Reference no: EM13581128

1.When a company pays dividends

1. the retained earnings account will be directly increased w/ a debit
2. the dividends account wil be increased w/ a credit
3. the dividends account will be decreased w/ a debit
4. it doesn't have to be cash, it could be another asset

2.The entire group of accounts maintained by a company is called the

1. trial balance
2. chart of accounts
3. general journal
4. general ledger

3.The final step in the recording process is to transfer the journal info to the

1. financial statements
2. ledger
3. trial balance
4. file cabinets

4.On July 7, 2014, Hidden Camera Enterprises performed cash services of $1700. The entry to record this transaction would include:

1. a credit to A/P for $1700
2. a debit to Service Revenue for $1700
3. a credit to A/R for $1700
4. a debit to cash for $1700

5.When 3 or more accounts are required in one journal entry, the entry is referred to as a:

1. simple entry
2. compound entry
3. multiple entry
4. triple entry

6.Another name for journal is:

1. book of source documents
2. listing
3. book of original entry
4. book of accounts

7.The steps in preparing a trial balance include all of the following except:

1. listing the account titles and their balances
2. totaling the debit and credit columns
3. proving the equality of the two columns
4. transferring journal amounts to ledger accounts

8.Dreamtime Laundry purchased $7000 worth of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the supplies indicates only $2000 on hand. The adjusting entry that should be made by the company on June 30 is:

1. Debit supplies: 2000 ; Credit supplies expense: 2000
2. Debit supplies: 5000; Credit supplies expense: 5000
3. Debit supplies expense: 2000; Credit supplies: 2000
4. Debit supplies expense: 5000; Credit supplies: 5000

9.The revenue recognition principle dictates that revenue be recognized in the accounting period:

1. before it is earned
2. in which it is collected
3. after it is earned
4. in which the services are performed

10.Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause

1. net income to be overstated
2. an understatement of revenues and an understatement of liabilities
3. an understatement of revenues and an overstatement of liabilities
4. an understatement of assets and an understatement of revenues

11.Fugazi City College sold season tickets for the 2013 football season for $200000. A total of 8 games will be played during September, October and November. Assuming all the games are played, the Unearned Ticket Revenue balance that will be reported on the December 31 balance sheet will be:

1. $75000
2. $0
3. $200,000
4. $125,000

12.Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When salaries are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the time period?

1. Salaries payable
2. Salaries expense
3. Due from employees
4. Due to employer

13.Sebastian Belle has performed $2000 of CPA services for a client but has notbilled the client as of the end of the accounting period. What adjusting entry must Sebastian make?

1. Debit A/R and credit unearned service revenue
2. Debit cash and credit unearned service revenue
3. Debit A/R and credit service revenue
4. Debit unearned service revenue and credit service revenue

14.A candy factor's employees work overtime to finish an order that is sold on 02/28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime wages should be expensed in:

1. the period when the workers receive their checks
2. February
3. March
4. either in February or March depending on when the pay period ends

15.What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies of $6000?

1. Debit insurance expense $9500; Credit prepaid insurance $9500
2. Debit prepaid insurance $9500; Credit insurance expense $9500
3. Debit insurance expense $15,500; Credit prepaid insurance $15,500
4. Debit insurance expense $6000; Credit prepaid insurance $6000