Question 1

Which of the following accounts would have a balance that carries over from one period to the next?

Accepted Answer

A) Revenue 
B) Insurance expense. 
C) Prepaid insurance. 
D) Dividends declared. 
A) Revenue 
B) Insurance expense. 
C) Prepaid insurance. 
D) Dividends declared.

Question 2

Which of the following is not an example of an adjusting entry?

Accepted Answer

A) Recording unpaid interest at year end relating to an outstanding loan balance at year end 
B) Recording amortization on office equipment purchased during the year 
C) Recording the gain on the sale of equipment made during the year. 
D) Reducing the prepaid rent account for the portion of rent actually used. 
A) Recording unpaid interest at year end relating to an outstanding loan balance at year end 
B) Recording amortization on office equipment purchased during the year 
C) Recording the gain on the sale of equipment made during the year. 
D) Reducing the prepaid rent account for the portion of rent actually used.

Question 3

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Accepted Answer

A) Dr.Accounts receivable, Dr.Cash, Cr.Sales revenue 
B) Dr.Cash, Dr.Accounts payable, Cr.Sales revenue 
C) Dr.Cash, Cr.Sales revenue 
D) Dr.Accounts payable, Dr.Accounts receivable, Cr.Sales revenue 
A) Dr.Accounts receivable, Dr.Cash, Cr.Sales revenue 
B) Dr.Cash, Dr.Accounts payable, Cr.Sales revenue 
C) Dr.Cash, Cr.Sales revenue 
D) Dr.Accounts payable, Dr.Accounts receivable, Cr.Sales revenue

Question 4

Which of the following results in a debit entry to the account identified?

Accepted Answer

A) Increase in shareholders' equity 
B) Recording interest revenue 
C) Payment on accounts receivable 
D) Decrease in shareholders' equity 
A) Increase in shareholders' equity 
B) Recording interest revenue 
C) Payment on accounts receivable 
D) Decrease in shareholders' equity

Question 5

Which of the following would be the adjusting entry to record accrued interest at the end of an accounting period?

Accepted Answer

A) Dr.Interest expense, Cr.Cash 
B) Dr.Interest expense, Cr.Interest payable 
C) Dr.Interest payable, Cr.Interest income 
D) Dr.Interest payable, Cr.Cash 
A) Dr.Interest expense, Cr.Cash 
B) Dr.Interest expense, Cr.Interest payable 
C) Dr.Interest payable, Cr.Interest income 
D) Dr.Interest payable, Cr.Cash

Question 6

Which of the following types of accounts appear on the balance sheet and income statement respectively?
$$\begin{array} { | l | l | l | } 
\hline & \text { Balance } & \text { Income } \
&\text { sheet } & { \text { statement } } \
\hline \text { a. } & \text { Permarient accounts } & \text { Permarent accounts } \
\hline \text { b. } & \text { Perrianent accounts } & \text { Termporary accounts } \
\hline \text { c. } & \text { Terporary accounts } & \text { Permarent accounts } \
\hline \text { d. } & \text { Ternporary accounts } & \text { Ternporary accounts } \
\hline
\end{array}$$

Accepted Answer

The answer of Which of the following types of accounts...

Question 7

Items in this category may be reported either by themselves or with other non-operating items.

Accepted Answer

A) Income from discontinued operations 
B) Income from extraordinary items 
C) Income from unusual or infrequent events 
D) Corporate income taxes 
A) Income from discontinued operations 
B) Income from extraordinary items 
C) Income from unusual or infrequent events 
D) Corporate income taxes

Question 8

Which of the following accounts is a balance sheet account?

Accepted Answer

A) Other comprehensive income. 
B) Accumulated other comprehensive income 
C) Unrealized gains from investing activities 
D) Loss from continuing operations. 
A) Other comprehensive income. 
B) Accumulated other comprehensive income 
C) Unrealized gains from investing activities 
D) Loss from continuing operations.

Question 9

Which of the following items is shown after the computation of income tax expense?

Accepted Answer

A) Unusual or infrequent events 
B) Non operating revenues 
C) Gain of loss on disposal of capital assets 
D) Gain or loss on disposal of discontinued operations 
A) Unusual or infrequent events 
B) Non operating revenues 
C) Gain of loss on disposal of capital assets 
D) Gain or loss on disposal of discontinued operations

Question 10

Which of the following is shown net of its income tax effects?

Accepted Answer

A) Income from unusual or infrequent events 
B) Income from discontinued operations 
C) Income from non-operating sources 
D) Income from continuing operations 
A) Income from unusual or infrequent events 
B) Income from discontinued operations 
C) Income from non-operating sources 
D) Income from continuing operations

Question 11

The purchase of land for a combination of cash and issuance of shares would require which of the following entries?

