Accounting Principles
Chapter Exam Questions
Course Introduction
Accounting Principles introduces students to the fundamental concepts and techniques of accounting, focusing on the preparation, interpretation, and analysis of financial statements. The course covers topics such as the accounting cycle, double-entry bookkeeping, accrual accounting, and generally accepted accounting principles (GAAP). Emphasis is placed on the use of accounting information for decision-making, ethical considerations, and the role of accounting in business operations. Students will develop practical skills in recording transactions, adjusting entries, and preparing financial reports, providing a solid foundation for advanced study in accounting and related business fields.
Recommended Textbook
Corporate Financial Accounting 12th Edition by Carl
S. Warren
Available Study Resources on Quizplus
15 Chapters
2628 Verified Questions
2628 Flashcards
Source URL: https://quizplus.com/study-set/3916 Page 2
Chapter 1: Introduction to Accounting and Business
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/78035
Sample Questions
Q1) If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period,the amount and direction (increase or decrease)of the period's change in total assets is
A)$106,000 increase
B)$14,000 increase
C)$14,000 decrease
D)$106,000 decrease
Answer: B
Q2) Ramos Repair Company paid $750 in dividends to its stockholders.How does this transaction affect Ramos Repair Company's accounting equation?
A)Increase Assets (Accounts Receivable)and decrease Assets (Cash)
B)Decrease Assets (Cash)and decrease Stockholders' Equity (Dividends)
C)Decrease Assets (Cash)and decrease Liabilities (Accounts Payable)
D)Increase Assets (Cash)and decrease Stockholders' Equity (Dividends)
Answer: B
Q3) Receiving payments on an account receivable increases both equity and assets.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing Transactions
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/78036
Sample Questions
Q1) Liabilities are debts owed by the business entity.
A)True
B)False
Answer: True
Q2) Which of the following types of accounts have a normal credit balance?
A)assets and liabilities
B)liabilities and expenses
C)revenues and liabilities
D)capital stock and dividends
Answer: C
Q3) A patient has a physical examination and asks the bookkeeper to mail the bill.The bookkeeper should
A)make no entry until the cash is received
B)Cash,debit;Accounts Receivable,credit
C)Cash,debit;Fees Earned,credit
D)Accounts Receivable,debit;Fees Earned,credit
Answer: D
Q4) On January 8th,JumpStart purchased $20,000 worth of office equipment.Prepare the journal entry to record this transaction.
Answer: 11ea906a_d1c4_0937_aec7_0b3a01d72d2a_TB2051_00
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: The Adjusting Process
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/78037
Sample Questions
Q1) Accumulated Depreciation accounts are liability accounts.
A)True
B)False
Answer: False
Q2) The account type and normal balance of Unearned Revenue is
A)revenue,credit
B)expense,debit
C)liability,credit
D)asset,debit
Answer: C
Q3) On December 31,the balance in the Office Supplies account is $1,385.A count shows $435 worth of supplies on hand.Prepare the adjusting entry for supplies.
Answer: $1,385 - $435 = $950
11ea906a_d1cd_315a_aec7_9d616996ba76_TB2051_00
Q4) The net book value of a fixed asset is determined by
A)original cost less accumulated depreciation
B)original cost less depreciation expense
C)original cost less accumulated depreciation plus depreciation expense
D)original cost plus accumulated depreciation
Answer: A
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Completing the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
192 Verified Questions
192 Flashcards
Source URL: https://quizplus.com/quiz/78038
Sample Questions
Q1) The income summary account is also known as the clearing account.
A)True
B)False
Q2) A work sheet includes columns for
A)adjusting entries
B)closing entries
C)reversing entries
D)adjusting and closing entries
Q3) After net income is entered on the work sheet,the Balance Sheet Debit and Credit columns must
A)be the same amount as the total amount of the Income Statement Debit and Credit columns
B)equal each other
C)be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
D)not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet
Q4) The work sheet is considered a part of the formal accounting records.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Accounting for Merchandising Businesses
Available Study Resources on Quizplus for this Chatper
217 Verified Questions
217 Flashcards
Source URL: https://quizplus.com/quiz/78039
Sample Questions
Q1) Office salaries,depreciation of office equipment,and office supplies are examples of what type of expense?
A)selling expense
B)miscellaneous expense
C)administrative expense
D)other expense
Q2) A business using the perpetual inventory system,with its detailed subsidiary records,does need to take a physical inventory.
A)True
B)False
Q3) Abbey Co.sold merchandise to Gomez Co.on account,$35,000,terms 2/15,net 45.The cost of the merchandise sold is $24,500.Abbey Co.issued a credit memo for $3,600 for merchandise returned that originally cost $1,700.Gomez Co.paid the invoice within the discount period.What is the amount of gross profit earned by Abbey Co.on the above transactions?
A)10,500
B)30,772
C)7,972
D)31,400
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Inventories
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/78040
Sample Questions
Q1) If Beginning Inventory (BI)+ Purchases (P)- Ending Inventory (EI)= Cost of Goods Sold (COGS),an equivalent equation can be written as?
A)BI + P = COGS - EI
B)BI - P = COGS + EI
C)BI + P = COGS + EI
D)EI + P = COGS - BI
Q2) In valuing damaged merchandise for inventory purposes,net realizable value is the estimated selling price less any direct costs of disposal.
A)True
B)False
Q3) Damaged merchandise that can be sold only at prices below cost should be valued at
A)net realizable value
B)LIFO
C)FIFO
D)average
Q4) A physical inventory should be taken at the end of every month.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Sarbanes-Oxley, internal Control, and Cash
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/78041
Sample Questions
Q1) List and define each of the five elements of internal control.
Q2) On April 2nd,Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting.
