Natalie Balzert
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Financial Accounting Fundamentals Chapter 1-4

Pregunta 1 de 71

1

What is the accounting equation?

Selecciona una o más de las siguientes respuestas posibles:

  • Assets + Liabilities = Shareholder's Equity

  • Assets = Liabilities - Shareholder's Equity

  • Assets = Liabilities + Shareholder's Equity

Explicación

Pregunta 2 de 71

1

Which of these is NOT one of the 5 steps in recording all accounting transactions?

Selecciona una o más de las siguientes respuestas posibles:

  • Is it a business transaction? Yes or No?

  • What board type of accounts are affected?

  • What specific type of accounts are affected?

  • Which specific accounts has increased or decreased?

  • Which accounts are recorded in to journal entries?

  • Record all transactions in the Journal.

Explicación

Pregunta 3 de 71

1

Which of these is NOT one of the 4 basic principles of accounting (GAAP) ?

Selecciona una o más de las siguientes respuestas posibles:

  • Income principle

  • Measurement principle

  • Revenue recognition

  • Expense recognition

  • Full disclosure principle

Explicación

Pregunta 4 de 71

1

What are the Rules for debits and credits?

Selecciona una de las siguientes respuestas posibles:

  • Debit means right, Credit means left

  • Credit means left, Debit means left

  • Debit means left, Credit means no change

  • Debit means left, Credit means right

Explicación

Pregunta 5 de 71

1

What are the 4 basic assumptions of accounting (GAAP) ?

Selecciona una de las siguientes respuestas posibles:

  • Monetary assumption, Integrity assumption, Expense assumption, Business Entity assumption

  • Monetary assumption, Time period assumption, On going assumption, Business Entity assumption

  • Money assumption, Time period assumption, On going assumption, Business Enterprise assumption

  • Monetary assumption, Time travel assumption, On going assumption, Business Entity assumption

Explicación

Pregunta 6 de 71

1

What are the 2 basic constraints of accounting?

Selecciona una de las siguientes respuestas posibles:

  • Materiality Constrains and Cost Benefit Constraints

  • Materialistic Constraints and Cost Effective Constraints

  • Material Constraints and Cost Revenue Constraints

  • Materiality Constraints and Cost Effective Constraints

Explicación

Pregunta 7 de 71

1

What is the definition of Assets?

Selecciona una de las siguientes respuestas posibles:

  • Economic resource that used to have a benefit

  • Economic resource that has a future benefit

Explicación

Pregunta 8 de 71

1

Define Liabilities.

Selecciona una de las siguientes respuestas posibles:

  • Economic obligation that requires the use of an asset to pay it off.

  • Economic obligation that requires the shareholders to pay it off.

Explicación

Pregunta 9 de 71

1

Define Equity

Selecciona una de las siguientes respuestas posibles:

  • Is the excess of an asset over liabilities.

  • Is the expense of an asset over revenue.

Explicación

Pregunta 10 de 71

1

What are the 5 types of accounts in all of accounting?

Selecciona una de las siguientes respuestas posibles:

  • Asses, Liabilities, Shareholder's Equity, Revenue, Expense

  • Assets, Liabilities, Receivables, Equity, Revenue

  • Assets, Receivables, Shareholder's Equity, Revenue, Expense

  • Assets, Liabilities, Shareholder's Equity, Revenue, Expense

Explicación

Pregunta 11 de 71

1

Define Revenue.

Selecciona una de las siguientes respuestas posibles:

  • Is the amount received for selling an asset or the release (i.e. forgiveness) of debt and increases shareholder's dividends.

  • Is the amount received for selling an asset or the release (i.e. forgiveness) of debt and increases shareholder's equity.

Explicación

Pregunta 12 de 71

1

Define expense.

Selecciona una de las siguientes respuestas posibles:

  • Is an expired asset, which required an asset or another liability to pay it off and decreases shareholder's common stock value.

  • Is an expired asset, which required an asset or another liability to pay it off and decreases shareholder's equity.

Explicación

Pregunta 13 de 71

1

Define accounting.

Selecciona una de las siguientes respuestas posibles:

  • Is the process of accounting for anything of value or expense that needs to be accounted for in an accounting general ledger.

