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Worksheets2024 NYS FBLA Accounting I
Total questions: 100
Worksheet time: 50mins
In a firm that uses special journals, a sale of merchandise on credit is recorded in which journal?
Cash Payments Journal
Cash Receipts Journal
Sales Journal
Purchases Journal
In a firm that uses special journals, the collection of money from a customer on account is recorded in which journal?
Cash Payments Journal
Cash receipts Journal
Sales Journal
Purchases Journal
In the Sales Journal used to record taxable sales, the total of the Accounts Receivable column should equal what?
sum of the totals of the Sales Tax Payable Column and the Sales Column
difference between the total of the Sales Tax Payable Column and the Sales Column
total of the Sales Column
total of the Sales Tax Payable Column
The purchase of merchandise on credit is recorded in which journal?
Cash Payments Journal
Cash Receipts Journal
Sales Journal
Purchases Journal
In which journal would you record the amount received from a cash sale?
Cash Payments Journal
Cash Receipts Journal
Sales Journal
Purchases Journal
After all the closing entries are recorded and posted, which account would still have a balance?
Income Summary
Owner’s withdrawal account
Owner’s capital account
Purchases
Which journal entries are used at the end accounting period to clear the balances from the temporary accounts, so that these accounts may be used in accumulating data for preparing the next period’s statement?
correcting entries
closing entries
adjusting entries
opening entries
Entries in a purchases journal affect account balances in which ledgers or journals?
Accounts Payable Ledger and the General Ledger
Accounts Payable Ledger and the Accounts Receivable Ledger
Accounts Receivable Ledger and the General Journal
Accounts Payable Ledger and the Sales Journal
After posting the closing entry, the sales account has what kind of balance?
debit
credit
zero
beginning
Which of the following is not closed at the end of the accounting period?
Sales
Income Summary
Withdrawals
Accounts Payable
Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are what kind of expenses?
intangible
prepaid
unearned
accrued
The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is debit to which account?
Unpaid Salaries and credit Salaries Payable
Salaries Expense and credit Salaries Payable
Salaries Expense and credit Cash
Salaries Payable and credit Salaries Expense
What is the necessary adjusting entry on December 31 to accrue rent expense of $1,200?
debit Rent Expense, $1,200; credit Rent Payable, $1,200
debit Rent Expense, $1,200; credit Cash, $1,200
debit Rent Payable, $1,200; credit Rent Expense, $1,200
debit Cash, $1,200; credit Rent Payable, $1,200
The balance in the prepaid insurance account before adjustment at the end of the year is $4,800, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is debit to which account and for what amount?
Insurance Expenses, $2,400; credit Prepaid Insurance, $2,400
Prepaid Insurance, $2,400; credit Insurance Expense, $2,400
Insurance Expense, $1,200; credit Prepaid Insurance, $1,200
Prepaid Insurance, $1,200; credit Insurance Expense, $1,200
The entry to record the receipt of cash in the amount of $1,500 for a cash sale would be recorded as a debit to which account?
Sales, $1,500; credit to Cash, $1,500
Cash, $1,500; credit to Sales $1,500
Cash $1,500: credit to Accounts Receivable, $1,500
Accounts Receivable, $1,500; credit to Sales, $1,500
ACE Service purchased a truck for $15,000 on June 30. It has an expected life of 5 years and no residual value. The adjusting journal entry for the end of the fiscal year would be debit to which account and for what amount?
Depreciation Expense, $3,000; credit Accumulated Depreciation—Truck, $3,000
Depreciation Expense, $1,500; credit Accumulated Depreciation—Truck, $1,500
Truck, $3,000; credit Accumulated Depreciation—Truck, $3,000
Accumulated Depreciation, $1,500; credit Truck, $1,500
In which journal would you record the adjusting entry for depreciation?
Cash Receipts Journal
Cash Payments Journal
Purchases Journal
General Journal
All of the following are true regarding prepaid expenses except which statement?
