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AAMI TEST PREP > ACCT 311 Final Prep > Flashcards

ACCT 311 Final Prep Flashcards

60 questions

1
Q

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

A

Question 1 - Correct Answer4

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2
Q

The book of accounts is the:
Answer

journal

ledger

Trial Balance

Income Summary

A

Question 2 - Correct Answer2

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3
Q

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

A

Question 3 - Correct Answer2

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4
Q

Expenses get closed out to what account?
Answer

Revenue

Income Summary

Capital

Cash

A

Question 4 - Correct Answer2

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5
Q

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

increased

decreased

A

Question 5 - Correct Answer1

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6
Q

Another term for net worth is:
Answer

Asset

Liability

Cash

Capital

A

Question 6 - Correct Answer4

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7
Q

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

A

Question 7 - Correct Answer3

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8
Q

The capital account gets closed out to:
Answer

Revenue

Expenses

Income Summary

The capital account does not get closed out

A

Question 8 - Correct Answer4

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9
Q

Which of the following is a liability account?
Answer

Cash

Loans Payable

Notes Receivable

Capital

A

Question 9 - Correct Answer2

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10
Q

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

increased

decreased

A

Question 10 - Correct Answer2

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11
Q

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

A

Question 11 - Correct Answer1

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12
Q

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

A

Question 12 - Correct Answer1

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13
Q

Accounts payable has a _____________ balance.
Answer

debit

credit

A

Question 13 - Correct Answer2

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14
Q

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

A

Question 14 - Correct Answer2

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15
Q

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

Salaries Expense

Drawing Account

Mortgage Payable

Land

A

Question 15 - Correct Answer4

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16
Q

The Banker’s method assumes
Answer

365 days

265 days

360 days

3600 days

A

Question 16 - Correct Answer3

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17
Q

Money paid for the use of money is:
Answer

revenue

cash

interest

equity

A

Question 17 - Correct Answer3

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18
Q

Debts owed by a business are:
Answer

assets

liabilities

Capital

Revenue

A

Question 18 - Correct Answer2

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19
Q

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

A

Question 19 - Correct Answer1

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20
Q

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

A

Question 20 - Correct Answer3

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21
Q

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

A

Question 21 - Correct Answer1

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22
Q

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

profit

loss

A

Question 22 - Correct Answer1

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23
Q

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

A

Question 23 - Correct Answer3

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24
Q

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

A

Question 24 - Correct Answer4

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25
Q

Which of the following is an example of a liability?
Answer

Accounts Receivable

Accounts Payable

Cash

Revenue

A

Question 25 - Correct Answer2

26
Q

Capital has a____________balance.
Answer

debit

credit

A

Question 26 - Correct Answer2

27
Q

Which of the following would NOT have assets on it?
Answer

Trial Balance

Income Statement

Balance Sheet

A

Question 27 - Correct Answer2

28
Q

Which of the following is an asset account?
Answer

Rent Expense

Prepaid Rent

Account Payable

Capital

A

Question 28 - Correct Answer2

29
Q

The Drawing Account gets closed out to:
Answer

Revenue

Expenses

Income Summary

Capital

A

Question 29 - Correct Answer4

30
Q

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

Capital

Revenue

Drawing Account

Cash

A

Question 30 - Correct Answer2

31
Q

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

A

Question 31 - Correct Answer2

32
Q

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

A

Question 32 - Correct Answer1

33
Q

Which of the following is an example of a liability?
Answer

Cash

Notes Receivable

Notes Payable

Capital

A

Question 33 - Correct Answer3

34
Q

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

A

Question 34 - Correct Answer2

35
Q

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

profit

loss

A

Question 35 - Correct Answer2

36
Q

Which of the following would NOT have liabilities on it?
Answer

Trial Balance

Income Statement

Balance Sheet

A

Question 36 - Correct Answer2

37
Q

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

increased

decreased

A

Question 37 - Correct Answer1

38
Q

Which of the following is a temporary owner’s equity account?
Answer

Cash

Capital

Revenue

Land

A

Question 39 - Correct Answer3

39
Q

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

Accounts Payable

Notes Receivable

Capital

Revenue

A

Question 40 - Correct Answer2

40
Q

Revenue has a ___________balance.
Answer

debit

credit

A

Question 41 - Correct Answer2

41
Q

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.

A

Question 43 - Correct Answer3

42
Q

Which of the following is a temporary owner’s equity account?
Answer

Cash

Capital

Revenue

Land

A

Question 39 - Correct Answer3

43
Q

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

Accounts Payable

Notes Receivable

Capital

Revenue

A

Question 40 - Correct Answer2

44
Q

Expense accounts are temporary accounts considered part of:
Answer

Assets

Liabilities

Owner’s Equity

A

Question 44 - Correct Answer3

45
Q

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

Cash

Accounts Payable

Capital

Revenue

A

Question 45 - Correct Answer1

46
Q

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

A

Question 46 - Correct Answer - False

47
Q

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

A

Question 47 - Correct Answer - True

48
Q

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

A

Question 48 - Correct Answer - True

49
Q

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

A

Question 49 - Correct Answer - True

50
Q

The Balance Sheet has expenses on it.
Answer
True
False

A

Question 50 - Correct Answer - False

51
Q

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

A

Question 51 - Correct Answer - True

52
Q

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

A

Question 52 - Correct Answer - True

53
Q

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

A

Question 53 - Correct Answer - False

54
Q

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

A

Question 54 - Correct Answer - True

55
Q

Accounts Payable normally has a debit balance.
Answer
True
False

A

Question 55 - Correct Answer - False

56
Q

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

A

Question 56 - Correct Answer - True

57
Q

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

A

Question 57 - Correct Answer - True

58
Q

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

A

Question 58 - Correct Answer - True

59
Q

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

A

Question 59 - Correct Answer - False

60
Q

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

A

Question 60 - Correct Answer - True

AAMI TEST PREP (4 decks)

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