  • It is the counting of something that can be accounted for.

  • Consists of 3 basic activities. It identifies, records and hides the economic events of an organization to interested users.

  • Consists of 3 basic activities. It identifies, records and communicates the economic events of an organization to interested users.

Explicación

Pregunta 14 de 71

1

What are 4 examples of accounting source documents recording all accounting transactions?

Selecciona una de las siguientes respuestas posibles:

  • Bank statement, Receipt Pay Slip, A check.

  • Bank statement, Sales Invoice, Pay Slip, A check.

  • Federal statement, Sales Invoice, Pay Slip, A check.

  • Federal statement, Sales Invoice, Pay Slip, Money.

Explicación

Pregunta 15 de 71

1

What is an account?

Selecciona una de las siguientes respuestas posibles:

  • An account is an individual accounting record of increases and decreases in a specific asset, liability, shareholder's equity, unearned revenue and expense item.

  • An account is an individual accounting record of increases and decreases in a specific asset, liability, shareholder's equity, revenue and expense item.

  • An account is an individual accounting record of increases and decreases in a specific asset, liability, common stock and dividends, revenue and expense item.

  • An account is an individual accounting record of increases and decreases in a specific asset, liability, common stock, unearned revenue and expense item.

Explicación

Pregunta 16 de 71

1

Debit always mean increase and credit always means decrease.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 17 de 71

1

Why are accounting systems called double-entry?

Selecciona una de las siguientes respuestas posibles:

  • A system that records in appropriate accounts the unique effect of each transaction.

  • A system that records in appropriate accounts the single effect of each transaction.

  • A system that records in appropriate accounts the dual effect of each transaction.

Explicación

Pregunta 18 de 71

1

Monthly and quarterly time periods are called

Selecciona una de las siguientes respuestas posibles:

  • calendar periods.

  • fiscal periods.

  • interim periods.

  • quarterly periods.

Explicación

Pregunta 19 de 71

1

The time period assumption states that

Selecciona una de las siguientes respuestas posibles:

  • a transaction can only affect one period of time.

  • estimates should not be made if a transaction affects more than one time period.

  • adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations.

  • the economic life of a business can be divided into artificial time periods.

Explicación

Pregunta 20 de 71

1

An accounting time period that is one year in length, but does not begin on January 1st, is referred to as

Selecciona una de las siguientes respuestas posibles:

  • a fiscal year.

  • an interim period.

  • the time period assumption.

  • a reporting period.

Explicación

Pregunta 21 de 71

1

Adjustments would not be necessary if financial statements were prepared to reflect net income from

Selecciona una de las siguientes respuestas posibles:

  • monthly operations.

  • fiscal year operations.

  • interim operations.

  • lifetime operations.

Explicación

Pregunta 22 de 71

1

Management usually desires________________ financial statements and the IRS requires all businesses to file _______________ tax returns.

Selecciona una de las siguientes respuestas posibles:

  • annual, annual

  • monthly, annual

  • quarterly, monthly

  • monthly, monthly

Explicación

Pregunta 23 de 71

1

The time period assumption is also referred to as the

Selecciona una de las siguientes respuestas posibles:

  • calendar assumption.

  • cyclicity assumption.

  • periodicity assumption.

  • fiscal assumption.

Explicación

Pregunta 24 de 71

1

In general, the shorter the time period, the difficulty of making the proper adjustments to accounts

Selecciona una de las siguientes respuestas posibles:

  • is increased.

  • is decreased.

  • is unaffected.

  • depends on if there is a profit or loss.

Explicación

Pregunta 25 de 71

1

Which of the following is NOT common time period chosen by businesses as their accounting period?

Selecciona una de las siguientes respuestas posibles:

  • Daily.

  • Monthly.

  • Quarterly.

  • Annually.

Explicación

Pregunta 26 de 71

1

Which of the following time periods would NOT be referred to as an interim period?

Selecciona una de las siguientes respuestas posibles:

  • Monthly

  • Quarterly

  • Semi-annually

  • Annually

Explicación

Pregunta 27 de 71

1

The fiscal year of a business is usually determined by

Selecciona una de las siguientes respuestas posibles:

  • the IRS.

  • a lottery.

  • the business.

