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WorksheetsAccounting Quiz
Total questions: 64
Worksheet time: 14hrs 4mins
If total liabilities are $75,000 and owner’s equity is $150,000, total assets must be
$75,000.
$150,000.
$250,000.
$225,000.
Jackson Company received cash on account from customers, $2,300. The accountant would record a
debit to income from services, $2,300.
credit to income from services, $2,300.
debit to accounts receivable, $2,300.
credit to accounts receivable, $2,300.
Kaufman Company had a beginning normal balance of $15,000 in the accounts payable account. The accountant posted a $5,000 credit on May 6, a $2,500 credit on May 14, and a $8,000 debit on May 26. What is the balance of accounts payable in the general ledger?
$15,500 credit
$4,500 debit
$14,500 credit
$15,500 debit
In the accounting process, the second step is to
record the information from a source document.
record the account numbers in the journal.
post entries to the ledger accounts.
prepare a trial balance.
Anderson’s Architectural Design works a five-day workweek and pays $30,000 in salaries every Friday. If the accounting period ended on a Wednesday, which of the following would be the proper adjusting entry?
Debit Salaries Expense $12,000; credit Salaries Payable $12,000
Debit Salaries Expense $18,000; credit Salaries Payable $18,000
Debit Salaries Expense $24,000; credit Salaries Payable $24,000
Debit Salaries Expense $30,000; credit Salaries Payable $30,000
If the Income Statement Debit and Credit columns on a worksheet are not equal after adding the respective columns,
the company either generated a net income or incurred a net loss.
an error has been made.
the liabilities must exceed the assets.
the company incurred a net loss.
After journalizing and posting adjusting entries to the general ledger, the balances in the accounts should agree with the balances shown on the
trial balance.
income statement.
chart of accounts.
adjusted trial balance.
Which of the following is not a result of the closing process?
The owner’s capital account has a zero balance.
The owner’s drawing account has a zero balance.
The revenue account has a zero balance.
Expense accounts have zero balances.
When transferring a net income for the period to the owner’s capital account,
the Net Income account is debited.
the owner’s capital account is credited.
the Net Income account is credited.
the Income Summary account is credited.
The Income Statement column on the work sheet for Heidi’s Swiss Chocolates had the following expenses: Wage Expense 2,600, Utilities Expense 1,400, Depreciation Expense 1,500. Which of the following is true regarding the closing of these accounts?
Income Summary will be debited for $5,500.
Income Summary will be credited for $5,500.
Owner’s Capital will be credited for $5,500.
Owner’s Capital will be debited for $5,500.
To close Income Summary to the capital account, we will
always debit Income Summary.
always credit Income Summary.
debit Income Summary if we have a net loss.
debit Income Summary if we have a net income.
The post-closing trial balance will contain the
balance of the revenue account.
balance of the owner’s drawing account.
balance of the owner’s capital account.
balances of the expense accounts.
The post-closing trial balance contains balances for
nominal accounts.
permanent accounts.
temporary accounts.
revenue and expense accounts.
Davis Bookkeeping Services tracks its business activities from May 1, 2003, through April 30, 2004. This time period is an example of a(n)
off-cycle year.
interim year.
fiscal year.
operating cycle.
The parties to a check are:
a bank, a payee, and the Internal Revenue Service (IRS).
a drawer, a payee, and a bank.
the Federal Bank, a depositor, and a cashier.
a checker, a maker, and a issuer.
Hines & Jones, CPAs, established a petty cash fund for $100. At the end of the month, there is only $6 cash left in the fund along with $94 of valid receipts and vouchers. The entry to replenish the fund will include a
debit to Cash for $94.
credit to Petty Cash for $94.
debit to Petty Cash for $94.
credit to Cash for $94.
Fast Lane Automotive received merchandise that had an invoice value of $6,500. The journal entry to record the receipt of these goods is
debit Supplies $6,500 and credit Accounts Payable $6,500.
debit Accounts Payable $6,500 and credit Cash $6,500.
debit Purchases $6,500 and credit Supplies $6,500.
debit Purchases $6,500 and credit Accounts Payable $6,500.
The journal entry to record the purchase of $1,200 on account with payment terms of 2/10, n/30 will be
debit Purchases $1,176 and credit Accounts Payable $1,176.
debit Purchases $1,200 and credit Accounts Payable $1,200.
debit Purchases $1,200 and credit Cash $1,200.
debit Purchases $1,176 and credit Cash $1,176.
How should a return of merchandise purchased on account be recorded?
