Accounting I - UNIT 1 Fundamentals

Description

This is the objective 1 practice accounting test.
Kathleen Keller
Quiz by Kathleen Keller, updated more than 1 year ago
Kathleen Keller
Created by Kathleen Keller over 7 years ago
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17

Resource summary

Question 1

Question
What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
Answer
  • Decreased by $1,000
  • Decreased by $2,000
  • Increased by $1,000
  • Increased by $2,000

Question 2

Question
Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:
Answer
  • Owner's Equity
  • Expenses
  • Liabilities
  • Revenue

Question 3

Question
What is an example of an account that has a normal credit balance?
Answer
  • Cash
  • Accounts Payable - Jones Supply
  • Prepaid Insurance
  • Supplies

Question 4

Question
What is an example of an account that has a normal credit balance?
Answer
  • Advertising Expense
  • Accounts Receivable - Davis Company
  • Delivery Revenue
  • Samuel Johnson, Drawing

Question 5

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

Question 6

Question
Sales is classified as:
Answer
  • assets
  • expenses
  • liabilities
  • revenue

Question 7

Question
What is an example of an account that has a normal debit balance?
Answer
  • Mary Johnson, Capital
  • Accounts Payable - Ray's Office Equipment
  • Rent Expense
  • Sales

Question 8

Question
What is an example of an account that has a normal credit balance?
Answer
  • Cash
  • Office Equipment
  • Sales
  • Supplies

Question 9

Question
Cash, Office Equipment, and Prepaid Insurance are all classified as:
Answer
  • assets
  • liabilities
  • owner's equity
  • revenue

Question 10

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

Question 11

Question
What is an example of an account that has a normal debit balance?
Answer
  • Accounts Receivable - Oakdale School
  • Accounts Payable - Jones Supply
  • Mary Johnson - Capital
  • Sales

Question 12

Question
Rent, the telephone bill, and advertising costs are all classified as:
Answer
  • assets.
  • expenses.
  • liabilities.
  • revenue.

Question 13

Question
What is the effect on owner's equity when a business receives $2000 cash from sales?
Answer
  • Decreased by $2000
  • Increased by $2000
  • Decreased by $4,000
  • Increased by $4,000

Question 14

Question
What is an example of an account that has a normal credit balance?
Answer
  • Cash
  • Joan Brown - Drawing
  • Supplies
  • Tyler Jackson - Capital

Question 15

Question
What is an example of an account that has a normal debit balance?
Answer
  • Accounts Payable - Adam's Office
  • Advertising Expense
  • Mary Johnson, Capital
  • Sales

Question 16

Question
In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:
Answer
  • Check Stub
  • Invoice
  • Memorandum
  • Receipt

Question 17

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

Question 18

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

Question 19

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

Question 20

Question
The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
Answer
  • Debit Cash and credit Insurance Expense
  • Debit Cash and credit Prepaid Insurance
  • Debit Insurance Expense and credit Cash
  • Debit Prepaid Insurance and credit Cash

Question 21

Question
The transaction, PAID CASH FOR RENT, would result in which journal entry?
Answer
  • Debit Cash and credit Miscellaneous Expense
  • Debit Cash and credit Rent Expense
  • Debit Miscellaneous Expense and credit Cash
  • Debit Rent Expense and credit Cash

Question 22

Question
The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
Answer
  • Debit Cash and credit Miscellaneous Expense
  • Debit Cash and debit Miscellaneous Expense
  • Debit Miscellaneous Expense and credit Cash
  • Debit Supplies and credit Miscellaneous Expense

Question 23

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

Question 24

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

Question 25

Question
In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:
Answer
  • check stub.
  • invoice.
  • memorandum.
  • receipt.

Question 26

Question
In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:
Answer
  • calculator tape.
  • check stub.
  • invoice.
  • receipt.

Question 27

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

Question 28

Question
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?
Answer
  • Competence
  • Confidentiality
  • Independence
  • Objectivity

Question 29

Question
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?
Answer
  • 21st Century Skills
  • Workplace Skills
  • Foundation Skills
  • Communication Skills

Question 30

Question
Sharon takes responsibility and initiative for her own work at Accounting Temps. This is an example of which 21st Century Skill?
Answer
  • Information and communication
  • Interpersonal
  • Self-direction
  • Thinking and problem-solving

Question 31

Question
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?
Answer
  • Basic Skills
  • Workplace Skills
  • Foundations Skills
  • Communication Skills

Question 32

Question
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?
Answer
  • Competence
  • Confidentiality
  • Independence
  • Objectivity

Question 33

Question
Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?
Answer
  • Competence
  • Confidentiality
  • Independence
  • Integrity

Question 34

Question
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?
Answer
  • 21st Century Skills
  • Workplace Skills
  • Foundation Skills
  • Communication Skills
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