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- 1. Multiple ChoiceA business has total assets of $30,000.00. Then the business pays $1,000.00 on account, buys insurance coverage of $750.00, buys supplies for $1200.00, and pays $300.00 more on account. Total assets are now:$25,750$26,750$28.700none of the above
- 2. Multiple ChoiceCash in increased by:withdrawalsexpensesrevenuenone of the above
- 3. Multiple ChoiceA record summarizing all the information pertaining to a single item in the accounting equation is:debitcreditan accounta T account
- 4. Multiple ChoiceThe normal balance side of an asset account is thedebit sidecredit sidedecrease sideright side
- 5. Multiple ChoiceWhen a business pays for insurance, Prepaid Insurance isincreased with a debitincreased by a creditdecreased by a debitdecreased by a credit
- 6. Multiple ChoiceWhen cash is paid for rent, Rent Expense isincreased by a debitincreased by a creditdecreased by a debitdecreased by a credit
- 7. Multiple ChoiceThe values of all things owned (assets) are on the accounting equation'sleft sideright sidecredit sidenone of the above
- 8. Multiple ChoiceThe normal balance side of any revenue account isdebit sidecredit sideleft sidenone of the above
- 9. Multiple ChoiceThe recording of debit and credit parts of a transaction ischecking equalitydouble-entry accountingsingle-entry accountingtransaction analysis
- 10. Multiple ChoiceA business form ordering a bank to pay cash from a bank account is acheckmemorandumreceiptall of the above
- 11. Multiple ChoiceOn each journal page, the year is written _________.for each entryon the first line of each columnonly for the first entrynone of the above
- 12. Multiple ChoiceWhen supplies are bought on account, the account debited isCashSuppliesAccounts PayableNone of the above
- 13. Multiple ChoiceWhen cash is paid on account, the amount is recorded in the __________.Sales credit column and cash debit columnGeneral debit column and cash credit columnGeneral credit column and cash debit columnGeneral debit column and accounts payable debit column
- 14. Multiple ChoiceWhen cash is paid for utilities, the amount is recorded in thecash credit column and general debit columnSales credit column and general debit columnGeneral credit column and cash debit columnGeneral credit column and sales credit column
- 15. Multiple ChoiceA new account to be added between accounts 530 and 540 will be assigned the number531535537539
- 16. Multiple ChoiceA new account to be added between accounts 530 and 540 will be assigned the number531535537539
- 17. Multiple ChoiceThe procedure for transferring information from a journal entry to a ledger account is:postingjournalizingfile maintenancenone of the above
- 18. Multiple ChoiceThe first step in the posting procedure is writingthe entry date in the Date column of the accountthe journal page number in the Post Ref. column of the accountthe entry amount in the debit or credit column of the accountnone of the above
- 19. Multiple ChoiceWhen cash is paid for utilities, the amount is recorded in theCash credit column and general debit columnSales credit column and General debit columnGeneral credit column and cash debit columnGeneral credit column and sales credit column
- 20. Multiple ChoiceWhen supplies are bought on account, the account debited isCashSuppliesAccounts PayableNone of the above
- 21. Multiple ChoiceWhen cash is paid on account, the amount is recorded in theSales credit column and cash debit columnGeneral Debit column and Cash Credit columnGeneral credit column and Cash Debit columnGeneral Debit column and Accounts Payable Debit column
- 22. Multiple ChoiceEach time cash or checks are placed in a bank account, the customer prepares aSignature carddeposit slipchecknone of the above
- 23. Multiple ChoiceA signature or stamp on the back of a check transferring ownership is:a signature carda deposit slipan endorsementnone of the above
- 24. Multiple ChoiceIf a check is endorsed on the back with the words "For deposit Only" the check can be cashed byanyone who has the checkthe person whose name follows "Pay to the order of"Only the person who signed the checkno one--it must be deposited
- 25. Multiple ChoiceA business has total cash of $30,000 on account, buys insurance coverage of $750, buys supplies for $1200, and pays $300 more on account. The balance of the cash account is now:$25,750$26,750$28,700none of the above
- 26. Multiple ChoiceThe normal balance side of any expense account is:debit sidecredit sideright sidenone of the above
- 27. Multiple ChoiceA check must be signed with
the same signature that is on the signature card
only the first and last name
the totals are not posteda restrictive endorsement
the column totals are equalblack ink
all of the above - 28. Multiple ChoiceWhen an owner invests cash in a business, the owner’s capital account isIncreased by a debitIncreased by a creditDecreased by a debitDecreased by a credit
- 29. Multiple ChoiceHow do ethical employees treat other people?Any way that is not against the rulesAny way that is legalThe way the boss treats themThe way they want to be treated
- 30. Multiple ChoiceBusiness ethics involve considering issues about what issafe and unsafelegal and illegalright and wrongpositive and negative.
