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need some help with these questions please, answers with * are what i have, not sure if its correct though
1. Paying a utility bill could:
a. no effect on assets
b. increase total assets*
c. increase expenses
d. increase liabilities
e. none of the above
2. According to FASB the main purpose of providing financial reports is to:
a. Record company's profits for the year
b. Help make lending and investing decisions*
c. Provide information to SEC
d. Provide information to IRS
e. C and D
3. Workers did work in 2011 but paid in 2012. The following adjusting entry is recorded at the end of 2011:
Wages expense XXX
Wages payable XXX
Which principle was applied?
a. cash accounting principle
b. matching principle*
c. historical cost principle
d. revenue recognition principle.
4. Declared cash dividends in 2011 but not paid until 2012.
Do you:
a. Record dividend expense for 2011
b. Record dividend expense for 2012 when paid
c. Record dividend payable for 2011 on the balance sheet*
d. A and C but not B
E. None of the above.
5. Which is not the correct form for Adjusting Entries?
a. Debit expense and credit revenue *
b. debit assets and credit revenue
c. credit liability and debit expense
d. debit expense and credit assets
e. none of the above
6. Accrued liability is best describes as amount..
a. paid and undisclosed on balance sheet
b. paid and matched with revenue
c. unpaid and disclosed on balance sheet
d. unpaid and disclosed on income statement*
e. none of the above
7. An adjusting entry contains a debit to an asset account and a credit to a revenue account. This is an example of..
a. accrued expense
b. accrued revenue*
c. deferred expense
d. deferred revenue
e. none of the above
Accrued Revenue is the correct answer. You debit Accounts Receivable and credit Service Revenue.
8. A trial balance...
a. normally only prepared after closing entries and events
b. is a chronological record of account transactions
c. is a listing of temporary accounts and their balances
d. proves that the account balance are correct if it balance
e. none of the above*
None of the answers seem to be correct. It’s a listing of accounts and their balances, but not all the accounts are temporary. So it is not C. The answer should have been E, none of the above.
9. December 20, 2011 declared dividends to pay in 2012. which is correct, if any?
a. record dividend expense for 2011
b. record dividend expense in 2012 when paid
c. record a dividend payable in 2011 balance sheet*
d. a and c but not b
e. none of the above
Record dividends payable as a short term liability on the Balance Sheet.
10. If one part of the journal decreases liability, the other part of the journal...
a. increase revenue
b. decrease revenue
c. increase expense*
d. none
e. a and c, not b.
Example: if you pay off Utilities Payable, you would debit Utilities Expense and credit Utilities Payable.
11. Is this statement is true
- Debits increase assets and expenses*
12. If assets increase by $80,000 and liabilities decrease by $16,000
a. effect on Owners' equity cannot be determined*
b. increase must have been $64,000
c. increase must have been $96,000
d. Owners' equity must have increased by $96,000
e. none of the above
13. *Dec 2011 Milby Company sells merchandise to another company for $240,000. A down payment of $100,000 was made and the rest will be paid in 2012. Which is correct?
a. record revenue of $100,000 and unearned revenue $140,000 for 2011
b. record revenue of $240,000 in 2011
c. record no revenue for 2011
d. record accounts receivable of $240,000 in 2011*
e. none of the above
14. Which of the following was false:
a. expense may be recorded before any cash is paid for purchase
b. revenue may be recognized before any cash is received by company
c. Adjusting entry must involve asset, liabilities, revenue and expense
d. the matching principle says that total asset= total liabilities and owners' equity*
e. Closing entries are used at end of an accounting period to bring income statement to zero.
15. GAAP derives its authority from :
a. completely from SEC
b. the profession of managerial accounting
c. the accounting process, creditors, investors, government*
d. court proceedings
e. none of the above.