  • the SEC.

Explicación

Pregunta 28 de 71

1

Which of the following are in accordance with generally accepted accounting principles?

Selecciona una de las siguientes respuestas posibles:

  • Accrual basis accounting.

  • Cash basis accounting.

  • Both accrual basis and cash basis accounting.

  • Neither accrual basis nor cash basis accounting.

Explicación

Pregunta 29 de 71

1

The revenue recognition principle dictates that revenue should be recognized in the accounting period

Selecciona una de las siguientes respuestas posibles:

  • in which cash is received.

  • in which the performance obligation is satisfied.

  • at the end of the month.

  • in which income taxes are paid.

Explicación

Pregunta 30 de 71

1

In a service-type business, revenue is recognized

Selecciona una de las siguientes respuestas posibles:

  • at the end of the month.

  • at the end of the year.

  • when the service is performed.

  • when cash is received.

Explicación

Pregunta 31 de 71

1

The expense recognition principle matches

Selecciona una de las siguientes respuestas posibles:

  • customers with businesses.

  • expenses with revenues.

  • assets with liabilities.

  • creditors with businesses.

Explicación

Pregunta 32 de 71

1

Which one of the following is not a justification for adjusting entries?

Selecciona una de las siguientes respuestas posibles:

  • Adjusting entries are necessary to ensure that the revenue recognition principle is followed.

  • Adjusting entries are necessary to ensure that the expense recognition principle is followed.

  • Adjusting entries are necessary to enable financial statements to be in conformity with GAAP.

  • Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

Explicación

Pregunta 33 de 71

1

An adjusting entry

Selecciona una de las siguientes respuestas posibles:

  • affects two balance sheet accounts.

  • affects two income statement accounts.

  • affects a balance sheet account and an income statement account.

  • is always a compound entry.

Explicación

Pregunta 34 de 71

1

The preparation of adjusting entries is

Selecciona una de las siguientes respuestas posibles:

  • straight forward because the accounts that need adjustment will be out of balance.

  • often an involved process requiring the skills of a professional.

  • only required for accounts that do not have a normal balance.

  • optional when financial statements are prepared.

Explicación

Pregunta 35 de 71

1

If a resource has been consumed but a bill has not been received at the end of the accounting period, then

Selecciona una de las siguientes respuestas posibles:

  • an expense should be recorded when the bill is received.

  • an expense should be recorded when the cash is paid out.

  • an adjusting entry should be made recognizing the expense.

  • is is optional whether to record the expense before the bill is received.

Explicación

Pregunta 36 de 71

1

Accounts often need to be adjusted because

Selecciona una de las siguientes respuestas posibles:

  • there are never enough accounts to record all the transactions.

  • many transactions affect more then one time period.

  • there are always errors made in recording transactions.

  • management can' decide what they want to report.

Explicación

Pregunta 37 de 71

1

Adjusting entries are

Selecciona una de las siguientes respuestas posibles:

  • not necessary if the accounting system is operating properly.

  • usually required before financial statements are prepared.

  • made whenever management desires to change an account balance.

  • made to balance sheet accounts only.

Explicación

Pregunta 38 de 71

1

All of the following statements are correct except

Selecciona una de las siguientes respuestas posibles:

  • adjusting entries ensure that the revenue recognition and expense recognition principles are followed.

  • a company must make adjusting entries every time is prepares financial statements.

  • adjusting entries are made to balance sheet accounts only.

  • companies often prepare adjusting entries after the balance sheet date, but date them as of the balance sheet date.

Explicación

Pregunta 39 de 71

1

Accountants refer to an economic event as a

Selecciona una de las siguientes respuestas posibles:

  • purchase.

  • sale.

  • transaction.

  • change in ownership.

Explicación

Pregunta 40 de 71

1

The process of recording transactions has become more efficient because

Selecciona una de las siguientes respuestas posibles:

  • fewer events can be quantified in financial terms.

  • computers are used in processing business events.

  • more people have been hired to record business transactions.

  • business events are recorded only at the end of the year.

Explicación

Pregunta 41 de 71

1

Communication of economic events is the part of the accounting process that involves

Selecciona una de las siguientes respuestas posibles:

  • identifying economic events.

