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1 | |
Which form of business is subject to double taxation? |
| | A) | C Corporation |
| | B) | S Corporation |
| | C) | Sole Proprietorship |
| | D) | Partnership |
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2 | |
A company that purchases products and resells them to customers is known as a __________ company. |
| | A) | Service |
| | B) | Manufacturing |
| | C) | Product-based business |
| | D) | Merchandising |
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3 | |
In QuickBooks, which two accounts are needed when recording the purchase of equipment that will last for more than one accounting period? |
| | A) | Equipment Cost, Accumulated Depreciation Equipment |
| | B) | Equipment Expense, Equipment Cost |
| | C) | Accumulated Depreciation Equipment, Equipment Expense |
| | D) | Supplies on Hand, Equipment Expense |
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4 | |
Sales Tax Payable is recorded in which type of account? |
| | A) | Expense |
| | B) | Income |
| | C) | Liability |
| | D) | Owner's Equity |
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5 | |
Wholesale customers: |
| | A) | Do pay sales tax |
| | B) | Do not pay sales tax |
| | C) | Sometimes pay sales tax |
| | D) | Pay a manufacturing tax |
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6 | |
When recording the purchase of an inventory item, which account is increased? |
| | A) | Sales |
| | B) | Checking |
| | C) | Accounts Receivable |
| | D) | Inventory |
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7 | |
When recording the sale of a product, which account is increased? |
| | A) | Cost of Goods Sold |
| | B) | Inventory |
| | C) | Accounts Payable |
| | D) | Notes Payable |
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8 | |
The purchasing cycle includes all of the following transactions except: |
| | A) | Receive inventory items and record in the inventory account |
| | B) | Enter bill in QuickBooks when bill is received |
| | C) | Create a purchase order to order inventory |
| | D) | Create a sales receipt when inventory is ordered |
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9 | |
When recording the receipt of an item and the quantity received differs from the quantity ordered: |
| | A) | Change the quantity on the Create Items Receipts window |
| | B) | Change the quantity on the Purchase Order |
| | C) | Wait until all of the items are received to record them |
| | D) | Change the quantity using the Enter Bills window |
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10 | |
If the supplies on hand at the end of January totaled $400 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end? |
| | A) | Reduce supplies on hand by $400, increase supplies expense by $400 |
| | B) | Reduce supplies on hand by $500, increase supplies expense by $500 |
| | C) | Increase supplies on hand by $500, reduce supplies expense by $500 |
| | D) | Increase supplies on hand by $400, reduce supplies expense by $400 |
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