Accounting Final Exam Study Guide Multiple Choice – Flashcards
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A decrease in owner's equity resulting from the operation of a business is: A) A withdrawal B) An expense C) Revenue D) None of the above
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B
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Decreases in any liability account are shown on a T account's: A) Debit side B) Credit side C) Right side D) None of the above
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A
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The normal balance side of any expense account is: A) The debit side B) The credit side C) The right side D) None of the above
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A
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A sale on account: A) Increases an owner's equity account and increases an asset account B) Increases a liability account and increases an asset account C) Increases an owner's equity account and increases a liability account D) Increases an owner's equity account and decreases a liability account
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A
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Preparing source documents for each transaction is an application of the accounting concept: A) Business entity B) Unit of measurement C) Objective evidence D) Going concern
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C
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At the end of a month, if the amount of cash is the same as the balance shown on the next check stub: A) The journal is proved B) Cash is proved C) Debits equal credits D) None of the above
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B
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A new account to be added between accounts 530 and 540 will be assigned the number: A) 531 B) 535 C) 537 D) 539
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B
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Separate amounts in the sales credit column of a journal are: A) Rounded to the nearest dollar B) Posted individually C) Posted frequently D) None of the above
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D
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The bank statement shows a checking account balance of $5,5000.00. There are outstanding checks totaling $600.00, an outstanding deposit of $400.00, and a bank service charge of $15.00. The checking account balance should be: A) $5,300.00 B) $5,700.00 C) $5,285.00 D) None of the above
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A
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Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept: A) Matching expenses with revenue B) Accounting period cycle C) Consistent reporting D) Going concern
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B
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If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably: A) An error in addition B) An amount that has been written in the wrong column C) An amount that has not been extended D) A slide
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C
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An income statement reports a business's financial: A) Condition over a specific period of time B) Progress over a specific period of time C) Condition on a specific date D) Progress on a specific date
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B
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The formula for calculating the net income component percentage is: A) Net income divided by total sales equals net income component percentage B) Total sales divided by total expense equals net income component percentage C) Total sales minus total expense divided by net income equals total net income percentage D) None of the above
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A
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When the total expenses are greater than the total revenue: A) The income summary account has a credit balance B) The income summary account has a debit balance C) Debits equal credits D) None of the above
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B
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The source document for recording a purchase on account transaction is a: A) Purchase invoice B) Sales invoice C) Memorandum D) Check
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A
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Supplies bought for use in a business are recorded in the: A) Supplies expense account B) Purchases account C) Supplies account D) Cash account
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C
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An increase in revenue resulting from a sale on account should be recorded: A) At the time of the sale B) At the end of each month C) A the end of the fiscal period D) When the final payment is made
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A
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A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is: A) An account payable ledger B) An accounts receivable ledger C) A general ledger D) None of the above
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A
