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Accounting Final

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Quiz on Accounting Final, created by k.marie.h58 on 09/01/2015.
k.marie.h58
Quiz by k.marie.h58, updated more than 1 year ago
k.marie.h58
Created by k.marie.h58 over 9 years ago
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Resource summary

Question 1

Question
A stockholer is an owner of one or more shares of a corporation
Answer
  • True
  • False

Question 2

Question
Retained earnings are earnings distributed to stockholders
Answer
  • True
  • False

Question 3

Question
A dividend is an amount earned by a corporation and not yet distributed to stockholders.
Answer
  • True
  • False

Question 4

Question
A group of persons elected by the stockholders to manage a corporation is called a board of directors.
Answer
  • True
  • False

Question 5

Question
A board of directors distributes earnings of a corporation to stockholders by declaring a dividend
Answer
  • True
  • False

Question 6

Question
The purpose of a work sheet is to plan adjustments and summarize their information necessary to prepare financial statments
Answer
  • True
  • False

Question 7

Question
The steps for preparing a work sheet are similar for proprietorships and corporations
Answer
  • True
  • False

Question 8

Question
The Supplies-Office account must be adjusted to show the expense of hat supplies that are used during the year
Answer
  • True
  • False

Question 9

Question
The Prepaid Insurance account is adjusted to show the value of insurance that has been used
Answer
  • True
  • False

Question 10

Question
During a fiscal period, the amount of merchandise on hand increases and decreases
Answer
  • True
  • False

Question 11

Question
Assets that will be used for a number of years in the operation of a business are called current assets
Answer
  • True
  • False

Question 12

Question
Accumulated depreciation is the depreciation expense that has been recorded since the purchase of a plant asset
Answer
  • True
  • False

Question 13

Question
Federal income tax is an expense of a corporation
Answer
  • True
  • False

Question 14

Question
When a corporation makes the quarterly payment of estimated federal income tax, the cash account is credited.
Answer
  • True
  • False

Question 15

Question
Financial statements provide the primary source of information needed by owners and managers to make decisions on the future activity of business.
Answer
  • True
  • False

Question 16

Question
An income statement is used to report a business's financial progress
Answer
  • True
  • False

Question 17

Question
An income statement for a merchandising business has three main sections: revenue section, cost of merchandise sold section, and expenses section
Answer
  • True
  • False

Question 18

Question
Cost of merchandise sold is also known as cost of goods sold
Answer
  • True
  • False

Question 19

Question
Total expenses on an income statement are deducted from the gross profit on sales to find net income before federal income tax
Answer
  • True
  • False

Question 20

Question
When a business's expenses are less than the gross profit on sales, the difference is known as a net loss.
Answer
  • True
  • False

Question 21

Question
Increasing sales revenue while keeping cost of merchandise sold the sale will increase gross profit on sales
Answer
  • True
  • False

Question 22

Question
A statement of stockholders' equity contains two major sections: capital stock and retained earnings
Answer
  • True
  • False

Question 23

Question
Data needed to prepare the liabilities section of a balance sheet are obtained from a work sheet
Answer
  • True
  • False

Question 24

Question
Rules 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
Answer
  • True
  • False

Question 25

Question
General ledger account balances are changed only by posting journal entries
Answer
  • True
  • False

Question 26

Question
Temporary accounts are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period
Answer
  • True
  • False

Question 27

Question
The trial balance columns of a work sheet and an income statement contain the information needed to journalize closing entries
Answer
  • True
  • False

Question 28

Question
The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.
Answer
  • True
  • False

Question 29

Question
The income summary account is closed into the retained earnings account
Answer
  • True
  • False

Question 30

Question
After all closing entries are posted, the income statement accounts are the only general ledger accounts that have balances
Answer
  • True
  • False

Question 31

Question
The purpose of the post-closing trial balance is to prove the general ledger equality of debits and credits.
Answer
  • True
  • False

Question 32

Question
An income statement has three main sections for
Answer
  • assets, liabilities and owner's equity
  • revenue, expenses, and inventory
  • revenue, cost of merchandise sold, and expenses
  • owner's equity share of net income, and drawing

Question 33

Question
cost of merchandise sold is found by taking the amount of beginning merchandice inventory
Answer
  • less purchases plus ending inventory
  • plus gross profit on sales
  • less expenses
  • plus purchases less ending inventory

