Quiz
Accounting I - UNIT 1 Fundamentals
Questions in this quiz (34)
1What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
- ADecreased by $1,000
- BDecreased by $2,000
- CIncreased by $1,000
- DIncreased by $2,000
2Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:
- AOwner's Equity
- BExpenses
- CLiabilities
- DRevenue
3What is an example of an account that has a normal credit balance?
- ACash
- BAccounts Payable - Jones Supply
- CPrepaid Insurance
- DSupplies
4What is an example of an account that has a normal credit balance?
- AAdvertising Expense
- BAccounts Receivable - Davis Company
- CDelivery Revenue
- DSamuel Johnson, Drawing
5What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?
- AAssets decrease $200 and owner's equity decreases $200.
- BAssets increase $200 and owner's equity increases $200.
- CAssets increase $200 and owner's equity decreases $200.
- DLiabilities increase $200 and owner's equity decreases $200.
6Sales is classified as:
- Aassets
- Bexpenses
- Cliabilities
- Drevenue
7What is an example of an account that has a normal debit balance?
- AMary Johnson, Capital
- BAccounts Payable - Ray's Office Equipment
- CRent Expense
- DSales
8What is an example of an account that has a normal credit balance?
- ACash
- BOffice Equipment
- CSales
- DSupplies
9Cash, Office Equipment, and Prepaid Insurance are all classified as:
- Aassets
- Bliabilities
- Cowner's equity
- Drevenue
10What is the effect when $300 cash is paid to Accounts Payable -Bob's Office Supply?
- AAssets decrease $300 and owner's equity decreases $300.
- BAssets increase $300 and owner's equity increases $300.
- CAssets increase $300 and liabilities decreases $300.
- DAssets decrease $300 and liabilities decrease $300.
11What is an example of an account that has a normal debit balance?
- AAccounts Receivable - Oakdale School
- BAccounts Payable - Jones Supply
- CMary Johnson - Capital
- DSales
12Rent, the telephone bill, and advertising costs are all classified as:
- Aassets.
- Bexpenses.
- Cliabilities.
- Drevenue.
13What is the effect on owner's equity when a business receives $2000 cash from sales?
- ADecreased by $2000
- BIncreased by $2000
- CDecreased by $4,000
- DIncreased by $4,000
14What is an example of an account that has a normal credit balance?
- ACash
- BJoan Brown - Drawing
- CSupplies
- DTyler Jackson - Capital
15What is an example of an account that has a normal debit balance?
- AAccounts Payable - Adam's Office
- BAdvertising Expense
- CMary Johnson, Capital
- DSales
16In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:
- ACheck Stub
- BInvoice
- CMemorandum
- DReceipt
17The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?
- ADebit Cash and credit Utilities Expense
- BDebit Cash and credit Ted Bright, Drawing
- CDebit Ted Bright, Drawing and credit Cash
- DDebit Utilities Expense and credit Cash
18The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
- ADebit Accounts Payable/Davis Supply Store and credit Supplies
- BDebit Supplies and credit Accounts Payable/Davis Supply Store
- CDebit Supplies and credit Supplies Expense
- DDebit Supplies Expense and credit Supplies
19The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?
- ADebit Cash and credit Frank Harper, Capital
- BDebit Cash and credit Frank Harper, Drawing
- CDebit Frank Harper, Capital and credit Cash
- DDebit Frank Harper, Drawing and credit Cash
20The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
- ADebit Cash and credit Insurance Expense
- BDebit Cash and credit Prepaid Insurance
- CDebit Insurance Expense and credit Cash
- DDebit Prepaid Insurance and credit Cash
21The transaction, PAID CASH FOR RENT, would result in which journal entry?
- ADebit Cash and credit Miscellaneous Expense
- BDebit Cash and credit Rent Expense
- CDebit Miscellaneous Expense and credit Cash
- DDebit Rent Expense and credit Cash
22The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
- ADebit Cash and credit Miscellaneous Expense
- BDebit Cash and debit Miscellaneous Expense
- CDebit Miscellaneous Expense and credit Cash
- DDebit Supplies and credit Miscellaneous Expense
23The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?
- ADebit Cash and credit Legal Expenses
- BDebit Cash and credit Legal Fees
- CDebit Legal Fees and credit Cash
- DDebit Miscellaneous Expense and credit Legal Fees
24The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?
- ADebit Accounts Receivable/Parker INC., and credit Cash
- BDebit Cash and credit Accounts Receivable/Parker, INC.
- CDebit Cash and credit Supplies
- DDebit Supplies and credit Cash
25In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:
- Acheck stub.
- Binvoice.
- Cmemorandum.
- Dreceipt.
26In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:
- Acalculator tape.
- Bcheck stub.
- Cinvoice.
- Dreceipt.
27The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?
- ADebit Accounts Receivable/Beth Parker and credit Cash
- BDebit Accounts Receivable/Beth Parker and credit Sales
- CDebit Cash and credit Accounts Receivable/Beth Parker
- DDebit Cash and credit Sales
28Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. This example is a violation of which key principle for ethics in accounting?
- ACompetence
- BConfidentiality
- CIndependence
- DObjectivity
29John has applied for a position as Chief Financial Officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver and has the ability to plan and resolve issues. This is classified as which skill?
- A21st Century Skills
- BWorkplace Skills
- CFoundation Skills
- DCommunication Skills
30Sharon takes responsibility and initiative for her own work at Accounting Temps. This is an example of which 21st Century Skill?
- AInformation and communication
- BInterpersonal
- CSelf-direction
- DThinking and problem-solving
31Lisa is applying for a position in a small insurance agency. The company is looking to hire an individual that can convert their manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. This is classified as which skill?
- ABasic Skills
- BWorkplace Skills
- CFoundations Skills
- DCommunication Skills
32Jamie is an accountant. She knows that she is expected to produce accurate financial reports from her audit. She knows when she submits her report to her superiors her friend will suffer consequences for misappropriation of funds. Jamie submits an accurate report and follows which key principle for ethics in accounting?
- ACompetence
- BConfidentiality
- CIndependence
- DObjectivity
33Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?
- ACompetence
- BConfidentiality
- CIndependence
- DIntegrity
34Mary has applied for a position as an accounting clerk for a local company. She listed as her qualifications that she is a problem-solver and needs little direction to complete assigned tasks. This is classified as which skill?
- A21st Century Skills
- BWorkplace Skills
- CFoundation Skills
- DCommunication Skills
Information
- Description
- This is the objective 1 practice accounting test.
- Author
- Kathleen Keller
- Language
- English
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