Kathleen Keller
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This is the objective 1 practice accounting test.

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Kathleen Keller
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Accounting I - UNIT 1 Fundamentals

Accounting I - UNIT 1 Fundamentals

Question 1 of 34

1

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

Select one of the following:

  • Decreased by $1,000

  • Decreased by $2,000

  • Increased by $1,000

  • Increased by $2,000

Explanation

Question 2 of 34

1

Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:

Select one of the following:

  • Owner's Equity

  • Expenses

  • Liabilities

  • Revenue

Explanation

Question 3 of 34

1

What is an example of an account that has a normal credit balance?

Select one of the following:

  • Cash

  • Accounts Payable - Jones Supply

  • Prepaid Insurance

  • Supplies

Explanation

Question 4 of 34

1

What is an example of an account that has a normal credit balance?

Select one of the following:

  • Advertising Expense

  • Accounts Receivable - Davis Company

  • Delivery Revenue

  • Samuel Johnson, Drawing

Explanation

Question 5 of 34

1

What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?

Select one of the following:

  • Assets decrease $200 and owner's equity decreases $200.

  • Assets increase $200 and owner's equity increases $200.

  • Assets increase $200 and owner's equity decreases $200.

  • Liabilities increase $200 and owner's equity decreases $200.

Explanation

Question 6 of 34

1

Sales is classified as:

Select one of the following:

  • assets

  • expenses

  • liabilities

  • revenue

Explanation

Question 7 of 34

1

What is an example of an account that has a normal debit balance?

Select one of the following:

  • Mary Johnson, Capital

  • Accounts Payable - Ray's Office Equipment

  • Rent Expense

  • Sales

Explanation

Question 8 of 34

1

What is an example of an account that has a normal credit balance?

Select one of the following:

  • Cash

  • Office Equipment

  • Sales

  • Supplies

Explanation

Question 9 of 34

1

Cash, Office Equipment, and Prepaid Insurance are all classified as:

Select one of the following:

  • assets

  • liabilities

  • owner's equity

  • revenue

Explanation

Question 10 of 34

1

What is the effect when $300 cash is paid to Accounts Payable -Bob's Office Supply?

Select one of the following:

  • Assets decrease $300 and owner's equity decreases $300.

  • Assets increase $300 and owner's equity increases $300.

  • Assets increase $300 and liabilities decreases $300.

  • Assets decrease $300 and liabilities decrease $300.

Explanation

Question 11 of 34

1

What is an example of an account that has a normal debit balance?

Select one of the following:

  • Accounts Receivable - Oakdale School

  • Accounts Payable - Jones Supply

  • Mary Johnson - Capital

  • Sales

Explanation

Question 12 of 34

1

Rent, the telephone bill, and advertising costs are all classified as:

Select one of the following:

  • assets.

  • expenses.

  • liabilities.

  • revenue.

Explanation

Question 13 of 34

1

What is the effect on owner's equity when a business receives $2000 cash from sales?

Select one of the following:

  • Decreased by $2000

  • Increased by $2000

  • Decreased by $4,000

  • Increased by $4,000

Explanation

Question 14 of 34

1

What is an example of an account that has a normal credit balance?

Select one of the following:

  • Cash

  • Joan Brown - Drawing

  • Supplies

  • Tyler Jackson - Capital

Explanation

Question 15 of 34

1

What is an example of an account that has a normal debit balance?

Select one of the following:

  • Accounts Payable - Adam's Office

  • Advertising Expense

  • Mary Johnson, Capital

  • Sales

Explanation

Question 16 of 34

1

In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:

Select one of the following:

  • Check Stub

  • Invoice

  • Memorandum

  • Receipt

Explanation

Question 17 of 34

1

The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Utilities Expense

  • Debit Cash and credit Ted Bright, Drawing

  • Debit Ted Bright, Drawing and credit Cash

  • Debit Utilities Expense and credit Cash

Explanation

Question 18 of 34

1

The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?

Select one of the following:

  • Debit Accounts Payable/Davis Supply Store and credit Supplies

  • Debit Supplies and credit Accounts Payable/Davis Supply Store

  • Debit Supplies and credit Supplies Expense

  • Debit Supplies Expense and credit Supplies

Explanation

Question 19 of 34

1

The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Frank Harper, Capital

  • Debit Cash and credit Frank Harper, Drawing

  • Debit Frank Harper, Capital and credit Cash

  • Debit Frank Harper, Drawing and credit Cash

Explanation

Question 20 of 34

1

The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Insurance Expense

  • Debit Cash and credit Prepaid Insurance

  • Debit Insurance Expense and credit Cash

  • Debit Prepaid Insurance and credit Cash

Explanation

Question 21 of 34

1

The transaction, PAID CASH FOR RENT, would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Miscellaneous Expense

  • Debit Cash and credit Rent Expense

  • Debit Miscellaneous Expense and credit Cash

  • Debit Rent Expense and credit Cash

Explanation

Question 22 of 34

1

The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Miscellaneous Expense

  • Debit Cash and debit Miscellaneous Expense

  • Debit Miscellaneous Expense and credit Cash

  • Debit Supplies and credit Miscellaneous Expense

Explanation

Question 23 of 34

1

The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?

Select one of the following:

  • Debit Cash and credit Legal Expenses

  • Debit Cash and credit Legal Fees

  • Debit Legal Fees and credit Cash

  • Debit Miscellaneous Expense and credit Legal Fees

Explanation

Question 24 of 34

1

The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?

Select one of the following:

  • Debit Accounts Receivable/Parker INC., and credit Cash

  • Debit Cash and credit Accounts Receivable/Parker, INC.

  • Debit Cash and credit Supplies

  • Debit Supplies and credit Cash

Explanation

Question 25 of 34

1

In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:

Select one of the following:

  • check stub.

  • invoice.

  • memorandum.

  • receipt.

Explanation

Question 26 of 34

1

In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:

Select one of the following:

  • calculator tape.

  • check stub.

  • invoice.

  • receipt.

Explanation

Question 27 of 34

1

The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?

Select one of the following:

  • Debit Accounts Receivable/Beth Parker and credit Cash

  • Debit Accounts Receivable/Beth Parker and credit Sales

  • Debit Cash and credit Accounts Receivable/Beth Parker

  • Debit Cash and credit Sales

Explanation

Question 28 of 34

1

Brian 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?

Select one of the following:

  • Competence

  • Confidentiality

  • Independence

  • Objectivity

Explanation

Question 29 of 34

1

John 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?

Select one of the following:

  • 21st Century Skills

  • Workplace Skills

  • Foundation Skills

  • Communication Skills

Explanation

Question 30 of 34

1

Sharon takes responsibility and initiative for her own work at Accounting Temps. This is an example of which 21st Century Skill?

Select one of the following:

  • Information and communication

  • Interpersonal

  • Self-direction

  • Thinking and problem-solving

Explanation

Question 31 of 34

1

Lisa 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?

Select one of the following:

  • Basic Skills

  • Workplace Skills

  • Foundations Skills

  • Communication Skills

Explanation

Question 32 of 34

1

Jamie 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?

Select one of the following:

  • Competence

  • Confidentiality

  • Independence

  • Objectivity

Explanation

Question 33 of 34

1

Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?

Select one of the following:

  • Competence

  • Confidentiality

  • Independence

  • Integrity

Explanation

Question 34 of 34

1

Mary 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?

Select one of the following:

  • 21st Century Skills

  • Workplace Skills

  • Foundation Skills

  • Communication Skills

Explanation

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