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4th Quarter Summative Test

Total questions: 40

Worksheet time: 22mins

Name
Class
Date
1.

What is the account credited? Borrowed cash on accounts.

a)

accounts payable

b)

cash

c)

notes payable

d)

supplies

2.

What is the account credited? Paid liability on account.

a)

accounts payable

b)

cash

c)

notes payable

d)

supplies

3.

What is the account debited? Paid liability on note.

a)

accounts payable

b)

cash

c)

notes payable

d)

supplies

4.

What is the account credited? Paid liability on account.

a)

accounts payable

b)

cash

c)

notes payable

d)

supplies

5.

What happens to account payable when liability is paid?

a)

decreases

b)

no effect

c)

increases

d)

none of the above

6.

What happens to cash when liability is paid?

a)

decreases

b)

increases

c)

no effect

d)

none of the above

7.

Where does accounts payable is recorded when it decreases?

a)

credit side

b)

debit side

c)

both A and B

d)

none of the above

8.

Where does notes payable is recorded when it decreases?

a)

credit side

b)

debit side

c)

both A and B

d)

none of the above

9.

Where does cash account is recorded when the liability is paid?

a)

credit side

b)

debit side

c)

both debit and credit

d)

none of the above

10.

Where does cash account is recorded when payment is received?

a)

credit side

b)

debit side

c)

both debit and credit

d)

none of the above

11.

What happens to account receivable when payment is received from a customer?

a)

decreases

b)

increases

c)

no effect

d)

none of the above

12.

What does it mean when Cash account is debited?

a)

decreases

b)

increases

c)

no effect

d)

none of the above

13.

What type of account is account receivable?

a)

asset

b)

equity

c)

expense

d)

liability

14.

Which type of account is notes receivable?

a)

asset

b)

equity

c)

expense

d)

liability

15.

Which of the following defines compound entry?

a)

It involves only one account.

b)

It involves two account.

c)

It involves two or more debit or credit entries

d)

It involves one credit & 1 debit entry.

16.

Which of the following tells true about compound entry?

a)

If you have more than one debit and only one credit, the sum of your debits must not equal the credit.

b)

If you have more than one debit and only one credit, the sum of your debits must equal the credit.

c)

If you have more than one debit and only one credit, the sum of your debits must more than the credit.

d)

None of these

17.

Which of the following is a compound entry?

a)

Debit Account Receivable, Supplies – Credit Cash

b)

Debit Cash - Credit Account Receivable

c)

Debit Cash – Credit Capital

d)

Debit Inventory – Credit Account Payable

18.

Which of the following is not a compound entry?

a)

A. Debit Account Receivable, Supplies – Credit Cash

b)

Debit Electric Bill - Credit Cash

c)

Debit Building, Cash – Credit Capital

d)

Debit Computer Set, Furniture & Fixtures – Credit Cash

19.

Which of the following is a book containing accounts in which the classified and

summarized information from the journals is posted as debits and credits?

a)

Chart of Account

b)

Journal

c)

Ledger

d)

None of these

20.

Which of the following is true about ledger?

a)

It is also called the first book of entry.

b)

It is also called the fourth book of entry.

c)

It is also called the second book of entry.

d)

It is also called the third book of entry.

21.

Which of the following is the first step in posting to a ledger?

a)

From the journal, transfer to the ledger the following: date, amount, accounts

and explanation. From the journal, post debit accounts on the debit side

of the ledger and credit accounts on the credit side of the ledger

b)

Locate the corresponding account involved in the ledger.

c)

Place in the folio column of the journal page number of the ledger on which the

information was posted

d)

Place the page number of the journal from which the information was taken to

then folio column of the ledger.

22.

What are the accounts involved in a ledger?

a)

A. It includes accounts for assets, liabilities, and expenses.

b)

It includes accounts for assets, liabilities, owners’ equity, revenues and

expenses.

c)

It includes accounts for assets, owners’ equity, revenues and expense

d)

It includes accounts for assets, revenues and expenses.

23.

Which of the following identifies the page number of general journal from

which the transaction was taken.

a)

AR

b)

CR

c)

DR

d)

PR

24.

Which of the following describes the nature of transaction in which the

account is involved?

a)

Account Name

b)

Date

c)

Account Number

d)

Item

25.

Which of the following identifies when the transaction happens?

a)

Account Name

b)

Date

c)

Account Number

d)

Item

26.

Which of the following is the name of the account?

a)

Account Name

b)

Date

c)

Account Number

d)

Item

27.

Which of the following is assigned to each account title used to facilitate

the recording and cross-referencing.?

a)

Account Name

b)

Date

c)

Account Number

d)

Item

28.

Which of the following are used for recording the amount of transaction

from the general journal. Peso sign and decimal point are ignored.?

a)

Account Column

b)

Business Column

c)

Transaction Columns

d)

Value Columns

29.

What is transferring of information from general journal to ledger?

a)

encoding

b)

posting

c)

recording

d)

writing

30.

Which of the following summarizes transactions by account?

a)

book

b)

journal

c)

journalizing

d)

ledger

31.

Which of the following records transactions in chronological order?

a)

book

b)

journal

c)

journalizing

d)

ledger

32.

Which of the following is usually contains a separate form for each account or

constitutes a group of accounts?

a)

book

b)

journal

c)

journalizing

d)

ledger

33.

Which item is NOT true about the ledger?

a)

It contains page number

b)

It contains debit and credit account

c)

It has no date column

d)

It summarizes transactions by account

34.

What is the placing of the account number of the ledger account in the general

journal and the general journal page number in the ledger account?

a)

Cross accounting

b)

Cross indexing or referencing

c)

Cross journaling

d)

Cross posting

35.

Which of the following is one of the purposes of a ledger?

a)

It analyzes the income & expense of the business

b)

It indicates completion of the posting process.

c)

It indicates the profit and loss.

d)

It interprets the stability of the business

36.

Which is true about this statement “It facilitates tracing of entries from the journal

to the ledger”?

a)

One of the purposes of a journal

b)

One of the purposes of a journaling

c)

One of the purposes of a journalizing

d)

One of the purposes of a ledger

37.

What is the process of vertically adding a money column.

a)

Adding

b)

Footing

c)

Posting

d)

Writing

38.

It shows the list of accounts with debit and credit balances to determine if the

totals are balance.

a)

balance sheet

b)

income statement

c)

ledger

d)

trial balance

39.

It means each side of the account is totaled.

a)

accounted

b)

footed

c)

summation

d)

none of the above

40.

This symbol is draw under the totals when the total of debit equals to total of

credit.

a)

double circles

b)

double slash

c)

double commas

d)

double lines