16. Paying an account receivable could:
a.increase asset
b.decrease liability
c.increase expense
e.none of above**
17. In December, 2011 Company agreed to install contract price of $ 500,000 and received down payment $100,000 service revenue, Company completely finished first installation on December. Will paid in January 2012, on 12/31/2011;Company should make the following Entry
a. Unearned Service revenue 400,000*
Service Revenue 4000,0000
b. Service Revenue 100000
Unearned Service Revenue 100000
c.Cash 400000
Service Revenue 400000
d. Account Receivable 400000*
Service Revenue 400000
e. none of the above
18. Which of the following, if any, is false?
a.expense may be recorded before any cash is paid for purchase
b. revenue may be recognized before any cash is received by company
c. Adjusting entry must involve asset, liabilities, revenue and expense
d.the matching principle says that total asset= total liabilities and owners' equity*
e. Closing entries are used at end of an accounting period to bring income statement to zero.
19. If one part of the journal decreases assets, then the other part of the journal entry could...
a) increase assets
b) increase Revenue
c)increase liabilities
d) decrease expenses
e) none of the above*
20. If one part of the journal entry increases liabilities then the other part of the journal entry could...
a) increase revenue
b) decrease revenue
c) increase expenses*
d) none of the above
21. Paying an accounts payable could:
a. no effect on assets
b. increase total assets
c. increase expenses*
d. increase liabilities
e. none of the above
22. Paying on Accounts payable will:
a) Decrease liabilities
b) Increase liabilities
c) Decrease assets
d) None of the above
23. Collecting on Accounts Receivable will:
a) Increase assets
b) Decrease assets
c) Decrease liabilities
d) No effect
24. What best describes liabilities?
a) Decrease net income
b) Decrease assets
c) Obligations to creditors*
d) A & C
e) B & C
25. A company declares dividends on November 12. This is going to show up on.
a) Income statement
b) State of Owner’s equity
c) Balance sheet*
d) None of the above
26. 6. The person had only recorded $2,000 in Interest Receivable at the end of the year, and then made no entry until the cash was received next year. Adjusting entry should be:
Debit Cash 12,000***
Credit Interest Receivable 2,000
Credit Interest Revenue 10,000
7. A company has $100,000 of supplies. They buy $80,000 of supplies in addition to that. The company does not keep records of supplies as they are used. At the end of the year, there is $75,000 balance left.
The entry to record this at the end of the year would be.
Dr "Supplies Expense" $105,000 ***
Cr, "Supplies $105,000
1. Paying a utility bill could:
a. no effect on assets
b. increase total assets*
c. increase expenses
d. increase liabilities
e. none of the above
2. According to FASB the main purpose of providing financial reports is to:
a. Record company's profits for the year
b. Help make lending and investing decisions*
c. Provide information to SEC
d. Provide information to IRS
e. C and D
3. Workers did work in 2011 but paid in 2012. The following adjusting entry is recorded at the end of 2011:
Wages expense XXX
Wages payable XXX
Which principle was applied?
a. cash accounting principle
b. matching principle*
c. historical cost principle
d. revenue recognition principle.
4. Declared cash dividends in 2011 but not paid until 2012.
Do you:
a. Record dividend expense for 2011
b. Record dividend expense for 2012 when paid
c. Record dividend payable for 2011 on the balance sheet*
d. A and C but not B
E. None of the above.
5. Which is not the correct form for Adjusting Entries?
a. Debit expense and credit revenue *
b. debit assets and credit revenue
c. credit liability and debit expense
d. debit expense and credit assets
e. none of the above
6. Accrued liability is best describes as amount..
a. paid and undisclosed on balance sheet
b. paid and matched with revenue
c. unpaid and disclosed on balance sheet
d. unpaid and disclosed on income statement*
e. none of the above
7. An adjusting entry contains a debit to an asset account and a credit to a revenue account. This is an example of..
a. accrued expense
b. accrued revenue*
c. deferred expense
d. deferred revenue
e. none of the above
Accrued Revenue is the correct answer. You debit Accounts Receivable and credit Service Revenue.
8. A trial balance...
a. normally only prepared after closing entries and events
b. is a chronological record of account transactions
c. is a listing of temporary accounts and their balances
d. proves that the account balance are correct if it balance
e. none of the above*
None of the answers seem to be correct. It’s a listing of accounts and their balances, but not all the accounts are temporary. So it is not C. The answer should have been E, none of the above.
