Quiz 1: Introduction to Accounting and

Bookkeeping
Started on Wednesday, 31 May 2023, 9:28 AM
State Finished
Completed on Wednesday, 31 May 2023, 9:56 AM
Time taken 27 mins 22 secs
Grade 15 out of 15 (100%)
Question 1
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Profit is the difference between
Question 1Select one:
a.
the incoming cash and outgoing cash
b.
the assets purchased with cash contributed by the owner and the cash spent to operate the
business
c.
assets and liabilities
d.
the assets received for goods and services and the amounts used to provide the goods and
services
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The correct answer is: the assets received for goods and services and the amounts used to
provide the goods and services
Question 2
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Select the type of business that is most likely to obtain large amounts of resources by
issuing stock.
Question 2Select one:
a.
Partnership
b.
Corporation
c.
Proprietorship
d.
None are correct.
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The correct answer is: Corporation
Question 3
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The assets and liabilities of the company are P155,000 and P60,000 respectfully.
Stockholders’ equity should equal
Question 3Select one:
a.
P215,000
b.
P60,000
c.
P155,000
d.
P95,000
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The correct answer is: P95,000
Question 4
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Which of the items below is not a business organization form?
Question 4Select one:
a.
partnership
b.
corporation
c.
entrepreneurship
d.
proprietorship
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The correct answer is: entrepreneurship
Question 5
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One objective of financial reporting is to provide
Question 5Select one:
a.
information that is useful in assessing cash flow prospects.
b.
information about the liquidation values of the resources held by the enterprise.
c.
information that will attract new investors.
d.
information about the investors in the business entity.
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The correct answer is: information that is useful in assessing cash flow prospects.
Question 6
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How does the purchase of supplies on account affect the accounting equation?
Question 6Select one:
a.
liabilities increase; stockholders' equity decreases
b.
assets increase; stockholders' equity decreases
c.
assets increase; liabilities decrease
d.
assets increase; liabilities increase
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The correct answer is: assets increase; liabilities increase
Question 7
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Assets are
Question 7Select one:
a.
the same as expenses because they are acquired with cash
b.
financed by the company and/or creditors
c.
either cash or accounts receivables
d.
always greater than liabilities.
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The correct answer is: financed by the company and/or creditors
Question 8
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Which of the following is not a business transaction?
Question 8Select one:
a.
make a sales offer
b.
pay for supplies
c.
sell goods for cash
d.
receive cash for services to be rendered later
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The correct answer is: make a sales offer
Question 9
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Owned resources of a business are referred to as
Question 9Select one:
a.
liabilities
b.
equities
c.
assets
d.
revenues
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The correct answer is: assets
Question 10
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The accounting equation may be expressed as
Question 10Select one:
a.
Assets - Liabilities = Stockholders’ Equity
b.
Assets = Revenues less Liabilities
c.
Assets + Liabilities = Stockholders’ Equity
d.
Assets = Equities - Liabilities
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The correct answer is: Assets - Liabilities = Stockholders’ Equity
Question 11
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A business paid P9,000 to a creditor in payment of an amount owed. The effect of the
transaction on the accounting equation was to
Question 11Select one:
a.
increase an asset, increase stockholders' equity
b.
increase one asset, decrease another asset
c.
increase an asset, increase a liability
d.
decrease an asset, decrease a liability
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The correct answer is: decrease an asset, decrease a liability
Question 12
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An entity that is organized in which ownership is divided into shares of stock is a
Question 12Select one:
a.
governmental unit
b.
corporation
c.
partnership
d.
proprietorship
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The correct answer is: corporation
Question 13
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The debt created by a business when it makes a purchase on account is referred to as an
Question 13Select one:
a.
account payable
b.
account receivable
c.
asset
d.
expense payable
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The correct answer is: account payable
Question 14
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Goods purchased on account for future use in the business, such as supplies, are called
Question 14Select one:
a.
revenues
b.
prepaid expenses
c.
liabilities
d.
prepaid liabilities
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The correct answer is: prepaid expenses
Question 15
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Which of the following is not an asset?
