Accounting Competency Exam Sample Exam

Topics: Balance sheet, Generally Accepted Accounting Principles, Accounts receivable Pages: 12 (2760 words) Published: February 28, 2012


The accounting process does not include: a. b. c. interpreting reporting purchasing d. observing e. classifying


The financial statement or statements that pertain to a stated period of time is (are) the: a. b. c. d. e. balance sheet balance sheet and journals balance sheet and income statement income statement none of the above


External users of financial accounting information include: a. b. c. lenders prospective owners customers d. e. labor unions all of the above


Expenses can be found in the: a. b. c. statement of owner’s equity income statement balance sheet d. e. both b and c all of the above


This account does not appear on the income statement: a. b. c. accumulated depreciation depreciation expense sales revenue d. e. marketing expense interest expense


A brand new company has a building costing $10,000, machinery costing $5,000, cash of $700, and a bank loan of $7,850. What is the owner’s equity? a. b. c. $8,850 $15,700 $7,750 d. e. cannot be determined $7,850


An example of an economic exchange includes: a. b. c. d. e. a business owner purchases inventory on credit a dry cleaning business cleans 3 dresses for a customer an insurance agent sells a whole life policy a contractor purchases a new truck for cash all of the above


If a company has owner’s equity of $100,000, a. b. c. d. e. assets minus liabilities equal $100,000 total assets must equal $100,000 net income for the past year was $100,000 a total of $100,000 was invested by the owner none of the above


Providing services on account for $40,000 would: a. b. c. d. e. increase cash $40,000, decrease accounts receivable $40,000 decrease accounts receivable $40,000, decrease owner’s equity $40,000 increase accounts receivable $40,000, increase owner’s equity $40,000 increase accounts receivable $40,000, decrease owner’s equity $40,000 none of the above

Use the following information to answer the next four questions. Joseph Forbes is the owner of his own business. On December 31, Forbes’ assets, liabilities, revenues and expenses were: Insurance Expenses Miscellaneous Expenses Rent Expenses Salaries Expense Supplies Expense Services Performed 10. $3,000 900 2,500 19,000 1,200 45,000 Accounts Payable Accounts Receivable Cash Equipment Notes Payable Supplies on hand $4,000 5,000 14,000 11,000 4,600 700

On December 31, total assets are equal to: a. b. c. $25,700 $19,700 $22,100 d. e. $30,700 none of the above


On December 31, net income is equal to: a. b. $18,400 $45,000 d. e. $17,400 none of the above


On December 31, if net income equals $15,000 and the ending owner’s equity is $20,000, and Forbes invested an additional $2,600 in his business, while withdrawing $6,000 during the year, the beginning owner’s equity for this year was: a. b. c. $7,100 $7,400 $8,400 d. e. $7,430 none of the above


On December 31, current assets equal: a. b. c. d. e. $9,000 $19,700 $19,000 $23,000 none of the above


New Font Software provided services for customers of $7,000. What is the entry if it billed customers for the total amount. a. b. c. d. e. Debit accounts receivable $7,000; credit service revenue $7,000 Debit notes receivable $7,000; credit service revenue $7,000 Debit cash $7,000; credit service revenue $7,000 Debit service revenue $3,000; credit accounts receivable $7,000 none of the above


Current Landscaping paid salaries of $560 in cash. The accounting entry is: a. b. c. d. e. Debit salaries expense $560; credit salaries payable $560 Debit salaried expense $560; credit cash $560 Debit cash $560; credit salaries expense $560 Debit accounts payable $560; credit cash $560 none of the above


The Philip Company received a bill for natural gas. The bill is for $550 and is payable in 30 days. The accounting entry is: a. b. c. d. e. Debit accounts receivable $550; credit service revenue $550 Debit...
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