  • quantifying transactions into dollars and cents.

  • preparing accounting reports.

  • recording and classifying information.

Explicación

Pregunta 42 de 71

1

The use of computers in recording business events

Selecciona una de las siguientes respuestas posibles:

  • has made the recording process more efficient.

  • does not use the same principles as manual accounting systems.

  • has greatly impacted the identification stage of the accounting process.

  • is economical only for large businesses.

Explicación

Pregunta 43 de 71

1

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

Selecciona una de las siguientes respuestas posibles:

  • The appointment of a new CPA firm to perform an audit.

  • The purchase of a new computer.

  • The sale of store equipment.

  • Payment of income taxes.

Explicación

Pregunta 44 de 71

1

The accounting process involves all of the following except

Selecciona una de las siguientes respuestas posibles:

  • identifying economic transactions that are relevant to the business.

  • communicating financial information to users by preparing financial reports.

  • recording non-quantifiable economic events.

  • analyzing and interpreting financial reports.

Explicación

Pregunta 45 de 71

1

The accounting process is correctly sequenced as

Selecciona una de las siguientes respuestas posibles:

  • identification, communication, recording.

  • recording, communication, identification.

  • identification, recording, communication.

  • communication, recording, identification.

Explicación

Pregunta 46 de 71

1

Which of the following techniques are NOT used by accountants to interpret and report financial information?

Selecciona una de las siguientes respuestas posibles:

  • Graphs.

  • Special memos for each class of external users.

  • Charts.

  • Ratios.

Explicación

Pregunta 47 de 71

1

Accounting consists of three basic activities which are related to economic events of an organization. These include

Selecciona una de las siguientes respuestas posibles:

  • identifying, recording and communicating.

  • identifying, calculating and responding.

  • classifying, numbering and reporting.

  • issuing, reporting and classifying.

Explicación

Pregunta 48 de 71

1

All of the following statements are correct except

Selecciona una de las siguientes respuestas posibles:

  • Good decision-making depends on good information.

  • A vital element in communicating economic events is the accountant's ability to analyze and interpret reported information.

  • The origins of accounting are generally attributed to Socrates, a classical Greek philosopher, who promoted accounting as a social contract.

  • The information that a user of financial information needs depends upon the kinds of decisions the user makes.

Explicación

Pregunta 49 de 71

1

An account consists of

Selecciona una de las siguientes respuestas posibles:

  • one part.

  • two parts.

  • three parts.

  • four parts.

Explicación

Pregunta 50 de 71

1

The left side of an account is

Selecciona una de las siguientes respuestas posibles:

  • blank.

  • a description of the account.

  • the debit side.

  • the balance of the account.

Explicación

Pregunta 51 de 71

1

Which of the following is NOT part of an account?

Selecciona una de las siguientes respuestas posibles:

  • Credit side.

  • Trial balance.

  • Debit side.

  • Title.

Explicación

Pregunta 52 de 71

1

An account is a part of the financial information system and is described by all except which one of the following?

Selecciona una de las siguientes respuestas posibles:

  • An account has a debit and credit side.

  • An account is a source document.

  • An account may be part of a manual or a computerized accounting system.

  • An account has a title.

Explicación

Pregunta 53 de 71

1

The right side of an account

Selecciona una de las siguientes respuestas posibles:

  • is the correct side.

  • reflects all transactions for the accounting period.

  • shows all the balances of the accounts in the system.

  • is the credit side.

Explicación

Pregunta 54 de 71

1

An account consists of

Selecciona una de las siguientes respuestas posibles:

  • a title, a debit balance and a credit balance.

  • a title, a left side and a debit balance.

  • a title, a debit side and a credit side.

  • a title, a right side and and debit balance.

Explicación

Pregunta 55 de 71

1

A T-Account is

Selecciona una de las siguientes respuestas posibles:

  • a way of depicting the basic form of an account.

  • what the computer uses to organize bytes of information.

  • a special account used instead of a trial balance.

  • used for accounts that have both a debit and credit balance.

Explicación

Pregunta 56 de 71

1

Credits

Selecciona una de las siguientes respuestas posibles:

  • decrease both assets and liabilities.

  • decrease assets and increase liabilities.

