ACCT 311 Final Prep

Question 1

The correct statement order is:

Answer

Income Statement, Statement of O/E. Balance Sheet, Trial Balance

Trial Balance, Income Statement, Balance Sheet, Statement of O/E

Trial Balance, Income Summary, Statement of O/E, Balance Sheet

Trial Balance, Income Statement, Statement of O/E, Balance Sheet

Answer 1

Question 1 - Correct Answer4

Question 2

The book of accounts is the:
Answer

journal

ledger

Trial Balance

Income Summary

Answer 2

Question 2 - Correct Answer2

Question 3

What is an unwritten promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Accounts Payable

Accounts Receivable

Notes Payable

Notes Receivable

Answer 3

Question 3 - Correct Answer2

Question 4

Expenses get closed out to what account?
Answer

Revenue

Income Summary

Capital

Cash

Answer 4

Question 4 - Correct Answer2

Question 5

An entry on the debit side of an asset means the account has been:
Answer

increased

decreased

Answer 5

Question 5 - Correct Answer1

Question 6

Another term for net worth is:
Answer

Asset

Liability

Cash

Capital

Answer 6

Question 6 - Correct Answer4

Question 7

What is the entry to record a purchase of office equipment on credit?
Answer

Dr. Accounts Payable, Cr. Cash

Dr. Cash, Cr. Office Equipment

Dr. Office Equipment, Cr. Accounts Payable

Dr. Office Equipment, Cr. Cash

Answer 7

Question 7 - Correct Answer3

Question 8

The capital account gets closed out to:
Answer

Revenue

Expenses

Income Summary

The capital account does not get closed out

Answer 8

Question 8 - Correct Answer4

Question 9

Which of the following is a liability account?
Answer

Cash

Loans Payable

Notes Receivable

Capital

Answer 9

Question 9 - Correct Answer2

Question 10

An entry on the debit side of a liability means the account has been:
Answer

increased

decreased

Answer 10

Question 10 - Correct Answer2

Question 11

What is the entry to record the expensing of a prepaid asset?
Answer

Dr. Expense, Cr. Prepaid Asset

Dr. Prepaid Asset, Cr. Cash

Dr. Cash, Cr. Prepaid Asset

Dr. Prepaid Asset, Cr. Expense

Answer 11

Question 11 - Correct Answer1

Question 12

What is the entry to record the payment of the monthly electric expense?

Answer

Dr. Electric Expense, Cr. Cash

Dr. Electric Expense, Cr. Accounts Payable

Dr. Cash, Cr. Electric Payable

Dr. Capital, Cr. Cash

Answer 12

Question 12 - Correct Answer1

Question 13

Accounts payable has a _____________ balance.
Answer

debit

credit

Answer 13

Question 13 - Correct Answer2

Question 14

What is the entry to record a funeral service done on account?
Answer

Dr. Cash, Cr. Revenue

Dr. Accounts Receivable, Cr. Revenue

Dr. Revenue, Cr. Cash

Dr. Revenue. Cr. Accounts Receivable

Answer 14

Question 14 - Correct Answer2

Question 15

Which of the following is an example of an asset?
Answer

Salaries Expense

Drawing Account

Mortgage Payable

Land

Answer 15

Question 15 - Correct Answer4

Question 16

The Banker’s method assumes
Answer

365 days

265 days

360 days

3600 days

Answer 16

Question 16 - Correct Answer3

Question 17

Money paid for the use of money is:
Answer

revenue

cash

interest

equity

Answer 17

Question 17 - Correct Answer3

Question 18

Debts owed by a business are:
Answer

assets

liabilities

Capital

Revenue

Answer 18

Question 18 - Correct Answer2

Question 19

Which of the following is the accounting equation?
Answer

Assets=Liabilities+Owner’s Equity

Assets+Liabilities=Owner’s Equity

Assets+Owner’s Equity+Liabilities

Revenue-Expenses

Answer 19

Question 19 - Correct Answer1

Question 20

If assets of a business total $100,000 and the liabilities total $30,000, what is the Owner’s Equity?
Answer

-$70,000

$130,000

$70,000

-$130,000

Answer 20

Question 20 - Correct Answer3

Question 21

What is the proper entry to close out the Drawing account?
Answer

Dr. Capital, Cr. Drawing Account

Dr. Drawing Account, Cr. Capital

Dr. Cash, Cr. Drawing Account

Dr. Drawing Account, Cr. Cash

Answer 21

Question 21 - Correct Answer1

Question 22

If the income summary has a credit balance, the company is operating at a:
Answer

profit

loss

Answer 22

Question 22 - Correct Answer1

Question 23

What is the entry to record paying salaries?
Answer

Dr. Cash, Cr. Expenses

Dr. Salaries Payable, Cr. Cash

Dr. Salaries Expense, Cr. Cash

Dr. Cash, Cr. Revenue

Answer 23

Question 23 - Correct Answer3

Question 24

What is a written promise of a customer to pay the business a sum of money at a later date for services rendered?
Answer

Account Payable

Account Receivable

Note Payable

Note Receivable

Answer 24

Question 24 - Correct Answer4

Question 25

Which of the following is an example of a liability? Answer Accounts Receivable Accounts Payable Cash Revenue