9. December 20, 2011 declared dividends to pay in 2012. which is correct, if any?
a. record dividend expense for 2011
b. record dividend expense in 2012 when paid
c. record a dividend payable in 2011 balance sheet*
d. a and c but not b
e. none of the above
Record dividends payable as a short term liability on the Balance Sheet.
10. If one part of the journal decreases liability, the other part of the journal...
a. increase revenue
b. decrease revenue
c. increase expense*
d. none
e. a and c, not b.
Example: if you pay off Utilities Payable, you would debit Utilities Expense and credit Utilities Payable.
11. Is this statement is true
- Debits increase assets and expenses*
12. If assets increase by $80,000 and liabilities decrease by $16,000
a. effect on Owners' equity cannot be determined*
b. increase must have been $64,000
c. increase must have been $96,000
d. Owners' equity must have increased by $96,000
e. none of the above
13. *Dec 2011 Milby Company sells merchandise to another company for $240,000. A down payment of $100,000 was made and the rest will be paid in 2012. Which is correct?
a. record revenue of $100,000 and unearned revenue $140,000 for 2011
b. record revenue of $240,000 in 2011
c. record no revenue for 2011
d. record accounts receivable of $240,000 in 2011*
e. none of the above
14. Which of the following was false:
a. expense may be recorded before any cash is paid for purchase
b. revenue may be recognized before any cash is received by company
c. Adjusting entry must involve asset, liabilities, revenue and expense
d. the matching principle says that total asset= total liabilities and owners' equity*
e. Closing entries are used at end of an accounting period to bring income statement to zero.
15. GAAP derives its authority from :
a. completely from SEC
b. the profession of managerial accounting
c. the accounting process, creditors, investors, government*
d. court proceedings
e. none of the above.
16. Paying an account receivable could:
a.increase asset
b.decrease liability
c.increase expense
e.none of above**
17. In December, 2011 Company agreed to install contract price of $ 500,000 and received down payment $100,000 service revenue, Company completely finished first installation on December. Will paid in January 2012, on 12/31/2011;Company should make the following Entry
a. Unearned Service revenue 400,000*
Service Revenue 4000,0000
b. Service Revenue 100000
Unearned Service Revenue 100000
c.Cash 400000
Service Revenue 400000
d. Account Receivable 400000*
Service Revenue 400000
e. none of the above
18. Which of the following, if any, is false?
a.expense may be recorded before any cash is paid for purchase
b. revenue may be recognized before any cash is received by company
c. Adjusting entry must involve asset, liabilities, revenue and expense
d.the matching principle says that total asset= total liabilities and owners' equity*
e. Closing entries are used at end of an accounting period to bring income statement to zero.
19. If one part of the journal decreases assets, then the other part of the journal entry could...
a) increase assets
b) increase Revenue
c)increase liabilities
d) decrease expenses
e) none of the above*
20. If one part of the journal entry increases liabilities then the other part of the journal entry could...
a) increase revenue
b) decrease revenue
c) increase expenses*
d) none of the above
21. Paying an accounts payable could:
a. no effect on assets
b. increase total assets
c. increase expenses*
d. increase liabilities
e. none of the above
22. Paying on Accounts payable will:
a) Decrease liabilities
b) Increase liabilities
c) Decrease assets
d) None of the above
23. Collecting on Accounts Receivable will:
a) Increase assets
b) Decrease assets
c) Decrease liabilities
d) No effect
24. What best describes liabilities?
a) Decrease net income
b) Decrease assets
c) Obligations to creditors*
d) A & C
e) B & C
25. A company declares dividends on November 12. This is going to show up on.
a) Income statement
b) State of Owner’s equity
c) Balance sheet*
d) None of the above
26. 6. The person had only recorded $2,000 in Interest Receivable at the end of the year, and then made no entry until the cash was received next year. Adjusting entry should be:
Debit Cash 12,000***
Credit Interest Receivable 2,000
Credit Interest Revenue 10,000
7. A company has $100,000 of supplies. They buy $80,000 of supplies in addition to that. The company does not keep records of supplies as they are used. At the end of the year, there is $75,000 balance left.
The entry to record this at the end of the year would be.
Dr "Supplies Expense" $105,000 ***
Cr, "Supplies $105,000
