Question 1

Which of the following is the basic formula for earnings per share?

Accepted Answer

A) Net income ÷ Average number of shares of common shares outstanding 
B) Net income ÷ Ending number of shares of common shares outstanding 
C) Net income ÷ Beginning number of shares of common shares outstanding 
D) Net income ÷ Total number of shares of common shares outstanding 
A) Net income ÷ Average number of shares of common shares outstanding 
B) Net income ÷ Ending number of shares of common shares outstanding 
C) Net income ÷ Beginning number of shares of common shares outstanding 
D) Net income ÷ Total number of shares of common shares outstanding

Question 2

Which of the following accounts normally has a debit balance?

Accepted Answer

A) Accumulated amortization 
B) Prepaid insurance 
C) Accounts payable 
D) Common shares 
A) Accumulated amortization 
B) Prepaid insurance 
C) Accounts payable 
D) Common shares

Question 3

The chart of accounts is:__________________

Accepted Answer

A) static 
B) dynamic 
C) not generally useful 
D) contains only permanent accounts 
A) static 
B) dynamic 
C) not generally useful 
D) contains only permanent accounts

Question 4

Which of the following statements about accumulated amortization is NOT true?

Accepted Answer

A) It is calculated in accordance with the matching principle. 
B) It records the portion or how much of the asset has been used up. 
C) It is reflected on the balance sheet. 
D) It helps determine how much an asset can be sold for. 
A) It is calculated in accordance with the matching principle. 
B) It records the portion or how much of the asset has been used up. 
C) It is reflected on the balance sheet. 
D) It helps determine how much an asset can be sold for.

Question 5

The process of transferring data from the general journal to the general ledger is called:

Accepted Answer

A) Journalizing 
B) Ledgerizing 
C) Posting 
D) Balancing 
A) Journalizing 
B) Ledgerizing 
C) Posting 
D) Balancing

Question 6

Which of the following is the proper order of presentation in the current asset section on the balance sheet?

Accepted Answer

A) Cash, receivables, inventory, temporary investments, prepaid expenses 
B) Cash, temporary investments, receivables, inventory, prepaid expenses 
C) Cash, inventory, receivables, temporary investments, prepaid expenses 
D) Cash, prepaid expenses, inventory, receivables, temporary investments 
A) Cash, receivables, inventory, temporary investments, prepaid expenses 
B) Cash, temporary investments, receivables, inventory, prepaid expenses 
C) Cash, inventory, receivables, temporary investments, prepaid expenses 
D) Cash, prepaid expenses, inventory, receivables, temporary investments

Question 7

Which of the following statements is true?

Accepted Answer

A) The normal balance is always on the side of the T account that is increasing. 
B) The normal balance is always on the side of the T account that is decreasing. 
C) The normal balance is always on the debit side of the T account. 
D) The normal balance is always on the credit side of the T account. 
A) The normal balance is always on the side of the T account that is increasing. 
B) The normal balance is always on the side of the T account that is decreasing. 
C) The normal balance is always on the debit side of the T account. 
D) The normal balance is always on the credit side of the T account.

Question 8

GAAP requires two items be shown on the income statement after income tax expense.The correct order of presentation is:

Accepted Answer

A) Extraordinary items and discontinued operations 
B) Discontinued operations and unusual items 
C) Discontinued operations and extraordinary items 
D) Extraordinary items and infrequent items 
A) Extraordinary items and discontinued operations 
B) Discontinued operations and unusual items 
C) Discontinued operations and extraordinary items 
D) Extraordinary items and infrequent items

Question 9

Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?

Accepted Answer

A) Dr.Wages Expense, Cr.Cash 
B) Dr.Wages Payable, Cr.Cash 
C) Dr.Wages Payable, Cr.Wages Expense 
D) Dr.Wages Expense, Cr.Wages Payable 
A) Dr.Wages Expense, Cr.Cash 
B) Dr.Wages Payable, Cr.Cash 
C) Dr.Wages Payable, Cr.Wages Expense 
D) Dr.Wages Expense, Cr.Wages Payable

Question 10

Which of the following is NOT true about unusual or infrequent events?

Accepted Answer

A) They may be segmented from other results on the income statement. 
B) They are treated the same way as extraordinary items on the income statement 
C) These items are often reported with other non-operating items. 
D) They include events like labour disputes and organizational restructuring. 
A) They may be segmented from other results on the income statement. 
B) They are treated the same way as extraordinary items on the income statement 
C) These items are often reported with other non-operating items. 
D) They include events like labour disputes and organizational restructuring.

Question 11

Which of the following is not found on a multi-step income statement?

Accepted Answer

A) Income taxes payable 
B) Gross margin 
C) Extraordinary items 
D) Discontinued operations 
A) Income taxes payable 
B) Gross margin 
C) Extraordinary items 
D) Discontinued operations

Question 12

Which of the following accounts normally has a credit balance?

Accepted Answer

A) Cash 
B) Dividends declared 
C) Insurance expense 
D) Retained earnings 
A) Cash 
B) Dividends declared 
C) Insurance expense 
D) Retained earnings

Question 13

The process of identifying and recording transactions is called:

Accepted Answer

A) transaction analysis 
B) posting 
C) recognizing 
D) journalizing 
A) transaction analysis 
B) posting 
C) recognizing 
D) journalizing

Question 14

Which of the following accounts normally has a credit balance?

Accepted Answer

A) Accumulated amortization 
B) Accounts receivable 
C) Dividends declared 
D) Rent expense 
A) Accumulated amortization 
B) Accounts receivable 
C) Dividends declared 
D) Rent expense

Question 15

Which of the following is not part of the accounting cycle?

