Quiz
Accounting Final
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Questions in this quiz (54)
1A stockholer is an owner of one or more shares of a corporation
- ATrue
- BFalse
2Retained earnings are earnings distributed to stockholders
- ATrue
- BFalse
3A dividend is an amount earned by a corporation and not yet distributed to stockholders.
- ATrue
- BFalse
4A group of persons elected by the stockholders to manage a corporation is called a board of directors.
- ATrue
- BFalse
5A board of directors distributes earnings of a corporation to stockholders by declaring a dividend
- ATrue
- BFalse
6The purpose of a work sheet is to plan adjustments and summarize their information necessary to prepare financial statments
- ATrue
- BFalse
7The steps for preparing a work sheet are similar for proprietorships and corporations
- ATrue
- BFalse
8The Supplies-Office account must be adjusted to show the expense of hat supplies that are used during the year
- ATrue
- BFalse
9The Prepaid Insurance account is adjusted to show the value of insurance that has been used
- ATrue
- BFalse
10During a fiscal period, the amount of merchandise on hand increases and decreases
- ATrue
- BFalse
11Assets that will be used for a number of years in the operation of a business are called current assets
- ATrue
- BFalse
12Accumulated depreciation is the depreciation expense that has been recorded since the purchase of a plant asset
- ATrue
- BFalse
13Federal income tax is an expense of a corporation
- ATrue
- BFalse
14When a corporation makes the quarterly payment of estimated federal income tax, the cash account is credited.
- ATrue
- BFalse
15Financial statements provide the primary source of information needed by owners and managers to make decisions on the future activity of business.
- ATrue
- BFalse
16An income statement is used to report a business's financial progress
- ATrue
- BFalse
17An income statement for a merchandising business has three main sections: revenue section, cost of merchandise sold section, and expenses section
- ATrue
- BFalse
18Cost of merchandise sold is also known as cost of goods sold
- ATrue
- BFalse
19Total expenses on an income statement are deducted from the gross profit on sales to find net income before federal income tax
- ATrue
- BFalse
20When a business's expenses are less than the gross profit on sales, the difference is known as a net loss.
- ATrue
- BFalse
21Increasing sales revenue while keeping cost of merchandise sold the sale will increase gross profit on sales
- ATrue
- BFalse
22A statement of stockholders' equity contains two major sections: capital stock and retained earnings
- ATrue
- BFalse
23Data needed to prepare the liabilities section of a balance sheet are obtained from a work sheet
- ATrue
- BFalse
24Rules double lines across both amount columns below the Assets section and below the Stockholders' Equity section show that the assets equal liabilities plus owners' equity
- ATrue
- BFalse
25General ledger account balances are changed only by posting journal entries
- ATrue
- BFalse
26Temporary accounts are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period
- ATrue
- BFalse
27The trial balance columns of a work sheet and an income statement contain the information needed to journalize closing entries
- ATrue
- BFalse
28The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.
- ATrue
- BFalse
29The income summary account is closed into the retained earnings account
- ATrue
- BFalse
30After all closing entries are posted, the income statement accounts are the only general ledger accounts that have balances
- ATrue
- BFalse
31The purpose of the post-closing trial balance is to prove the general ledger equality of debits and credits.
- ATrue
- BFalse
32An income statement has three main sections for
- Aassets, liabilities and owner's equity
- Brevenue, expenses, and inventory
- Crevenue, cost of merchandise sold, and expenses
- Downer's equity share of net income, and drawing
33cost of merchandise sold is found by taking the amount of beginning merchandice inventory
- Aless purchases plus ending inventory
- Bplus gross profit on sales
- Cless expenses
- Dplus purchases less ending inventory
34The revenue remaining after cost of merchandise sold has been deducted is
- Agross profit on sales
- Bcost of merchandise sold
- Cnet sales
- Dtotal sales
35one way to increase gross profit on sales is to
- Adecrease expenses
- Bdecrease sales revenue
- Cincrease sales revenue
- Dincrease cost of merchandise sold
36a financial statement that summarizes the changes in a corporation's ownership for a fiscal period is
- Aan income statement
- Ba balance sheet
- Ca statement of stockholder's equity
- Da distribution of net income statement
37a financial statement that reports a corporation's assets, liabilities, and stockholder's equity on a specific date
- Aan income statment
- Ba balance sheet
- Can owner's equity statement
- Da distribution of net income statement
38to prepare the corporation's balance sheet, use the information from
- Athe balance sheet columns of your worksheet
- Bthe owner's equity statement
- Cboth
- Dneither
39When information about the account balance of each vendors needed,
- Aan income statement is prepared
- Ba schedule of accounts payable is prepared
- Ca schedule of account receivable is prepared
- Da distribution of net income statement is prepared
40Liabilities owed for more than a year are called
- Acurrent liabilties
- Blong term liabilities
- Cshort term liabiltiies
- Ddebs
41On an income statement, merchandising businesses report
- Arevenue
- Bcost of merchandise sold
- Cgross profit on sales
- Dall of the above
42Total sales less sales discount and sales returns and allowances is called
- Anet profit
- Bnet income
- Cnet sales
- Dnone of the above
43The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are
- Aadjusting and correcting entries
- Bclosing and correcting entries
- Cadjusting and closing entries
- Dnone of the above
44Information needed for journalizing adjusting entries is taken from the
- ATrial Balance columns of a work sheet
- BAdjustment columns of a work sheet
- CIncome statement columns of a work sheet
- DBalance Sheet columns of a work sheet
45The store supplies inventory adjustment includes a debit to Supplies Expense--Store and a credit to
- AIncome Summary
- BMerchandise Inventory
- CPurshases
- DSupplies--Store
46The amounts needed for closing entries are obtained from the work sheet's
- ATrial Balance and Balance Sheet columns
- BAdjustments and Balance Sheet columns
- CIncome Statement and Balance Sheet columns
- DBalance Sheet columns
47To close the revenue account, the revenue account balance for the fiscal period is transferred into
- Athe income summary account
- Bthe capital accounts
- Cthe cash account
- Dnone of the above
48To close the sales account
- Adebit Sales; credit cash
- Bdebit Sales; credit Income Summary
- Cdebit Income Summary; credit Sales
- Ddebit Cash; credit Sales
49To close the expense and cost accounts
- Adebit the expenses and cost accounts; credit Income Summary
- Bdebit the expense accounts; credit the capital accounts
- Cdebit Income Summary; credit the expense and cost accounts
- Ddebit Income Summary; credit the capital accounts
50To close the income summary account when there is net income
- Adebit Cash; credit Income Summary
- Bdebit the capital accounts; credit Income Summary
- Cdebit Income Summary; credit Retained Earnings
- Ddebit Retained Earnings; credit Income Summary
51Which journal entires change general ledger account balances at the end of a fiscal period
- AAdjusting entries
- BClosing entries
- Cboth
- Dneither
52Which balance sheet accounts have up-to-date balances to begin a new fiscal period?
- AAsset accounts
- BLiability accounts
- CCapital Accounts
- DAll of the above
53Merchandising businesses use an accounting cycle similar to the accounting cycle of
- Aservice businesses
- Bproprietorships
- Ccorporations
- Dall of the above
54After adjusting and closing entries have been posted to the general ledger, a
- Abalance sheet is prepared
- Btrial balance is prepared
- Cpost-closing balance sheet is prepared
- Dpost-closing trial balance is prepared
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- Quiz on Accounting Final, created by k.marie.h58 on 09/01/2015.
- Author
- k.marie.h58
- Language
- English
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