They are paid for in advance of receiving their benefit
They are assets
When they are used, their costs become expenses
The adjusting entry for prepaid expenses increases expenses and increases liabilities
The adjusting entry to record an accrued revenue is which of the following?
increase an expense; increase a liability
increase an asset; increase revenue
decrease a liability; increase revenue
increase an expense; decrease an asset
The entry to record the payment of office salaries would be debit to which account?
Cash; credit Office Salaries Expense
Office Salaries Expense; credit Accounts Payable
Office Salaries Expense; credit Cash
Accounts Payable; credit Office Salaries Expense
The classification Accounts Receivable would be which type of account?
asset
liability
revenue
expense
Which of the following would be classified as a current asset?
cash
autos and trucks
accumulated depreciation
land
Which of the following would be classified as a contra-asset?
cash
autos and trucks
accumulated depreciation
land
A liability created by the receipt of cash from customers in payment for products or services sold that have not yet been delivered to the customers is recorded as a
debit to an unearned revenue account
debit to a prepaid expense account
credit to an unearned revenue account
credit to a prepaid expense account
Which of the following is a liability?
creditors for goods purchased
customers for sales made on account
vehicles
cash held in the office as Petty Cash
An example of a Plant Asset is
cash
accounts receivable
equipment
accounts payable
Which of the following accounts is a liability?
Accounts Receivable
Notes Receivable
Prepaid Rent
Unearned Rent
What type of account is goodwill?
asset
liability
owner’s equity
revenue
The word equities refer to claims against the assets of a business by
both creditors and owners
creditors only
owners only
customers only
All of the following account titles are asset titles except
Office Furniture
Accounts Payable
Accounts Receivable
Equipment
Prepaid Insurance is a(n) account.
asset
liability
owner’s equity
expense
All of the following are liability accounts except
Accounts Payable
Unearned Ticket Revenue
Taxes Payable
Commissions Earned
Which of the following best describes the meaning of purchases?
expenses of the business
goods bought for resale
goods paid for
goods bought on credit
Which of the following should not be considered “sales?”
office fixtures sold
sales of items previously included in purchases
sale of merchandise
a purchase by a customer on account
On which financial statement would you find Salaries Expense?
Income Statement
Balance Sheet
Statement of Owner’s Equity
Statement of Cash Flows
Which of the following step in the accounting cycle I in the correct order?
Analyze each transaction, journalize, collect source documents, prepare a trial balance, and post.
Collect and verify source documents, analyze each transaction, prepare a trial balance, journalize each transaction, and post to the ledger.
Collect and verify source documents, analyze each transaction, journalize each transaction, post to the ledger, and prepare a trial balance.
Post to the ledger, prepare a trial balance, journalize each transaction, analyze each transaction, and collect source document.
Which of the following accounts would NOT appear on the Balance Sheet?
Accounts Payable
Cash in Bank
Income Summary
R. Russo, Withdrawals
The purpose of the is to ensure that assets equal liabilities plus owner’s equity.
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Changes in Owner’s Equity
Properties or things of value owned by a business are known as
assets
liabilities
revenue
expenses
The principle states that expenses are compared to revenues for the same period.
conservatism
consistency
matching
revenue recognition
The purpose of this group is to provide clear, consistent and comparable information on organizations financials.
FASB
AICPA—Board of Ethics
SEC
GAAP
The financial statement that reports revenues and expenses for a period of time is the
Balance Sheet
Income Statement
Statement of Owner’s Equity
Statement of Cash Flows
Which of the following equations properly represents a derivation of the fundamental accounting equation?
Assets + Liabilities = Owner’s Equity
Cash = Owner’s Equity
Assets − Liabilities = Owner’s Equity
Assets = Owner’s Equity
Which of these items would be accounted for as an expense?
repayment of a bank loan
dividends made to stockholders
the purchase of land
payment of the current period’s rent
Which of the following would not be included on a balance sheet?
Accounts Receivable
Accounts Payable
Sales
Cash
6. Based on the following information for ABC Corporation about its balance sheet, how much are ABC’s liabilities?
$29,900
$9,300
$20,600
$20,700
Which of the following would be reported on the income statement?
