Test
Accounting - Unit 1: Grade 11 Review
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Preguntas del test (55)
1Debt refers to
- Aan asset
- Bthe right side of an account
- Ca liability
- Dthe left side of an account
2Which of the following items is not an asset?
- AA/R
- Bcash
- CA/P
- Dsupplies
3The common characteristic possessed by all assets is?
- Along life
- Bgreat monetary value
- Ctangible nature
- Dfuture economic benefit
4Liabilities...
- Aare future economic benefits
- Bare existing debts and obligations
- Cpossess service potential
- Dare things of value used by the business in its operation
5Owner's Equity , in a proprietorship, can be described as
- Acreditorship claims on total assets
- Bownership claim on total assets
- Cbenefactor's claim on total assets
- Ddebtor claim on total assets
6Notes Payable are classified as
- Aan asset
- Bowner's equity
- Crevenue
- Da liability
7The basic accounting EQN is written as
- AAssets + Liabilities = Owner's Equity
- BAssets = Liabilities + Owner's Equity
- CAssets = Revenues - Expenses
- DAssets + Owner's Equity = Liabilities
8A way to write the expanded accounting EQN is
- AAssets + Expenses + Withdrawals = Owner's Capital + Revenue
- BAssets = Liabilities + Owner's Capital + Revenue - Expenses - Withdrawals
- CAssets + Owner's Capital = Liabilities + Revenue - Expenses - Withdrawals
- DAssets + Revenue = Liabilities + Owner's Capital + Expenses - Withdrawals
9What is a ledger?
- Aa list of all assets
- Baccounts grouped together in book or computerized form
- Ca list of all liabilities
- Dthe debit side of an account
10If total liabilities = $75 000 and OE = $150 000, total assets =
- A75 000
- B150 000
- C250 000
- D225 000
11An activity that changes the value of a firm's assets, liabilities, or owner's equity is referred to as
- Aa service business
- Ban income statement
- Ca net loss
- Da transaction
12If the assets of a business increase by $16 000 during an accounting period and OE increases by $4 000, what is the amount and direction of the change in liabilities for the period?
- A+ $12 000
- B- $12 000
- C+ $20 000
- D= $16 000
13If an individual asset, in a proprietorship, is increased then
- Athere must be an equal decrease in a specific liability
- Bthere must be an equal decrease in OE
- Cthere must be an equal decrease in another asset
- Dnone of these is possible
14Net income occurs when
- AA > L
- BR = E
- CR > E
- DR < E
15If the OE account increases from the beginning of the year to the end of the year, then
- ANI is less than other drawings
- Ba NL is less than owner drawings
- Cadditional owner investments are less than NL
- DNI is greater than owner drawings
16Before the following transaction, Sam's Landscaping has $25 000 in assets, $15 000 in liabilities, and $10 000 in OE. Sam borrows $10 000 from the bank. What effect will this have on the accounting EQN?
- Aassets will increase by $10 000 and liabilities will decrease by $10 000
- Bliabilities will decrease by $10 000 and OE will increase by $10 000
- Cassets will increase by $10 000 and liabilities will increase by $10 000
- Dassets will decrease by $10 000 and OE will decrease by $10 000
17An accountant has debited an asset account for $1 000 and credited a liability account for $500. What can be done to complete the recording of the transaction?
- Anothing further must be done
- Bdebit an OE account for $500
- Cdebit another asset account for $500
- Dcredit a different asset account for $500
18Eric paid $500 for repairs on the truck he uses in his landscaping business. The effect on the accounting EQN would include a(n)
- Aincrease to OE
- Bdecrease to liabilities
- Cdecrease to assets
- Dincrease to revenue
19James received a cheque for $1 000 from one of his clients for work he had performed in a prior accounting period. How should James record the receipt for this cheque?
- Aincrease cash $1 000, decrease A/P $1 000
- Bincrease cash $1 000, decrease service revenue $1 000
- Cincrease cash $1 000, increase capital $1 000
- Dincrease cash $1 000, decrease A/R $1 000
20The purchase of supplies on credit
- Adecreases liabilities
- Bhas no effect on the accounting EQN
- Cdecreases assets
- Dincreases liabilities
21Which of the following activities increases OE?
