WorksheetsAccounting Exam 2 Review
Total questions: 25
Worksheet time: 13mins
How is the debt ratio calculated?
total assets divided by total liabilities
total liabilities divided by total assets
current liabilities divided by current assets
current assets divided by current liabilities
Which of the following is a temporary account?
Cash
Accounts Payable
Retained Earnings
Dividends
The beginning balance in Retained Earnings is found on the:
Statement of Retained Earnings
Income Statement
Balance Sheet
Statement of Cash Flows
Which of the following accounts appears on the Balance Sheet
Sales Revenue
Accounts Receivable
Dividends
All of these
Which of the following are considered permanent accounts?
Sales Revenue
Utilities Expense
Dividends
Accounts Payable
Unearned Revenue is what type of account?
Asset
Liability
Owners' Equity
Expense
Cost of Goods Sold is what type of account?
Asset
Liability
Owners' Equity
Expense
What data flows from the Income Statement to the Statement of Retained Earnings?
Dividends
Net Income
Beginning balance in Retained Earnings
ending balance in Retained Earnings
Revenue - expenses = _______________
Retained Earnings
Common Stock
Net Income
Dividends
According to U.S. GAAP, when should revenue be recognized?
When cash is received from the customer
When the service is performed or goods have been delivered to customer
At the stated date in the contract
When the adjusting entries are recorded
The entry to close expense accounts includes a:
credit to Retained Earnings
credit to the expense accounts
debit to the expense accounts
debit to dividends
A mechanic repaired a truck in August and did not receive the cash from the customer until September. Under accrual accounting the revenue should be recognized in:
August
September
either August or September
the answer cannot be determined from the information given
Wheeler Corporation shows $800 in Supplies Expense on its income statement for the year. This means:
$800 in supplies was used up during the year
$800 in supplies was purchased during the year
There are $800 worth of supplies left at the end of the year
Owes $800 to suppliers for supplies for the year
Prepaid Insurance is what type of account?
Asset
Liability
Owners' Equity
Expense
Which of the following would be considered a current asset?
Accounts Receivable
Land
Accounts Payable
Equipment
Net income or net loss is calculated on which financial statement?
Income Statement
Balance Sheet
Statement of Retained Earnings
Trial Balance
What is the correct order for preparing the financial statements?
Balance Sheet, Statement of Retained Earnings, Income Statement
Trial Balance, Balance Sheet, Income Statement
Income Statement, Trial Balance, Statement of Retained Earnings
Income Statement, Statement of Retained Earnings, Balance Sheet
XYZ Company pays $6,000 on Jan.1 for 6 months of insurance on a company car. The journal entry on Jan. 1 is:
debit Insurance Expense credit Cash
debit Cash credit Insurance Expense
debit Prepaid Insurance credit Cash
debit Cash credit Prepaid Insurance
A one-year period that businesses and governments use for financial reporting.
fiscal year
financial year
current year
annual year
All of the following accounts are closed EXCEPT for:
Dividends
Sales Revenue
Insurance Expense
Cash
What does it mean to "close" an account with a closing entry?
delete the account from the general ledger
lock the account so it cannot be used again
journalize and post an entry that will cause the account balance to be zero
Boise State receives payment from fans for season tickets for the 2021-22 football season in December 2020. The journal entry in December 2020 is:
debit Cash credit Sales Revenue
debit Sales Revenue credit Cash
debit Sales Revenue credit Unearned Revenue
debit Cash credit Unearned Revenue
Closing entries:
ensure the Common Stock account has the correct balance
bring all asset account balances to zero
are the same as adjusting entries
prepare the accounts for the next period's transactions
The normal balance side of a liability account is the:
debit side
decrease side
credit side
left side
Stockholders' Equity is made up of:
Common Stock + Retained Earnings
Revenue - Expenses
Dividends - Expenses
Assets + Liabilities
