Question 1

In a perpetual inventory system, an end of period inventory count and valuation is required to compute cost of sales.

Accepted Answer

A) True 
 B)False

Question 2

A company had the following transactions:
 $\begin{array}{ll}
\text { October } 1 & \text { Georgeanne started a new business investing } \$ 30000 \text { into the business bank account } \
\text { October } 3 & \text { Purchased equipment for } \$ 10 \text { 000 on credit from Astor Equipment } \
\text { October } 5 & \text { Sales of } \$ 1000 \text { on account to Joe Rice, cost of sales is } \$ 450 \
\text { October } 15 & \text { Pays Astor Equipment } \$ 5000 \
\text { October } 20 & \text { Received } \$ 750 \text { from Joe Rice } \
\text { October } 30 & \text { Georgeanne takes } \$ 1200 \text { from the business for her personal use }
\end{array}$ Journalise these transactions.

Accepted Answer

The answer of A company had the following transactions:
 \(\begin{array}{ll}
\text...

Question 3

What are two advantages and two disadvantages of the double-entry accounting system?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Advantages

Question 4

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

Accepted Answer

A) creating the trial balance. 
B) creating the profit and loss statement. 
C) balancing the accounts. 
D) closing off the accounts. 
A) creating the trial balance. 
B) creating the profit and loss statement. 
C) balancing the accounts. 
D) closing off the accounts.

Question 5

When the owner of a business withdraws money from the business for her own use:

Accepted Answer

A) the cash account is debited. 
B) the cash account is credited. 
C) the drawings account is credited. 
D) the equity account is credited. 
A) the cash account is debited. 
B) the cash account is credited. 
C) the drawings account is credited. 
D) the equity account is credited.

Question 6

On a worksheet, the Accumulated Depreciation account has a balance of $50 000 on the trial balance. An adjustment is made to increase Depreciation Expense by $5 000. The balance of Accumulated Depreciation in the adjusted trial balance is:

Accepted Answer

A) a credit balance of $55 000. 
B) a debit balance of $45 000. 
C) a credit balance of $45 000. 
D) a debit balance of $55 000. 
A) a credit balance of $55 000. 
B) a debit balance of $45 000. 
C) a credit balance of $45 000. 
D) a debit balance of $55 000.

Question 7

The report prepared from the trading and manufacturing accounts is required by the government.

Accepted Answer

A) True 
 B)False

Question 8

A company determines that depreciation expense for the year is $25 000, 10% of the cost of their non-current assets. The journal entry to record this adjustment would include:

Accepted Answer

A) a debit to accumulated depreciation expense for $25 000. 
B) a credit to accumulated depreciation for $25 000. 
C) a debit to depreciation expense for $2 500. 
D) a credit to depreciation expense for $2 500. 
A) a debit to accumulated depreciation expense for $25 000. 
B) a credit to accumulated depreciation for $25 000. 
C) a debit to depreciation expense for $2 500. 
D) a credit to depreciation expense for $2 500.

Question 9

After closing off the accounts, which of the following accounts will not appear on the balance sheet?

Accepted Answer

A) Cash 
B) Profit and loss 
C) Capital 
D) Equipment 
A) Cash 
B) Profit and loss 
C) Capital 
D) Equipment

Question 10

Which of the accounts listed below would be decreased with a debit entry?

Accepted Answer

A) Drawings 
B) Cash 
C) Vehicle 
D) Sales 
A) Drawings 
B) Cash 
C) Vehicle 
D) Sales

Question 11

Which of the following is the proper order of accounts in the chart of accounts?

Accepted Answer

A) Assets, equity, liabilities, revenues 
B) Equity, assets, revenues, liabilities 
C) Liabilities, equity, revenues, assets 
D) Assets, liabilities, equity, revenues 
A) Assets, equity, liabilities, revenues 
B) Equity, assets, revenues, liabilities 
C) Liabilities, equity, revenues, assets 
D) Assets, liabilities, equity, revenues

Question 12

A sale on account results in a debit to cash and a credit to sales.

Accepted Answer

A) True 
 B)False

Question 13

After adjustments are completed, the next step is to prepare:

Accepted Answer

A) the balance sheet. 
B) the profit and loss statement. 
C) the trial balance. 
D) the adjusted trial balance. 
A) the balance sheet. 
B) the profit and loss statement. 
C) the trial balance. 
D) the adjusted trial balance.

Question 14

A listing of all open accounts with their debit or credit balances totalled is a:

Accepted Answer

A) balance sheet. 
B) trial balance. 
C) ledger balance. 
D) account balance. 
A) balance sheet. 
B) trial balance. 
C) ledger balance. 
D) account balance.