- 31. Multiple ChoiceIn general, people judge your integrity on the basis of yourAppearanceBehaviorEducationOccupation
- 32. Multiple ChoiceDedication to your company's goals is an indication of:Empathyhonestyloyaltyinitiative
- 33. Multiple ChoiceInitiative is important to workers in all types of occupations. Which of the following best demonstrates initiative:An employee agrees to finish a sales report one week ahead of schedule at the request of the office supervisor.An employee persuades a fellow worker to help in the completion of an office projectAn employee works required overtime hours to complete a necessary jobAn employee completes a required sales report and then decides to reorganize files without being asked
- 34. Multiple ChoiceThe shipping terms that the SSL Company negotiated with a vendor are 3/10, n/30 on a purchase order made August 18. Calculate the discounted amount SSL would owe for an order of $386.69 if it pays by August 25.$375.09$379.03$366.06$369.09
- 35. Multiple ChoiceCalculate the amount charged to a hotel guest’s credit card using the following information: A four-night stay at a room rate of $128 per night and a 14.5% sales-tax rate.$582.24$594.42$598.42$586.24
- 36. Multiple ChoiceCalculate the total owed for the following sales transaction that has a sales-tax rate of 7.25%: 3 picture frames for $22.59 each; 8 boxes of light bulbs for $8.50 per box; 4 gallons of paint for $38.79 per gallon; 2 paint brushes for $9.35 each; and 1 light fixture for $167.49.$527.12$511.71$515.27$521.71
- 37. Multiple ChoiceTonya’s grandmother loaned her $2,000 to help make the down payment on a used car. Tonya agreed to pay 5% simple interest on the loan and would repay the loan in 24 months. What is the total amount of interest Tonya will pay for the loan?$150$200$100$50
- 38. Multiple ChoiceMr. Jones spent $86.20 for two dozen roses to give to his wife. Calculate the cost per rose.$4.67$3.59$3.89$4.02
- 39. Multiple ChoiceA business owned by a number of shareholders and operated under written permission from the state is known as aSole proprietorshipPartnershipCooperativeCorporation
- 40. Multiple ChoiceOwners of stock are calledShareholdersBoard MembersArticles of incorporationPartners
- 41. Multiple ChoiceFull responsibility for your company’s debts is known asStockLimited liabilityUnlimited liabilitytaxes
- 42. Multiple ChoiceA sole proprietorship is a business owned byTwo or more peopleShareholdersOne personThe state of incorporation
- 43. Multiple ChoiceAn employee who is able to work efficiently and effectively with little or no supervision is displayingInitiativeLoyaltyempathy.apathy.
- 44. Multiple ChoiceCollateral issomething pledged as security for repayment of a loan, to be forfeited in the event of a defaultDown payment for a loanWhat you plan to pay back during the course of the loanThe name given to someone who takes out a loan at a bank or preferred lender
- 45. Multiple ChoiceSuppose you take out a loan for a house for $125,000 at an interest rate of 4.50 for 20 years. What is your total amount that you will pay back (principle + interest).$237,500$112,500$5,625$125,000
- 46. Multiple Choice
What is the first step in the accounting cycle?
journalize transactions
analyze transactions
complete financial statements
post to the ledger
- 47. Multiple Choice
What is the THIRD step in the accounting cycle?
post to the ledger
complete post closing trial balance
prepare financial statements
analyze transactions
- 48. Multiple Choice
What is the SECOND step in the accounting cycle?
post to the ledger
journalize transactions
prepare financial statements
analyze financial statements
- 49. Multiple Choice
The accounting equation is....
assets = liabilities + owners equity
Liabilities = assets + owner's equity
Owners equity= assets + liabilities
All answers are correct
- 50. Multiple Choice
What is the purpose of preparing financial statements
So all parties will have reliable information about the business
To allow managers and decision makers to make better informed decisions
Both answers are correct
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