Question 15Select one:
a.
Investments
b.
Stockholders’ Equity
c.
Cash
d.
Inventory
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The correct answer is: Stockholders’ Equity
Quiz 2: Accounting Cycle
Started on Wednesday, 31 May 2023, 10:04 AM
State Finished
Completed on Wednesday, 31 May 2023, 10:48 AM
Time taken 43 mins 13 secs
Grade 30 out of 30 (100%)
Question 1
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Accounts
Question 1Select one:
a.
are only used by large entities with many transactions
b.
are records of increases and decreases in individual financial statement items
c.
do not reflect money amounts
d.
are not used by entities that manufacture products
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The correct answer is: are records of increases and decreases in individual financial
statement items
Question 2
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Which of the following is a nominal account?
Question 2Select one:
a.
Inventory
b.
Retained Earnings
c.
Unearned Revenue
d.
Salary Expense
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The correct answer is: Salary Expense
Question 3
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The posting process will include the transfer of the following information from the journal to
the account.
Question 3Select one:
a.
amount (debit or credit), account number
b.
date, amount (debit or credit), journal page number
c.
date, amount (debit or credit)
d.
date, amount (debit or credit) account number
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The correct answer is: date, amount (debit or credit), journal page number
Question 4
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Which statement(s) concerning cash is (are) true?
Question 4Select one:
a.
cash will always have more debits than credits
b.
cash will never have a credit balance
c.
cash is increased by debiting
d.
all of the above
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The correct answer is: cash is increased by debiting
Question 5
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An accounting record into which the essential facts and figures in connection with all
transactions are initially recorded is called the
Question 5Select one:
a.
ledger.
b.
account.
c.
trial balance.
d.
none of these.
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The correct answer is: none of these.
Question 6
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A trial balance is prepared to
Question 6Select one:
a.
prove that no errors were made in posting to the ledger
b.
summarize the account balances to help prepare financial statements
c.
prove that each account balance is correct
d.
prove that there were no errors made in recording transactions into the journal
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The correct answer is: summarize the account balances to help prepare financial statements
Question 7
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When is the adjusted trial balance prepared?
Question 7Select one:
a.
Before adjusting journal entries are posted
b.
After adjusting journal entries are posted.
c.
Before the adjusting journal entries are journalized.
d.
After the adjusting journal entries are journalized
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The correct answer is: After adjusting journal entries are posted.
Question 8
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The verification that the total peso amount of the debits equals the total peso amount of
the credits in the ledger is called a
Question 8Select one:
a.
account
b.
ledger
c.
trial balance
d.
balance sheet
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The correct answer is: trial balance
Question 9
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Which of the following statements is not true about liabilities?
Question 9Select one:
a.
Liabilities are debts owned to outsiders.
b.
Cash received before services are performed are considered to be liabilities.
c.
Account titles of liabilities often include the term “payable”.
d.
Liabilities do not include wages owed to employees of the company.
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The correct answer is: Liabilities do not include wages owed to employees of the company.
Question 10
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A chart of accounts is
Question 10Select one:
a.
usually a listing of accounts in alphabetical order
b.
the same as a balance sheet
c.
used in place of a ledger
d.
usually a listing of accounts in financial statement order
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The correct answer is: usually a listing of accounts in financial statement order
Question 11
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Which of the following is a real (permanent) account?
Question 11Select one:
a.
Prepaid Expense
b.
Sales
c.
Accounts Receivable
d.
Both Prepaid Expense and Accounts Receivable
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The correct answer is: Both Prepaid Expense and Accounts Receivable
Question 12
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A trial balance
Question 12Select one:
a.
proves that debits and credits are equal in the ledger.
b.
supplies a listing of open accounts and their balances that are used in preparing financial
statements.
c.
is normally prepared three times in the accounting cycle.
d.
all of these.
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The correct answer is: all of these.
