Need help in final quiz ASAP”
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1. Which of the following is not a function performed by an accountant?
a. |
Measure economic events in financial terms. |
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b. |
Report economic events in financial statements. |
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c. |
Records economic activities of a business. |
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d. |
Observe events. |
1. Which financial statement explains the changes in retained earnings between two dates?
a. |
Balance sheet. |
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b. |
Statement of retained earnings. |
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c. |
Income statement. |
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d. |
Statement of cash flows |
3.Which of these is the basic accounting equation?
a. |
Liabilities + assets = equities. |
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b. |
Revenues – expenses = net income. |
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c. |
Assets – revenues = equities. |
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d. |
Assets = liabilities + equities |
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Which underlying concept assumes that a business entity will continue operations indefinitely?
a. |
Periodicity concept. |
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b. |
Going concern concept. |
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c. |
Business entity concept. |
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d. |
Money measurement concept. |
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Which statement is true regarding the rules of debit and credit for accounts?
a. |
Assets are credited for decreases. |
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b. |
Liabilities are credited for decreases. |
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c. |
Revenues are debited for increases. |
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d. |
Expenses are credited for increases. |
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When stockholders invest cash in the business:
a. |
Capital stock is debited and cash is credited. |
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b. |
Cash is debited and dividends is credited. |
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c. |
Cash is debited and capital stock is credited. |
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d. |
Capital stock is debited and dividends is credited. |
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Which of the following is the final step in the accounting cycle?
a. |
Prepare financial statements. |
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b. |
Post journal entries to the ledger. |
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c. |
Prepare a trial balance of the accounts. |
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d. |
Prepare a post-closing trial balance. |
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When a business earns revenue and receives cash, which of the following is true?
a. |
Cash is debited and revenue is credited. |
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b. |
Revenue is debited and cash is credited. |
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c. |
Accounts receivable is debited and revenue is credited. |
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d. |
Revenue is debited and a liability is credited. |
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Which of the following cash payments would involve the immediate recording of an expense?
a. |
Paid vendors for office supplies previously purchased on account. |
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b. |
Paid an automobile dealer for a new company auto. |
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c. |
Paid the current month’s rent. |
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d. |
Paid salaries for the last half of the current month. |
1. Under which business ownership type do the owners not directly manage the business?
a. |
Single proprietorship. |
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b. |
Corporation. |
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c. |
Partnership. |
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d. |
Limited partnership. |
11. Which of the following is true regarding the accrual basis of accounting?
a. |
Revenues are recognized as cash is received. |
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b. |
Expenses are recognized as cash is paid. |
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c. |
The purchase of a building would be debited to an expense. |
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d. |
Revenue is recorded at the time the company performs the service. |
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Which of the underlying principles most applies to the need for adjusting entries?
a. |
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b. |
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c. |
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d. |
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Which of the following is an example of an adjustment for deferred items?
a. |
A prepaid expense. |
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b. |
An accrued revenue. |
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c. |
An accrued liability. |
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d. |
Unbilled training fees. |
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14. Of the following steps in the closing process, which represents closing the dividends account?
a. |
Transferring its balance to income summary. |
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b. |
Transferring its balance to retained earnings. |
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c. |
Transferring its balance to a revenue account. |
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d. |
Transferring its balance to an expense account. |
15. After the closing process is complete, which of the following accounts will most likely have a balance remaining?
a. |
Dividends. |
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b. |
A revenue account. |
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c. |
A liability account. |
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d. |
An expense account. |
16. Which of the following is a category of accounts on a classified balance sheet?
a. |
Cash. |
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b. |
Accounts payable. |
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c. |
Long-term assets. |
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d. |
Retained earnings. |
17. Which of the following basic accounting concepts generally requires a company to use the same accounting principles and reporting practices through time?
a. |
Periodicity. |
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b. |
Consistency. |
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c. |
Stable dollar. |
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d. |
Going concern. |
18. Of the following principles, which one allows companies to prepare only one set of financial statements?
a. |
Consistency. |
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b. |
Double entry. |
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c. |
General-purpose financial statements. |
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d. |
Business entity. |
19. The assumption that each business has an existence separate from its owners, creditors, employees, customers, and other interested parties, and other businesses is the:
a. |
Going concern assumption. |
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b. |
Business entity concept. |
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c. |
Separate entity concept. |
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d. |
Corporation concept. |
20.Which of the following accounts would be found in a merchandising business accounting system?
a. |
Sales returns and allowances. |
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b. |
Transportation-in. |
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c. |
Purchase discounts. |
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d. |
All of the accounts would be found. |
21. When a sale of merchandise is on account, which entry should be made?
a. |
Debit cash and credit sales.. |
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b. |
Debit accounts receivable and credit sales. |
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c. |
Debit accounts payable and credit income. |
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d. |
Debit retained earnings and credit sales. |
22. The formula for calculating cost of goods sold is which of the following?
a. |
Beginning inventory – net purchases + ending inventory. |
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b. |
Purchases – purchase discounts + transportation-in. |
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c. |
Net sales – operating expenses. |
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d. |
Beginning inventory + net purchases – ending inventory. |
23. Which inventory valuation method is a more precise matching of historical cost with revenue?
a. |
FIFO. |
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b. |
LIFO. |
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c. |
Weighted average. |
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d. |
Net realizable value. |
24. The inventory turnover ratio compares which two figures?
a. |
Net sales and average inventory. |
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b. |
Net income and average inventory. |
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c. |
Cost of goods sold and average inventory. |
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d. |
Cost of goods sold and net sales. |
25. During a period of rising prices, which inventory method could provide a business with the greatest net come?
a. |
Weighted-average. |
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b. |
Specific identification. |
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c. |
LIFO. |
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d. |
FIFO. |