As a debit to the Purchases Returns and Allowances account and a credit to the Accounts Payable account
As a debit to the Purchases account and a credit to the Accounts Payable account
As a debit to the Accounts Payable account and a credit to the Purchases Returns and Allowances account
As a debit to the Accounts Payable account and a credit to the Purchases account
Chandler Company bought goods from Lisel Company, with shipping terms FOB destination. Which of the following statements correctly identifies who is to pay the freight bill when the title is transferred?
Lisel pays transportation, and title is exchanged when goods are unloaded at Chandler Company.
Chandler pays transportation, and title is exchanged when goods are loaded at Lisel Company.
Lisel pays transportation, and title is exchanged when goods are unloaded at Lisel Company.
The buyer pays the freight, thus the term FOB (free on board).
Posting the individual entries in the sales journal to the accounts receivable ledger should be done
on a daily basis.
at the end of each month.
only at the end of the accounting period.
on a weekly basis.
Which of the following is the correct entry to record a $250 cash sale?
Debit Accounts Receivable $250; credit Cash $250
Debit Cash $250; credit Sales $250
Debit Sales $250; credit Cash $250
Debit Cash $250; credit Accounts Receivable $250
Barton received payment in full within 10 days on a $650 invoice. Terms were 2/10, n/30. The entry to record the receipt of the payment is
debit Cash $637, debit Sales Discounts $13, and credit Accounts Receivable $650.
debit Cash $637 and credit Sales $637.
debit Cash $650 and credit Accounts Receivable $650.
debit Cash $650, credit Accounts Receivable $637, and credit Sales Discounts $13.
Which of the following payroll taxes has a maximum of earnings subject to the tax?
State unemployment tax
FICA Medicare
FICA Social Security
Both state unemployment tax and FICA Social Security
Jeri’s Deli sold $160 of sandwiches to a customer for cash. This would be posted in the
purchases journal.
accounts receivable ledger.
cash receipts journal.
sales journal.
Failure to make the adjustment for depreciation will violate the
balance sheet principle.
adjustment principle.
matching principle.
depreciation principle.
On a work sheet, the Income Statement Debit column totals $46,530, and the credit column totals $65,320. Which of the following statements is correct?
The company had a net loss of $18,790.
The company had a net income of $18,790.
The company had a net income of $65,320.
The company had a net loss of $46,530.
The information for completing the Income Statement and Balance Sheet columns of a work sheet comes from the
post-closing trial balance.
Adjusted Trial Balance columns in the work sheet.
journal entries written during the month.
Trial Balance columns in the work sheet.
Apple Company purchased $6,000 in equipment, paying $2,000 in cash and placing the remainder on account. The accountant would record the following journal entry:
debit Cash $6,000 and credit Equipment $6,000.
debit Equipment $6,000 and credit Accounts Payable $6,000.
debit Equipment Expense $6,000 and credit Accounts Payable $4,000 and Cash $2,000.
debit Equipment $6,000 and credit Accounts Payable $4,000 and credit Cash $2,000.
The proof that the debits and credits in the ledger are equal is called the
trial balance.
journal.
statement of owner's equity.
income statement.
A chart of accounts provides a(n)
ending account balance for each account.
beginning account balance for each account.
account number for each category of accounts.
list of accounts arranged by category.
Jane Thompson is an independent contractor working on a six-month project at Lawson Consulting. She earns $1,200 per week and owes $384 in taxes. Her insurance premium costs $19.28 per week. What amount should Lawson Consulting be withholding from her pay each week?
$0
$348.00
$19.28
$403.28
What are the gross earnings for Alex Johnson if he earns $12 per hour and worked 38 hours for the current week?
$464
$456
$446
$424
You can find all of the following information in the payroll register except
the amount of the check to be issued to the employee.
the date of hire for the employee.
the number of allowances and filing status claimed by an employee.
the department or area to which you should charge the employee’s earnings.
Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.
Rent Expense is debited.
Cash is debited.
Rent Expense is credited.
Accounts Payable is debited.
Total gross earnings of employees will be recorded in the payroll journal entry as a debit to
Accounts Payable.
Salaries Payable.
Salaries Expense.
Salaries Receivable.
According to the text, the current FICA—HI rate is
1.45%.
0.8%.
6.2%.
5.4%.
The payroll taxes imposed on employers are recorded
as prepaid assets.
as Other Expenses.
after they are actually paid.
as Operating Expenses.
Josh Dailey’s cumulative earnings before this pay period totaled $6,300, and his gross earnings for the current pay period are $1,500. The amount of his current wages that are subject to federal unemployment tax is
$7,000.
$1,500.
$1,200.
$700.
According to the text, the current effective tax rate for the federal unemployment tax is
0.8% on the first $7,000 in wages per employee.
5.4% on the first $7,000 in total wages per employer.
1.45% on the first $102,000 in total wages per employer.