Question 13
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The process of recording a transaction in the journal is called
Question 13Select one:
a.
recording
b.
journalizing
c.
summarizing
d.
posting
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The correct answer is: journalizing
Question 14
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Long-term liabilities include
Question 14Select one:
a.
obligations not expected to be liquidated within the operating cycle.
b.
obligations payable at some date beyond the operating cycle.
c.
deferred income taxes and most lease obligations.
d.
all of these
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The correct answer is: all of these
Question 15
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When amounts of a transaction are entered on the left side of an account, they are said to
be
Question 15Select one:
a.
credited
b.
summarized
c.
totaled
d.
debited
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The correct answer is: debited
Question 16
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If the two totals of a trial balance are not equal, it could be due to
Question 16Select one:
a.
failure to record a transaction
b.
recording the same erroneous amount for both the debit and the credit parts of a
transaction
c.
recording the same transaction more than once
d.
an error in determining the account balances, such as a balance being incorrectly computed
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The correct answer is: an error in determining the account balances, such as a balance being
incorrectly computed
Question 17
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Proof that the peso amount of the debits equals the peso amount of the credits in the
ledger means
Question 17Select one:
a.
only that the debit peso amounts equal the credit peso amounts
b.
all accounts have their correct balances in the ledger
c.
all of the information from the journal was correctly transferred to the ledger
d.
only the journal is accurate; the ledger may be incorrect
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The correct answer is: only that the debit peso amounts equal the credit peso amounts
Question 18
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Which of the following criteria must be met before an event or item should be recorded for
accounting purposes?
Question 18Select one:
a.
The event or item can be measured objectively in financial terms.
b.
The event or item is relevant and reliable.
c.
The event or item is an element.
d.
All of these must be met.
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The correct answer is: All of these must be met.
Question 19
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The double-entry accounting system is responsible for each of the following except
Question 19Select one:
a.
Maintains the accounting equation in balance.
b.
The sum of all debits is always equal to the sum of all credits in each journal entry.
c.
Each business transaction will have only two entries.
d.
All are correct.
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The correct answer is: Each business transaction will have only two entries.
Question 20
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Debit always means
Question 20Select one:
a.
right side of an account.
b.
increase.
c.
decrease.
d.
none of these.
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The correct answer is: none of these.
Question 21
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A debit signifies a decrease in
Question 21Select one:
a.
revenues
b.
expenses
c.
dividends
d.
assets
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The correct answer is: revenues
Question 22
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You are preparing the income statement for 20x1 and the balance sheet at December 31,
20x1. The January 1, 20x1 merchandise inventory balance will appear
Question 22Select one:
a.
as a deduction in the cost of goods sold section of the income statement and as a current
asset on the balance sheet.
b.
only in the cost of goods sold section of the income statement.
c.
as an addition in the cost of goods sold section of the income statement and as a current
asset on the balance sheet.
d.
only as an asset on the balance sheet.
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The correct answer is: only in the cost of goods sold section of the income statement.
Question 23
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The process of rewriting the information from the journal into the ledger is called
Question 23Select one:
a.
posting
b.
journalizing
c.
sliding
d.
transposing
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The correct answer is: posting
Question 24
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The process of transferring the journal entries to the accounts is known as
Question 24Select one:
a.
journalizing
b.
updating
c.
posting
d.
summarizing
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The correct answer is: posting
Question 25
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Which of the following would represent the least likely use of an income statement
prepared for a business enterprise?
Question 25Select one:
a.
Use by customers to determine a company's ability to provide needed goods and services.
b.
Use by labor unions to examine earnings closely as a basis for salary discussions.
c.
Use by investors interested in the financial position of the entity.
d.
Use by government agencies to formulate tax and economic policy.
 Feedback
The correct answer is: Use by investors interested in the financial position of the entity.
Question 26
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In preparing a statement of cash flows, which of the following transactions would be
considered an investing activity?
Question 26Select one:
a.
Sale of merchandise on credit
b.
