Test Answers on Accounting Flashcards

question Which of the following is true with regard to groups? answer A group influences our emotional reactions question Which of the following is true regarding formal groups? answer They are marked by stipulated behaviors in pursuit of organizational goals. question An informal group is characterized by the answer Fulfillment of the need for social […]

question T/F: The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period. answer True question An adjusting entry is usually not required for a revenue item when it is A. budgeted, paid for, and […]

question Search engine optimization (SEO) techniques play a minor role in a Web site’s search ranking because only well-written content matters. answer FALSE question Clickstream analysis does not need users to enter their perceptions of the Web site or other feedback directly to be useful in determining their preferences. answer TRUE question Having more Web […]

question In each pay period, the payroll information for each employee is recorded on his or her employee earnings record answer True question The payroll register provides all the payroll information needed to prepare a payroll answer False question A business deposits the total of gross wages in a separate payroll checking account answer False […]

question A source document prepared by the seller that lists the items shipped, their cost, and the method of shipment is commonly referred to by the seller as the answer sales invoice. question Form 941 is a(n) answer Employer’s Quarterly Federal Tax Return. question (Appendix) A purchase was made for $200 on account with credit […]

question 1. Phishing is different from pharming as phishing usually involves hijacking an official Web site address by hacking a Domain Name System server. answer False: Feedback: The difference between phishing and pharming is that pharmers usually hijack an official Web site address by hacking a Domain Name System server, then alter the legitimate Web […]

question The Cash in Bank account is debited for the amount fo the employees actually earn in the pay period. answer false question The only taxes that the employer must pay are unemployment taxes. answer false question The amount entered for Payroll Tax Expense is the total gross earnings of the pay period. answer false […]

question The journal entry to record the employer’s payroll taxes includes: a. a credit to Cash. b. a credit to Social Security Tax Payable. c. both \”a debit to Payroll Tax Expense\” and \”a credit to Social Security Tax Payable\”. d. a debit to Payroll Tax Expense. e. a credit to Employee Income Tax payable. […]

question Accounts Payable answer Balance Sheet – Credit question Accounts Receivable answer Balance Sheet – Debit question Accumulated Depreciation-Office Equipment answer Balance Sheet – Credit question Accumulated Depreciation-Store Equipment answer Balance Sheet – Credit question Advertising Expense answer Income Statement – Debit question Allowance for Uncollectible Accounts answer Balance Sheet – Credit question Capital Stock […]

question Assets, Expenses, and Dividends answer Debits go up in these accounts question Liabilities, Revenues, and Common Stock answer Credits go up in these accounts question Cash, Common Stock answer Investors contributed $8,000 to the corporation in exchange for common stock question Equipment, Accounts Payable answer Purchased equipment for $2,000 on account question Office Supplies, […]

question Each of the following is an example of a qualified retirement plan EXCEPT a: A) profit-sharing plan. B) defined benefit plan. C) deferred compensation plan. D) Keogh plan. answer Answer: C A deferred compensation plan is considered a nonqualified plan because IRS approval is not required to initiate such a plan for employees. question […]

question Budget Involves answer 1. Planning 2. Directing 3. Controlling Budgets should be established to avoid human behavior problems question Planning answer Involves setting goals to guide decisions and help motivate employees. Discussing when/where operations can be improved. question Directing answer Involving decisions and actions to achieve budgeted goals. question Controlling answer Involving comparing actual […]

question Activity Based Costing answer Which allocates overhead based on each product’s use of particular activities in making the product. In addition to providing more accurate product costing, ABC also can contribute to increased efficiency in the value chain. For example, suppose one of a company’s overhead pools is allocated based on the number of […]

question Accountant answer A person who keeps the financial history of the transactions of an economic unit in written form. (p. 4) question Accounting answer The process of analyzing, classifying, recording, summarizing, and interpreting business transactions in financial or monetary terms. (p. 3) question Economic unit answer Includes both business enterprises and not-for-profit entities. (p. […]

question False answer True or False The net income or net loss for the period is shown in the Assets section of the balance sheet. question True answer True or False The income or net loss for the period is shown on both the income statement and the statement of owner’s equity. question False answer […]

question Contra Revenue Account (3 Accounts) answer Typically have a debit balance (as opposed to the credit balance in the typical revenue account). 3 Accounts are: Sales returns Sales allowances Sales discounts question Cash Equivalents answer Short-term, highly liquid investments that are: 1. Readily convertible to a known cash amount 2. Close to maturity date […]

question This theory argues that equals should be treated equally in relationship to their relevant equalities and differences: answer Distributive Justice question A value that is almost universally respected by stakeholder groups is: answer Hypernorm question \”A problem with this theory is that the categorical imperative does not provide clear guidelines for deciding what is […]

question Describe the purpose of accounting answer The purpose of accounting is to provide financial information about a business to individuals and organizations question Describe the accounting process answer The six major steps of the accounting process are analyzing, recording, classifying, summarizing, reporting, and interpreting question Define GAAP and describe the process used by FASB […]

question An accounting system is designed to do which of the following activities: a. Classify the data in a meaningful way b. Change data to increase profitability c. Accumulate data about a firm’s financial activities d. Summarize information in financial statements answer Classify the data in a meaningful way, Accumulate data about a firm’s financial […]

question Income Statement answer The first financial accounting statement question Statement of Owner’s Equity answer The second financial accounting statement question Balance Sheet answer The third and last financial accounting statement question Income Statement answer Revenue – Expenses = Net Income question Statement of Owner’s Equity answer Beginning Capital + Net Income (or loss) + […]

question Bank Statement answer A report of deposits, withdrawals, and bank balances sent to a depositor by a bank question Blank Endorsement answer An endorsement consisting only of the endorser’s signature question Checking Account answer A bank account from which payments can be ordered by a depositor question Code of Conduct answer A Statement that […]