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Cb (Quizes)

BS Accountancy (Saint Louis University (Philippines))

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Quiz 1: Introduction to Accounting and Bookkeeping

1. One objective of financial reporting is to provide?
 Information that is useful in assessing cash flow prospects.

2. Asserts are?
 Financed by the company and/or creditors.

3. Debts owed by a business are referred to as

 Liabilities

4. Select the type of business that is most likely to obtain large amounts of
resources by issuing stock.
 Corporation

5. Which of the following is not a business transaction?

 make a sales offer

6. Users of financial reports include all of the following except

 Creditors, government agencies, unions

7. If the president of the company wanted to know how money flowed

into and out of the company, what financial statement would she use?
 Statement of cash Flows

8. A business paid P9,000 to a creditor in payment of an amount owed.

The effect of the transaction on the accounting equation was to
 decrease an asset, decrease a liability

9. Financial reports are used by?

 Management, creditors, investors

10. The accounting equation may be expressed as

 Assets – Liabilities = Stockholders’ Equity

11. An entity that is organized in which ownership is divided into shares of

stock is a?
 Corporation

12. Which of the following is not a role of accounting in business?

 To personally guarantee loans of the business

13. Which of the following is not true about a manufacturing business?

 Only large business can be considered a manufacturing business

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14. The financial statements most frequently provided include all of the
following except the

 Statement of retained earnings

15. Owned resources of a business are referred to as?

 assets

Quiz 2: Accounting Cycle

1. The posting process will include the transfer of the following information
from the journal to the account?
 date, amount (debit or credit), journal page number

2. A trial balance may prove that debits and credits are equal, but?
 an amount could be entered in the wrong account;
 A transaction could have been entered twice;
 A transaction could have been omitted.

3. Which of the following is not a selling expense?

 Office salaries expense

4. Liabilities are reported on the?

 balance sheet

5. The verification that the total peso amount of the debits equals the
total peso amount of the credits in the ledger is called a?
 trial balance

6. You are preparing the income statement for 20x1 and the balance
sheet at December 31, 20x1. The January 1, 20x1 merchandise
inventory balance will appear?
 Only in the cost of goods sold section of the income statement.

7. A general journal?
 Chronologically lists transactions and other events, expressed in
terms of debits and credits.

8. Which of the following errors, each considered individually, would

cause the trial balance totals to be unequal?
 a payment of P311 to a creditor was posted as a debit of P3,111 to
Accounts Payable and a debit of P311 to Accounts Receivable

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9. The debit and credit analysis of a transaction normally takes place?

 before an entry is recorded in a journal

10. Which of the following is a nominal account?

 Salary Expense

11. A trial balance?

 proves that debits and credits are equal in the ledger;

 supplies a listing of open accounts and their balances that are used
in preparing financial statements;

 is normally prepared three times in the accounting cycle.

12. Which of the following financial statements reports information as of a

specific date?

 balance sheet

13. Which of the following is a recordable event or item?

Changes in managerial policy

The value of human resources

Changes in personnel

 None of these

14. Which of the following errors will cause the trial balance totals to be
unequal?

 amount incorrectly entered on the trial balance

15. A credit balance in which of the following accounts would indicate a

likely error?

 Salary Expense

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16. Making and collecting loans and disposing of property, plant, and
equipment are?

 investing activities

17. In preparing a statement of cash flows, which of the following

transactions would be considered an investing activity?

 Sale of equipment at book value

18. The process of rewriting the information from the journal into the ledger
is called?

 Posting

19. Cash investments made by the stockholders of the business are

reported on the statement of cash flows in the?

 financing activities section

20. The post reference columns are used to trace transactions from the
journal to the ledger. What will be posted on the post reference
column of (a) the journal and (b) on the ledger?

 (a) the account number, (b) the journal page number

21. The net assets of a business are equal to?

Current assets minus current liabilities.

Total assets plus total liabilities.

Total assets minus total stockholders' equity.

 None of these.

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22. The double-entry accounting system is responsible for each of the

following except?

 Each business transaction will have only two entries

23. Which of the following abbreviations are correct?

 Debit “Dr”, Credit “Cr”

24. Which of the following criteria must be met before an event or item
should be recorded for accounting purposes?

The event or item can be measured objectively in financial terms.

The event or item is relevant and reliable.

The event or item is an element.

 All of these must be met.

25. Long-term liabilities include?

Obligations not expected to be liquidated within the operating

cycle.

Obligations payable at some date beyond the operating cycle.

Deferred income taxes and most lease obligations.

 all of these

26. Which statement(s) concerning cash is (are) true?

 cash is increased by debiting

27. Which of the following statements is not true about liabilities?

 Liabilities do not include wages owed to employees of the

company

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28. The process of recording a transaction in the journal is called?

 Journalizing

29. The basis for classifying assets as current is conversion to cash within?

 the operating cycle or one year, whichever is longer

30. Accounts?

 are records of increases and decreases in individual financial

statement items

Quiz 3: Adjusting Journal Entries

1. Unearned revenue can best be described as an amount?

 collected and not currently matched with expenses

2. A prepaid expense can best be described as an amount?

 paid and not currently matched with revenues

3. Adjusting entries affect at least one?

 income statement account and one balance sheet account

4. An accrued expense can best be described as an amount?

 not paid and currently matched with earnings

5. Which of the following would not be a correct form for an adjusting

entry?

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 A debit to an asset and a credit to a liability

6. The type of account and normal balance of Accumulated

Depreciation is?

 contra asset, credit

7. The adjusting entry to record the depreciation of equipment for the

fiscal period is?

 debit Depreciation Expense; credit Accumulated Depreciation

8. At the time a company prepays a cost?

 it debits an asset account to show the service or benefit it will

receive in the future

9. When an item of revenue is collected and recorded in advance, it is

normally called No ___________ revenue.

 Unearned

10. Recording the adjusting entry for depreciation has the same effect as
recording the adjusting entry for?

 a prepaid expense

11. Which of the following is considered to be unearned revenue?

 Concert tickets sold for next month’s performance

12. If, during an accounting period, an expense item has been incurred
and consumed but not yet paid for or recorded, then the end-of-
period adjusting entry would involve?

 a liability account and an expense account

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13. Which of the following is considered to be an accrued expense?

 A computer technician has installed the latest software updates,

but you have not received their invoice for payment.

14. When an item of revenue or expense has been earned or incurred but
not yet collected or paid, it is normally called a No ____________
revenue or expense?

prepaid

adjusted

estimated

 none of these

15. Year-end net assets would be overstated and current expenses would
be understated as a result of failure to record which of the following
adjusting entries?

Expiration of prepaid insurance

Depreciation of fixed assets

Accrued wages payable

 All of these

16. Deferred revenue is revenue that is?

 not earned but the cash has been received

17. Depreciation Expense and Accumulated Depreciation are classified,

respectively, as?

 expense, contra asset

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18. Prior to the adjusting process, accrued revenue has?

 been earned and not recorded as revenue

19. Adjusting entries are?

 needed to bring accounts up to date and match revenue and

expense

20. Which of the following pairs of accounts could not appear in the same
adjusting entry?

 Interest Income and Interest Expense

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