ACCOUNTING 90014 MULTIPLE CHOICE QUESTIONS.QUESTIONS WITH VERIFIED ANSWERS,100% SCORE

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MULTIPLE CHOICE QUESTIONS 1. Which of the following is an external user of accounting information? A. Labor unions B. Company officers C. Finance directors 2. The first part of the accounting proce... ss is A. Identifying B. Communicating C. Processing D. Recording 3. The cost principle requires that when assets are acquired, they be recorded at A. Appraisal value B. Selling price C. Exchange price paid D. List price 4. Deb Smith is the proprietor (owner) of Smitty's, a retailer of athletic apparel. When recording the nancial transactions of Smitty's, Deb does not record an entry for a car she purchased for personal use. Deb took out a personal loan to pay for the car. What accounting concept guides Deb's behavior in this situation? A. Monetary unit assumption B. Pay back concept C. Economic entity assumption D. Cash basis concept 5. The basic accounting equation may be expressed as A. Assets + Liabilities = Owner's Equity B. Assets = Equities C. Liabilities = Owner's Equity + Assets D. Assets = Liabilities + Owner's Equity 6. If total liabilities decreased by $25,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? A. $20,000 decrease B. $30,000 increase C. $25,000 increase D. $20,000 increase 7. If expenses are paid in cash, then A. Liabilities will decrease B. Owner's equity will increase C. Assets will increase D. Assets will decrease8. If supplies that have been purchased are used in the course of business, then A. An asset will increase B. A liability will increase C. Owner's equity will increase D. Owner's equity will decrease 9. A statement of nancial position shows A. Revenues, liabilities, and owner's equity B. Expenses, drawings, and owner's equity C. Assets, liabilities, and owner's equity D. Revenues, expenses, and drawings 10. Which one of the following represents the expanded basic accounting equation? A. Assets + Dividends + Expenses = Liabilities + Share Capital + Revenues B. Assets = Liabilities + Share Capital – Revenue – Expenses C. Assets – Liabilities – Dividends = Share Capital + Revenues – Expenses D. Assets = Revenues + Expenses – Liabilities 11. For the basic accounting equation to stay in balance, each transaction recorded must A. Affect two or less accounts B. Affect the same number of asset and liability accounts C. Affect two or more accounts D. Always affect exactly two accounts 12. The double-entry system requires that each transaction must be recorded A. In at least two different accounts B. In a journal and in a ledger C. First as a revenue and then as an expense D. In two sets of books 13. A compound journal entry involves A. Three accounts B. Three or more accountsC. Two accounts D. Four or more accounts 14. The usual sequence of steps in the transaction recording process is A. Journal � analyze � ledger B. Ledger � journal � analyze C. Journal � ledger � analyze D. Analyze � journal � ledger 15. The steps in preparing a trial balance include all of the following except A. Proving the equality of the two columns B. Listing the account titles and their balances C. Totaling the debit and credit columns D. Transferring journal amounts to ledger accounts 16. JNK Company showed the following balances at the end of its rst year: Cash $4,200, Prepaid insurance $1,200, Accounts receivable $2,400, Accounts payable $3,000, Salaries and Wages Expense: $4,400, Share Capital - Ordinary $6,000, Service Revenue $5,000, Salaries and Wages Expense $1,800. What did JNK Company show as total credits on its trial balance? A. $18,000 B. $20,000 C. $14,000 D. $17,000 17. Adjusting entries are required A. Quarterly B. Yearly C. Every time financial statements are prepared D. Monthly 18. Unearned revenues are A. Earned and recorded as liabilities before they are received B. Earned but not yet received or recorded C. Earned and already received and recorded D. Received and rec [Show More]

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