Free Printable Accounting Fall Exam Prep

1.

A business owned by one person

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

2.

A business owned by two or more people

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

3.

A business that has one or more owners

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

4.

A business that also has one or more owners

a)

Corporation

b)

Partnership

c)

LLC (limited liability company)

5.

Which business is easy and inexpensive to form and dissolve

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

6.

Which business type has access to more capital

a)

Sole Proprietorship

b)

Partnership & Corporation

c)

LLC

7.

Which business type has their business profits taxed at personal level

a)

Sole Proprietorship

b)

Partnership

c)

LLC

d)

All of the above

8.

Which business type has more government regulations: complicated formation, may need attorney or accountant to set up and double taxation

a)

Partnership

b)

LLC

c)

Corporation

9.

Name the agency that protects investors and the agency it relies on to generate ideas that become laws.

a)

SEC and FASB

b)

FASB and GAAP

c)

AICPA and PCAOB

10.

The __________ protects investors, helps markets run smoothly, requires disclosures, has powers of enforcement, and relies on the FASB to generate ideas that become law.

a)

SEC

b)

AICPA

c)

IRS

11.

The _____ is a private nonprofit organization whose primary function is to develop GAAP and standards for financial statements

a)

SEC

b)

FASB

c)

AICPA

12.

The FASB is a private nonprofit organization whose primary function is to develop ____ and standards for financial statements

a)

PCAOB

b)

GAAP

c)

AICPA

13.

Which agencies creates and administers the CPA exam to set the standard for what you need to know if you are going to practice as a certified public accountant?

a)

AICPA/PCAOB

b)

IRS

c)

SEC

14.

The ________creates audit standards for public companies.

a)

IRS

b)

SEC

c)

PCAOB

15.

This agency is one of the most powerful departments in the US government with responsibility for collecting taxes, levying fines, and confiscating property

a)

PCAOB

b)

IRS

c)

SEC

16.

The ____collects taxes, has enforcement powers, and its relationship with individuals and businesses is mandatory

a)

PAB

b)

SEC

c)

IRS

17.

Asset accounts are numbered 100–199.

a)

500–599.

b)

100-199

c)

200–299.

18.

Assets, Expenses, and Drawing (withdrawals) increase on the ________ side

a)

Debit

b)

Credit

19.

Owner’s Equity (capital), Income (revenue), and Liabilities increase on the ______side

a)

Debit

b)

Credit

20.

Owner’s equity is broken down into four sections

a)

Assets Liabilities Expenses Withdrawals

b)

Capital Revenue Expenses Withdrawals

c)

Capital Payables Liabilities Withdrawals

21.

Debits are always on the left of the T account. Credits are always on the right of the T account

a)

True

b)

False

22.

Assets (things owned) are on the left side of the equation and are increased on the left side (debit).

a)

True

b)

False

c)

IDK

23.

Liabilities (things owed) and owner’s equity are on the right side of the equation and are increased on the right side (credit).

a)

True

b)

False

c)

IDK

24.

The basic accounting equation is Assets=Liabilities + Owner's Equity

a)

True

b)

False

c)

IDK

25.

Capital and revenue increase owner’s equity. Since expenses and withdrawals actually reduce owner’s equity, they are increased the opposite of the capital and revenue accounts. They are debited to increase them.

a)

True

b)

False

c)

IDK

26.

How do you record this in the general journal

1. Business pays $800 for rent:

a)

Debit rent expense$800 and credit cash for $800

b)

Debit cash $800 and credit rent expense for $800

27.

How do you record this transaction in the general journal

1. Business receives $200 for services rendered:

a)

Debit service revenue for $200 and credit cash for $200

b)

Debit cash for $200 and credit service revenue for $200

28.

How do you record this transaction in the general journal

1. Owner takes out $500 for monthly grocery expenses:

a)

Credit cash for $500 and debit Withdrawals for $500

b)

Credit withdrawals for $500 and debit cash for $500

29.

How do you record this transaction in the general journal

Owner invests $2,500 to start up new business

a)

Debit cash and credit the capital account

b)

Credit cash and debit the capital account

30.

Julio accountant has made an error on the trial balance. The office furniture should have been debited and not credited. The debit and credit columns are not balance and have a difference of $5,700.00. How do I fix the problem?

a)

Multiply by 2 and get $11,400.00 and Move the entry of $11,400.00 to the debit column

b)

Divide by 2 and get $2,850.00 and Move the entry of $2,850.00 to the debit column

c)

IDK

31.

Information on the Balance Sheet can be compared to which two statements

a)

Trial balance and SCOE

b)

Income Statement and SCOE

c)

IDK

32.

Why does a company need to close the books?

a)

To let customers keep track of a company’s profit and loss

b)

Gives customers a way to measure a company’s performance

c)

Gives owners and investors a way to measure a company’s performance and also provides a way to keep track of a company’s profit and loss

33.

When closing entries are prepared, all temporary accounts must be brought to a zero balance

a)

True

b)

False

c)

IDK

34.

Temporary accounts include

a)

assets, liabilities and owners equity

b)

assets, expense, and withdrawal

c)

revenue, expense, and withdrawal

35.

Permanent accounts include

a)

assets, liabilities and owner's equity

b)

revenue and expenses

c)

assets, liabilities and revenues

Accounting Fall Exam Prep

Total questions: 35

Worksheet time: 18mins

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