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Worksheets

Fin Acc (MSF) 3B

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

6% 12-Month fixed deposit of $100,000 starting on May 1, 20X1. The interest income for 20X1 income statement = ?

a)

$0

b)

$3,000

c)

$3,500

d)

$4,000

2.

6% 12-Month fixed deposit of $100,000 starting on May 1, 20X1. The "20X2" income statement show the interest income of ...

a)

$2,000

b)

$2,500

c)

$0

d)

$6,000

3.

Where is the "interest receivable" shown?

a)

Statement of income

b)

Statement of changes in equity

c)

Statement of financial position

d)

Statement of cash flows

4.

$10,000 Six-Month, 3% Bank loan on September 1, 20X1, interest paid at the end of the contract.

The 20X1 income statement will show "Interest Expense" =...

a)

$200

b)

$100

c)

$150

d)

$75

5.

Failure to record "Accrued Expense" on the accounting equation is...

a)

Overstated asset

b)

Overstated liability

c)

Overstated equity

d)

Understated equity

6.

When cash is paid for the accrued expense recorded in the previous period, the effect to the accounting equation is...

a)

L -

b)

A +

c)

L +

d)

Equity -

7.

Cash payments for "i) entertainment cost and ii) a truck" will be recorded as ..., respectively.

a)

Asset / Expense

b)

Expense / Expense

c)

Expense / Asset

d)

Asset / Asset

8.

Supplies at Jan. 1 = $250; Purchase of supplies = $700; Supplies at Dec. 31, = $100.

Which is correct?

a)

Supplies expense = $850

b)

Supplies expense = $600

c)

Supplies = $950

d)

Supplies = $150

9.

On March 1, 20X1, the company recorded a "Prepaid Rent" for $15,000 for 1-year office rental. The adjustment at the end of year results in...

a)

Equity -

b)

Equity +

c)

Asset +

d)

Liability -

10.

On March 1, 20X1, the company recorded a "Prepaid Rent" for $15,000 for 1-year office rental. The balance sheet as of Dec. 31, 20X1, will show...

a)

Rent Expense $10,000

b)

Prepaid Rent $0

c)

Prepaid Rent $10,000

d)

Prepaid Rent $2,500

11.

A company receives a membership fee of $18,000 cash in advance from its customer for a one-year period beginning August 1, 20X1, and records as "Unearned Revenue." The year-end adjustment affects...

a)

Equity +

b)

Equity -

c)

Liability +

d)

Asset -

12.

A company receives a membership fee of $18,000 cash in advance from its customer for a one-year period beginning August 1, 20X1, and records as "Unearned Revenue." The 20X1 income statement will show "Membership Revenue" of...

a)

$18,000

b)

$6,000

c)

$7,500

d)

$0

13.

A company receives a membership fee of $18,000 cash in advance from its customer for a one-year period beginning August 1, 20X1, and records as "Unearned Revenue." The balance sheet as of December 31, 20X1, will show "Unearned Revenue" of...

a)

$0

b)

$12,000

c)

$18,000

d)

$10,500

14.

A company receives a membership fee of $18,000 cash in advance from its customer for a one-year period beginning August 1, 20X1, and records as "Unearned Revenue." The 20X2 financial statements will show "Unearned Revenue" = ... and "Membership Revenue" = ..., respectively.

a)

$0 / $10,500

b)

$0 / $12,000

c)

$10,500 / $0

d)

$12,000 / $0

15.

The depreciation computation based on the straight-line method is...

a)

(Asset cost - Salvage value) * Useful life

b)

(Asset cost - Salvage value) - Useful life

c)

(Asset cost - Salvage value) / Useful life

d)

(Asset cost - Salvage value) + Useful life

16.

A $40,000 equipment with 5-yr useful life and $4,000 salvage value, purchased on September 1, 20X1. The 20X1 income statement will show "Depreciation Expense" = ?

a)

$2,400

b)

$7,200

c)

$1,800

d)

$2,000

17.

A $40,000 equipment with 5-yr useful life and $4,000 salvage value, purchased on September 1, 20X1. The book value of equipment as of December 31, 20X1 = ?

a)

$37,600

b)

$33,600

c)

$38,200

d)

$34,200

18.

A $40,000 equipment with 5-yr useful life and $4,000 salvage value, purchased on September 1, 20X1. The 20X2 income statement will show depreciation expense = ?

a)

$2,400

b)

$5,400

c)

$8,000

d)

$7,200

19.

A $40,000 equipment with 5-yr useful life and $4,000 salvage value, purchased on September 1, 20X1. The book value of equipment as of December 31, 20X2 = ?

a)

$32,800

b)

$28,800

c)

$30,400

d)

$26,400

20.

A $40,000 equipment with 5-yr useful life and $4,000 salvage value, purchased on September 1, 20X1. The "20X6" income statement will show depreciation expense = ?

a)

$0

b)

$4,800

c)

$7,200

d)

$2,400