FNU ACG2003 2022 October All Quizzes Latest

ACG2003 Principles of Accounting

Week 1 Quiz

Question 1Websavvy paid the electric and gas bill for the month in the amount of $325. What is the entry to record this transaction?

debit to Cash, $325; credit to Utilities Expense, $325

debit to Utilities Expense, $325; credit to Cash, $325

debit to Accounts Receivable, $325; credit to Utilities Expense, $325

debit to Utilities Expense, $325; debit to Accounts Receivable, $325

Question 2The accounting equation can be expressed in all of the following ways EXCEPT:

Assets = Liabilities + Owner's Equity.

Liabilities = Assets + Owner's Equity.

Liabilities = Assets - Owner's Equity.

Owner's Equity = Assets - Liabilities.

Question 3The five major types of accounts are:

asset, liability, drawing, revenue, and expense.

assets, drawing, owner's equity, revenue, and expense.

asset, liability, owner's equity, revenue, and expense.

drawing, liability, owner's equity, revenue, and expense.

Question 4A credit may represent a(n):

increase in an asset account.

increase in a liability account.

decrease in the capital account.

increase in an expense account.

Question 5Which of the following best describes accounting?

can be thought of as the "language of business"

is of limited or little use to individuals outside of the business

records economic data but does not communicate the data to users

relies upon concepts and principles that are independent of specific user needs

Question 6The balance sheet:

reports the amount of an organization's assets, liabilities, and owner's equity as of a specific date.

consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities.

reports the revenues and expenses for a period of time based on the matching concept.

reports the changes in owner's equity for a period of time.

Question 7The income statement:

 reports the amount of an organization's assets, liabilities, and owner's equity at the end of a period.

consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities.

reports the revenues and expenses for a period of time based on the matching concept.

reports the changes in owner's equity for a period of time.

Question 8A prepaid expense, such as the purchase of insurance for an upcoming period, is initially recorded in the accounting system as:

an asset.

a liability.

an expense.

a revenue.

Question 9A merchandising business:

changes basic inputs into products that are sold to individual customers.

sells a finished product that was purchased in that same form.

provides services rather than products to customers.

does all of these.

Question 10Every transaction affects at least two accounts.

The purchase of land in exchange for cash is recorded with which of the following entries?

debit to Cash and credit to Land

debit to Owner's Equity and credit to Cash

debit to Land and credit to Cash

debit to Land and credit to Accounts Payable

 

ACG2003 Principles of Accounting

Week 2 Quiz

Question 1Which of the following statements is NOT true about adjusting entries?

Adjusting entries are dated as of the last day of the period.

Adjusting entries are normally supported by an explanation.

Adjusting entries must be both journalized and posted.

 

Omission of adjusting entries will have over- or understatement impacts on the income statement but not the balance sheet.

Question 2Vertical analysis compares each item on a financial statement with:

a corresponding item on a different statement of the same year.

a total or key amount on the same statement.

an industry average.

a total or key amount on the financial statement of the previous period.

Question 3Cheng Company has one year in unearned rent on the books in the amount of $3,000. The money was received on December 1 in payment for a warehouse Cheng owns. What adjusting entry related to unearned rent should Cheng record on the books at year-end?

debit to Unearned Rent, $2,750; credit to Rent Revenue, $2,750

debit to Unearned Rent, $250; credit to Rent Revenue, $250

debit to Rent Revenue, $250; credit to Unearned Rent, $250

no entry required

Question 4The balance in Carlos Company's supplies account on December 31 is $3,000. If the supplies used during the year were $750, what is the entry to adjust the supplies account at the end of the year?

debit to Supplies, $2,250; credit to Supplies Expense, $2,250

debit to Supplies Expense, $750; credit to Supplies, $750

debit to Supplies, $250; credit to Supplies Expense, $250

debit to Supplies Expense, $750; credit to Accounts Payable, $750

Question 5Websavvy has a 5-day work week and pays weekly wages in the amount of $1,750. If December 31 falls on a Tuesday, what would be the adjusting entry to record the accrual of wages at year-end?

debit to Wages Expense, $350; credit to Wages Payable, $350

debit to Wages Payable, $350; credit to Wages Expense, $350

debit to Wages Expense, $700; credit to Wages Payable, $700

no entry required

Question 6An adjusting entry always affects:

at least one asset account and one liability account.

two different balance sheet accounts.

two different income statement accounts.

at least one income statement account and one balance sheet account.

Question 7Expense items that have been incurred but not yet recorded in the accounts are:

unearned revenues.

accrued expenses.

accrued revenues.

prepaid expenses.

Question 8Which statement about an adjusted trial balance is true?

An adjusted trial balance is completed after completing the income statement.