Issuance of bonds payable at a discount
c.
Declaration of a cash dividend
d.
Sale of equipment at book value
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The correct answer is: Sale of equipment at book value
Question 27
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Which of the accounting steps in the accounting process below would be completed last?
Question 27Select one:
a.
posting
b.
journalizing
c.
preparing the adjusted trial balance
d.
preparing the financial statements
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The correct answer is: preparing the financial statements
Question 28
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Which of the following groups of accounts have a normal debit balance?
Question 28Select one:
a.
revenues, liabilities, stockholders’ equity
b.
stockholders’ equity, assets
c.
assets, expenses
d.
liabilities, expenses
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The correct answer is: assets, expenses
Question 29
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A debit may signify a( n)
Question 29Select one:
a.
decrease in the dividend account
b.
decrease in liability accounts
c.
increase in the capital stock account
d.
decrease in asset accounts
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The correct answer is: decrease in liability accounts
Question 30
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Cash investments made by the stockholders of the business are reported on the statement
of cash flows in the
Question 30Select one:
a.
operating activities section
b.
financing activities section
c.
investing activities section
d.
supplemental statement
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The correct answer is: financing activities section
Quiz 3: Adjusting Journal Entries
Started on Wednesday, 31 May 2023, 3:27 PM
State Finished
Completed on Wednesday, 31 May 2023, 3:58 PM
Time taken 31 mins 7 secs
Grade 16 out of 20 (80%)
Question 1
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Prior to the adjusting process, accrued expenses have
Question 1Select one:
a.
been incurred, not paid, but have been recorded
b.
not yet been incurred, paid, or recorded
c.
been paid but have not yet been incurred
d.
been incurred, not paid, and not recorded
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The correct answer is: been incurred, not paid, and not recorded
Question 2
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When an item of expense is paid and recorded in advance, it is normally called a( n)
Question 2Select one:
a.
prepaid expense.
b.
cash expense.
c.
accrued expense.
d.
estimated expense.
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The correct answer is: prepaid expense.
Question 3
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An accrued revenue can best be described as an amount
Question 3Select one:
a.
collected and currently matched with expenses.
b.
collected and not currently matched with expenses.
c.
not collected and currently matched with expenses.
d.
not collected and not currently matched with expenses.
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The correct answer is: not collected and currently matched with expenses.
Question 4
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When an item of revenue or expense has been earned or incurred but not yet collected or
paid, it is normally called a( n) ____________ revenue or expense.
Question 4Select one:
a.
prepaid
b.
adjusted
c.
estimated
d.
none of these
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The correct answer is: none of these
Question 5
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Which of the following is considered to be an accrued expense?
Question 5Select one:
a.
A computer technician has just signed an agreement with you regarding pricing for future
work.
b.
A computer technician has been paid in advance to install software updates as they become
available.
c.
A computer technician has installed the latest software updates and was paid on the same
day.
d.
A computer technician has installed the latest software updates, but you have not received
their invoice for payment.
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The correct answer is: A computer technician has installed the latest software updates, but
you have not received their invoice for payment.
Question 6
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Adjustments are often prepared
Question 6Select one:
a.
after the balance sheet date, and dated after the balance sheet date.
b.
after the balance sheet date, but dated as of the balance sheet date.
c.
before the balance sheet date, but dated as of the balance sheet date.
d.
before the balance sheet date, and dated after the balance sheet date.
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The correct answer is: after the balance sheet date, but dated as of the balance sheet date.
Question 7
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When an item of revenue is collected and recorded in advance, it is normally called a( n)
___________ revenue.
Question 7Select one:
a.
accrued
b.
unearned
c.
cash
d.
prepaid
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The correct answer is: unearned
Question 8
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If, during an accounting period, an expense item has been incurred and consumed but not
yet paid for or recorded, then the end-of-period adjusting entry would involve
Question 8Select one:
a.
a liability account and an expense account.
b.
a liability account and an asset account.
c.
an asset or contra asset account and an expense account.
d.
a receivable account and a revenue account.