(a)Journalize this event.
(b)On April 10th,the petty cash fund has receipts for mail and postage of $43.50,contributions and donations of $29.50,meals and entertainment of $38.25 and $13.55 in cash.Journalize the replenishment of the fund.
(c)On April 11th,Granger Sales decides to increase petty cash to $200.00.Journalize this event.
Q3) A voucher is usually supported by
A)a supplier's invoice
B)a purchase order
C)a receiving report
D)all of the above
Q4) A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.
A)True
B)False
Q5) List the principal advantage of Electronic Funds Transfers.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Receivables
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/78042
Sample Questions
Q1) At the end of a period (before adjustment),Allowance for Doubtful Accounts has a debit balance of $2,000.The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $15,000.The amount to be recorded in the adjusting entry for the bad debt expense is $15,000.
A)True
B)False
Q2) The interest on a 6%,60-day note for $5,000 is $300.
A)True
B)False
Q3) The amount of a promissory note is called the A)realizable value
B)maturity value
C)face value
D)proceeds
Q4) When using the direct write-off method off accounting for uncollectible receivables,the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Fixed Assets and Intangible Assets
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/78043
Sample Questions
Q1) Which of the following is true?
A)If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest.
B)If using the units-of-production method,it is possible to depreciate more than the depreciable cost.
C)If using the straight line method,the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
D)Regardless of the depreciation method,the amount of total depreciation expense during the life of the asset will be the same.
Q2) The method used to calculate the depletion of a natural resource is the straight line method.
A)True
B)False
Q3) A capital lease is accounted for as if the asset has been purchased.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Current Liabilities and Payroll
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/78044
Sample Questions
Q1) Federal income taxes withheld increase the employer's payroll tax expense.
A)True
B)False
Q2) Grayson Bank agrees to lend the Trust Company $120,000 on January 1.Trust Company signs a $120,000,8%,9-month note.The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:
A)Interest Expense 9,600 Cash 110,400
Notes Payable 120,000
B)Cash 120,000 Notes Payable 120,000
C)Cash 129,600 Interest Expense 9,600
Notes Payable 120,000
D)Notes Payable 120,000 Interest Payable 7,200
Cash 120,000
Interest Expense 7,200
Q3) Notes payable may be issued to creditors to satisfy accounts payable created earlier.
A)True
B)False
Q4) List five internal controls that relate directly to payroll.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporations: Organization, stock Transactions, and Dividends
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/78045
Sample Questions
Q1) The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?
A)the financial condition,earnings record,and dividend record of the corporation
B)investor expectations of the corporation's earning power
C)how high the par value is
D)general business and economic conditions and prospects
Q2) The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired.What is the number of shares outstanding?
A)10,000
B)40,000
C)30,000
D)50,000
Q3) The balance in Retained Earnings at the end of the period is created by closing entries.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Long-Term Liabilities: Bonds and Notes
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/78046
Sample Questions
Q1) Bonds of major corporations are traded on bond exchanges.
A)True
B)False
Q2) Bonds with a face amount $1,000,000,are sold at 96.The entry to record the issuance is
A)Cash 1,000,000 Premium on Bonds Payable 40,000
Bonds Payable 960,000
B)Cash 960,000 Premium on Bonds Payable 40,000
Bonds Payable 1,000,000
C)Cash 960,000 Discount on Bonds Payable 40,000
Bonds Payable 1,000,000
D)Cash 960,000 Bonds Payable 960,000
Q3) Sinking Fund Cash would be classified on the balance sheet as A)a current asset
B)a fixed asset
C)an intangible asset
D)an investment
Q4) Bonds payable would be listed at their carrying value on the balance sheet.
A)True
B)False
14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Investments and Fair Value Accounting
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/78047
Sample Questions
Q1) Temporary investments are recorded at their cost which would include broker's commissions.
A)True
B)False
Q2) Which of the following statements below is not a reason a company may purchase another company's stock?
A)earning a return on excess cash
B)sustain the other company's stock price
C)gaining control of another company's operations
D)developing or maintaining business relationships
Q3) The account Valuation Allowance for Trading Securities is found on the:
A)Income statement as Other Revenue (Expenses)
B)Balance sheet as an adjustment to the asset account
C)Balance sheet as an adjustment to Stockholders' Equity
D)Statement of Retained Earnings
Q4) Held-to-maturity securities maturing beyond a year are reported as noncurrent assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/78048
Sample Questions
Q1) Cash flows from investing activities,as part of the statement of cash flows,include payments for the purchase of treasury stock.
A)True
B)False
Q2) Baxter Company reported a net loss of $13,000 for the year ended December 31,2010.During the year,accounts receivable decreased by $5,000,merchandise inventory increased by $8,000,accounts payable increased by $10,000,and depreciation expense of $4,000 was recorded.During 2010,operating activities
A)provided net cash of $8,000.
B)provided net cash of $2,000.
C)used net cash of $8,000.
D)used net cash of $2,000.
Q3) The statement of cash flows is not useful for:
A)planning future investing and financing activities
B)determining a company's ability to pay its debts
C)determining a company's ability to pay dividends
D)calculating the net worth of a company
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/78049
Sample Questions
Q1) Which of the following below generally is the most useful in analyzing companies of different sizes
A)comparative statements
B)common-sized financial statements
C)price-level accounting
D)audit report
Q2) When a corporation discontinues a segment of its operations at a loss,the loss should be reported as a separate item before income from continuing operations on the income statement.
A)True
B)False
Q3) Those unusual items reported as deductions from income from continuing operations should be listed net of the related income tax.
A)True
B)False
Q4) An extraordinary item must be either unusual in nature or infrequent in occurrence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17