Accepted Answer

A) Posting 
B) Financial statement analysis 
C) Adjusted trial balance 
D) Transaction analysis 
A) Posting 
B) Financial statement analysis 
C) Adjusted trial balance 
D) Transaction analysis

Question 16

Which of the following accounts normally has a debit balance?

Accepted Answer

A) Accounts payable 
B) Retained earnings 
C) Land 
D) Sales revenue 
A) Accounts payable 
B) Retained earnings 
C) Land 
D) Sales revenue

Question 17

The purchase of land for a combination of cash and a 15-year note would require which of the following entries?

Accepted Answer

A) Dr.Land, Dr.Cash, Cr.Long-term note payable 
B) Dr.Land, Cr.Cash, Cr.Long-term note payable 
C) Dr.Cash, Cr.Long-term note payable, Cr.Land 
D) Dr.Land, Dr.Long-term note payable, Cr.Cash 
A) Dr.Land, Dr.Cash, Cr.Long-term note payable 
B) Dr.Land, Cr.Cash, Cr.Long-term note payable 
C) Dr.Cash, Cr.Long-term note payable, Cr.Land 
D) Dr.Land, Dr.Long-term note payable, Cr.Cash

Question 18

Which of the following would be the adjusting journal entry to expense prepaid rent for the period?

Accepted Answer

A) Dr.Prepaid rent, Cr.Rent expense 
B) Dr.Rent expense, Cr.Cash 
C) Dr.Prepaid rent, Cr.Cash 
D) Dr.Rent expense, Cr.Prepaid rent 
A) Dr.Prepaid rent, Cr.Rent expense 
B) Dr.Rent expense, Cr.Cash 
C) Dr.Prepaid rent, Cr.Cash 
D) Dr.Rent expense, Cr.Prepaid rent

Question 19

When an inventory item that cost $75 is sold on account for $100, which of the following would be included in the journal entry recording the cost of goods sold?

Accepted Answer

A) Dr.Cash $100 
B) Cr.Cost of goods sold $75 
C) Cr.Accounts Receivable $100 
D) Cr.Inventory $75 
A) Dr.Cash $100 
B) Cr.Cost of goods sold $75 
C) Cr.Accounts Receivable $100 
D) Cr.Inventory $75

Question 20

Which of the following statements regarding the retained earnings account is NOT true?

Accepted Answer

A) It normally has a credit balance. 
B) Its balance is increased by revenues. 
C) Its balance is decreased by expenses. 
D) Its balance is increased by the declaration of dividends. 
A) It normally has a credit balance. 
B) Its balance is increased by revenues. 
C) Its balance is decreased by expenses. 
D) Its balance is increased by the declaration of dividends.

Which of the following is the basic formula for earnings per share?

Which of the following accounts normally has a debit balance?

The chart of accounts is:__________________

Which of the following statements about accumulated amortization is NOT true?

The process of transferring data from the general journal to the general ledger is called:

Which of the following is the proper order of presentation in the current asset section on the balance sheet?

Which of the following statements is true?

GAAP requires two items be shown on the income statement after income tax expense.The correct order of presentation is:

Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?

Which of the following is NOT true about unusual or infrequent events?

Which of the following is not found on a multi-step income statement?

Which of the following accounts normally has a credit balance?

The process of identifying and recording transactions is called:

Which of the following accounts normally has a credit balance?

Which of the following is not part of the accounting cycle?

Which of the following accounts normally has a debit balance?

The purchase of land for a combination of cash and a 15-year note would require which of the following entries?

Which of the following would be the adjusting journal entry to expense prepaid rent for the period?

When an inventory item that cost $75 is sold on account for $100, which of the following would be included in the journal entry recording the cost of goods sold?

Which of the following statements regarding the retained earnings account is NOT true?

Overview of Corporate Financial Reporting

Business Transaction Analysis and Financial Statement Effects

Revenue Recognition

Cash Flow Statement

Cash, Temporary Investments, and Accounts Notes Receivable

Inventory

Capital Assetstangible and Intangible

Short-Term Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Accounting for Investments and Consolidated Financial Statements

Filters

Exam 3: Processing Data Through the Accounting System

Which of the following is the basic formula for earnings per share?

Which of the following accounts normally has a debit balance?

The chart of accounts is:__________________

Which of the following statements about accumulated amortization is NOT true?

The process of transferring data from the general journal to the general ledger is called:

Which of the following is the proper order of presentation in the current asset section on the balance sheet?

Which of the following statements is true?

GAAP requires two items be shown on the income statement after income tax expense.The correct order of presentation is:

Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?

Which of the following is NOT true about unusual or infrequent events?

Which of the following is not found on a multi-step income statement?

Which of the following accounts normally has a credit balance?

The process of identifying and recording transactions is called:

Which of the following accounts normally has a credit balance?

Which of the following is not part of the accounting cycle?

Which of the following accounts normally has a debit balance?

The purchase of land for a combination of cash and a 15-year note would require which of the following entries?

Which of the following would be the adjusting journal entry to expense prepaid rent for the period?

When an inventory item that cost $75 is sold on account for $100, which of the following would be included in the journal entry recording the cost of goods sold?

Which of the following statements regarding the retained earnings account is NOT true?

Overview of Corporate Financial Reporting

Business Transaction Analysis and Financial Statement Effects

Revenue Recognition

Cash Flow Statement

Cash, Temporary Investments, and Accounts Notes Receivable

Inventory

Capital Assetstangible and Intangible

Short-Term Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Accounting for Investments and Consolidated Financial Statements

Filters