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WorksheetsNOCTI Basic Accounting Quiz
Total questions: 70
Worksheet time: 35mins
Susan opened a business and invested $5,000 in cash and a computer worth $2,500. These investments will increase
assets by $5,000
assets by $7,500
liabilities by $5,000
liabilities by $7,500
The appropriate entry for receiving money from a customer is to
decrease Revenue
decrease Sales
increase Cash
increase Accounts Payable
The journal entry to record cash investment by the owner is to debit Cash and credit
Accounts Receivable
Drawing
Capital
Expense
Jason invested $15,000 cash to start his business. How does this transaction impact the basic accounting equation?
there is no impact to the accounting equation
increase owner’s equity by $15,000
increase liabilities by $15,000
increase Accounts Payable by $15,000
Journalizing is a process in which
source documents are analyzed for debit and credit entries
debits and credits are copied from a journal to a ledger
a receivable is sold at a discounted value for cash
account balances are carried to a trial balance
Debbie has a balance of $8,600 in Accounts Receivable before receiving a check for $3,455 from a customer she had worked for last month. What is the balance in Accounts Receivable after she records the receipt of this check?
A.B.C.D.
$3,455
$5,145
$8,600
$12,055
The controlling account summarizes all of the accounts from a _____ account.
A.B.C.D.
subsidiary
special
general
contra
An employee earns a commission of 7 percent of total sales. This week, the employee’s total sales are $2,345. What was the commission earned for the week?
A.B.C.D.
$164.15
$174.50
$2,180.85
$2,509.15
An employee works 38 hours per week, is paid $8.50 per hour, and is paid every 2 weeks. What is the gross pay the employee will receive each pay period?
$323.00
$482.00
$646.00
$725.00
Regular hours times regular rate is the calculation for ____ earnings.
overtime
net
regular
annual
The tax that is paid by employers to provide temporary relief for individuals who are out of work is called _____ tax.
income
unemployment
sales
FICA
An electronic payment to the IRS can be used to pay
A.B.C.D.
credit card interest fees
late utility payment fees
federal taxes and user fees
state taxes and user fees
An endorsed check must have an authorized ______ on the back of the check.
embossment
deposit slip
signature
bank statement
A bank statement reconciliation is
a statement that specifies the amount and account that funds are being deposited into
a summary of all financial transactions in an account that occur over a period of time
a summary of the financial balances of a company
an account audit used to bring a bank statement and checkbook into agreement
A direct deposit made to an employee’s checking or savings account is also known as a/an
ATM
FICA
EIN
EFT
A company had $3,000 in credit card sales during the day. The company is charged a 3 percent discount rate on credit card deposits. The entry to record the credit card sales is
debit Cash $2,910; debit Credit Card Expense $90; credit Sales $3,000
debit Cash $2,910; credit Sales $2,910
debit Cash $3,000; credit Sales $2,910; credit Credit Card Expense $90
debit Cash $3,000; credit Sales $3,000
Subtracting the bank service charge from the checkbook balance is part of the _____ process.
bank reconciliation
bank statement
accounting cycle
perpetual inventory
A purchase of a computer with cash
is a shift in assets
increases a liability
decreases an asset
increases an asset
During one accounting period, a corporation’s beginning inventory was $17,000, and they purchased $85,000 of merchandise. The cost of the goods sold for that period was $94,000 and sales were $110,000. What is the merchandise inventory amount on the financial statement?
$8,000
$16,000
$86,000
$110,000
If a company is using the _____ method of inventory, an adjustment must be made after a physical count to correctly state the ending inventory.
periodic
perpetual
average
total
The FIFO inventory method is based on the idea that the first merchandise acquired is the _____ merchandise sold.
last
first
most
least
Changing the arrangement of digits in a number is called
subtraction
transposition
mistake
addition
The Balance Sheet section of the worksheet includes
A.B.C.D.
cost of goods sold
beginning merchandise inventory
ending merchandise inventory
merchandise purchased during the period
If a journal debit entry of $150.00 is incorrectly posted as a credit, the trial balance will be out of balance by
A.B.C.D.
$50.00
$75.00
$150.00
$300.00
Worksheet trial balance columns
A.B.C.D.
calculate net income for the income statement
prove ledger amounts are posted correctly
do not include accounts for the balance sheet
prove that all amounts were journalized correctly
Which column on the Income Statement represents the total amount of revenues on a worksheet?
debit column
credit column
assets
liabilities
A business form that communicates to the customer the nature and quantity of items sold is called a
purchase order
shipping order
sales invoice
statement of account
A promissory note is the source document for issuing a
sales invoice
note payable
note receivable
purchase order
Which of these is a violation of a company’s business ethics policy?
A..B..C..D.
An employee shares confidential company information with personal friends
An employee reports publicly required information
An employee compares health compensation plans
An employee uses personal property for his or her own leisure
An audit trail is the transaction flow from the source document to the
bank
business
accountant
financial statement
To indicate that an amount is the final total, it should be
A.B.C.D.
subtotaled first
bold and italicized
double ruled
labeled “net income”
Which of the images above was issued to demonstrate employee commissions over a 3-year span?
