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Accounting I - Objective 2 Keller
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Questions in this quiz (41)
1Bill James discovered that a transaction for Utilities Expense was journalized and posted in error as a debit to Repair Expense, $250. What is the entry to correct the error?
- ADebit Utilities Expense, $250; credit Cash, $250
- BDebit Utilities Expense, $250; credit Repairs Expense, $250
- CDebit Repair Expense, $250; credit Utilities Expense, $250
- DDebit Cash, $250; debit Utilities Expense, $250
2Please use the following passage for this question.
Scenario 2.02 B
Jackson Company has Sales of $7,500. The company has the following expenses:
Advertising Expense - $1,300
Insurance Expense - $850
Rent Expense - $900
Supplies Expense - $250
Utilities Expense - $175
What is the component percentage for Rent Expense?- A12%
- B2.5%
- C2.3%
- D16%
3Mary is preparing a Balance Sheet. What must she do after she completes the heading information?
- APrepare the Asset section.
- BWrite the titles of all the liability accounts.
- CPrepare the Owner's Equity section.
- DDouble rule across the left and right columns.
4On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a...
- ANet income of $400
- BNet loss of $400
- CNet income of $2,000
- DNet loss of $2,000
5Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Assets for the Balance Sheet?
- A$1,700
- B$2,000
- C$2,900
- D$3,000
6Scenario 2.02 B
Jackson Company has Sales of $7,500. The company has the following expenses:
Advertising Expense - $1,300
Insurance Expense - $850
Rent Expense - $900
Supplies Expense - $250
Utilities Expense - $175
In Scenario 2.02 B, what is the component percentage for Utilities Expense?- A2%
- B2.5%
- C2.3%
- D16%
7Scenario 2.02 B
Jackson Company has Sales of $7,500. The company has the following expenses:
Advertising Expense - $1,300
Insurance Expense - $850
Rent Expense - $900
Supplies Expense - $250
Utilities Expense - $175
In Scenario 2.02 B, what is the component percentage for Total Expenses?- A36.6%
- B20.9%
- C46.3%
- D51.3%
8The ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a...
- ANet loss of $150
- BNet income of $150
- CNet income of $1,350
- DNet loss of $1,350
9Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Net Income?
- A33.3%
- B60%
- C66.7%
- D100%
10Scenario 2.02 B
Jackson Company has Sales of $7,500. The company has the following expenses:
Advertising Expense - $1,300
Insurance Expense - $850
Rent Expense - $900
Supplies Expense - $250
Utilities Expense - $175
In Scenario 2.02 B, what is the component percentage for Net Income?- A62.5%
- B53.7%
- C100%
- D63.4%
11When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?
- AWrite the name of the company.
- BPrepare the Assets Section.
- CCalculate the total of the liabilities.
- DDouble rule across the left and right columns.
12On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a:
- ANet income of $4,550
- BNet income of $250
- CNet loss of $4,550
- DNet loss of $250
13Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Total Expenses?
- A33.3%
- B60%
- C66.7%
- D100%
14Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Liabilities for the Balance Sheet?
- A$975
- B$1.075
- C$1,125
- D$2,000
15John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?
- ARecord the balance of the revenue account.
- BWrite the balance of each expense account.
- CCalculate the net income or net loss.
- DDouble rule across both amount columns.
16Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be?
- AThe Total Assets are greater than the Total Liabilities.
- BThe Total Assets are less than the Owner's Equity.
- CThe Total Assets should equal Total Liabilities plus Owner's Equity.
- DThe Total Assets plus Total Liabilities equal Owner's Equity.
17Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST Samuel will do in preparing this statement?
- AWrite the name of the company.
- BPrepare the Revenue Section.
- CCalculate the net income or net loss.
- DCalculate the component percentages.
18If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the worksheet is to debit:
- AInsurance Expense and credit Prepaid Insurance $1,200.
- BInsurance Expense and credit Prepaid Insurance $2,200.
- CPrepaid Insurance and credit Insurance Expense $1,200.
- DPrepaid Insurance and credit Insurance Expense $2,200.
19If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the worksheet is to debit:
- ASupplies and credit Supplies Expense $500.
- BSupplies and credit Supplies Expense $1,000.
- CSupplies Expense and credit Supplies $500.
- DSupplies Expense and credit Supplies $1,500.
20Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?
- APrepare the Expense section.
- BPrepare the Liability section.
- CPrepare the Owner's Equity section.
- DDouble rule across the left and right columns.
21If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the worksheet is to debit:
- ASupplies and credit Supplies Expense $700.
- BSupplies and credit Supplies Expense $1,500.
- CSupplies Expense and credit Supplies $700.
- DSupplies Expense and credit Supplies $1,500.
22When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?
- AAdd each column to verify that debits equal credits.
- BWrite each column's total below the single line.
- CDouble rule across both amount columns.
- DSingle rule across both amount columns below the last amounts.
23If the beginning prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the worksheet is to debit:
- AInsurance Expense and credit Prepaid Insurance $1,200.
- BInsurance Expense and credit Prepaid Insurance $800.
- CPrepaid Insurance and credit Insurance Expense $1,200.
- DPrepaid Insurance and credit Insurance Expense $800.
24Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform?
