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Accounting PT Review

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

A business form ordering a bank to pay cash from a bank account is a ____.

a)

deposit slip

b)

check

c)

signature card

d)

none of the above

2.

A signature or stamp on the back of a check transferring ownership is ____.

a)

an endorsement

b)

a deposit slip

c)

a signature card

d)

none of the above

3.

A lost check with a blank endorsement on it can be cashed by ____.

a)

only the person who endorsed the check

b)

only the person whose name follows the words "Pay to the order of"

c)

no one

d)

anyone who has the check

4.

An endorsement on the back of a check consisting only of a signature is ____.

a)

a special endorsement

b)

a blank endorsement

c)

an incorrect endorsement

d)

a restrictive endorsement

5.

If a check is endorsed on the back with the words "For deposit only," the check can be cashed by ____.

a)

the person whose name follows "Pay to the order of"

b)

no one--it must be deposited

c)

anyone who has the check

d)

only the person who signed the check

6.

If any kind of error is made in preparing a check, ____.

a)

VOID should be written on the check

b)

a new check should be prepared

c)

VOID should be written on the check stub

d)

all of the above

7.

The source document for journalizing a bank service charge is a ____.

a)

memorandum

b)

receipt

c)

check

d)

none of the above

8.

The source document for journalizing an electronic funds transfer is a ____.

a)

memorandum

b)

receipt

c)

check

d)

none of the above

9.

The entry to establish a $200.00 petty cash fund is ____.

a)

debit Cash, $200.00; credit Petty Cash, $200.00

b)

debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00

c)

debit Petty Cash, $200.00; credit Cash, $200.00

d)

debit Miscellaneous Expense, $200.00; credit Cash, $200.00

10.

A form showing proof of a petty cash payment is a ____.

a)

journal

b)

petty cash check stub

c)

check

d)

petty cash slip

11.

A petty cash fund is always replenished ____.

a)

daily

b)

weekly

c)

at the end of the month

d)

none of the above

12.

The bank statement shows a checking account balance of $5,500.00. There are outstanding checks totaling $600.00, an outstanding deposit of $400.00, and a bank service charge of $15.00. The checking account balance should be ____.

a)

$5,285.00

b)

$5,300.00

c)

$5,700.00

d)

none of the above

13.

Assuring that financial statements contain all information necessary to understand a business's financial condition is an application of the accounting concept ____.

a)

Adequate Disclosure

b)

Going Concern

c)

Objective Evidence

d)

Accounting Period Cycle

14.

Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept ____.

a)

Adequate Disclosure

b)

Going Concern

c)

Objective Evidence

d)

Accounting Period Cycle

15.

An income statement reports a business's financial ____

a)

condition over a specific period of time.

b)

progress over a specific period of time.

c)

condition on a specific date.

d)

progress on a specific date.

16.

A balance sheet reports a business's financial ____.

a)

condition over a specific period of time.

b)

progress over a specific period of time.

c)

condition on a specific date

d)

progress on a specific date.

17.

The sections of an income statement are ____.

a)

assets, liabilities, and owner's equity

b)

heading, revenue, expenses, and net income or net loss

c)

assets, liabilities, and net income or net loss

d)

assets, revenue, and net income or net loss

18.

The date on a monthly income statement prepared on July 31 is written as ____.

a)

For Month Ended July 31, 2019

b)

July 31, 2019

c)

2019, July 31

d)

none of the above

19.

Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account Title column and ____.

a)

Income Statement Debit column

b)

Income Statement Credit column

c)

Balance Sheet Debit column

d)

Balance Sheet Credit column

20.

Information needed to prepare an income statement's expense section is obtained from a work sheet's Account Title column and ____.

a)

Income Statement Debit column

b)

Income Statement Credit column

c)

Balance Sheet Debit column

d)

Balance Sheet Credit column

21.

The amount of net income calculated on an income statement is correct if ____.

a)

it is the same as net income shown on the work sheet

b)

debits equal credits

c)

it is the same as the balance sheet

d)

none of the above

22.

The percentage relationship between one financial statement item and the total that includes that item is ____.

a)

an adjustment

b)

an endorsement

c)

a component percentage

d)

none of the above

23.

The formula for calculating the total expenses component percentage is ____.

a)

total expenses divided by total sales equals total expenses component percentage

b)

total sales divided by total expenses equals total expenses component percentage

c)

total sales minus total expenses divided by net income equals total expenses component percentage

d)

none of the above

24.

Information needed to prepare a balance sheet assets section is obtained from a work sheet's Account Title column and ____.

a)

Income Statement Debit column

b)

Income Statement Credit column

c)

Balance Sheet Debit column

d)

Balance Sheet Credit column

25.

Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and ____.

a)

Income Statement Debit column

b)

Income Statement Credit column

c)

Balance Sheet Debit column

d)

Balance Sheet Credit column