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1 | |
At the end of an accounting period, adjusting journal entries are made to: |
| | A) | Prove the equality of the debits and credits |
| | B) | Debit or credit the checking account |
| | C) | Bring the accounts up to date |
| | D) | The Chart of Accounts |
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2 | |
Which one of the following is not a financial statement? |
| | A) | Profit & Loss |
| | B) | Trial Balance |
| | C) | Balance Sheet |
| | D) | Statement of Cash Flows |
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3 | |
Accrued Revenues are: |
| | A) | Revenues that have been earned, but not collected |
| | B) | When a customer pays in advance of receiving the service |
| | C) | Revenues that have been recorded |
| | D) | Revenues that have been collected, but not yet earned |
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4 | |
The financial accounting definition of depreciation is the: |
| | A) | Allocation of an asset's cost to the periods used |
| | B) | Loss of value of the asset over time |
| | C) | Recovery of the asset's cost through depreciation deductions |
| | D) | Estimation of physical wear of an asset |
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5 | |
Journal entries are recorded in QuickBooks by selecting: |
| | A) | Company menu, and then Make Journal Entry |
| | B) | Report menu, and then Make Journal Entry |
| | C) | Journal menu, and then Make Journal Entry |
| | D) | Accountant & Taxes, and then Make Journal Entry |
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6 | |
The General Ledger is a: |
| | A) | Trial Balance after adjusting entries |
| | B) | Collection of all the company's accounts and account activity |
| | C) | Record that contains journal entries for all transactions |
| | D) | List of customer names and their outstanding balances |
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7 | |
Sales are recorded under the accrual basis accounting when: |
| | A) | The actual cash is collected from the customers |
| | B) | The bookkeeper has time to record the transactions |
| | C) | The costs are incurred to earn the revenue |
| | D) | The goods or services are provided regardless of whether the cash is collected from the customers |
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8 | |
The Balance Sheet lists: |
| | A) | Revenues, Expenses, and Net Income |
| | B) | All the accounts and their ending balances |
| | C) | Assets, Liabilities, and Owner's Equity |
| | D) | Cash inflows and cash outflows |
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9 | |
Which one of the following classifications is not found on the Statement of Cash Flows? |
| | A) | Cash Flows From Operating Activities |
| | B) | Cash Flows From Selling Activities |
| | C) | Cash Flows From Financing Activities |
| | D) | Cash Flows From Investing Activities |
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10 | |
The Income Tax Summary Report: |
| | A) | Lists the sales and expenses that should appear on the business federal tax return filed with the IRS |
| | B) | Lists the assets, liabilities, and owner equities that are reported on the business federal tax return filed to the IRS |
| | C) | Cash flows from operating, investing, and financing activities that should appear on the business federal tax return filed with the IRS |
| | D) | The accounts and the account activity for the accounting period |
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