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Total questions: 70

Worksheet time: 35mins

Name
Class
Date
1.

Refained Earnings is:

a)

Liability

b)

Asset

c)

Stockholders' Equity

d)

Revenue

2.

Accounts Payable and Accounts Receivable are

a)

Liabilities

b)

Assets

c)

Stockholders' Equity

d)

difierent types of accounting elements

3.

Paid rent for the month, $4,200.

a)

Increase in an asset, increase in a liability.

b)

Increase in an asset, increase in owner's equity.

c)

Decrease in an asset, decrease in a liability.

d)

Decrease in an asset, decrease in owner's equity.

4.

Determined that the cost of supplies on hand was $900; therefore, $1,600 of supplies had been used during the month.

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in owner's equity.

c)

Decrease in an asset, decrease in a liability.

d)

Decrease in an asset, decrease in owner's equity.

5.

Paid creditors on account $9,280.

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in a liability.

c)

Increase in an asset, increase in owner's equity.

d)

Decrease in an asset, decrease in a liability.

6.

Paid utilities expenses $500

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in a liability.

c)

Increase in an asset, increase in owner's equity.

d)

Decrease in an asset, decrease in owner's equity.

7.

Paid 3 months rent $500

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in a liability.

c)

Increase in an asset, increase in owner's equity.

d)

Decrease in an asset, decrease in owner's equity.

8.

Paid annual insurance premium $500

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in a liability.

c)

Increase in an asset, increase in owner's equity.

d)

Decrease in an asset, decrease in owner's equity.

9.

Pald supplies for cash $500

a)

Increase in an asset, decrease in another asset.

b)

Increase in an asset, increase in a linbility.

c)

Increase in an asset, increase in owner's equity

d)

Decrease in an asset, decrease in owner's equity

10.

A debit may signify a(n):

a)

increase in an asset account.

b)

decrease in an asset account.

c)

increase in a liability account.

d)

increase in the stockholders' equity (common stock) account.

11.

The type of account with a normal credit balance Is:

a)

an asset.

b)

stockholders' equity (dividend).

c)

a revenue.

d)

an expense.

12.

A debit balance in which of the following accounts would Indicate a likely error?

a)

Accounts Receivable

b)

Cash

c)

Fees Eamed

d)

Miscellancous Expense

13.

The recept of cash from customers in payment of their accounts would be recorded by?

a)

a debit to Cash and a credit to Accounts Reccivable.

b)

a debit to Accounts Receivable and a credit to Cash.

c)

a debit to Cash and a credit to Accounts Payable:

d)

a debit to Accounts Payable and a credit to Cash.

14.

The form listing the tiles and balances of the accounts in the ledger on a given date is the:

a)

income statement.

b)

balance sheet.

c)

retained earnings statement.

d)

trial balance.

15.

Accounts Recelvable Is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

16.

Commissions Earned Is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

17.

Notes Payable Is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

18.

Common Stock is likely to have

a)

debit entries poly

b)

credit entries only

c)

both debit and gredit atries

d)

None of the above

19.

rent Revenue Is likely to have

a)

debit cotries enly

b)

credit entries only

c)

both debit and eradit entries.

d)

None of the above

20.

A debit may signify a(n):

a)

increase in an asset account

b)

decrease in an asset account

c)

increase in a liability account

d)

increase in the stockholders'equity(common stock) account.

21.

The type of account with a normal credit balance is:

a)

an asset.

b)

stockholders' equity (dividend).

c)

a revenue.

d)

an expense.

22.

A debit balance in which of the following accounts would indicate a likely error?

a)

Accounts Receivable

b)

Cash

c)

Fees Eared

d)

Miscellaneous Expense

23.

The receipt of cash from customers in payment of their accounts would be recorded by:

a)

a debit to Cash and a credit to Accounts Receivable.

b)

a debit to Accounts Receivable and a credit to Cash.

c)

a debit to Cash and a credit to Accounts Payable.

d)

a debit to Accounts Payable and a credit to Cash.

24.