6.2% on the first $102,000 in wages per employee.
Fit-Right Shoes purchases merchandise with a list value of $2,500 and is offered a 10% trade discount. The amount that Fit-Right Shoes should record in the journal is a debit to Purchases for
$2,750.
$2,000.
$2,250.
$2,500.
What account balances would you expect to see on the post-closing trial balance?
The income statement amounts after closing entries
The closing amounts posted to Income Summary
The balance sheet balances from the work sheet
The balance sheet accounts after closing entries had been posted
Bill Forrest is covered by the Fair Labor Standards Act. He worked 43 hours during the current week. His regular hourly rate is $14. His gross earnings for the week amount to
$602.
$623.
$644.
$560.
Sandra Black is a CPA earning a salary of $24,000 per year. Her semimonthly rate of pay is
$4,000.
$2,000.
$1,000.
$500.
An invoice in the amount of $100 is dated April 3 with terms 2/10, n/30. Payment is made on April 14. The entry to record the payment is
debit Accounts Payable $100 and credit Cash $100.
debit Accounts Payable $98 and credit Cash $98.
debit Accounts Payable $100, credit Purchases Discounts $2, and credit Cash $98.
debit Accounts Payable $100 and credit Cash $98.
A three-year insurance policy was purchased for $4,800 on January 2, 20XX. The adjusting entry at the end of 20XX would include a credit to the
Prepaid Insurance account for $1,600.
Insurance Expense account for $1,600.
Insurance Expense account for $3,200.
Prepaid Insurance account for $3,200.
The work sheet totals for T-Bone’s Steakhouse include Balance Sheet column debits of $25,800 and credits of $29,300. Net income or loss for the period was
Cannot be determined from the information presented
$3,500 net income.
$3,500 net loss.
$4,500 net income.
The beginning balance in the owner’s capital account was $35,000. During the current period, the owner withdrew $7,000 for personal use and the net loss was $5,000. What is the net change in the capital account?
Decrease of $12,000
Increase of $2,000
Increase of $12,000
Decrease of $2,000
If sales amount to $749 and the cash in the cash register totals $752,
Miscellaneous Expense will be credited for $3.
Sales will be credited for $3.
the Cash Short and Over account will be debited for $3.
the Cash Short and Over account will be credited for $3.
The term credit means
the left side of an account.
decreasing an account.
the right side of an account.
increasing an account.
Determine the adjusted Bank Reconciliation balance for Mountain High Expeditions from the following information on their bank reconciliation: - Bank Statement balance: $7,428 - Deposit in transit: $2,071 - Outstanding checks: $2,142 - Ledger Balance for Cash: $6,872 - Note collected by bank (L. Stewart): $500 - Bank service and collection charges: $15
$4,675
$13,714
$7,357
$14,090
What is the correct answer for question 16 in the multiple-choice section?
A
B
C
D
Which chapter and objective does question 17 in the multiple-choice section refer to?
Chptr 1, moderate
Chptr 3, moderate
Chptr 5, easy
Chptr 2, moderate
What is the answer for question 18 in the multiple-choice section?
A
B
C
D
Which chapter is associated with question 19 in the multiple-choice section?
Chptr 1
Chptr 2
Chptr 3
Chptr 4
What is the correct answer for question 20 in the multiple-choice section?
A
B
C
D
Which of the following accounts is not closed at the end of the accounting period?
Revenue account
Expense account
Owner's capital account
Owner's drawing account
When a company purchases equipment on account, the journal entry will include a
debit to Equipment and credit to Cash.
debit to Equipment and credit to Accounts Payable.
debit to Accounts Payable and credit to Equipment.
debit to Cash and credit to Equipment.
Which of the following is a temporary account?
Accounts Receivable
Equipment
Owner's capital account
Revenue account
Which of the following accounts is affected when a company pays its utility bill?
Sales Revenue
Utilities Expense
Inventory
Accounts Receivable
When preparing a bank reconciliation, which of the following items would be subtracted from the bank statement balance?
Outstanding checks
Deposits in transit
Interest earned
Bank service charges
When a company receives a payment from a customer for a previous credit sale, the accountant should record a
debit to Cash and credit to Sales.
debit to Sales and credit to Cash.
debit to Accounts Receivable and credit to Cash.
debit to Cash and credit to Accounts Receivable.
If a business purchases office supplies on account, the journal entry will include a
debit to Office Supplies and credit to Cash.
debit to Cash and credit to Office Supplies.
debit to Office Supplies and credit to Accounts Payable.
debit to Accounts Payable and credit to Office Supplies.
Which of the following accounts will not appear on the post-closing trial balance?
Accounts Payable
Service Revenue
Accounts Receivable
Owner's Capital