Question 34

Question
The revenue remaining after cost of merchandise sold has been deducted is
Answer
  • gross profit on sales
  • cost of merchandise sold
  • net sales
  • total sales

Question 35

Question
one way to increase gross profit on sales is to
Answer
  • decrease expenses
  • decrease sales revenue
  • increase sales revenue
  • increase cost of merchandise sold

Question 36

Question
a financial statement that summarizes the changes in a corporation's ownership for a fiscal period is
Answer
  • an income statement
  • a balance sheet
  • a statement of stockholder's equity
  • a distribution of net income statement

Question 37

Question
a financial statement that reports a corporation's assets, liabilities, and stockholder's equity on a specific date
Answer
  • an income statment
  • a balance sheet
  • an owner's equity statement
  • a distribution of net income statement

Question 38

Question
to prepare the corporation's balance sheet, use the information from
Answer
  • the balance sheet columns of your worksheet
  • the owner's equity statement
  • both
  • neither

Question 39

Question
When information about the account balance of each vendors needed,
Answer
  • an income statement is prepared
  • a schedule of accounts payable is prepared
  • a schedule of account receivable is prepared
  • a distribution of net income statement is prepared

Question 40

Question
Liabilities owed for more than a year are called
Answer
  • current liabilties
  • long term liabilities
  • short term liabiltiies
  • debs

Question 41

Question
On an income statement, merchandising businesses report
Answer
  • revenue
  • cost of merchandise sold
  • gross profit on sales
  • all of the above

Question 42

Question
Total sales less sales discount and sales returns and allowances is called
Answer
  • net profit
  • net income
  • net sales
  • none of the above

Question 43

Question
The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are
Answer
  • adjusting and correcting entries
  • closing and correcting entries
  • adjusting and closing entries
  • none of the above

Question 44

Question
Information needed for journalizing adjusting entries is taken from the
Answer
  • Trial Balance columns of a work sheet
  • Adjustment columns of a work sheet
  • Income statement columns of a work sheet
  • Balance Sheet columns of a work sheet

Question 45

Question
The store supplies inventory adjustment includes a debit to Supplies Expense--Store and a credit to
Answer
  • Income Summary
  • Merchandise Inventory
  • Purshases
  • Supplies--Store

Question 46

Question
The amounts needed for closing entries are obtained from the work sheet's
Answer
  • Trial Balance and Balance Sheet columns
  • Adjustments and Balance Sheet columns
  • Income Statement and Balance Sheet columns
  • Balance Sheet columns

Question 47

Question
To close the revenue account, the revenue account balance for the fiscal period is transferred into
Answer
  • the income summary account
  • the capital accounts
  • the cash account
  • none of the above

Question 48

Question
To close the sales account
Answer
  • debit Sales; credit cash
  • debit Sales; credit Income Summary
  • debit Income Summary; credit Sales
  • debit Cash; credit Sales

Question 49

Question
To close the expense and cost accounts
Answer
  • debit the expenses and cost accounts; credit Income Summary
  • debit the expense accounts; credit the capital accounts
  • debit Income Summary; credit the expense and cost accounts
  • debit Income Summary; credit the capital accounts

Question 50

Question
To close the income summary account when there is net income
Answer
  • debit Cash; credit Income Summary
  • debit the capital accounts; credit Income Summary
  • debit Income Summary; credit Retained Earnings
  • debit Retained Earnings; credit Income Summary

Question 51

Question
Which journal entires change general ledger account balances at the end of a fiscal period
Answer
  • Adjusting entries
  • Closing entries
  • both
  • neither

Question 52

Question
Which balance sheet accounts have up-to-date balances to begin a new fiscal period?
Answer
  • Asset accounts
  • Liability accounts
  • Capital Accounts
  • All of the above

Question 53

Question
Merchandising businesses use an accounting cycle similar to the accounting cycle of
Answer
  • service businesses
  • proprietorships
  • corporations
  • all of the above

Question 54

Question
After adjusting and closing entries have been posted to the general ledger, a
Answer
  • balance sheet is prepared
  • trial balance is prepared
  • post-closing balance sheet is prepared
  • post-closing trial balance is prepared
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