- Aperformance of services for client on credit
- Bwithdrawal of cash for personal
- Cpayment of office rent
- Dpurchase of supplies on credit
22The three basic financial statements are
- Aincome statement, bank statement, balance sheet
- Bincome statement, statement of owner's equity, balance sheet
- Cbank statement, invoice, and revenue statement
- Dstatement of owner's equity, balance sheet, worksheet
23A listing of a firm's assets, liabilities, and OE at a specific point in time is known as
- Aa statement of OE
- Ba balance sheet
- Cthe accounting EQN
- Dan income statement
24Which of the following is not true of the terms debit and credit?
- Athey can be abbreviated as DR and CR
- Bthey can be interpreted as increase or decrease
- Cthey can be used to describe the balance of an account
- Dthey can be interpreted to mean left or right
25Which statement is true regarding the rules for debits and credits?
- Adebits are always positive, credits always negative
- Bdebits on the right, credits on the left
- Ca debit will decrease an asset
- Da credit will be recorded on the right side of an account
26What is the change to the balance in OE when revenues were $1 500, expenses were $800, and withdrawals were $400?
- Aan increase of $1 500
- Ba decrease of $400
- Can increase of 300
- Dan increase of $700
27Tom invoices his customer $1 200 for services. The correct entry to record this transaction is
- Adebit A/R $1 200 and credit deferred payments $1 200
- Bdebit cash $1 200 and credit service revenue $1 200
- Cdebit A/R $1 200 and service revenue $1 200
- Dnone of the above are correct
28Which of the following is true?
- Awhen we receive cash, we credit the cash account
- Bwhen we receive cash, we debit the revenue account
- Cwhen we pay a bill, we debit the cash account
- Dwhen we pay a bill, we credit the cash account
29A TB is a list of all
- Abusiness liabilities
- Bledger accounts and their balances
- Crevenues and expenses
- Dbusiness assets
30The normal balance of liabilities and OE is, respectively
- Acredit and credit
- Bdebit and debit
- Cdebit and credit
- Dcredit and debit
31An account will be said to have a credit balance if
- Athe normal balance is a credit
- Bthere are more credit transactions than debit
- Cthe sum of the credit transactions is greater than that of the debit
- Dthe account is an OE account
32A/R had a normal balance of $8 500 at the beginning of the month. During the month, the account had debit postings of $8 500 and credit postings of $10 000. The balance of A/R at the end of the month is a
- A$8 500 credit balance
- B$10 000 credit balance
- C$7 000 debit balance
- D$10 000 debit balance
33The following accounts have normal balances as shown below. What is the TB total for debits and credits?
A/P - 1 500, A/R - 2 000, Capital - 4 000, Cash - 1 000, Equip - 5 000, Notes Payable - 3 500, Withdrawals - 1 000- A8 000 debit and 8 000 credit
- B10 000 debit and 10 000 credit
- C9 000 debit and 9 000 credit
- D8 000 debit and 10 000 credit
34What is the purpose of a TB?
- Ato verify that all transactions are correct
- Bto show net income
- Cto show that all transactions have been recorded
- Dto verify equality of debits and credits
35The book of original entry is the
- Afour-column account
- Bjournal
- Cledger
- DTB
36The owner of a business purchases equipment by making a down payment with the balance owed on account. This transaction is recorded by debiting the
- Aequip account and crediting the cash and A/P accounts
- Bequip account and the A/P account and crediting the cash account
- Ccash account and the equip account and crediting the A/P account
- Dcash account and the A/P account and crediting the equip account
37When a business transaction requires entries to more than one debit or more than one credit, it is called a
- Acomplex entry
- Bcompound entry
- Cstandard entry
- Ddouble entry
38Thomas' Dry Wall completed work on a house. Thomas received $3 500 when he finished the job and will receive the balance of $1 500 in 30 days. The correct journal entry to record this event is
- Adebit cash $3 500 and credit service revenue $3 500
- Bdebit A/R $5 000 and credit cash $3 500 and service revenue $1 500
- Cdebit cash $3 500 and credit A/R $1 500 and service revenue $5 000
- Ddebit cash $3 500 and A/R $1 500 and credit service revenue $5 000
39The journal entry to record the payment of Ralph's Plumbing and Repair electric bill of $175 for the month is
- Adebit cash $175 and credit A/P $175
- Bdebit cash $175 and credit utilities expense $175
- Cdebit utilities expense $175 and credit cash $175
- Dnone of the above are correct
40A term used for transferring information from the journal to the ledger is
- Atransference
- Btransposing
- Cposting
- Dreferencing
41When the new balance of an account is calculated
- Aa debit posting is added if the account has a credit balance
- Ba credit posting is subtracted if the account has a credit balance
- Ca debit posting is subtracted if the account has a debit balance
- Da debit posting is subtracted if the account has a credit balance
42What is a transposition error?