Answer 25

Question 25 - Correct Answer2

Question 26

Capital has a____________balance. Answer debit credit

Answer 26

Question 26 - Correct Answer2

Question 27

Which of the following would NOT have assets on it? Answer Trial Balance Income Statement Balance Sheet

Answer 27

Question 27 - Correct Answer2

Question 28

Which of the following is an asset account? Answer Rent Expense Prepaid Rent Account Payable Capital

Answer 28

Question 28 - Correct Answer2

Question 29

The Drawing Account gets closed out to: Answer Revenue Expenses Income Summary Capital

Answer 29

Question 29 - Correct Answer4

Question 30

When the business receives funds as a result of selling goods or services, which account is credited? Answer Capital Revenue Drawing Account Cash

Answer 30

Question 30 - Correct Answer2

Question 31

What is the entry to record a funeral service done on account and signed for? Answer Dr. Notes Receivable, Cr. Cash Dr. Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash Dr. Accounts Receivable, Cr. Revenue

Answer 31

Question 31 - Correct Answer2

Question 32

What is the net income of the firm if Revenues are $40,000 and Expenses are $15,000? Answer $25,000 $35,000 $40,000 $15,000

Answer 32

Question 32 - Correct Answer1

Question 33

Which of the following is an example of a liability? Answer Cash Notes Receivable Notes Payable Capital

Answer 33

Question 33 - Correct Answer3

Question 34

What is the entry to record a funeral service that was paid for partially in cash and the balance is owed? Answer Dr. Cash, Accounts Receivable, Cr. Capital Dr. Cash, Accounts Receivable, Cr. Revenue Dr. Cash, Notes Receivable, Cr. Revenue Dr. Revenue, Cr. Cash. Accounts Receivable

Answer 34

Question 34 - Correct Answer2

Question 35

If the income summary has a debit balance, the company is operating at a: Answer profit loss

Answer 35

Question 35 - Correct Answer2

Question 36

Which of the following would NOT have liabilities on it? Answer Trial Balance Income Statement Balance Sheet

Answer 36

Question 36 - Correct Answer2

Question 37

An entry on the credit side of a liability account means the account has been: Answer increased decreased

Answer 37

Question 37 - Correct Answer1

Question 38

Which of the following is a temporary owner's equity account? Answer Cash Capital Revenue Land

Answer 38

Question 39 - Correct Answer3

Question 39

Which of the following is an example of an asset? Answer Accounts Payable Notes Receivable Capital Revenue

Answer 39

Question 40 - Correct Answer2

Question 40

Revenue has a ___________balance. Answer debit credit

Answer 40

Question 41 - Correct Answer2

Question 41

What is the entry to record the purchase of prepaid insurance? Answer Dr. Cash, Cr. Prepaid Insurance Dr. Cash, Cr, Insurance Expense Dr. Prepaid Insurance, Cr. Cash Dr. Insurance Expense, Cr. Cash.

Answer 41

Question 43 - Correct Answer3

Question 42

Which of the following is a temporary owner's equity account? Answer Cash Capital Revenue Land

Answer 42

Question 39 - Correct Answer3

Question 43

Which of the following is an example of an asset? Answer Accounts Payable Notes Receivable Capital Revenue

Answer 43

Question 40 - Correct Answer2

Question 44

Expense accounts are temporary accounts considered part of: Answer Assets Liabilities Owner's Equity

Answer 44

Question 44 - Correct Answer3

Question 45

Which of the following is an example of an asset? Answer Cash Accounts Payable Capital Revenue

Answer 45

Question 45 - Correct Answer1

Question 46

The Drawing account is an account used to pay employees. Answer True False

Answer 46

Question 46 - Correct Answer - False

Question 47

The Income Statement is a formal financial statement. Answer True False

Answer 47

Question 47 - Correct Answer - True

Question 48

If there is a debit balance in the Income Summary account, the company has a loss. Answer True False

Answer 48

Question 48 - Correct Answer - True

Question 49

The Trial Balance is an informal financial statement. Answer True False

Answer 49

Question 49 - Correct Answer - True

Question 50

The Balance Sheet has expenses on it. Answer True False

Answer 50

Question 50 - Correct Answer - False

Question 51

To increase a liability account, you credit the account. Answer True False

Answer 51

Question 51 - Correct Answer - True

Question 52

If expenses exceed revenues, there is a loss. Answer True False

Answer 52

Question 52 - Correct Answer - True

Question 53

To increase an asset account, you credit the account. Answer True False

Answer 53

Question 53 - Correct Answer - False

Question 54

All journal entries must have equal debits and credits. Answer True False

Answer 54

Question 54 - Correct Answer - True

Question 55

Accounts Payable normally has a debit balance. Answer True False

Answer 55

Question 55 - Correct Answer - False

Question 56

The amount of wages paid to employees will appear on the Income Statement. Answer True False

Answer 56

Question 56 - Correct Answer - True

Question 57

The Income Statement has revenue and expenses on it. Answer True False

Answer 57

Question 57 - Correct Answer - True

Question 58

To increase an asset account, you debit the account. Answer True False

Answer 58

Question 58 - Correct Answer - True

Question 59

The Trial Balance comes after the Balance Sheet. Answer True False

Answer 59

Question 59 - Correct Answer - False

Question 60

The Drawing Account appears on the Trial Balance. Answer True False

Answer 60

Question 60 - Correct Answer - True