Final Exam -- MyAccountingLab Quizzes 1-4

Question 1

The amount a company expects to collect from customers appears on the

Answer 1

balance sheet in the current assets section

Question 2

The financial statement that reports revenues and expenses is called the

Answer 2

income statement

Question 3

Freedom Corporation hold cash of $9,000 and owes $28,000 on accounts payable. Freedom has accounts receivable of $33,000, inventory of #22,000, and land that cost $45,000. How much are Freedom’s total assets and liabilities?

Answer 3

Total Assets Total Liabilities

$109,000 $28,000

Question 4

Best Instruments had retained earnings of $200,000 at December 31, 2011. Net income for 2012 totaled $105,000, and dividends for 2012 were $45,000. how much retained earnings should Best report at December 31, 2012?

Answer 4

$260,000

Question 5

Which financial statement covers a period of time?

Answer 5

Income Statement AND Statement of Cash Flows

Question 6

Revenues are

Answer 6

increases in retained earnings resulting from selling products or performing services

Question 7

During May, assets increased by $28,000 and liabilities increased by $9,000. Stockholders’ equity must have

Answer 7

increased by $19,000

Assets - Liabilities = Stockholders’ equity

Question 8

The primary objective of financial reporting is to provide information

Answer 8

useful for making investment and credit decisions

Question 9

Net income appears on which financial statements(s)

Answer 9

Statement of Retained Earnings And Balance Sheet

Question 10

Assets are usually reported at their

Answer 10

historical cost

Question 11

Where do we first record a transaction

Answer 11

journal

Question 12

Purchasing a laptop computer on account will

Answer 12

increase total liabilities
increase total assets
have no effect on stockholders’ equity

Question 13

A trial balance is NOT the same as a balance sheet.

Answer 13

true

Question 14

A trial balance can verify the quality of debits and credits.

Answer 14

true

Question 15

A trial balance can be taken at any time.

Answer 15

true

Question 16

A trial balance lists all the accounts with their current balances.

Answer 16

true

Question 17

Liabilities are decreased by debits.

Answer 17

true

Question 18

Dividends are NOT increased by credits.

Answer 18

true

Question 19

Revenues are increased by credits.

Answer 19

true

Question 20

Assets are increased by debits.

Answer 20

true

Question 21

Receiving cash from a customer on account will

Answer 21

have no effect on total assets

Question 22

What is the effect on total assets and stockholders’ equity of paying the telephone bill as soon as it is received each month?

Answer 22

Total Assets Stockholders’ Equity

Decrease Decrease

Question 23

Purchasing a building for $105,000 by paying cash of $25,000 and signing a note payable for $80,000 will

Answer 23

Increase both assets and liabilities by $80,000

Question 24

The journal entry to record the receipt of land and a building and the issuance of common stock

Answer 24

debits Land and Building and

credits common stock

Question 25

bad question #9 quiz chapter 2

Answer 25

true

Question 26

The journal entry to record the purchase of supplies on account

Answer 26

debits supplies and

credits accounts payable

Question 27

A major purpose of preparing closing entries is to

Answer 27

update the Retained Earnings account

Question 28

For 2012, Bryant Company had revenues in excess of expenses. Which statement describes Bryant’s closing entries at the end of 2012?

Answer 28

Revenues will be debited
Expenses will be credited
Retained Earnings will be credited

Question 29

Fred Harris began a music business in July 2012….

see question #3 chapter 3 quiz

Answer 29

true

Question 30

The unearned revenue account of…

see queston #4 chapter 3 quiz

Answer 30

true

Question 31

see question #5 chapter 3 quiz

Answer 31

true

Question 32

An adjusting entry recorded June salary expense that will be paid in July. What statement best describes the effect of this adjusting entry on the company’s accounting equation?

Answer 32

Assets are not affected
Liabilities are increased
Stockholders’ equity is decreased

Question 33

What is the effect on the financial statement of recording depreciation on equipment?

Answer 33

net income, assets, and stockholders’ equity are ALL decreased

Question 34

see question #8 chapter 3 quiz

Answer 34

true

Question 35

see question #9 chapter 3 quiz

Answer 35

true

Question 36

Give examples of accounts included in the closing entries.

Answer 36

Service Revenue
Retained Earnings
Depreciation Expense

(NOT accumulated deprecation)

Question 37

In a bank reconciliation, a bank collection of a note receivable is

Answer 37

added to the book balance

Question 38

A cash budget helps control cash by

Answer 38

helping to determine whether additional cash is available for investments or new financing is needed

Question 39

If a bookkeeper mistakenly recorded a $19 deposit as $91, the error would be shown on the bank reconciliation as a

Answer 39

$72 deduction from the book balance

91 - 19 is 72

Question 40

Give examples of control for cash received over-the-counter

Answer 40

the cash draswer should open only when teh sales clerk enters an amount on teh keys

a printed receipt must be given to the customer

the customer should be able to see the amounts entered into the cash register

(NOT – the sales clerk must have access to the cash register tapes – NOT)

Question 41

Requiring that an employee with no access cash do the accounting is an example of which characteristic of internal control

Answer 41

separation of duties

Question 42

In a bank reconciliation, an outstanding check is

Answer 42

deducted from the bank balance

Question 43

Give examples of objectives of internal control

Answer 43

to safeguard assets
to ensure accurate and reliable accounting records
to comply with legal requirements

(NOT - to maximize net income - NOT)

Question 44

In a bank reconciliation, an EFT cash payment is

Answer 44

deducted from the book balance

Question 45

Before paying an invoice for goods received on account, the controller or treasurer should ensure that

Answer 45

the company has not already paid this invoice
the company is paying for the goods it ordered
the company is paying for the goods it actually received

Question 46

If a bank reconciliation included a deposit in transit of $790, the entry to record this reconciling item would include a

Answer 46

NO ENTRY IS REQUIRED