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WorksheetsFinancial Accounting Exam 1 Review
Total questions: 18
Worksheet time: 28mins
If assets increase by 20,000, which one of the following also could happen?
Prepaid insurance increases by $20,000
Unearned revenue decreases by $20,000
Notes payable decreased by $20,000
Withdrawls increase by $20,000
Which of the following is NOT part of the fraud triangle?
Opportunity
Nature
Rationalization
Pressure
What is the set of financial accounting standards used in the US called?
Generally Accepted Accounting Principals
Generally Accepted Accounting Policies
American Financial Accounting Standards
International Financial Accounting Standards
The business entity assumption is where
each business keeps its own books
a business owner can not mix business and personal expenses on the same books
both a and b
neither a nor b
What is the return on assets given the following:
Net Income is $100,000
Beginning Assets are $30,000
Ending Assets are $10,000
Average Assets are $20,000
3.3
5
10
4
ABC Company is renting part of their facility to XYZ Company for $5000 a month beginning in November 2023. XYZ will not pay the first three months of rent until February 1, 2024. If an adjusting journal entry is not paid which of the following can NOT be true:
assets are $10,000 too high
equity is $10,000 too low
net income is $10,000 too low
assets are $10,000 too low
Which of the following accounts has a debit balance
Contributions
Unearned Revenue
Service Revenue
Accounts Receivable
Which of the following is increased with a credit?
Accounts Receivable
Accumulated Depreciation
Depreciation Expense
Withdrawls
What is the journal entry for the following:
Christian Co. sold $15,000 in shoes on credit to Posh Co. with the
agreement to be paid the following month.
Dr. Sales Revenue 15,000
Cr. Accounts Payable 15,000
Dr Cash 15,000
Cr Account Receivable 15000
Dr Account Receivable 15000
Cr. Sales Revenue 15,000
Dr Cash 15,000
Cr Sales Revenue
Which of the following could be a journal entry that increases equity for the Walt Disney Company?
Dr W. Disney Withdrawls
Cr Cash
Db Cash
Cr Service Revenue
Db Salaries Expense
Cr Salaries Payable
Db Equipment
Cr Cash
Which statement shows a period of time?
Income Statement
Balance Sheet
Both A & B
Neither A nor B
Which is the formula for the debt ratio?
Total Expenses
Total Notes Payables
Total Assets
Total Liabilities
Total Notes Payable
Total Cash
Total Liabilities
Total Assets
What is the correct order to prepare financial statements in?
Make end of period adjustments --> income statement --> statement of owners equity --> Balance sheet
balance sheet --> make end of period adjustments --> income statement --> statement of owner's equity
income statement --> owners equity --> balance sheet --> make period adjustments
make adjusting entries--> balance sheet --> statement of owners equity --> net income
What is the correct adjusting entry for accumulated depreciation?
Dr Accumulated Depreciation
Cr Depreciation Expense
Dr Land
Cr Accumulated Depreciation - Land
Db Depreciation Expense
Cr Cash
Dr Depreciation Expense
Cr Accumulated Depreciation
What is the current year depreciation expense for 2022 for the following asset placed in service in 2020?
cost of $20,000
Salvage value $ 5,000
Useful life of 5 years
$3,000
$4,000
$250
$333.33
How much is the insurance expense for 2022 given that you pre-paid $24,000
for 24 months beginning November 1, 2022?
$1000
$12,000
$200
$2,000
The formula for profit margin is???
Net Sales
Net Income
Net Income
Net Sales
Net Sales
Net Expense
Net Income
Net Assets
What type of accounting do you typically see in financial accounting?
cash
accrual
magic
tax