Prepaid Rent
Rent Expense
Accrued Rent
Rent Payable
Accounting is often referred to as
the language of business
business management
business organization
financial analysis
Which of the following is incorrect?
Assets=$7,850; Liabilities=$1,250; Capital=$6,600
Assets=$8,200; Liabilities=$2,800; Capital=$5,400
Assets=$9,550; Liabilities=$1,150; Capital=$8,200
Assets=$6,540; Liabilities=$1,120; Capital=$5,420
Which of the following is prepared first?
Trial Balance
Balance Sheet
Income Statement
Statement of Owner’s Equity
Given the following information taken from the partial trial balance of ABC Company, determine the amount of profit or loss for the company.
Profit of $13,000
Profit of $35,000
Profit of $50,000
Loss of $1,900
Another name for the Income Statement is the
Statement of Financial Position
Statement of Retained Earnings
Profit and Loss Statement
Cash Flows Statement
An Income Statement
summarizes the changes in retained earnings for a specific period of time
reports the changes in assets, liabilities, and stockholders’ equity over a period of time
reports the assets, liabilities, and stockholders’ equity at a specific date
presents the revenues and expenses for a specific period of time
The profit of a business during an accounting period is equal to total
cash receipts less total cash payments
revenues less total cash payments
revenues less total expenses
cash receipts less total expenses
A net loss occurs when
revenues exceed expenses
assets exceed liabilities
revenues equal expenses
revenues are less than expenses
Which of the following accounts represents a Control Account?
Cash
Accumulated Depreciation
Accounts Payable
Prepaid Insurance
Which of the following best describes a trial balance?
It is a list of balances on the books.
It is a special account.
Debits do not have to equal credits.
It shows the financial position of a business.
Is it true that a trial balance should agree?
Yes, except where the trial balance is extracted at the year end.
No, because it is not a balance sheet.
No, there are sometimes good reasons why they will differ.
Yes, always.
Adjusting journal entries are prepared from
source documents
the balance sheet
the income statement
the adjusted columns of the worksheet
A post-closing trial balance will show
zero balance for all accounts
zero balances for all balance sheet accounts
zero balance for all income statement accounts
all accounts will balances remaining after closing entries are posted
Which of the following financial statements is concerned with the company at a point in time?
Balance Sheet
Income Statement
Statement of Owner’s Equity
Statement of Cash Flows
Which of the following accounts is not a plant current asset?
Accounts Receivable
Land
Equipment
Autos and Trucks
Which of the following is normally a current liability?
Notes Payable—due in two years
Unearned Revenue
Mortgage Payable
Prepaid Rent
The total equity of a business is equal to the total
assets less the current liabilities of the business
assets of the business
assets less the total liabilities of the business
liabilities of the business
Assets are generally listed on the balance sheet in which order?
alphabetic
generic
chronological
liquidity
On a worksheet if the trial balance debit column is larger than the trial balance credit column, it would indicate a(n) has occurred.
net income
net loss
error
break even
Entries to record expired insurance and the amount of supplies used during the period are example of entries.
reversing
adjusting
closing
opening
The entry to record expired insurance is debit
Insurance Expense; credit Cash
Prepaid Insurance; credit Insurance Payable
Prepaid Insurance; credit Cash
Insurance Expense; credit Prepaid Insurance
Which document is used to aid in the development of the financial statement?
Income Statement
Worksheet
Trial Balance
General Journal
If a company fails to record depreciation of equipment for the fiscal period, the result would be an
understatement of expenses
overstatement of expenses
understatement of liabilities
overstatement of liabilities
A check written by the company for $167 is incorrectly recorded by the company as $176. On the bank reconciliation, the $9 error should be
added to the balance per books
deducted from the balance per books
added to the balance per bank
deducted from the balance per bank
Which of the following would be added to the balance per bank on a bank reconciliation?
outstanding checks
deposits in transit
notes collected by the bank
service charges
Which of the following items on a bank reconciliation would require an adjusting entry on the company's books?