Accepted Answer

A) Dr.Land, Cr.Common shares, Cr.Cash 
B) Dr.Cash, Dr.Common shares, Cr.Land 
C) Dr.Land, Cr.Cash, Dr.Common Shares 
D) Dr.Cash, Cr.Land, Cr.Common shares 
A) Dr.Land, Cr.Common shares, Cr.Cash 
B) Dr.Cash, Dr.Common shares, Cr.Land 
C) Dr.Land, Cr.Cash, Dr.Common Shares 
D) Dr.Cash, Cr.Land, Cr.Common shares

Question 12

In a classified balance sheet the following is NOT true:

Accepted Answer

A) The long term assets and liabilities are presented before the short term assets and liabilities. 
B) The asset and liability sections are divided into short-term and long-term sections. 
C) Shareholders' equity is made up of retained earnings and share capital. 
D) The current assets are listed in order of liquidity. 
A) The long term assets and liabilities are presented before the short term assets and liabilities. 
B) The asset and liability sections are divided into short-term and long-term sections. 
C) Shareholders' equity is made up of retained earnings and share capital. 
D) The current assets are listed in order of liquidity.

Question 13

Which of the following transactions would involve a debit to an asset account?

Accepted Answer

A) Recording amortization expense on capital assets. 
B) Payment of an accounts payable 
C) Payment of a dividend 
D) Collection of an accounts receivable 
A) Recording amortization expense on capital assets. 
B) Payment of an accounts payable 
C) Payment of a dividend 
D) Collection of an accounts receivable

Question 14

Which of the following accounting records is in chronological order?

Accepted Answer

A) The chart of accounts. 
B) The general journal. 
C) The general ledger. 
D) The income statement. 
A) The chart of accounts. 
B) The general journal. 
C) The general ledger. 
D) The income statement.

Question 15

Which income statement format is the most useful for predicting future results and evaluating and analyzing past performance?

Accepted Answer

A) Classified income statement 
B) Single step income statement 
C) Unclassified income statement 
D) Multi-step income statement 
A) Classified income statement 
B) Single step income statement 
C) Unclassified income statement 
D) Multi-step income statement

Question 16

Which of the following types of entries is used to reset the temporary accounts to zero and update the balance in the retained earnings?

Accepted Answer

A) Journal entries 
B) Adjusting entries 
C) Closing entries 
D) Balancing entries 
A) Journal entries 
B) Adjusting entries 
C) Closing entries 
D) Balancing entries

Question 17

Which of the following items would qualify as an extraordinary item?

Accepted Answer

A) Loss due to earthquake damage to a warehouse in San Francisco, California 
B) Loss due to hurricane damage to a building in Toronto, Ontario 
C) Loss due to hurricane damage to a hotel in Miami, Florida 
D) Loss due to flood damage to a store in New Orleans, Louisiana 
A) Loss due to earthquake damage to a warehouse in San Francisco, California 
B) Loss due to hurricane damage to a building in Toronto, Ontario 
C) Loss due to hurricane damage to a hotel in Miami, Florida 
D) Loss due to flood damage to a store in New Orleans, Louisiana

Question 18

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

Accepted Answer

A) Dr.Retained earnings, Cr.Cash 
B) Dr.Cash, Cr.Retained Earnings 
C) Dr.Retained Earnings, Cr.Dividends declared 
D) Dr.Cash, Cr.Dividends payable 
A) Dr.Retained earnings, Cr.Cash 
B) Dr.Cash, Cr.Retained Earnings 
C) Dr.Retained Earnings, Cr.Dividends declared 
D) Dr.Cash, Cr.Dividends payable

Which of the following accounts would have a balance that carries over from one period to the next?

Which of the following is not an example of an adjusting entry?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following results in a debit entry to the account identified?

Which of the following would be the adjusting entry to record accrued interest at the end of an accounting period?

Items in this category may be reported either by themselves or with other non-operating items.

Which of the following accounts is a balance sheet account?

Which of the following items is shown after the computation of income tax expense?

Which of the following is shown net of its income tax effects?

The purchase of land for a combination of cash and issuance of shares would require which of the following entries?

In a classified balance sheet the following is NOT true:

Which of the following transactions would involve a debit to an asset account?

Which of the following accounting records is in chronological order?

Which income statement format is the most useful for predicting future results and evaluating and analyzing past performance?

Which of the following types of entries is used to reset the temporary accounts to zero and update the balance in the retained earnings?

Which of the following items would qualify as an extraordinary item?

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

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 accounts would have a balance that carries over from one period to the next?

Which of the following is not an example of an adjusting entry?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following results in a debit entry to the account identified?

Which of the following would be the adjusting entry to record accrued interest at the end of an accounting period?

Items in this category may be reported either by themselves or with other non-operating items.

Which of the following accounts is a balance sheet account?

Which of the following items is shown after the computation of income tax expense?

Which of the following is shown net of its income tax effects?

The purchase of land for a combination of cash and issuance of shares would require which of the following entries?

In a classified balance sheet the following is NOT true:

Which of the following transactions would involve a debit to an asset account?

Which of the following accounting records is in chronological order?

Which income statement format is the most useful for predicting future results and evaluating and analyzing past performance?

Which of the following types of entries is used to reset the temporary accounts to zero and update the balance in the retained earnings?

Which of the following items would qualify as an extraordinary item?

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

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