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Accounting Final

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

Which one of the following is NOT a form of business?

a)

Corporations

b)

Partnership

c)

CPA firm

d)

Sole Proprietorship

2.

What is accounting primarily concerned with?

a)

Telling the results

b)

Deciding the meaning and importance of information in various reports.

c)

A system of gathering financial information about a business and reporting this information to users.

d)

Looking at events that have taken place and thinking about how they affect business.

3.

Any accounting period of twelve months' duration is usually referred to as what?

a)

physical year

b)

operational year

c)

fiscal year

d)

calendar year

4.

Jason purchased office equipment for $4,800 on account. This transaction would:

a)

increase one asset and decrease another asset

b)

increase assets and increase owner's equity

c)

increase assets and increase liabilities

d)

decrease assets and decrease liabilities

5.

A T account has which of the following three major parts?

a)

a title, a current date, and a balance

b)

a debit side, a credit side, and a balance

c)

a title, a debit side, and a credit side

d)

a title, a debit side, and a total column

6.

A debit:

a)

decreases assets

b)

increases liabilities

c)

is on the left side

d)

increases owner's equity

7.

A chronological record of financial transactions expressed as debits and credits to accounts is provided by the:

a)

Journal

b)

balance sheet

c)

ledger

d)

income statement

8.

What is a journal commonly referred to as in the context of accounting records?

a)

book of original entry

b)

ledger

c)

account

d)

cross-reference

9.

If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, what was the original cost of the asset?

a)

$16,000

b)

$9,500

c)

$7,500

d)

$9,000

10.

What type of account is used with a related account to bring about a decrease in the net amount of the two account balances?

a)

adjusting account

b)

expense account

c)

ledger

d)

cross-reference

11.

The journal entry to close expense accounts typically involves:

a)

Debiting Income Summary and crediting the expense accounts

b)

Debiting the expense accounts and crediting Income Summary

c)

Debiting the expense accounts and crediting the drawing account

d)

Debiting the expense accounts and crediting the owner's capital account

12.

After closing the accounts and posting the journal entries, which of the following accounts is likely to still have a balance?

a)

Supplies

b)

Miscellaneous Expense

c)

Payroll Taxes Expense

d)

Professional Expense

13.

When a bank issues a credit memo to a depositor, indicating interest has been credited, the corresponding accounting entry should be:

a)

Debiting Interest Earned and crediting Cash

b)

Debiting Cash and crediting Interest Expense

c)

Debiting Interest Expense and crediting Cash

d)

None of the above

14.

What is the correct journal entry for a bank service charge if the bank statement balance is $1,000, the balance per books is $1,205, a bank service charge is $5, a deposit in transit totals $500, and outstanding checks total $300?

a)

debiting Accounts payable and crediting Cash

b)

debiting Miscellaneous Expense and crediting Cash

c)

debiting Cash and crediting owner's Capital

d)

debiting Cash and crediting Miscellaneous Expense

15.

According to the Fair Labor Standards Act, what is the minimum rate to be paid to employees for all hours worked over 40 hours per week?

a)

two and one-half times the regular rate

b)

two times the regular rate

c)

one and one-half times the regular rate

d)

same rate as the regular rate

16.

Which document is a key source of information for computing employer payroll taxes?

a)

end-of-period balance sheet

b)

employees' check stub

c)

payroll register

d)

annual financial report

17.

To journalize the employer's payroll taxes, which of the following accounts should NOT be credited?

a)

Medicare Tax Payable

b)

FUTA Tax Payable

c)

Social Security Tax Payable

d)

Payroll Taxes Expense

18.

Cameron Tiller's total regular earnings for the week ended March 15, if he worked 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday at a rate of $12 per hour, would be:

a)

$110

b)

$480

c)

$216

d)

$430

19.

When merchandise is sold on account for $90 with a retail sales tax of $5.40, what total amount should be added to Accounts Receivable?

a)

$94.60

b)

$5.40

c)

$93.60

d)

$90.00

20.

A schedule of accounts receivable is prepared to:

a)

keep track of all the company's customers

b)

verify that the sum of the accounts receivable ledger balances equals the Accounts Receivable balance

c)

prove that the general ledger and accounts receivable ledger were posted at the same time

d)

send to all customers at the end of the month

21.

After the posting of the accounts payable ledger is completed, the total of the accounts payable ledger balances should equal the balance of which of the following general ledger accounts?

a)

Purchases

b)

Accounts Receivable

c)

Accounts Payable

d)

Purchases Returns and Allowances

22.

The account to which transportation charges on incoming merchandise are generally entered is:

a)

Delivery-In

b)

Freight-In

c)

Shipping-In

23.

For the merchant, bank credit card sales are treated in a manner similar to which of the following?

a)

Sales on account

b)

Installment sales

c)

Cash sales

d)

Layaway sales

24.

When purchasing merchandise for resale on account, in which journal should the transaction be recorded?

a)

Cash receipts journal

b)

Sales journal

c)

Cash payments journal

d)

Purchases journal