A
B
C
D
Assets, withdrawals, and _____ have normal debit balances.
retained earnings
liabilities
expenses
revenues
n accounting, use a spreadsheet to
compose a professional email
communicate with another network
input data into database software
process and manage data
A merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand is a ____.
periodic inventory
perpetual inventory
gross profit method of estimating inventory
weighted-average inventory costing method
A periodic inventory normally is taken ____.
at the end of every month
quarterly
at the end of a fiscal period
only when a stock shortage is suspected
Using the price of merchandise purchased first to calculate the cost of merchandise sold first is the ____.
fifo method
lifo method
gross profit method
weighted-average method
Using the price of merchandise purchased last to calculate the cost of merchandise sold first is the ____.
fifo method
lifo method
gross profit method
weighted-average method
A business form ordering a bank to pay cash from a bank account is a ____.
signature card
deposit slip
check
none of the above
The entry to establish a $200.00 petty cash fund is ____.
debit Cash, $200.00; credit Petty Cash, $200.00
debit Miscellaneous Expense, $200.00; credit Cash, $200.00
debit Petty Cash, $200.00; credit Cash, $200.00
debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00
A petty cash fund is always replenished ____.
daily
weekly
at the end of the month
none of the above
The amount of goods on hand for sale to customers is ____.
a merchandise inventory
the balance of the Purchases account
the balance of the Sales account
a purchases inventory
A work sheet is used to ____.
plan adjustments and summarize information necessary to prepare financial statements
plan adjustments and post entries to the ledger
plan adjustments and journalize entries from source documents
none of the answers are correct
What is the formula for calculating book value?
Original Cost - Accumulated Depreciation = Ending Book Value
Original Cost + Accumulated Depreciation = Ending Book Value
Original Cost x Accumulated Depreciation = Ending Book Value
Original Cost / Accumulated Depreciation = Ending Book Value
In calculating the annual amount of depreciation expense for a plant asset, you must consider ____.
original cost
estimated salvage value
estimated useful life
all of the answers provided
Which account is used for the investment of all owners of a corporation?
Owners' Equity
Dividends
Retained Earnings
Capital Stock
Businesses may have three major types of plant assets: ____.
equipment, buildings, and land
cash, buildings, and land
equipment, cash, and land
cash, buildings, and equipment
An income statement for a business that carries inventory has three main sections for ____.
assets, liabilities, and owner's equity
revenue, expenses, and inventory
revenue, cost of merchandise sold, and expenses
owner's equity, share of net income, and drawing
Cost of merchandise sold is found by the following formula:
beginning merchandise inventory - purchases + ending inventory
beginning merchandise inventory + gross profit on sales
beginning merchandise inventory - expenses
beginning merchandise inventory + purchases - ending inventory
The revenue remaining after cost of merchandise sold has been deducted is ____.
gross profit on sales
cost of merchandise sold
net sales
total sales
One way to increase gross profit on sales is to ____.
decrease expenses
decrease sales revenue
increase sales revenue
increase cost of merchandise sold
A financial statement that summarizes the changes in a corporation's ownership for a fiscal period is ____.
an income statement
a balance sheet
a statement of stockholders' equity
a distribution of net income statement
A financial statement that reports a corporation's assets, liabilities, and stockholders' equity on a specific date is ____.
an income statement
a balance sheet
an owners' equity statement
a distribution of net income statement
When information about the account balance of each vendor is needed, ____.
an income statement is prepared
a schedule of accounts payable is prepared
a schedule of accounts receivable is prepared
a distribution of net income statement is prepared
When information about the account balance of each customer is needed, ____.
an income statement is prepared
a schedule of accounts payable is prepared
a schedule of accounts receivable is prepared
a distribution of net income statement is prepared
Liabilities owed for more than a year are called ____.
current liabilities
long-term liabilities
short-term liabilities
debts
Total sales less sales discount and sales returns and allowances is called ____.
net profit
net income
net sales
none of the answers
A cash discount entry is based on
invoice terms
vendor relationships
purchase volume
a trade reduction
The total of the Purchases journal is posted as a credit to the _____ account.
Purchases
Accounts Receivable
Merchandise
Accounts Payable
Employee regular earnings are calculated as
total hours divided by regular rate
total hours plus overtime rate
regular hours times regular rate
overtime hours minus overtime rate
A purchase of merchandise on account
decreases an asset
decrease a liability
increases a liability
increases an expense
Crediting the estimated value of uncollectible accounts to a contra account is the
Accounts Receivable turnover rate
book value of Accounts Receivable
direct write-off method of recording bad debts
allowance method of recording bad debts
Use the Posting Reference (PR) column in the General Ledger to
trace the entry to the book of final entry
show the accountant that the transaction was posted in the general ledger
trace the transaction to the original book of entry
show which employee posted the record to the general ledger
The total earnings of an employee for a payroll period is referred to as
take-home pay
pay net of taxes
net pay
gross pay
The best way to manage multiple bank accounts would be to
set up the accounts online
review the accounts monthly
visit banks as frequently as possible
call banks daily to get account balances
An actual count of merchandise is called a _____ inventory.
physical
perpetual
merchandise control
supply
To prove the accuracy of posting, an accountant uses the
trial balance
closing entries
final balance
confirmed entries
Beginning inventory is $36,000, ending inventory is $17,000, purchases are $75,000, sales are $110,000, and selling expenses are $24,000. What is the cost of goods sold?
$75,000
$94,000
$110,000
$115,000
A corporation pays __________ to its shareholders.
capital gains
deferred earnings
shares
dividends
A purchase of merchandise with cash
increases an asset
increases a liability
decreases an asset
decreases accounts receivable