- Aa math error involving an incorrectly placed decimal point
- Ba recording error involving an incorrectly place decimal point
- Ca posting error involving an incorrectly placed decimal point
- Da posting error involving a reversal of digits
43An awareness of the normal balance of accounts would help you spot which of the following as an error in recording?
- Aa debit balance in the drawings account
- Ba credit balance in an expense account
- Ca credit balance in a liability account
- Da credit balance in a revenue account
44Which of the following errors will cause a TB to not balance?
- Ajournalizing a transaction twice
- Bfailure to record a transaction
- Cfailure to post part of an entry to the ledger
- Dposting a transaction twice
45Which of the following entries would cause a TB not to balance
- Aa debit to cash for $360 and credit to equip for $360
- Ba debit to cash for $400 and credit to A/P for $400
- Ca debit to A/P for $560 and credit to A/P for $560
- Da debit to salaries expense for $780 and credit to salaries payable for $870
46A TB would only help in detecting which of the following errors
- Aa transaction not journalized
- Ban entry posted twice
- Can entry using incorrect accounts
- Da transposition error when transferring the debit side of a journal entry to the ledger
47Linda prepared the Tb and found that total debits were $19 000 and total credits were $21 500. Which of the following errors would cause the TB to be out of balance?
- Athe payment of rent was recorded as a debit to cash for $2 500 and credit to rent expense for $2 500
- Bthe purchase of equip on account was recorded as a debit to equip for $2 500 and a credit to cash for $2 500
- Cthe receipt of a customer's payment was recorded as a credit to A/R for $1 250 ad a credit to cash for $1 250
- Dthe purchase of supplies was recorded as a debit to supplies expense for $1 250 and a credit to supplies for $1 250
48If a purchase of supplies on account for $100 is journalized correctly but posted as a debit to the supplies account for $1 000 and a credit to A/P for $100, what effects will the error have?
- Athe TB will be out of balance, but A/P account will be correct
- Bthe TB will be in balance
- Cthe TB will be in balance, and the supplies account will be correct
- Dthe TB will be out of balance, and both supplies account and the A/P account will be incorrect
49The payment of a $450 invoice for utilities was recorded as a debit to rent expense for $540 and a credit to cash for $540. The entry to correct this mistake is
- Adebit rent expense $90, credit cash $90
- Bdebit utilities expense $540, credit rent expense $540
- Cdebit cash $540, credit utilities expense $450 and rent expense $90
- Ddebit cash $90 and utilities expense $450, and credit rent expense $540
50Trent received a $350 payment from one of his customers and incorrectly recorded this amount as a debit for $530 to cash and a credit to A/P for $530. The entry that will correct the error is
- Adebit A/P $180, credit cash $180
- Bdebit A/R $530, credit sales $530
- Cdebit A/P 530, credit A/R $350 and cash $180
- Ddebit cash $350 and credit A/R $350
51A business organized as a corporation
- Ais not a separate legal entity in most provinces
- Brequires that shareholders are personally liable for debts of the business
- Cis owned by its shareholders
- Dterminates when one of the owners dies
52A partnership form of business organization
- Ais a separate legal entity
- Bis a common form of organization for professional businesses
- Cenjoys an unlimited life
- Dhas limited liability
53Which of the following is not an advantage of the corporate business form?
- Alimited liability of shareholders
- Btransferability of ownership
- Cunlimited personal liability for shareholders
- Dunlimited life
54The accounting EQN for a corporation may be expressed as
- AAssets = Liabilities + Shareholders' Equity
- BAssets = Liabilities + Partners' Equity
- CAssets = Liabilities + Owner's Equity
- Dall of the above
55Accumulated earnings in a corporation are reported in
- Acapital
- Bshare capital
- Cretained earnings
- Ddividends
Información
- Descripción
- Grade 12 Accounting Midterm Prep
- Autor
- Claudia Voin
- Idioma
- English
- Visitas
- 2.231
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