an error by the bank
outstanding checks
a bank service charge
a deposit in transit
Deposits in transit
have been recorded on the company's books but not yet by the bank
have been recorded by the bank but not yet by the company
have not been recorded by either the bank or the company
are customers’ checks that have not been received by the company
The adjusting cash balance per books on May 31 is
$3,075
$2,940
$2,775
$2,175
The Wage and Tax Statement is known as
Form 940
Form 941
Form 1040
Form W-2
Employer payroll taxes
are an added expense beyond the wages and salaries earned by employees
represent the federal taxes withheld from employees
represent the social security taxes withheld from employees
are paid by the employee
The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the
first $7,000 of an employee’s pay. Assume that an employee earned $8,900. What is the
amount of total unemployment taxes the employer must pay on this employee’s wages?
$322.00
$434.00
$480.60
$551.80
Gross pay is
take-home pay
total compensation earned by an employee before any deductions
salaries after taxes are deducted
deductions withheld by an employee
The employer should record payroll deductions as
employee receivables
payroll taxes
current liabilities
wages payable
A business owned by one person is known as a
sole proprietorship
partnership
C-corporation
S-corporation
A form of business ownership that operates under a charter issued by the state is called a(n)
sole proprietorship
partnership
corporation
entrepreneurship
One of the primary disadvantages of the sole proprietorship is
ease of dissolution
no special taxation
direct control of the business
all losses go to the owner
One of the disadvantages of a partnership is
flexibility
sharing of profits
diversity of skills and expertise
no special taxes
One of the disadvantages of the "corporation" form of ownership is
double taxation of profits
tax deductions
unlimited life
limited liability
The business has a piece of equipment that cost $28,600. If it is estimated that the item’s residual value is $200 and lifetime is four years. The depreciation expense for year two under the straight-line method would be
$7,100
$7,150
$14,200
$14,400
The company has a partially depreciated plant asset with a carrying value of $4,500. The asset cost $81,000 to purchase. In discarding this asset as worthless, the lost on disposal would be
$4,500
$76,500
$81,000
$85,500
The business acquired a machine for $128,000. If had an estimated useful life of 20,000 hours and a residual value of $5,000. What would be the depreciation expense for year one, assuming the machine was used for 3,000 hours?
$11,250
$18,450
$19,200
$19,950
The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
liability
contra asset
book value
market value
Marco Service Center purchased a piece of equipment for $1,500. It has an expected life of 30 months and no residual value. The adjusting entry for the month is debit
Depreciation Expense $50, credit Accumulated Depreciation $50
Depreciation Expense $500, credit Accumulated Depreciation $500
Accumulated Depreciation $50, credit Depreciation Expense $50
Accumulated Depreciation $500, credit Depreciation Expense $500
##### in a cell means the
column is too narrow
row is too narrow
column is too wide
row is too wide
An example of the currency style is
1000.01
$1000.01
1000.01$
$1,000.01
What is an advantage of a computerized accounting system?
it is cost efficient
only one person can use the system, therefore more control
capable of producing quick information
use of less paper
Which of the following software programs would be most beneficial to an accounting office?
Microsoft Word
Microsoft Excel
Microsoft Access
Microsoft Publisher
A form of white-collar crime in which a person or entity misappropriates the assets entrusted to them is known as
fraud
larceny
embezzlement
Ponzi scheme
Internal controls are a series of policies and procedures that a business owner puts in place for which of the following purposes
protecting assets
maintaining reliability
promotional efficient operations
all of the above
The first step in solving an ethical dilemma is to
identify and analyze the principal elements in the situation
identify the alternatives
recognize an ethical situation and the ethical issues involved
weigh the impact of each alternative of various stakeholders
_____ are responsible for providing reasonable assurance that the financial statements are prepared in accordance with generally accepted accounting principles.
Auditors
Lawyers
Assessors
Regulators
To make sure that accounting records are kept in accordance with acceptable procedures, companies will follow the guidelines of which policies?
SEC
FASB
GAAP
IRA
Integrity means
trying to please the client
listening to the client’s viewpoint
preparing accounts to the clients’ specifications
preparing accounts to show a “true and fair view”
