WorksheetsAccounting II SGO Practice Test
Total questions: 28
Worksheet time: 14mins
Name
Class
Date
1.
What is the primary purpose of the Chart of Accounts in QuickBooks?
a)
To track inventory levels
b)
To record customer and vendor information
c)
To organize and classify financial transactions
d)
To generate financial reports
2.
Which of the following is a common internal control measure to prevent cash theft?
a)
Segregation of duties
b)
Limited access to cash
c)
Frequent bank reconciliations
d)
All of the above
3.
What is the primary purpose of a W-2 form?
a)
To report employee income tax withheld
b)
To track employee hours worked
c)
To calculate payroll taxes
d)
To record employee deductions
4.
Which type of business ownership is characterized by a separate legal entity from its owners?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
All of the above
5.
Which inventory valuation method assumes that the oldest units purchased are the first ones sold?
a)
FIFO (First-In, First-Out)
b)
LIFO (Last-In, First-Out)
c)
Average Cost
d)
Weighted Average
6.
GAAP stands for Generally Accepted Accounting Principles. Which of the following is a primary purpose of GAAP?
a)
To ensure that financial statements are prepared consistently across companies.
b)
To determine the fair market value of assets.
c)
To maximize a company's profits.
d)
To prevent fraud.
7.
While it's generally accepted that companies should maintain one set of general ledger books for accurate financial reporting, there are specific circumstances where maintaining two sets might be permissible or even necessary. Which of the following situations could justify the use of two sets of general ledger books?
a)
To comply with different accounting standards in different jurisdictions or countries
b)
To hide fraudulent activities from auditors.
c)
To simplify the accounting process for small businesses.
d)
To avoid paying taxes.
8.
Which QuickBooks tool is used to record and track employee payroll information?
a)
Payroll Center
b)
General Journal
c)
Accounts Payable
d)
Sales Receipt
9.
Which Financial Statement shows a company's profitability?
a)
Income Statement
b)
Balance Sheet
c)
Retained Earnings Statement
d)
Cash Flow
10.
What is the Accounting Equation?
a)
Assets = Liabilities + Equity
b)
Revenues - Expenses = Net Income
c)
Beginning Inventory + Purchases = Ending Inventory + Cost of Goods Sold
d)
Current Assets - Current Liabilities = Working Capital
11.
How does the accrual basis of accounting differ from the cash basis?
a)
Accrual recognizes revenue when earned and expenses when incurred, while cash basis recognizes them when cash is received or paid.
b)
Accrual is only used for corporations, while cash basis is used for sole proprietorships and partnerships.
c)
Accrual is a more accurate representation of financial performance, while cash basis is simpler.
d)
NONE of the above.
12.
One which Financial Statement can you see a company's total assets.
a)
Balance Sheet
b)
Income Statement
c)
Cash Flow Statement
d)
Retained Earnings Statement
13.
What account is increased by a Debit
a)
Cash
b)
Accounts Payable
c)
Retained Earnings
d)
Revenue
14.
What is the rule of debits and credits?
a)
A. Debits must equal credits.
b)
B. Assets must be debited, liabilities and equity must be credited.
c)
C. Revenues must be debited, expenses must be credited.
d)
D. ALL of the above.
15.
How would you record the purchase of office supplies on account?
a)
Debit Office Supplies, Credit Accounts Payable
b)
Debit Accounts Payable, Credit Office Supplies
c)
Debit Cash, Credit Office Supplies
d)
Debit Office Supplies, Credit Cash
16.
You are an accountant for a small business. Your boss asks you to manipulate the company's financial records to make the profits appear higher than they actually are. This would allow the company to secure a much-needed loan. What is the ethical course of action?
a)
Follow your boss's instructions to help the company survive.
b)
Refuse to manipulate the records and explain to your boss the ethical implications.
c)
Quit your job immediately.
d)
Manipulate the records but keep it a secret from your boss.
17.
Which of the following is a primary objective of an independent audit?
a)
To ensure that the company's financial statements are prepared in accordance with generally accepted accounting principles (GAAP)
b)
To provide assurance that the company is operating efficiently and effectively.
c)
To determine whether the company is complying with all applicable laws and regulations.
d)
To evaluate the company's management team
18.
What are the key differences between a balance sheet and an income statement?
4 lines
19.
Discuss the ethical implications or consequences of fraudulent financial reporting?
4 lines
20.
How does QuickBooks streamline the accounting process for small businesses?
4 lines
21.
A detailed listing of all accounts is called
a)
general journal
b)
chart of accounts
c)
general ledger
d)
balance sheet
22.
A list of accounts used by a business are called
a)
List of Accounts
b)
Assets
c)
Expenses
d)
Chart of Accounts
23.
An “official” list of all the accounts used by a business to record its transactions.
a)
double-entry accounting
b)
normal balance
c)
chart of accounts
d)
T chart
24.
A list of accounts used by a business
a)
accounting system
b)
chart of accounts
c)
posting
d)
balance sheet
25.
For a general ledger account to be used in Financial Accounting, it must be created first at the ___________.
a)
Chart of Accounts Level
b)
Company Code Level
c)
In the Balance Sheet Statement
d)
In the Profit and Lost Statement
26.
What is a subledger?
a)
A subledger is a summary of financial transactions.
b)
A subledger is a type of bank account.
c)
A subledger is an obsolete accounting term.
d)
A subledger is a detailed record that supports the general ledger.
27.
What is an invoice?
a)
An invoice is a document that requests payment for goods or services.
b)
A contract for future services.
c)
A summary of monthly expenses.
d)
A receipt for a returned item.
28.
What is a general ledger?
a)
A general ledger is a summary of a company's annual budget.
b)
A general ledger is a document that lists employee salaries.
c)
A general ledger is a report that shows only the company's assets.
d)
A general ledger is the primary accounting record that contains all financial transactions of an organization.
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