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The correct answer is: a liability account and an expense account.
Question 9
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The type of account and normal balance of Accumulated Depreciation is
Question 9Select one:
a.
contra asset, debit
b.
contra asset, credit
c.
asset, debit
d.
asset, credit
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The correct answer is: contra asset, credit
Question 10
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A prepaid expense can best be described as an amount
Question 10Select one:
a.
paid and not currently matched with revenues.
b.
paid and currently matched with revenues.
c.
not paid and not currently matched with revenues.
d.
not paid and currently matched with revenues.
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The correct answer is: paid and not currently matched with revenues.
Question 11
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Which of the following is not a characteristic of accrual basis of accounting?
Question 11Select one:
a.
Revenues and expenses are reported in the period in which cash is received or paid
b.
Revenues are reported in the income statement in the period in which they are earned
c.
Supports the matching concept
d.
All are correct.
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The correct answer is: Revenues and expenses are reported in the period in which cash is
received or paid
Question 12
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Accrued expenses are ordinarily reported on the balance sheet as
Question 12Select one:
a.
prepaid expenses
b.
fixed assets
c.
assets
d.
liabilities
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The correct answer is: liabilities
Question 13
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Adjusting entries are
Question 13Select one:
a.
the same as correcting entries
b.
rarely needed in large companies
c.
optional under generally accepted accounting principles
d.
needed to bring accounts up to date and match revenue and expense
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The correct answer is: needed to bring accounts up to date and match revenue and expense
Question 14
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A business pays weekly salaries of P20,000 on Friday for a five-day week ending on that day.
The adjusting entry necessary at the end of the fiscal period ending on Thursday is
Question 14Select one:
a.
debit Salary Expense, P16,000; credit Salaries Payable, P16,000
b.
debit Salaries Payable, P16,000; credit Cash, P16,000
c.
debit Salary Expense, P16,000; credit Dividends, P16,000
d.
debit Drawing, P16,000; credit Cash, P16,000
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The correct answer is: debit Salary Expense, P16,000; credit Salaries Payable, P16,000
Question 15
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Depreciation Expense and Accumulated Depreciation are classified, respectively, as
Question 15Select one:
a.
asset, contra liability
b.
contra asset, expense
c.
expense, contra asset
d.
revenue, asset
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The correct answer is: expense, contra asset
Question 16
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Unearned revenue on the books of one company is likely to be
Question 16Select one:
a.
a prepaid expense on the books of the company that made the advance payment.
b.
an accrued expense on the books of the company that made the advance payment.
c.
an unearned revenue on the books of the company that made the advance payment.
d.
an accrued revenue on the books of the company that made the advance payment.
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The correct answer is: a prepaid expense on the books of the company that made the
advance payment.
Question 17
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An accrued expense can best be described as an amount
Question 17Select one:
a.
not paid and currently matched with earnings.
b.
paid and currently matched with earnings.
c.
not paid and not currently matched with earnings.
d.
paid and not currently matched with earnings.
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The correct answer is: not paid and currently matched with earnings.
Question 18
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Which of the following must be considered in estimating depreciation on an asset for an
accounting period?
Question 18Select one:
a.
The original cost of the asset
b.
Its useful life
c.
The decline of its fair market value
d.
Both the original cost of the asset and its useful life.
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The correct answer is: Both the original cost of the asset and its useful life.
Question 19
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Which of the following is considered to be unearned revenue?
Question 19Select one:
a.
Concert tickets sold for next month’s performance.
b.
Concert tickets sold yesterday on credit.
c.
Concert tickets that were not sold for the current performance.
d.
Concert tickets sold for tonight’s performance.
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The correct answer is: Concert tickets sold for next month’s performance.
