Quiz
ACC 101 Midterm Practice Exam # 1
Questions in this quiz (21)
1Stockholders’ equity is affected by the ____________________
- Aa. Purchase of an asset for cash
- Bb. Payment of a liability
- Cc. Collection of accounts receivable
- Dd. Declaration and payment of a dividend
22. Which of the following accounts has a normal debit balance?
- Aa. Utilities Expense
- Bb. Retained Earnings
- Cc. Design Revenue
- Dd. Accounts Payable
33. Platt Realty Corporation had the following balance sheet accounts and balances:
Accounts Payable $6,000 Common Stock ?
Accounts Receivable ? Equipment $7,000
Building 1,000 Land 7,000
Cash 3,000 Retained Earnings 2,000
If the balance in the Accounts Receivable was $17,000, what would be the total liabilities and stockholders’ equity?
- Aa. $17,000
- Bb. $27,000
- Cc. $32,000
- Dd. $35,000
44. Which of the following accounts is decreased with a credit
- Aa. Salaries Payable
- Bb. Unearned Management Fees
- Cc. Accounts Receivable
- Dd. Retained Earnings
55. Dexter Company accepts an advance fee of $500 for services to be performed next year. The entry to record this transaction would include a:
- Aa. Debit to Accounts Receivable
- Bb. Credit to Unearned Service Fees
- Cc. Credit to Cash
- Dd. Credit to Service Fees Earned
6The primary purpose of the trial balance is to test the:
- Aa. Equality of debit and credit entries in the journal
- Bb. Recording of transactions
- Cc. Equality of debit and credit balances in the ledger
- Dd. Analysis of transactions.
77. Which of the following accounts probably would need to be adjusted at year end?
- Aa. Supplies
- Bb. Land
- Cc. Dividends
- Dd. Notes Payable
88. Which of the following is most likely to appear on the balance sheet as a current asset?
- ABuildings
- BMerchandise Inventory
- CAccumulated Depreciation
- DCommon Stock
99. If Accounts Receivable has debit posting of $29,000, credit postings of $22,000, and a normal ending balance of $24,000, which of the following was its beginning balance?
- A$17,000 debit
- B$31,000 credit
- C$31,000 debit
- D$17,000 credit
1010. A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder. The entry should include a:
- ACredit to Notes Payable
- BDebit to Cash
- CCredit to Notes Receivable
- Dd. Credit to Machinery
1111. After all closing entries have been posted, which of the following accounts is most likely to have a non zero balance?
- AIncome Summary
- BService Revenue
- CWages Payable
- DInterest Expense
1212. Which of the following transactions is most likely not to result in an adjusting entry at the end of the period?
- APurchase of a two year insurance policy
- BPayment of this month’s rent
- CPurchase of office equipment
- DPerformance of a service for which payment was received in advance.
1313. When a company receives an electric bill but does not pay it right away it should
- ADebit Utilities Expense and credit Accounts Receivable
- BMake no entry until the bill is paid
- CDebit Utilities Expense and credit Accounts Payable
- DDebit Accounts Payable and credit Utilities Expense
1414. The entry for the expiration of prepaid advertising, originally recorded as an asset, consists of a debit to
- AAdvertising Expense and a credit to Prepaid Advertising
- BPrepaid Advertising and a credit to Cash
- CAdvertising expense and a credit to Cash
- DPrepaid Advertising and a credit to Advertising Expense
1515. Which of the following could not possibly be a closing entry?
- ADebit Income Summary and credit Dividends
- BDebit Income Summary and credit Retained Earnings
- CDebit Retained Earnings and credit Dividends
- DDebit Retained Earnings and credit Income Summary
1616. Current assets divided by current liabilities is known as the
- AProfit margin
- BCurrent ratio
- CWorking capital
- DAsset turnover
1717. Gross margin equals the difference between net sales and:
- ANet income
- BCost of goods sold plus operating expenses
- COperating expenses
- DCost of goods sold
18Cailor Corporation provides food services to universities. Its account balances (all normal) are provided below in alphabetical order for the month ended July 31, 2007. The Cailor Corporation, Retained Earnings account balance represents the balance as of June 30, 2007; all other account balances are as of July 31, 2007. ------------------------------------------------------------------
- AA) Income Statement
B)Statement of Retained Earnings
c) Balance Sheet (unclassified) - BDo Above Work
- AA) Income Statement
19Depreciation Expense appears on the Balance Sheet
- ATrue
- BFalse
20Buildings appear on the balance sheet as a current asset?
- ATrue
- BFalse
21Merchandise Inventory appears on the balance sheet as a current asset.
- ATrue
- BFalse
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- ACC 101 Midterm Practice Exam # 1
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