The form listing the titles and balances of the accounts in the ledger on a given date is the:

a)

income statement.

b)

balance sheet.

c)

retained earnings statement.

d)

trial balance.

25.

Accounts Receivable is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

26.

Commissions Earned is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

27.

Notes Payable is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

28.

Common Stock is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

29.

Rent Revenue is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries.

d)

None of the above

30.

If the supplies account, before adjustment on May 31, indicated a balance of $2,250, and supplies on hand at May 31 totaled $950, the adjusting entry would be:

a)

Debit Supplies, $950; Credit Supplies Expense, $950.

b)

Debit Supplies, $1,300; Credit Supplies Expense, $1,300.

c)

Debit Supplies Expense, $950; Credit Supplies, $950.

d)

Debit Supplies Expense, $1,300; Credit Supplies, $1,300.

31.

If the estimated amount of depreciation on equipment for a period is $2,000, the adjusting entry to record depreciation would be:

a)

Debit Depreciation Expense, $2,000; Credit Equipment, $2,000.

b)

Debit Equipment, $2,000; Credit Depreciation Expense, $2,000.

c)

Debit Depreciation Expense, $2,000; Credit Accumulated Depreciation, $2,000.

d)

Debit Accumulated Depreciation, $2,000; Credit Depreciation Expense, $2,000.

32.

Paid rent for period of July 4 to end of month, $1,750. Journalize the entry:

a)

Dr Rent expense: $1,750, Cr Cash: $1,750

b)

Dr Cash: $1,750, Cr Rent expense: $1,750

c)

Dr Prepaid rent: $1,750, Cr Cash: $1,750

d)

Dr Cash: $1,750, Cr Prepaid rent: $1,750

33.

Purchased a truck for $15,000, paying $1,000 cash and giving a note payable for the remainder. Journalize the entry:

a)

Dr Truck: $15,000, Dr Cash: $1,000, Cr Account payable: $16,000

b)

Dr Truck: $15,000, Cr Cash: $1,000, Cr Notes payable: $14,000

c)

Dr Truck: $15,000, Cr Cash: $1,000, Cr Account payable: $14,000

d)

None of above

34.

Purchased equipment on account, $7,000. Journalize the entry:

a)

Dr Equipment: $7,000, Cr Cash: $7,000

b)

Dr Account payable: $7,000, Cr Cash: $7,000

c)

Dr Equipment: $7,000, Cr Notes payable: $7,000

d)

Dr Equipment: $7,000, Cr Account payable: $7,000

35.

Purchased supplies for cash $1,200. Journalize the entry:

a)

Dr Supplies expense: $1,200, Cr Cash: $1,200

b)

Dr Cash: $1,200, Cr Supplies: $1,200

c)

Dr Supplies: $1,200, Cr Cash: $1,200

d)

Dr Supplies: $1,200, Cr Account payable: $1,200

36.

Paid annual premiums on property and casualty insurance $2,700. Journalize the entry:

a)

Dr Prepaid insurance: $2,700, Cr Cash: $2,700

b)

Dr Insurance expense: $2,700, Cr Cash: $2,700

c)

Dr Account payable: $2,700, Cr Cash: $2,700

d)

Dr Cash: $2,700, Cr Prepaid insurance: $2,700

37.

Fees earned and billed to customers for the month, $37,200. Journalize the entry:

a)

Dr Cash: $37,200, Cr Account receivable: $37,200

b)

Dr Cash: $37,200, Cr Fees earned: $37,200

c)

Dr Account receivable: $37,200, Cr Fees earned: $37,200

d)

Dr Fees earned: $37,200, Cr Cash: $37,200

38.

July 26, received an Invoice for truck expenses, to be paid in Augusi, $800. Journalize the entry

a)

Dr Truck expenses: $800, Cr Cash: $800

b)

Dr Truck expenses: $800, Cr Account payable: $800

c)

Dr Cash: $800, Cr Truck expenses

d)

None of the above

39.

