Questions on accounting fundamentals

Assignment Help Financial Accounting

Reference no: EM1313450

Multiple Choice questions on Accounting Fundamentals.

1. During the end-of-period processing which of the following best describes the logical Order of this process?
A. Preparation of adjustments, adjusted trial balance, financial statements
B. Preparation of Income Statement, adjusted trial balance, Balance Sheet
C. Preparation of adjusted trial balance, cross-referencing, journalizing
D. Preparation of adjustments, adjusted trial balance, posting

2. Accumulated Depredation appears on the __________
A. balance sheet in the current assets section
B. balance sheet In the property, plant and equipment section
C. balance sheet In the long-term liabilities section
D. income statement as an operating expense

3. Unearned Fees appear on the ______________
A. balance sheet In the current assets section
B. balance sheet as a current liability
C. balance sheet In the owner's equity section
D. Income statement as revenue

4. Round-tripping Is when __________
A. a selling company sells to a customer company with huge discounts
B. a selling company pretends to sell to a fictitious company with the intend of inflating revenues
C. a selling company lends money to a customer company to increase assets
D. a selling company lends money to a customer company to be used to purchase goods from the selling company

5. The Statement of Owner's Equity should be prepared_______
A. before the income statement and after the balance sheet
B. before the Income statement and balance sheet
C. after the income statement and balance sheet
D. after the income statement and before the balance sheet

6. What Is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?
A. The Adjusted Trial Balance will show the net Income (loss) as an additional account.
B. Both will need to be in balance In order to continue with the end-of-period processing.
C. The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts.
D. The Unadjusted Trial Balance will be used to record the adjustments for the period.

7. The Balance Sheet should be prepared __________________
A. before the income statement and the statement of owner's equity
B. before the Income statement and after the statement of owner's equity
C. after the Income statement and the statement of owner's equity
D. after the income statement and before the statement of owner's equity

8. In the balance sheet columns of the end-of-period spreadsheet (work sheet) for Free Lance Consulting Co for the current year, the Debit column total is 257,690 and the Credit column total is $278,100 before the amount for the net income or net loss has been included. In preparing the income statement for the end-of-period spreadsheet with is the amount of net income or net loss?

*** What is Net Income or Net Loss?
A. $278,100
B. $247,690
C. $30,410
D. $525,790

9-10 After the accounts have been adjusted at Oct. 31 the end of the fiscal year, the following balances were taken from the ledger of Velocity Delivery Services Co.:

Lisa Jordan, capital	$318,500
Lisa Jordan, drawing	36,000
Fees Earned	475,150
Wages Earned	390,000
Rent Expense	85,000
Supplies Expense	38,350
Misc. Expense	12,675

9. What Is the closing entry to close the Fees Earned account?
A. Debit Fees Earned $475,150; Credit Income Statement $475,150
B. Debit Income Statement $475,150; Credit Fees Earned $475,150
C. Debit Fees Earned $475,150; Credit Income Summary $475,150
D. Debit Income Summary $475,150; Credit Fees Earned $478,150

10. What is the closing entry to close the Income Summary account?
A. Debit Income Summary 50,875; Credit Lisa Jordan, Capital 50,875
B. Debit Lisa Jordan, Capital 50,875; Credit Income Summary 50,875
C. Debit Income Summary 36,000; Credit Lisa Jordan, Capital 36,000
D. Debit Lisa Jordan, Capital 36,000; Credit Income Summary 36,000

Reference no: EM1313450

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