Quiz
Accounting Definitions Chapter 1-4
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1What is a Dividend?
- AA distribution by a corporation to its customers.
- BA distribution by a corporation to its owners.
- CA distribution by a corporation to its stockholders.
2Define financial accounting.
- AThe field of accounting that provides economic and financial information for investors, creditors and other external users.
- BThe field of accounting that provides economic and financial information for owners, customers and other external users.
- CThe field of accounting that provides economic and financial information for the government, the general public and other external users.
3What is an income statement?
- AA financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
- BA financial statement that presents the dividends and common stock and resulting net income or net loss of a company for a specific period of time.
- CA financial statement that presents the cash and dividends and resulting net income or net loss of a company for a specific period of time.
4Define Ethics.
- AThe standards of business by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair.
- BThe process by which a company is investigated by the federal reserve for suspicion of money laundering.
- CThe standards of conduct by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair.
5What is a compound entry?
- AA journal entry that involves one or two accounts.
- BA general ledger account that is compounded on a monthly basis.
- CA journal entry that involves three or more accounts.
6What is a chart of accounts?
- AA list of accounts and the definitions of those accounts.
- BA list of accounts and the account numbers that identify their location in the ledger.
- CA list of accounts displayed on a chart or graph.
7Define a Journal.
- AAn accounting record in which sales are initially recorded in chronological order.
- BAn accounting record in which transactions are initially recorded in chronological order.
- CAn accounting record in which revenues are initially recorded in chronological order.
8Define Ledger.
- AThe entire group of journals maintained by a company.
- BThe entire group of accounts maintained by a company.
- CA sample of accounts maintained by a company.
9What are retained earnings?
- ANet income that is kept (retained) in the business.
- BNet income that is converted into cash.
- CNet income that is kept (retained) in the business and distributed to the shareholders.
10What is Depreciation?
- AThe allocation of the cost of a liability to expense over its useful life in a rational and systematic manner.
- BThe allocation of the cost of land to expense over its useful life in a rational and systematic manner.
- CThe allocation of the cost of an asset to expense over its useful life in a rational and systematic manner.
11Define fiscal year.
- AAn accounting period that is one year in length.
- BAn accounting period that is one month in length.
- CAn accounting period that is six months in length.
12What are Interim Periods?
- ADaily or Monthly accounting time periods.
- BSemi-annually or anual accounting time periods.
- CMonthly or quarterly accounting time periods.
13Define accrual-basis accounting.
- AAccounting basis in which companies record transactions that change a company's journal entries in the periods in which the events occur.
- BAccounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur.
- CAccounting basis in which companies record transactions that change a company's net income/loss in the periods in which the events occur.
14What are accrued expenses?
- AExpenses incurred but not yet paid in cash or recorded.
- BExpenses that are paid for but not yet recorded.
- CExpenses incurred that are paid for and recorded.
15Accrued revenues?
- ARevenues for services performed not yet received in cash but have been recorded.
- BRevenues for services not yet performed but have received cash and recorded.
- CRevenues for services performed not yet received in cash or recorded.
16What are unearned revenues?
- ACash received before services are performed.
- BCash not yet received before services are performed.
- CCash not yet received but services have been performed.
17Define Book Value.
- AThe difference between the sale of a depreciable asset and its related accumulated depreciation.
- BThe difference between the cost of a depreciable asset and its related accumulated depreciation.
- CThe difference between the cost of a depreciable liability and its related accumulated depreciation.
18What are prepaid expenses?
- AExpenses paid in cash before they are used or consumed.
- BExpenses paid in cash after they are used or consumed.
- CExpenses paid on credit before they are used or consumed.
19What is a Classified Balance Sheet?
- AAn income statement that contains standard classifications or sections.
- BA balance sheet that contains standard classifications or sections.
- CA trial balance sheet that contains standard classifications or sections.
20Define Current Assets.
- AAssets that a company expects to convert to cash or use up within one year.
- BAssets that a company expects to convert to cash or use up within 3 years.
- CAssets that a company expects to convert to cash or use up within 5 years.
