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FABM1 Refresher

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

1. A debit to prepaid rent will result in an adjusting entry of

a)

Debit to prepaid expense

b)

Credit to rent expense

c)

Credit to prepare expense

d)

Debit to cash

e)

Debit to rent expense

2.

If you write 50,000 as 5,000 in your journal entry, you committed

a)

Transposition

b)

Transition

c)

Transplacement

d)

None of the above

e)

All of the above

3.

Statement of Financial Performance is known as

a)

Balance Sheet

b)

Capital Statement

c)

Income Statement

d)

Statement of Cash flows

e)

None of the above

4.

1. Freight out is expense as freight in is income

2. Perpetual inventory system requires manual count at the end of the year

a)

Statement 1 correct, 2 is False

b)

Statement 2 is correct, 1 is False

c)

Both are True

d)

Both are False

5.

The process of summarizing the total amounts in the trial balance.

a)

Posting

b)

Journalizing

c)

Balancing

d)

None of the Above

6.

The profit and loss summary is a

a)

Nominal entry

b)

Real entry

c)

Permanent entry

d)

Corollary entry

e)

None of the above

7.

The accounting concept that requires an entity to adopt a calendar or fiscal year.

a)

Entity Concept

b)

Time Period

c)

Accrual basis

d)

Going concern

e)

Monetary Unit

8.

If the interest for a loan on November 30 is 10,000 and the interest rate is 12% per annum, how much is your accrual at yearend?

a)

1,200

b)

1,000

c)

200

d)

100

e)

None of the above

9.

Which is not an internal user of financial information?

a)

Shareholder

b)

Management

c)

Employee

d)

Investor

e)

All of the them are internal users of financial information

10.

If the inventory costs 10,000 and was sold for 15,000, we record at 10,000 the following

a)

A credit to sales

b)

A debit to Cost of Goods Sold

c)

A debit to inventory

d)

A debit to Cash or Receivable

e)

None of the above