Which of the Following Statements is True of Bookkeeping

August 23, 2022 Education 95 Views

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

Bookkeeping and Accounting MCQs

This quiz, which covers
bookkeeping and bookkeeping, will be helpful to assess your knowledge of the fundamentals in accounting and finance.

The test consists of 25 objective type quizzes with iv options each. Students demand to choose one option to progress to the next question.

If you find it challenging to answer the questions, we recommend visiting our fiscal accounting section to easily learn the basics of accounting and bookkeeping. Let’southward start the examination below.

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1.

According to the rules of debit and credit for residue canvass accounts:

Increases in asset, liability, and owners’ disinterestedness accounts are recorded by debits

Decreases in nugget and liability accounts are recorded by credits

Increases in asset and owners’ equity accounts are recorded by debits

Decreases in liability and owners’ equity accounts are recorded past debits

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ii.

Sunset Tours has a $three,500 account receivable from the Del Mar Rotary. On 20 January, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry fabricated on 20 January by Dusk Tours to record this transaction includes:

A debit to the cash received account of $two,100

A credit to the accounts receivable account of $two,100

A debit to the greenbacks account of $1,400

A debit to the accounts receivable account of $1,400

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3.

Tick all of the following statements that correctly describe internet income. Net income:

Is equal to revenue minus the sum of expenses and dividends

Increases owners’ equity

Is reported by a company for a specific catamenia of fourth dimension

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four.

Which of the post-obit is provided past a trial balance where total debits are equal to total credits?

Proof that no transaction was completely omitted from the ledger during the posting process

Proof that the correct debit or credit balance has been computed for each business relationship

Proof that the ledger is in residue

Proof that transactions have been correctly analyzed and recorded in the proper accounts

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5.

Which of the following explains the debit and credit rules relating to the recording of revenue and expenses?

Expenses announced on the left side of the balance sheet and are recorded past debits; acquirement appears on the correct side of the rest sail and is recorded by credits

Expenses appear on the left side of the income argument and are recorded by debits; revenue appears on the right of the income statement and is recorded by credits

Read: All of the Following Are Payroll Liabilities Except:

The effect of revenue and expenses on owners’ equity

The realization principle and the matching principle

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6.

Which of the post-obit is not considered an belittling attribute of the accounting profession?

Evaluating an organization’s operational efficiency

Forecasting the probable results of hereafter operations

Designing systems that provide information to determination-makers

Journalizing and posting business transactions

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7.

Tick all of the correct answers. In the accounting cycle:

Transactions are posted before they are journalized

A trial balance is prepared later on journal entries have been posted

The retained earnings business relationship is not shown equally an upward-to-date figure in the trial balance

Journal entries are posted to the appropriate ledger accounts

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eight.

Tick all of the correct answers. Dividends:

Subtract owners’ disinterestedness

Decrease internet income

Are recorded by debting the dividend account

Are a business expense

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nine.

The purpose of adjusting entries is to:

Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period.

Adapt the balances in asset, liability, acquirement, and expense accounts on a daily basis for the effects of business transactions.

Apply the realization principle and the matching principle to transactions that bear on two or more accounting periods.

Prepare revenue and expense accounts to record transactions for the next accounting period.

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10.

Before month-end adjustments are made, the trial balance of Rover Excursions on 31 January shows a revenue of $27,900 and expenses of $17,340. Adjustments are necessary for the following items:

Portion of prepaid rent applicative to January	$2,700
Depreciation for Jan	$ane,440
Portion of fees collected in advance earned in January	$three,300
Fees earned in January not notwithstanding billed to customers	$1,950

What is the house’s net income for January?

$10,560

$17,070

$7,770

Some other amount $11,670 ($27,900 – $17,340 – $2,700 – $1,440 + $3,300 + $i,950)

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11.

A CPA house auditing Mason Street Recording Studios has establish that the total stockholders’ equity was understated and liabilities were overstated. Which of the following errors could take been the crusade?

Marking the adjusting entry for the depreciation expense twice

Failure to record involvement accrued on notes payable

Failure to make the adjusting entry to tape revenue that had been earned only not yet billed to clients

Read: All of the Following Are Balance Sheet Accounts Except

Failure to record the earned portion of fees received in accelerate

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12.