The purpose of an adjusted trial balance is to ensure that all adjusting entries have been recorded.

If the adjusted trial balance does not balance, then an error has been made.

If an adjusting entry is omitted, the adjusted trial balance will not balance.

Question 9The accounting concept that supports reporting revenues in the period in which they are earned is called the:

revenue recognition concept.

accounting period concept.

timing concept.

adjusting concept.

Question 10Unrecorded revenues that have been earned but for which cash has not yet been received are:

accrued expenses.

unearned revenues.

accrued revenues.

prepaid expenses.

 

ACG2003 Principles of Accounting

Week 3 Quiz

Question 1A business with highly seasonal operations may adopt a fiscal year that:

ends when business activities have reached their highest point in its operating cycle.

corresponds to the calendar year.

ends when business activities have reached their lowest point in its operating cycle.

is dictated by the IRS.

Question 2When there is a net loss, the entry to close Income Summary will include a:

debit to the owner's capital account.

debit to Income Summary.

debit to the drawing account.

credit to Cash.

Question 3In the sequence of accounting cycle steps, which step follows the preparation of the adjusted trial balance?

Adjusting entries are journalized and posted.

The optional end-of-period spreadsheet is prepared.

Financial statements are prepared.

Closing entries are journalized and posted to the ledger.

Question 4Which if the following is NOT true about closing entries?

Closing entries move the balances of nominal accounts to the owner's capital account.

Closing entries are an optional step in the accounting cycle.

Closing entries are made later in the accounting cycle than adjusting entries.

Closing entries are made before the post-closing trial balance is prepared.

Question 5Which account would appear in the post-closing trial balance?

Salaries Payable

Supplies Expense

Depreciation Expense

Fees Earned

Question 6The process that begins with analyzing and journalizing transactions is called the:

accounting cycle.

ledger cycle.

balance cycle.

operating cycle.

Question 7Two common classifications of liabilities are:

current assets and current liabilities.

current assets and property, plant, and equipment.

current liabilities and long-term liabilities.

property, plant, and equipment and long-term liabilities.

Question 8Two common classifications of assets are:

current assets and current liabilities.

current assets and property, plant, and equipment.

current liabilities and long-term liabilities.

property, plant, and equipment and long-term liabilities.

Question 9Which of the following is true regarding the flow of data from the Adjusted Trial Balance columns of the end-of-period spreadsheet to the financial statements?

The balance of the owner's capital account will flow into the balance sheet.

The balance of the accumulated depreciation account will flow into the income statement.

The balance of the owner's drawing account will flow into the statement of owner's equity.

The balance of the revenue account will flow into the statement of owner's equity.

Question 10Which of the following is NOT true regarding the current ratio?

It is a measure for evaluating a business's short-term liquidity and solvency.

It is computed as current assets less current liabilities.

It allows comparisons across companies of different sizes.

A result of 1.98 is more favorable than a result of 1.45.

 

ACG2003 Principles of Accounting

Week 4 Midterm Quiz

Question 1Revenues are reported when

a contract is signed

cash is received from the customer

work is begun on the job

work is completed on the job

Question 2Debts owed by a business are referred to as

accounts receivables

equities

owner’s equity

liabilities

Question 3The unit of measure concept:

is only used in the financial statements of manufacturing companies.

is not important when applying the cost concept.

requires that different units be used for assets and liabilities.

requires that economic data be reported in yen in Japan or dollars in the U.S.

 

Question 4The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

Indefinitely

One year

Two years

There is no such prohibition.

Question 5Which of the following is not an asset?

Investments

Cash

Inventory

Owner’s Equity

Question 6The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

prior period statement

statement of owner's equity

income statement

balance sheet

Question 7A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

increase one asset, decrease another asset

decrease an asset, decrease a liability

increase an asset, increase a liability

increase an asset, increase owner's equity

Question 8Which of the following best describes accounting?

records economic data but does not communicate the data to users according to any specific rules.

is an information system that provides reports to users regarding economic activities and condition of a business.

is of no use by individuals outside of the business.

is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements.

Question 9Financial reports are used by

management

creditors

investors

all are correct

Question 10Which of the following entries records the payment of an account payable?

debit Cash; credit Accounts Payable

debit Accounts Receivable; credit Cash

debit Cash; credit Supplies Expense

debit Accounts Payable; credit Cash

Question 11April23Cash

14,000

         Jim Xu, Capital 

14,000

   Invest cash in Xu Co.  

The journal entry will:

Increase Capital and decrease Cash

Increase Cash and decrease Capital

Increase Cash and increase Capital

Decrease Cash and decrease Capital

Question 12March10Accounts Payable 3,300         Cash  3,300   Paid creditors on account  

What effect does this journal entry have on the accounts?

