《会计学原理》考试复习练习(1-4章)

1. Accounting is an information system that: A. Identifies business activities. B. Records business activities. C. Communicates business activities. D. Helps people make better decisions. E. All of these.2. Creditors' claims on the assets of a company are called: A. Net losses. B. Expenses. C. Revenues. D. Equity. E. Liabilities.3. The excess of expenses over revenues for a period is: A. Net assets. B. Equity. C. Net loss. D. Net income. E. A liability.4. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July1 of the current year? A. $8,300 B. $13,050 C. $20,500D. $31,100 5. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? A. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase. B. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. C. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.D. Assets, no effect; liabilities, $30,000 decrease; equity,$30,000 increase.E. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease. 6. The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: A. A Balance Sheet. B. A Statement of Owner's Equity. C. A Statement of Cash Flows. D. An Income Statement. E. A Statement of Financial Position.7. A balance sheet lists: A. The types and amounts of the revenues and expenses of a business. B. Only the information about what happened to equity during a time period. C. The types and amounts of assets, liabilities, and equity of a business as of a specific date.D. The inflows and outflows of cash during the period.E. The assets and liabilities of a company but not the owner's equity. 8. The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss); withdrawals; and the ending balance, is the: A. Statement of Financial Position. B. Statement of Cash Flows. C. Balance Sheet. D. Income Statement. E. Statement of Owner's Equity. 9. Accountspayable appear on which of the following statements?A. Balance Sheet.B. Income Statement.C. Statement of Owner's Equity.D. Statement of Cash Flows.E. Transaction Statement. 10. A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? A. $17,000.B. $29,000.C. $71,000.D. $88,000.E. $105,000. 11. The accounting process begins with: A. Analysis of business transactions and source documents. B. Preparing financial statements and other reports. C. Summarizing the recorded effect of business transactions. D. Presentation of financial information to decision-makers. E. Preparation of the trial balance. 12. The account used to record the transfers of assets from a business to its owner is: A. A revenue account. B. The owner's withdrawals account. C. The owner's capital account. D. An expense account. E. A liability account.13. A written promise to pay a definite sum of money ona specified future date is a(n): A. Unearned revenue. B. Prepaid expense. C. Credit account. D. Note payable. E.Account receivable. 14. A ledger is: A. A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item. B. A journal in which transactions are first recorded. C. A collection of documents that describe transactions and events entering the accounting process. D. A list of all accounts with their debit balances at a point in time. E. A record containing all accounts and their balances used by a company.15. Double-entry accounting is an accounting system:A. That records each transaction twice.B. That records the effects of transactions and other events in at least two accounts with equal debits and credits.C. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.D. That may only be used if T-accounts are used.E. That insures that errors never occur. 16. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a A. Debit to Telephone Expense for $300. B. Credit to Accounts Payable for $300. C. Debit to Cash for $300. D. Credit toTelephone Expense for $300. E. Debit to Accounts Payable for $300. 17. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a A. Debit to Unearned Management Fees for $60,000. B. Credit to Management Fees Earned for $60,000. C. Credit to Cash for $60,000. D. Credit to Unearned Management Fees for $60,000. E. Debit to Management Fees Earned for $60,000. 18. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a: A. Debit to Accounts Payable. B. Debit to Accounts Receivable. C. Credit to Cash. D. Credit to Accounts Payable. E. Credit to Wisconsin Rentals, Capital. 19. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September? A. A $0 balance. B. A $4,300 debit balance. C. A $4,300 credit balance. D. A $5,700debit balance. E. A $5,700 credit balance.20. The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from Barbara Hanson, the owner of the business. 3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $375. 5. Borrowed $6,000 from the bank by signing a promissory note. 6. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? A. $ 900. B. $ 1,275. C. $ 2,525. D. $ 3,275. E. $11,100. 21. At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be: A. $54,700. B. $49,700. C. $2,300. D.$54,300. E. $49,300. 22. During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March? A. $83,900. B. $91,900. C. $6,600. D. $75,900.E. $4,900. 23. The time period principle assumes that an organization's activities can be divided into specific time periods including: A. Months. B. Quarters. C. Fiscal years. D. Calendar years. E. All of these.24. A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the: A. Operating cycle of a business. B. Time period principle. C. Going-concern principle. D. Matching principle. E. Accrual basis of accounting. 25. The accounting principle that requires revenue to be reported when earned is the: A. Matching principle. B. Revenue recognition principle. C. Time period principle. D. Accrual reporting principle. E.Going-concern principle. 26. Adjusting entries: A. Affect only income statement accounts. B. Affect only balance sheet accounts. C. Affect both income statement and balance sheet accounts. D. Affect only cash flow statement accounts. E. Affect only equity accounts. 27. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the: A. Recognition principle. B. Cost principle. C. Cash basis of accounting. D. Matching principle. E. Time period principle. 28. Adjusting entries are journal entries made at the end of an accounting period for the purpose of: A. Updating liability and asset accounts to their proper balances. B. Assigning revenues to the periods in which they are earned. C. Assigning expenses to the periods in which they are incurred. D. Assuring that financial statements reflect the revenues earned and the expenses incurred. E. All of these. 29. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: A. Cash basis accounting. B. The matching principle. C. The timeperiod principle. D. Accrual basis accounting. E. Revenue basis accounting.30. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of: A. Items that require contra accounts. B. Items that require adjusting entries. C. Asset and equity.D. Asset accounts.E. Income statement accounts. .31. The accrual basis of accounting: A. Is generally accepted for external reporting because it is more useful than cash basis for most business decisions. B. Is flawed because it gives complete information about cash flows.C. Recognizes revenues when received in cash.D. Recognizes expenses when paid in cash.E. Eliminates the need for adjusting entries at the end of each period 32. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would: A. Understate net income by $28,000. B. Overstate net income by $28,000. C. Have no effect on net income. D. Overstate assets by $28,000.E. Understate assets by $28,000. 33. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, thefinancial statements prepared at that time would show: A. Assets overstated and equity understated. B. Assets and equity both understated. C. Assets overstated, net income understated, and equity overstated. D. Assets, net income, and equity understated. E. Assets, net income, and equity overstated. 34. If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause: A. An overstatement of net income. B. An overstatement of assets. C. An overstatement of liabilities. D. An overstatement of equity. E. An understatement of liabilities.35. Accrued revenues: A. At the end of one accounting period often result in cash receipts from customers in the next period. B. At the end of one accounting period often result in cash payments in the next period. C. Are also called unearned revenues. D. Are listed on the balance sheet as liabilities. E. Are recorded at the end of an accounting period because cash has already been received for revenues earned. 36. An account linked with another account that has an opposite normalbalance and that is subtracted from the balance of the related account is a(n): A. Accrued expense. B. Contra account. C. Accrued revenue. D. Intangible asset. E. Adjunct account. 37. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: A. Debit Office Supplies $105 and credit Office Supplies Expense $105. B. Debit Office Supplies Expense $105 and credit Office Supplies $105. C. Debit Office Supplies Expense $254 and credit Office Supplies $254. D. Debit Office Supplies $254 and credit Office Supplies Expense $254. E. Debit Office Supplies $105 and credit Supplies Expense $254. 38. On April 1, 2009, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2009? A. $1,350. B. $450.C. $1,012.50.D. $337.50.E. $37.50. 39. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account,and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800. B. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360. D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. E. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.40. PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include: A. A debit to Rent Earned for $2,400. B.A credit to Unearned Rent for $2,400. C. A debit to Cash for $6,400. D. A credit to Rent Earned for $2,400. E. A debit to Unearned Rent for $4,000. 41. A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends onTuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: A. Debit Unpaid Salaries $600 and credit Salaries Payable $600. B. Debit Salaries Expense $400 and credit Salaries Payable $400.C. Debit Salaries Expense $600 and credit Salaries Payable $600.D. Debit Salaries Payable $400 and credit Salaries Expense $400.E. Debit Salaries Expense $400 and credit Cash $400. 42. The difference between the cost of an asset and the accumulated depreciation for that asset is called A. Depreciation Expense. B. Unearned Depreciation. C. Prepaid Depreciation. D. Depreciation Value. E. Book Value. 43. A company purchased a new truck at a cost of $42,000 on July 1, 2009. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2009? A. $3,250. B. $3,500. C. $4,000. D. $6,500. E. $7,000. 44. If a company records prepayment of expenses in an asset account, the adjusting entry would: A. Result in a debitto an expense and a credit to an asset account. B. Cause an adjustment to prior expense to be overstated and assets to be understated. C. Cause an accrued liability account to exist. D. Result in a debit to a liability and a credit to an asset account. E. Decrease cash.45. If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include: A. A debit to Cash and a credit to Salaries Payable. B. A debit to Cash and a credit to Prepaid Salaries. C. A debit to Salaries Payable and a credit to Cash. D. A debit to Salaries Payable and a credit to Salaries Expense. E. No entry would be necessary on January 5. 46. A company purchased new computers at a cost of $14,000 on September 30, 2010. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010? A. $250 B. $750 C. $875 D. $1,000 E. $3,000 47. A trial balance prepared after adjustments have been recordedis called a(n) : A. Balance sheet. B. Adjusted trial balance. C. Unadjusted trial balance. D. Classified balance sheet. E. Unclassified balance sheet. 48. When closing entries are made: A. All ledger accounts are closed to start the new accounting period. B. All temporary accounts are closed but not the permanent accounts. C. All real accounts are closed but not the nominal accounts. D. All permanent accounts are closed but not the nominal accounts. E. All balance sheet accounts are closed. 49. Assets, liabilities, and equity accounts are not closed; these accounts are called: A. Nominal accounts. B. Temporary accounts. C. Permanent accounts. D. Contra accounts. E. Accrued accounts 50. Which of the following is the usual final step in the accounting cycle? A. Journalizing transactions. B. Preparing an adjusted trial balance. C. Preparing a post-closing trial balance. D. Preparing the financial statements. E. Preparing a work sheet.51. A classified balance sheet: A. Measures a company's ability to pay its bills on time. B. Organizes assets and liabilities into important subgroups. C. Presents revenues, expenses, and net income. D.Reports operating, investing, and financing activities. E. Reports the effect of profit and withdrawals on owner's capital. 52. The assets section of a classified balance sheet usually includes: A. Current assets, long-term investments, plant assets, and intangible assets. B. Current assets, long-term assets, revenues, and intangible assets. C. Current assets, long-term investments, plant assets, and equity. D. Current liabilities, long-term investments, plant assets, and intangible assets. E. Current assets, liabilities, plant assets, and intangible assets. 53. Two common subgroups for liabilities on a classified balance sheet are: A. current liabilities and intangible liabilities. B. present liabilities and operating liabilities. C. general liabilities and specific liabilities. D. intangible liabilities and long-term liabilities. E. current liabilities and long-term liabilities. 54. The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the: A. Income Summary account. B. Closing account. C. Balance column account. D. Contra account.E. Nominal account. 55. The following information is available for the Travis Travel Agency. After these closing entries what will be the balance in the Jay Travis, Capital account? A. $ 65,000. B. $ 80,000. C. $130,000. D. $145,000. E. $280,000.。