Suppose that Fisher Corporation usually earns taxable income but sustains a loss in the electric current period. In the post-obit, indicate all of the correct answers. The entry to tape income tax expenses in the current period will most likely exist:

Increment the amount of that loss

Include a credit to the income taxes expense business relationship

Be an adjusting entry rather than an entry to tape a transaction completed during the menstruum

Include a credit to income taxes payable

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13.

Highlight all of the post-obit that apply. The concept of materiality:

Requires that financial statements be authentic to the nearest dollar, but need non prove cents

Is based upon what financial statement users are thought to consider of import

Allows accountants to ignore more often than not accepted accounting priciples in sure situations

Allows accountants to use the easiest and nigh convenient means of accounting for immaterial events

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fourteen.

For a publicly-owned company, point which of the following accounting activities are probable to occur at or shortly after year-finish. (More than one reply may be correct)

Grooming of income revenue enhancement returns

Adjusting and endmost accounts

Drafting disclosures to accompany financial statements

An audit of the fiscal statements by a firm of CPAs

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15.

Which of the following financial statements is more often than not prepared first?

Income argument

Balance sheet

Argument of retained earnings

Statement of cash flows

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16.

Which of the following accounts would never be reported in the income statement as an expense?

Depreciation expense

Income tax expense

Interest expense

Dividend expense

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17.

Which of the following accounts would never announced in the after-endmost trial rest? (More one answer may be correct)

Unearned revenue

Dividends

Accumulated depreciation

Income taxation expense

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18.

Which of the following periodical entries is required to close the income summary account of a profitable company?

Debit income summary, credit retained earnings

Credit income summary, debit retained earnings

Debit income summary, credit majuscule stock

Credit income summary, debit capital stock

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nineteen.

Select any correct items for which generally accustomed accounting principles require disclosure in notes accompanying the financial statements.

A target lawsuit was filed against the company two days after the rest sheet date

Read: Which One of the Following is a Source of Cash

The depreciation method in use, given that several different methods are acceptable under mostly accepted bookkeeping principles

Whether small merely long-lived items, such as electrical pencil sharpeners and handheld calculators, are charged to nugget or expense accounts

Equally of year-end, the primary executive officer had been hospitalized due to chest pains

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20.

Ski West adjusts its accounts at the cease of each month just closes them simply at the finish of the agenda year on 31 Dec. The ending balances in the equipment rental acquirement account and the cash account in February and March appear below.

	February. 28	Mar. 31
Greenbacks	$14,200	$26,500
Equipment Rental Acquirement	$12,100	$18,400

Ski West prepares financial statements showing separately the operating results of each month. In the financial statements prepared for the month ended 31 March, the equipment rental revenue and cash should announced as follows:

Equipment Rental Revenue $18,400, Cash $26,500

Equipment Rental Revenue $18,400, Cash, $12,300

Equipment Rental Revenue $half-dozen,300, Cash $26,500

Equipment Rental Revenue $6,300, Cash $12,300

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21.

Which of the following accounts is non closed to the income summary account at the end of the accounting menstruation? (More than one reply may be correct)

Rent expenses

Accumulated depreciation

Unearned revenue

Supply expenses

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Frequently Asked Questions

What is Bookkeeping?

Bookkeeping is a function of the accountancy process that deals solely with recording and classification of financial transactions of a business.

What is the most important feature of Accounting?

The primary objective of Bookkeeping is to go along a complete and authentic record of all the fiscal transactions in a systematic orderly, logical fashion. This ensures that the financial effects of these transactions are reflected in the books of accounts.

What is the about important characteristic of Accounting?

What is the most important feature of Bookkeeping?

What are the types of Accounting?

The single-entry and double-entry Bookkeeping systems are the two methods commonly used. While each has its advantage and disadvantage, the business concern has to choose the one which is virtually suitable for their business.

Why Bookkeeping records are maintained?

Proper Bookkeeping gives companies a reliable measure of their performance. It also provides information to make general strategic decisions and a benchmark for its revenue and income goals. In short, once a business organization is up and running, spending extra time and money on maintaining proper records is disquisitional.