Decrease accounts payable, increase cash

Increase cash, decrease accounts payable

Increase accounts payable, increase cash

Decrease accounts payable, decrease cash

Question 13The process of recording a transaction in the journal is called

recording

journalizing

posting

summarizing

Question 14he debit side of an account

 

 depends on whether the account is an asset, liability or owner's equity

can be either side of the account depending on how the accountant set up the system

is the right side of the account

is the left side of the account

Question 15A debit may signify a(n)

decrease in asset accounts

decrease in liability accounts

increase in the capital account

decrease in the drawing account

Question 16Revenue should be recognized when

cash is received

the service is performed

the customer places an order

the customer charges an order

Question 17Which of the following entries records the payment of rent for the current month?

Cash, debit; Rent Expense, credit

Rent Expense, debit; Cash, credit

Rent Expense, debit; Accounts Receivable, credit

Accounts Payable, debit; Rent Expense, credit

Question 18A chart of accounts is

the same as a balance sheet

usually a listing of accounts in alphabetical order

usually a listing of accounts in financial statement order

used in place of a ledger

Question 19Using accrual accounting, revenue is recorded and reported only

when cash is received without regard to when the services are rendered

when the services are rendered without regard to when cash is received

when cash is received at the time services are rendered

if cash is received after the services are rendered

Question 20The matching concept

addresses the relationship between the journal and the balance sheet

determines whether the normal balance of an account is a debit or credit

requires that the dollar amount of debits equal the dollar amount of credits on a trial balance

determines that expenses related to revenue be reported at the same time the revenue is reported

Question 21Which of the accounting steps in the accounting process below would be completed last?

preparing the adjusted trial balance

posting

preparing the financial statements

journalizing

Question 22Deferred expenses have

not yet been recorded as expenses or paid

been recorded as expenses and paid

been incurred and paid

not yet been recorded as expenses

Question 23Deferred revenue is revenue that is

earned and the cash has been received

earned but the cash has not been received

not earned and the cash has not been received

not earned but the cash has been received

Question 24By matching revenues and expenses in the same period in which they incur

net income or loss will always be underestimated.

net income or loss will always be overestimated.

net income or loss will be properly reported on the income statement

net income or loss will not be determined.

Question 25The adjusting entry to record the depreciation of equipment for the fiscal period is

debit Depreciation Expense; credit Equipment

debit Depreciation Expense; credit Accumulated Depreciation

debit Accumulated Depreciation; credit Depreciation Expense

debit Equipment; credit Depreciation Expense

 

Question 26The account type and normal balance of Prepaid Expense is

revenue, credit

expense, debit

liability, credit

asset, debit

Question 27Austin, Inc. made a Prepaid Rent payment of $2,800 on January 1st. The company’s monthly rent is $700. The amount of Prepaid Rent that would appear on the January 31 balance sheet after adjustment is:

$2,100

$700

$3,500

$1,400

Question 28The Statement of Owner’s Equity should be prepared

before the income statement and after the balance sheet

before the income statement and balance sheet

after the income statement and balance sheet

after the income statement and before the balance sheet

Question 29Closing entries

need not be journalized if adjusting entries are prepared

need not be posted if the financial statements are prepared from the work sheet

are not needed if adjusting entries are prepared

must be journalized and posted

Question 30The classified Balance Sheet will divide its Liabilities Section as the following subsections

Current Liabilities and Long-Term Liabilities

Current Liabilities and Other Liabilities

Other Liabilities and Long-Term Liabilities

Present Liabilities and Tomorrow’s Liabilities

Question 31The following are steps to the accounting cycle. Of the following, which step should be done first?

Closing entries are journalized and posted to the ledger.

Transactions are posted to the ledger.

Adjusting entries are journalized and posted to the ledger.

Financial statements are prepared.

Question 32In the accounting cycle, the last step is

preparing the financial statements

journalizing and posting the adjusting entries

preparing a post-closing trial balance

journalizing and posting the closing entries

Question 33The Balance Sheet should be prepared

before the income statement and the statement of owner’s equity

before the income statement and after the statement of owner’s equity

after the income statement and the statement of owner’s equity

after the income statement and before the statement of owner’s equity

Question 34Short-term liabilities are those liabilities that

will be paid in less than one year

are due to paid in 5 to 10 years

are due to be paid in more than one year

are liabilities owed to the owner and will never be paid

Question 35The income statement should be prepared

before the statement of owner’s equity and balance sheet

after the statement of owner’s equity and before the balance sheet

after the statement of owner’s equity and balance sheet

after the balance sheet and before the statement of owner’s equity

Question 36The worksheet

is an integral part of the accounting cycle

eliminates the need to rewrite the financial statements

is a working paper that is required

is used to summarize account balances and adjustments for the financial statements

Question 37A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

$970

$650

$300

$620

Question 38Multiple-step income statements show

gross profit but not income from operations

neither gross profit nor income from operations

both gross profit and income from operations

income from operations but not gross profit

Question 39Inventory shortage is recorded when

merchandise is returned by a buyer.

merchandise purchased from a seller is incomplete or short.

merchandise is returned to a seller.

there is a difference between a physical count of inventory and inventory records.

