of these
62.
If posting is interrupted, the accounting personnel know to resume posting
a)
on the line with a blank Post. Ref. column in the journal
b)
at the beginning of the journal page
c)
the nextday
d)
all of these
63.
The first step in the posting procedure is writing the
a)
entry date in the Date column of the account
b)
journal page number in the Post. Ref. column of the account
c)
entry amount in the Debit or Credit column of the account
d)
none of these
64.
The procedure for transferring information from a journal entry to a ledger account is
a)
posting
b)
journalizing
c)
file maintenance
d)
none of these
65.
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are
a)
posting
b)
doing file maintenance
c)
journalizing
d)
none of these
66.
The first digit in the account number 120 means that the account is in the
a)
expense division of the general ledger
b)
revenue division of the general ledger
c)
liability division of the general ledger
d)
asset division of the general ledger
67.
An account number in the journal's Post Ref. column shows
a)
the account to which an amount is posted
b)
the date of the entry
c)
that work on that journal page is completed
d)
none of these
68.
The steps for posting are to write the date, journal page number, amount and balance.
a)
True
b)
False
69.
The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.
a)
True
b)
False
70.
The two steps for opening an account are writing the account title and recording the balance.
a)
True
b)
False
71.
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.
a)
True
b)
False
72.
The cash account is the first asset account and is numbered 100.
a)
True
b)
False
73.
The account number is placed in the Post. Ref. column of the journal as the last step in the posting process.
a)
True
b)
False
74.
An endorsement restricting further transfer of a check's ownership.
a)
restrictive endorsement
b)
special endorsement
c)
blank endorsement
d)
cryptic endorsement
75.
An endorsement consisting only of the endorser's signature.
a)
restrictive endorsement
b)
special endorsement
c)
blank endorsement
d)
cryptic endorsement
76.
An endorsement indicating a new owner of a check.
a)
restrictive endorsement
b)
special endorsement
c)
blank endorsement
d)
cryptic endorsement
77.
A check that a bank refuses to pay.
a)
dishonored check
b)
electronic funds transfer
c)
endorsed check
d)
none of these
78.
A bank account from which payments can be ordered by a depositor.
a)
checking account
b)
petty cash
c)
restrictive endorsement
d)
none of these
79.
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
a)
bank statement
b)
debit card
c)
electronic funds transfer
d)
postdated check
80.
A form showing proof of a petty cash payment.
a)
petty cash slip
b)
dishonored check
c)
postdated check
d)
all of these
81.
A check with a future date on it.
a)
postdated check
b)
dishonored check
c)
cancelled check
d)
cleared check
82.
Voided checks should be recorded in the journal.
a)
True
b)
False
83.
When petty cash is replenished, Petty Cash is debited and Cash is credited.
a)
True
b)
False
84.
A check with a blank endorsement can be cashed by anyone who has the check.
a)
True
b)
False
85.
An outstanding check is one that has been issued but not yet reported on a bank statement by the bank.
a)
True
b)
False
86.
The source document for an electronic funds transfer is a memo.
a)
True
b)
False
87.
The source document for a debit card purchase is a memorandum.
a)
True
b)
False
88.
Each time cash or checks are placed in a bank account, the customer prepares a
a)
signature card
b)
deposit slip
c)
check
d)
none of these
89.
A lost check with a blank endorsement on it can be cashed by
a)
anyone who has the check
b)
only the person whose name follows the words "Pay to the order of"
c)
only the person who endorsed the check
d)
no one
90.
An endorsement on the back of a check consisting only of a signature is
a)
a blank endorsement
b)
a special endorsement
c)
a restrictive endorsement
d)
an incorrect endorsement
91.
An endorsement on the back of a check consisting of the words "Pay to the order of"and a new check owner's name is a
a)
blank endorsement
b)
special endorsement
c)
restrictive endorsement
d)
signature endorsement
92.
If any kind of error is made in preparing a check,
a)
a new check should be prepared
b)
VOID should be written on the check stub
c)
VOID should be written on the check
d)
all of the above
93.
An endorsement on the back of a check indicating that the check is to be accepted for deposit only
a)
blank endorsement
b)
special endorsement
c)
restrictive endorsement
d)
signature endorsement
94.
The entry to establish a $200.00 petty cash fund is
a)
debit Cash $200; credit Petty Cash $200
b)
debit Misc. Expense $200; credit Cash $200
c)
debit Petty Cash $200, credit Cash $200
d)
debit Petty Cash $200; credit Misc. Expense $200
95.
A petty cash fund is replenished
a)
daily
b)
weekly
c)
at the end of the month
d)
none of these
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