Question 15

A professional sports team sells season tickets prior to the beginning of the season. In the current year, the team sold $500 000 of tickets. At the end of the fiscal year, six of the ten games covered in the season ticket subscription had been played. The amount needed to be adjusted to deferred revenue is:

Accepted Answer

A) $500 000 
B) $200 000 
C) $300 000 
D) $0 
A) $500 000 
B) $200 000 
C) $300 000 
D) $0

Question 16

Which of the following is a contra account?

Accepted Answer

A) Depreciation expense 
B) Bad debt expense 
C) Cost of sales 
D) Accumulated depreciation 
A) Depreciation expense 
B) Bad debt expense 
C) Cost of sales 
D) Accumulated depreciation

Question 17

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

Accepted Answer

A) $ 1 750 
B) $ 2 525 
C) $ 1 275 
D) $ 975 
A) $ 1 750 
B) $ 2 525 
C) $ 1 275 
D) $ 975

Question 18

If, at the end of the accounting period, non-current assets total $800 000 and depreciation is calculated based on 8% per annum straight line, depreciation expense would total:

Accepted Answer

A) $64 000 
B) $46 000 
C) $800 000 
D) $10 000 
A) $64 000 
B) $46 000 
C) $800 000 
D) $10 000

Question 19

In double-entry accounting, transactions are journalised and then posted to ledger accounts. What is the difference in these two processes and why is it necessary to do both?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The first part of the process is journal

Question 20

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

Accepted Answer

A) balance sheet. 
B) journal. 
C) profit and loss book. 
D) worksheet. 
A) balance sheet. 
B) journal. 
C) profit and loss book. 
D) worksheet.

In a perpetual inventory system, an end of period inventory count and valuation is required to compute cost of sales.

What are two advantages and two disadvantages of the double-entry accounting system? _ _

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

When the owner of a business withdraws money from the business for her own use:

On a worksheet, the Accumulated Depreciation account has a balance of $50 000 on the trial balance. An adjustment is made to increase Depreciation Expense by $5 000. The balance of Accumulated Depreciation in the adjusted trial balance is:

The report prepared from the trading and manufacturing accounts is required by the government.

A company determines that depreciation expense for the year is $25 000, 10% of the cost of their non-current assets. The journal entry to record this adjustment would include:

After closing off the accounts, which of the following accounts will not appear on the balance sheet?

Which of the accounts listed below would be decreased with a debit entry?

Which of the following is the proper order of accounts in the chart of accounts?

A sale on account results in a debit to cash and a credit to sales.

After adjustments are completed, the next step is to prepare:

A listing of all open accounts with their debit or credit balances totalled is a:

Which of the following is a contra account?

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

If, at the end of the accounting period, non-current assets total $800 000 and depreciation is calculated based on 8% per annum straight line, depreciation expense would total:

In double-entry accounting, transactions are journalised and then posted to ledger accounts. What is the difference in these two processes and why is it necessary to do both? _ _

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Accounting Systems and Internal Control

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters

Exam 4: Recording Transactionsthe Journal and Ledger Accounts

In a perpetual inventory system, an end of period inventory count and valuation is required to compute cost of sales.

What are two advantages and two disadvantages of the double-entry accounting system? _____________________________________________________________________________________________ _____________________________________________________________________________________________

The process of transferring revenue and expense accounts to the profit and loss account, and then transferring the balance of the profit and loss account and drawing account to the capital account is:

When the owner of a business withdraws money from the business for her own use:

On a worksheet, the Accumulated Depreciation account has a balance of $50 000 on the trial balance. An adjustment is made to increase Depreciation Expense by $5 000. The balance of Accumulated Depreciation in the adjusted trial balance is:

The report prepared from the trading and manufacturing accounts is required by the government.

A company determines that depreciation expense for the year is $25 000, 10% of the cost of their non-current assets. The journal entry to record this adjustment would include:

After closing off the accounts, which of the following accounts will not appear on the balance sheet?

Which of the accounts listed below would be decreased with a debit entry?

Which of the following is the proper order of accounts in the chart of accounts?

A sale on account results in a debit to cash and a credit to sales.

After adjustments are completed, the next step is to prepare:

A listing of all open accounts with their debit or credit balances totalled is a:

Which of the following is a contra account?

The Cash account has a beginning balance of $500. There are three additional debits totalling $1 250. In addition, there are four credits totalling $775. What is the balance in the account?

If, at the end of the accounting period, non-current assets total $800 000 and depreciation is calculated based on 8% per annum straight line, depreciation expense would total:

A book of original entry, used to record all relevant details needed to record a transaction in the ledger is the:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Accounting Systems and Internal Control

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters

What are two advantages and two disadvantages of the double-entry accounting system? _ _