Question 40The primary difference between a periodic and perpetual inventory system is that a

periodic system determines the inventory on hand only at the end of the accounting period

periodic system keeps a record showing the inventory on hand at all times

periodic system provides an easy means to determine inventory shrinkage

periodic system records the cost of the sale on the date the sale is made

 

ACG2003 Principles of Accounting

Week 5 Quiz

Question 1Under the perpetual inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $2.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $2.50 per yard on June 19; on June 27, 6 more yards had been sold. No inventory was on hand at the beginning of the month. What is the cost of merchandise sold and cost of inventory under the FIFO method for June?

$101.25; $67.50

$45.00; $30.00

$67.50; $101.25

$95.00; $73.75

Question 2The formula to calculate inventory turnover is:

Average inventory/Cost of merchandise sold.

Cost of merchandise sold/Average inventory.

Beginning inventory/Cost of merchandise sold.

Cost of merchandise sold/Ending inventory.

Question 3During the taking of a physical inventory on December 31, 2012, inventory was counted as $100,870 instead of the correct amount of $100,780. The effect of the error on the December 31, 2012 balance sheet and income statement will be:

ending inventory will be understated; gross profit will be overstated.

ending inventory will be overstated; cost of merchandise sold will be overstated.

ending inventory will be overstated; net income will be overstated.

ending inventory will be understated; cost of merchandise sold will be overstated.

Question 4Which statement about inventory costing methods is TRUE?

If the cost of units does not change, all three methods will yield the same results.

When LIFO is used during a period of rising prices, the company's gross profit will be higher.

During periods of rising prices, using FIFO offers an income tax savings.

All statements are true.

Question 5Under the periodic inventory system, Village Fabrics purchases navy plaid fabric used in its fabric-selling business in the following lots: June 5 - 4 yards at $2.50 per yard, June 12 - 7 yards at $3.00 per yard, June 17 - 8 yards at $3.50 per yard. What is the periodic average cost of the fabric per yard?

$2.50 per yard

3.00 per yard

$3.11 per yard

$3.05 per yard

Question 6Under the perpetual inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid, a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5, on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the FIFO method?

$71.25

$35.00

$75.00

$31.25

Question 7Under the periodic inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the FIFO method?

$31.25

$30.00

$57.50

$60.00

Question 8Under the periodic inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the LIFO method?

$50.00

$31.25

$56.25

$60.00

Question 9Under the perpetual inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 11 more yards had been sold. What is the value of inventory as of June 30 under the LIFO method?

$25.00

$35.00

$30.00

$31.25

Question 10Merchandise inventory is reported on the balance sheet in the section titled:

Current Liabilities.

Plant Assets.

Current Assets.

Owner's Equity.

 

 

 

 

ACG2003 Principles of Accounting

Week 6 Quiz

Question 1A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. What entry is required in the company's accounts?

debit Accounts Payable; credit Cash

debit Cash; credit Accounts Receivable

debit Cash; credit Accounts Payable

debit Accounts Receivable; credit Cash

Question 2The cash account in the company's ledger is a(n)

asset with a debit balance

asset with a credit balance

liability with a debit balance

liability with a credit balance

Question 3A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a

signature card

deposit ticket

checkbook

bank card

Question 4Which one of the following below is not an element of internal control?

risk assessment

monitoring

information and communication

behavior analysis

Question 5EFT

means Efficient Funds Transfer

can process certain cash transactions at less cost than by using the mail

makes it easier to document purchase and sale transactions

means Effective Funds Transfer

Question 6A voucher is usually supported by

a supplier's invoice

a purchase order

a receiving report

all of the above

Question 7When a firm uses internal auditors, it is adhering to which one of the following internal control elements?

risk assessment

monitoring

proofs and security measures

separating responsibilities for related operations

Question 8Which one of the following below reflects a weak internal control system?

all employees are well supervised

a single employee is responsible for comparing a receiving report to an invoice

all employees must take their vacations

a single employee is responsible for collecting and recording of cash

Question 9In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system?

internal auditors

independent accountants

Board of Director's audit committee

Board of Trustees

Question 10Procedures designed to protect cash from theft and misuse from the time it is received until it can be deposited in a bank are called

accounting controls

cash controls

preventive controls

detective controls

 

ACG2003 Principles of Accounting

Week 8 Quiz