21What are Closing Entries?
- AEntries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholder's expense account, Retained Earnings.
- BEntries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholder's equity account, Common Stock.
- CEntries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholder's equity account, Retained Earnings.
22What are Intangible Assets?
- ANon-current assets that do not have physical substance.
- BNon-current assets that have physical substance.
- CNon-current liabilities that do not have physical substance.
23Define Income Summary.
- AA temporary account used in closing cash and expense accounts.
- BA temporary account used in closing revenue and expense accounts.
- CA temporary account used in closing revenue and dividend accounts.
24Define Liquidity.
- AThe ability of a company to pay obligations expected to be due within the next month.
- BThe ability of a company to pay obligations expected to be due within the next year.
- CThe ability of a company to pay obligations expected to be due within the next 3 years.
25What is a worksheet?
- AA multiple-column form that may be used in making adjusting entries and in preparing and income statement.
- BA multiple-column form that may be used in making closing entries and in preparing financial statements.
- CA multiple-column form that may be used in making adjusting entries and in preparing financial statements.
26What is the operating cycle?
- AThe average time that it takes to purchase common stock, sell it on account , and then collect cash from shareholders.
- BThe average time that it takes to purchase inventory, sell it on account , and then collect cash from customers.
- CThe average time that it takes to purchase inventory and then sell it for cash.
27What are long-term investments?
- AGenerally, (1) investments in stocks and bonds of other companies that companies normally hold for many years, and (2) long-term assets, such as land and buildings, not currently being used in operations.
- BGenerally, (1) investments in stocks and bonds of other companies that companies normally hold for many years, and (2) short-term assets, such as inventory, not currently being used in operations.
- CGenerally, (1) investments in short sale stock and mutual funds of other companies that companies normally hold for a few days, and (2) long-term assets, such as land and buildings, currently being used in operations.
28Define Stockholder's Equity.
- AThe combination of revenue and dividend accounts. Often referred to as the ownership claim of shareholders on total assets. It is to a corporation what owner's equity is to a proprietorship.
- BThe combination of asset and liability accounts. Often referred to as the ownership claim of shareholders on total assets. It is to a corporation what owner's equity is to a proprietorship.
- CThe combination of common stock and retained earnings accounts. Often referred to as the ownership claim of shareholders on total assets. It is to a corporation what owner's equity is to a proprietorship.
29What are Temporary (nominal) accounts?
- AAccounts that relate only to a given accounting period. Consist of all income statement accounts and the dividends account. All temporary accounts are closed at the end of the accounting period.
- BAccounts that relate only to any given accounting period. Consist of all income statement accounts and the dividends account. All temporary accounts are closed at the end of the accounting period.
- CAccounts that relate only to a given accounting period. Consist of all liability accounts and the dividends account. All temporary accounts are closed at the end of the accounting period.
30What is a Reversing Entry?
- AAn entry, made at the beginning of the next accounting period, that is the exact opposite of the adjusting entry made in the previous period.
- BAn entry, made at the ending of the next accounting period, that is the exact opposite of the adjusting entry made in the previous period.
- CAn entry, made at the beginning of the next accounting period, that is exactly the same as the adjusting entry made in the previous period.
31What is a Post-Closing Trial Balance?
- AA list of permanent accounts and their balances before a company has journalized and posted closing entries.
- BA list of temporary accounts and their balances after a company has journalized and posted closing entries.
- CA list of permanent accounts and their balances after a company has journalized and posted closing entries.
32What are permanent (real) accounts?
- AAccounts that do not relate to one or more accounting periods. Consist of all income statement accounts. Balances are carried forward to the next accounting period.
- BAccounts that relate to one or more accounting periods. Consist of all balance sheet accounts. Balances are carried forward to the next accounting period.
- CAccounts that relate to one or more accounting periods. Consist of all balance sheet accounts. Balances are closed before the start of the next accounting period.
Informationen
- Beschreibung
- Multiple Choice
- Autor
- Natalie Balzert
- Sprache
- English
- Aufrufe
- 44
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