Question 20
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Adjusting entries affect at least one
Question 20Select one:
a.
revenue and one capital stock account
b.
income statement account and one balance sheet account
c.
asset and one stockholders’ equity account
d.
revenue and the dividend account
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The correct answer is: income statement account and one balance sheet account
Quiz 5: Merchandising Business
Started on Sunday, 11 June 2023, 9:29 AM
State Finished
Completed on Sunday, 11 June 2023, 9:59 AM
Time taken 30 mins 12 secs
Grade 15 out of 15 (100%)
Question 1
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The arrangements between buyer and seller as to when payments for merchandise are to be
made are called
Question 1Select one:
a.
cash on demand
b.
net cash
c.
credit terms
d.
gross cash
Question 2
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If merchandise sold on account is returned to the seller, the seller may inform the customer
of the details by issuing a
Question 2Select one:
a.
purchase invoice
b.
debit memorandum
c.
sales invoice
d.
credit memorandum
Question 3
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Gross profit is equal to:
Question 3Select one:
a.
sales plus sales returns and allowances less sales discounts less cost of merchandise sold
b.
sales less (sales discounts and sales returns and allowances) less cost of merchandise sold
c.
sales plus sales discounts less sales returns and allowances less cost of merchandise sold
d.
sales plus (sales discounts and sales returns and allowances) plus cost of merchandise sold
Question 4
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A chart of accounts for a merchandising business usually
Question 4Select one:
a.
is standardized by the FASB for all merchandising businesses
b.
requires more accounts than does the chart of accounts for a service business
c.
does not have a Cost of Merchandise Sold account if a perpetual inventory system is used
d.
is the same as the chart of accounts for a service business
Question 5
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What is the term applied to the excess of net revenue from sales over the cost of
merchandise sold?
Question 5Select one:
a.
net income
b.
gross profit
c.
gross sales
d.
income from operations
Question 6
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Expenses that are incurred directly or entirely in connection with the sale of merchandise are
classified as
Question 6Select one:
a.
other expenses
b.
selling expenses
c.
administrative expenses
d.
general expenses
Question 7
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In credit terms of 1/10, n/30, the "1" represents the
Question 7Select one:
a.
number of days in the discount period
b.
full amount of the invoice
c.
number of days when the entire amount is due
d.
percent of the cash discount
Question 8
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The term "inventory" indicates
Question 8Select one:
a.
merchandise held for sale in the normal course of business
b.
materials in the process of production or held for production
c.
supplies
d.
both (a) and (b)
Question 9
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When comparing a retail business to a service business, the financial statement that changes
the least is the
Question 9Select one:
a.
Statement of Changes in Equtiy
b.
Income Statement
c.
Balance Sheet
d.
Statement of Cash Flow
Question 10
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When the perpetual inventory system is used, the inventory sold is shown on the income
statement as
Question 10Select one:
a.
purchases returns and allowances
b.
purchases
c.
net purchases
d.
cost of merchandise sold
Question 11
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Apple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is
dated on September 15 with terms of 1/15, net 45. What is the amount of the discount and
up to what date must the invoice be paid in order for the buyer to take advantage of the
discount?
Question 11Select one:
a.
P80, September 30
b.
P160, September 30
c.
P160, September 25
d.
P80, September 25
Question 12
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Which of the following accounts will not be found on the Cost of Merchandise Sold section
on the Income Statement?
Question 12Select one:
a.
Transportation In
b.
Sales Returns and Allowances
c.
Merchandise Inventory
d.
Purchases
Question 13
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Generally, the revenue account for a merchandising business is entitled
Question 13Select one:
a.
Gross Sales
b.
Sales
c.
Gross Profit
d.
Net Sales
Question 14
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Discounts taken by a buyer because of early payment are recorded on the seller’s
accounting records as
Question 14Select one:
a.
Trade discount
b.
Sales discount
c.
Purchases discount
d.
Early payment discount
Question 15
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When comparing a retail business to a service business, the financial statement that changes
the most is the
Question 15Select one:
a.
Income Statement
b.
Balance Sheet
c.
Statement of Cash Flow
d.
Statement of Changes in Equity