  • increase both assets and liabilities.

  • increase assets and decrease liabilities.

Explicación

Pregunta 57 de 71

1

A debit to an asset account indicates

Selecciona una de las siguientes respuestas posibles:

  • an error.

  • a credit was made to a liability account.

  • a decrease in the asset.

  • an increase in the asset.

Explicación

Pregunta 58 de 71

1

The normal balance of any account is the

Selecciona una de las siguientes respuestas posibles:

  • left side.

  • right side.

  • side which increases that account.

  • side which decreases that account.

Explicación

Pregunta 59 de 71

1

The double-entry system requires that each transaction must be recorded

Selecciona una de las siguientes respuestas posibles:

  • in at least two different accounts.

  • in two sets of books.

  • in a journal and in a ledger.

  • first as a revenue and then as an expense.

Explicación

Pregunta 60 de 71

1

A credit is not the normal balance for which account listed below?

Selecciona una de las siguientes respuestas posibles:

  • Common stock account.

  • Revenue account.

  • Liability account.

  • Dividends account.

Explicación

Pregunta 61 de 71

1

Which of the following represents the expanded basic accounting equation?

Selecciona una de las siguientes respuestas posibles:

  • Assets = Liabilities + Common stock + Retained Earnings + Dividends - Revenues - Expenses

  • Assets + Dividends + Expenses = Liabilities + Common Stock + Retained Earnings + Revenues

  • Assets - Liabilities - Dividends = Common Stock + Retained Earnings + Revenues - Expenses

  • Assets = Revenues + Expenses - Liabilities

Explicación

Pregunta 62 de 71

1

Preparing a worksheet involves

Selecciona una de las siguientes respuestas posibles:

  • two steps

  • three steps

  • four steps

  • five steps

Explicación

Pregunta 63 de 71

1

The adjustments entered in the adjustments columns of a worksheet are

Selecciona una de las siguientes respuestas posibles:

  • not journalized.

  • posted to the ledger but not journalized.

  • not journalized until after the financial statements are prepared.

  • journalized before the worksheet is completed.

Explicación

Pregunta 64 de 71

1

The information for preparing a trial balance on a worksheet is obtained from

Selecciona una de las siguientes respuestas posibles:

  • financial statements.

  • general ledger accounts.

  • general journal entries.

  • business documents.

Explicación

Pregunta 65 de 71

1

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Selecciona una de las siguientes respuestas posibles:

  • adjusted trial balance.

  • post-closing trial balance.

  • the general journal.

  • adjustments columns of the worksheet.

Explicación

Pregunta 66 de 71

1

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Selecciona una de las siguientes respuestas posibles:

  • earned net income for the period.

  • an error because debits do not equal credits.

  • suffered a net loss for the period.

  • to make and adjusting entry.

Explicación

Pregunta 67 de 71

1

A worksheet is a multiple column form that facilitates the

Selecciona una de las siguientes respuestas posibles:

  • identification of events.

  • measurement process.

  • preparation of financial statements.

  • analysis process.

Explicación

Pregunta 68 de 71

1

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

Selecciona una de las siguientes respuestas posibles:

  • Large company with numerous accounts.

  • Small company with numerous accounts.

  • All companies, since worksheets are required under generally accepted accounting principles.

  • Small company with few accounts.

Explicación

Pregunta 69 de 71

1

A worksheet can be thought of as a(n)

Selecciona una de las siguientes respuestas posibles:

  • permanent accounting record.

  • optional device used by accountants.

  • part of the general ledger.

  • part of the journal.

Explicación

Pregunta 70 de 71

1

The account, Supplied, will appear in the following debit columns of the worksheet.

Selecciona una de las siguientes respuestas posibles:

  • Trial Balance.

  • Adjusted Trial Balance.

  • Balance Sheet.

  • All of these.

Explicación

Pregunta 71 de 71

1

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should that additional accounts be shown on the worksheet?

Selecciona una de las siguientes respuestas posibles:

  • They should be inserted in alphabetical order into the trial balance accounts already given.

  • They should be inserted in chart of account order into the trial balance already given.

  • They should be inserted on the lines immediately below the trial balance totals.

  • They should not be inserted on the trial balance until the next accounting period.

Explicación

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