- AJournalize an entry to transfer net income or net loss to the owner's capital account and close the Income
Summary account. - BJournalize an entry to close the owner's drawing account.
- CJournalize an entry to close income statement accounts that have a debit balance.
- DJournalize an entry to close income statement accounts that have a credit balance.
- AJournalize an entry to transfer net income or net loss to the owner's capital account and close the Income
25The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:
- ADrawing, credit owner's equity account for $275.
- BDrawing, credit Income Summary for $275.
- COwner's equity account, credit drawing account for $275.
- DIncome summary, credit drawing account for $275.
26Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal entry is to debit:
- ADrawing, and credit Income Summary, $2,000.
- BOwner's equity, and credit Income Summary, $2,000.
- CSales, and credit Income Summary, $2,000.
- DIncome Summary, and credit Drawing, $2,000.
27The Sales account has a balance of $3,875. To close the Sales account, debit:
- ASales $3,875 and credit Income Summary $3,875.
- BIncome Summary $3,875 and credit Sales $3,875.
- CSales $3,875 and credit Owner's Equity $3,875.
- DOwner's Equity $3,875 and credit Sales $3,875.
28When closing the Advertising Expense account, debit:
- AOwner's Equity and credit Advertising Expense.
- BAdvertising Expense and credit Income Summary.
- CIncome Summary and credit Advertising Expense.
- DAdvertising Expense and credit Owner's Equity.
29The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit:
- ASupplies and credit Supplies Expense $100.
- BSupplies and credit Supplies Expense $2,300.
- CSupplies Expense and credit Supplies $100.
- DSupplies Expense and credit Supplies $2,300.
30The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry will be to debit:
- APrepaid Insurance and credit Insurance Expense $1,500.
- BInsurance Expense and credit Prepaid Insurance $1,500.
- CPrepaid Insurance and credit Insurance Expense $3,700.
- DInsurance Expense and credit Prepaid Insurance $3,700.
31When closing the Miscellaneous Expense account, debit:
- AOwner's Equity and credit Miscellaneous Expense.
- BMiscellaneous Expense and credit Owner's Equity.
- CMiscellaneous Expense and credit Income Summary.
- DIncome Summary and credit Miscellaneous Expense.
32James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:
- ADrawing, and credit Income Summary, $900.
- BIncome Summary, and credit Drawing, $900.
- CSales, and credit Income Summary, $900.
- DIncome Summary, and credit Owner's Equity, $900.
33Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?
- AJournalize an entry to transfer net income or net loss to the owner's capital account and close the income summary account
- BJournalize an entry to close the owner's drawing account
- CJournalize an entry to close income statement accounts that have a debit balance
- DJournalize an entry to close income statement accounts that have a credit balance
34In preparing adjusting entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT?
- ARecord the debit amount in the General Debit column
- BRecord the credit amount in the General Credit column
- CWrite the title of the account debited in the Account Title column
- DWrite the title of the account credited in the Account Title column
35Group Material 2.03 B contains a partial worksheet. The correct closing entry for the revenue account is to debit:
- AAnthony Coleman, Capital $7,225 and credit Sales $7,225.
- BIncome Summary $7,225 and credit Sales $7,225.
- CSales $7,225 and credit Income Summary $7,225.
- DSales $7,225 and credit Anthony Coleman, Capital $7,225.
36Group Material 2.03 B contains a partial worksheet. The correct closing entry for the income summary account is to debit:
- AAnthony Coleman, Drawing $325 and credit Income Summary $325.
- BAnthony Coleman, Capital $1,875 and Income Summary $1,875.
- CIncome Summary $4,625 and credit Anthony Coleman, Capital $4,625.
- DIncome Summary $1,875 and credit Anthony Coleman, Capital $1,875.
37Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column.
What will he do NEXT?- ARule a single line below the last amount in each column
- BWrite the account balance in either the debit or credit column
- CWrite the account titles of all general ledger accounts that have balances in the Account Title column
- DWrite the heading
38Group Material 2.03 B contains a partial worksheet. The correct closing entry for the owner's drawing account is to debit:
- AAnthony Coleman, Capital $325 and credit Anthony Coleman Drawing $325.
- BAmos Maxwell, Drawing $325 and credit Income Summary $325.
- CAmos Maxwell, Drawing $325 and credit Amos Maxwell, Capital $325.
- DIncome Summary $325 and credit Anthony Coleman, Drawing $325.
39On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?
- ARecord the credit amount in the General Credit column
- BRecord the debit amount in the General Debit column
- CWrite the title of the account credited in the Account Title column
- DWrite the title of the account debited in the Account Title column
40Group Material 2.03 B contains a partial worksheet. The correct closing entry for the Advertising Expense account is to debit:
- AAdvertising Expense $550 and credit Anthony Coleman, Capital $550.
- BIncome Summary $550 and credit Advertising Expense $550.
- CAnthony Coleman, Capital $550 and credit Advertising Expense $550.
- DAdvertising Expense $550 and credit Income Summary $550.
41Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT?
- ARule a single line below the last amount in each column
- BWrite the account balance in either the debit or credit column
- CWrite the account titles of all general ledger accounts that have balances in the Account Title column
- DWrite the account totals
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- Description
- Test review for objective 2 in Accounting I
- Author
- Kathleen Keller
- Language
- English
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