Recelved cash from customers on account, $3,600. Journalize the entry:

a)

Dr Cash: $3,600, Cr Account receivable: $3,600

b)

Dr Cash: $3,600, Cr Account payable: $3,600

c)

Dr Cash: $3,600, Cr Fees carned: $3,600

d)

Dr Account receivable: $3,600, Cr Fees earned: $3,600

40.

Paid wages of employees, $2,400, Journalize the entry:

a)

Dr Wages: $2,400, Cr Cash: $2,400

b)

Dr Wages: $2,400, Cr Wages payable: $2,400

c)

Dr Wages expense: $2,400, Cr Cash: $2,400

d)

Dr Wages expense: $2,400, Cr Wages payable: $2,400

41.

Pald dividend, $2,000. Journalize the entry:

a)

Dr Dividend, $2,000, Cr Dividend payable, $2,000

b)

Dr Dividend, $2,000, Cr Cash. $2,000

c)

Dr Cash: $2,000, Cr Dividend $2,000

d)

None of the above

42.

Fees accrued but unbilled at July 31 are $9,560. Journalize the adjusting entry:

a)

Dr Account receivable: $9.560, Cr Fees earned: $9,560

b)

Dr Cash: $9,560, Cr Fees earned: $9,560

c)

Cr Cash: $9,560, Cr Account receivable: $9,560

d)

Dr Fees earned: $9,560, Cr Account receivable: $9,560

43.

Wages accrued but not paid at July 31 are $1,200. Journalize the adjusting entry:

a)

Dr Wages expense: $1,200, Cr Cash: $1,200

b)

Dr Wages expense: $1,200, Cr Accounf payable: $1,200

c)

Dr Wages expense: $1,200, Cr Wages payable: $1,200

d)

Dr Wages payable: $1,200, Cr Wages expense: S1.200

44.

The unearned rent account balance at July 31 Is $9,375, representing the receipt of an advance payment on July 1 of three months? rent from tenants, Journalize the adjusting entry in July 31:

a)

Dr Unearned rent: $3,125, Cr Rent revenue: $3,125

b)

Dr Rent revenue: $3,125, Cr Uneamed rent: $3,125

c)

Dr Account receivable: $9,375, Cr Rent revenue: $9,375

d)

Dr Account receivable: $9,375, Cr Fees cared: $9,375

45.

Issued common stock in exchange for $30,000. Journalize the entry

a)

Dr Common stock: $30,000, Cr Cash: $30,000

b)

Dr Account receivable: $30,000, Cr Common stock: $30,000

c)

Dr Common stock: $30,000, Cr Account receivable: $30,000

d)

Dr Cash: $30,000, Cr Common stock: $30,000

46.

Paid installment due on note payable, $1,875. Journalize the entry

a)

Dr Account payable: $1,875, Cr Cash: $1.875

b)

Dr Notes payable: $1,875, Cr Cash: $1,875

c)

Dr Cash: $1,875, Cr Notes payable: $1,875

d)

Dr Cash: $1,875, Cr Account payable: $1.875

47.

Recorded fees earned in January on plans delivered, payment to be received in February. $31,400. Journalize the entry

a)

Dr Cash: $31,400, Cr fees earned: $31,400

b)

Dr Account receivable: $31,400, Cr fees cared: $31,400

c)

Dr fees earned: $31,400, Cr Account receivable: $31,400

d)

Dr Account payable: $31,400, Cr fees cared, $31,400

48.

Paid telephone bill for the month, $550, Journalize the entry

a)

Dr. Telephone bill: S550, Cr Cash: $550

b)

Dr Cash: 5550, Cr: Utilities Expense: $550

c)

Dr Utilities Expense: $550, Cr Cash: $550

d)

Dr Telephone expense: $550, Cr Cash: $550

49.

Received cash from customers on account, $8,600. Journalize the entry

a)

Dr Cash: $8,600, Cr Account receivable: $8,600

b)

Dr Account payable: $8,600, Cr Cash: $8,600

c)

Dr Account receivable: $8,600, Cr Cash: $8,600

d)

Dr Cash: $8,600. Cr Fees earned: $8,600

50.

The Inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred is:

a)

a. FIFO.

b)

b. LIFO.

c)

c. weighted average cost.

d)

d. perpetual inventory.

51.

The following units of a particular item were purchased and sold during the period-Beginning Inventory 40 units at $ 20First purchase 50 units at S21Second purchase 50 units at $22 First sale 110 unitsThird purchase 50 units at S23 Second sale 45 units What is the cost of the 35 units on band at the end of the period as determined under the perpetual inventory system by the LIFO costing method?

a)

a. $715

b)

b. $705

c)

c. $700

d)

d. $805

52.

What is the unit cost of the 35 units on hand at the end of the period as determined under the periodic inventory system by the FIFO costing method?

a)

$20

b)

$21

c)

$22

d)

$23

53.

If Inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is:

a)

LIFO.

b)

FIFO.

c)

average.

d)

periodic.

54.

If the Inventory at the end of the year is understated by $7,500, the error will cause an:

a)

understatement of cost of goods sold for the year by $7,500.

b)

overstatement of gross profit for the year by $7,500.

c)

overstatement of beginning inventory for the following year by $7,500.

d)

understatement of net income for the year by $7,500.

55.

Under FIFO, the cost of the ending inventory is made up of

a)

the most recent

b)

the earliest

c)

the average

d)

the specific

56.

Under LIFO, the cost of the ending inventory is made up of costs.

a)

the most recent

b)

the earliest

c)

the average

d)

the specific

57.

Under the average method, the cost of the ending Inventory is made up of costs:

a)

the most recent

b)

the earliest

c)

the average

58.

Under specific Identification Inventory cost flow method, the cost of the ending inventory is made up of costs.

a)

the most recent

b)

the earliest

c)

the average

d)

the specific

59.

In the rising period, the method which results in the highest gross profit is

a)

FIFO

b)

LIFO

c)

Average

d)

Specific identification inventory cost flow

60.

At the end of the fiscal year, before the accounts are adjusted, Accounts Receivable has a balance of $200,000 and Allowance for Doubtful Accounts has a credit balance of $2,500. If the estimate of uncollectible accounts determined by aging the receivables is $8,500, the amount of bad debt expense is

a)

$2,500

b)

$6,000

c)

$8,500

d)

$11,000

61.

At the end of the fiscal year, Accounts Receivable has a balance of $100,000 and Allowance for Doubtful Accounts has a balance of $7,000. The expected net realizable value of the accounts receivable is

a)

$7,000

b)

$93,000

c)

$100,000

d)

$107,000

62.

What is the maturity value of a 90-day, 12% note for $10,000?

a)

$8,800

b)

$10,000

c)

$10,300

d)

$11,200

63.

What is the due date of a $12,000, 90-day, 8% note receivable dated August 5?

a)

October 31

b)

November 2

c)

November 3

d)

November 4

64.

When a note receivable is dishonored, Accounts Receivable is debited for what amount?

a)

The face value of the note

b)

The maturity value of the note

c)

The maturity value of the note less accrued interest

d)

The maturity value of the note plus accrued interest

65.

Notes Receivable is

a)

an asset account

b)

a liability account

c)

a revenue account

d)

an expense account

66.

Under allowance method, Bad Debt Expense is recorded

a)

whenever the customer's account is determined to be worthless.

b)

only at the end of the accounting period by an adjusting entry

c)

when business receives payment from customer

d)

only at the end of the accounting period by a closing entry

67.

Maturity value of note receivable is

a)

face amount of note

b)

interest rate of note

c)

face amount of note plus interest rate of note

d)

face amount of note plus interest of note

68.

When a note receivable is dishonored at the due date, which account will be debited by the creditor?

a)

cash account

b)

notes receivable

c)

accounts receivable

d)

interest expense

69.

When a business receives a note to settle an account receivable, which account will be credited by the creditor?

a)

cash account

b)

notes receivable

c)

accounts receivable

d)

interest revenue

70.

Rent revenue is likely to have

a)

debit entries only

b)

credit entries only

c)

both debit and credit entries

d)

none of the above