Financial Accounting Test Questions

Topics: Balance sheet, Generally Accepted Accounting Principles, Income statement Pages: 17 (1174 words) Published: October 13, 2013
1.
 
In the accounting cycle, the last step is

 
Student Response
Feedback
A.
preparing the financial statements
 
B.
journalizing and posting the adjusting entries
 
C.
preparing a post-closing trial balance
 
D.
journalizing and posting the closing entries
 

Score:
1/1
 
2.
 
During the end-of-period processing which of the following best describes the logical order of this process

 
Student Response
Feedback
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
 

Score:
0/1
 
3.
 
When preparing the statement of owner's equity, the beginning capital balance can always be found

 
Student Response
Feedback
A.
in the Income Statement columns of the work sheet
 
B.
in the statement of cash flows
 
C.
in the general ledger
 
D.
in the Balance Sheet columns of the work sheet
 

Score:
1/1
 
4.
 
Accumulated Depreciation appears on the

 
Student Response
Feedback
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
 

Score:
1/1
 
5.
 
Notes Receivable due in 345 days appear on the

 
Student Response
Feedback
A.
balance sheet in the current assets section
 
B.
balance sheet in the fixed assets section
 
C.
balance sheet in the current liabilities section
 
D.
income statement as an expense
 

Score:
1/1
 
6.
 
Unearned Fees appear on the

 
Student Response
Feedback
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
 

Score:
1/1
 
7.
 
Which one of the fixed asset accounts listed below will not have a related contra asset account?

 
Student Response
Feedback
A.
Office Equipment
 
B.
Land
 
C.
Delivery Equipment
 
D.
Building
 

Score:
0/1
 
8.
 
Prepaid insurance is reported on the balance sheet as a

 
Student Response
Feedback
A.
current asset
 
B.
fixed asset
 
C.
current liability
 
D.
long-term liability
 

Score:
1/1
 
9.
 
Balance sheet accounts

 
Student Response
Feedback
A.
represent amounts accumulated during a specific period of time  
B.
are called real accounts
 
C.
have zero balances after the closing entries have been posted  
D.
are equal to assets and liabilities
 

Score:
0/1
 
10.
 
On which financial statement will Income Summary be shown?

 
Student Response
Feedback
A.
Statement of Owner's Equity
 
B.
Balance Sheet
 
C.
Income Statement
 
D.
No financial statement
 

Score:
0/1
 
11.
 
Which is the following that is not true about closing entries?

 
Student Response
Feedback
A.
There are four closing entries that update the owner’s equity account.  
B.
After the second closing entry, the income summary account is equal to the net income or (loss) for the period.  
C.
All real accounts are closed at the end of the period.
 
D.
By closing nominal accounts at the end of the period to zero, it is possible to isolate next period’s information correctly.  

Score:
0/1
 
12.
 
The income summary account is also called

 
Student Response
Feedback
A.
the closing account
 
B.
the clearing account
 
C.
the nominal account
 
D.
the temporary account
 

Score:
1/1
 
13.
 
After posting the second closing entry to the income summary account, the balance will be equal to

 
Student Response
Feedback
A.
zero.
 
B.
owner’s equity.
 
C.
revenues for...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Principles of Financial Accounting: Question and Answers
  • Financial Accounting Essay
  • Essay on Accounting Test Questions
  • Financial and accounting Essay
  • Financial Accounting Essay
  • Financial Accounting Essay
  • Essay on Financial Accounting
  • Financial Accounting Essay

Become a StudyMode Member

Sign Up - It's Free