Accounting, Review. Work quickly. 1 hr, 30 mins.
Name______________________________
You may write on this test paper. Choose one best answer, record on your bubble sheet.
1.
At the end of a fiscal period asset items used-up (like supplies or prepaid insurance), and
late invoices are accounted for using:
a. Fiscal year-end transactions
b. Account debit details or particulars
c. Adjusting entries
d. “For the Period Ending,” as a heading
2.
After counting up an inventory of supplies, two accounts are affected in the adjusting entry:
a. DR Supplies (asset account) and CR Bank
b. DR Supplies Expense and CR Supplies
c. DR Inventory Expense and CR Bank
d. DR Accounts Payable and CR Supplies
3.
When purchasing prepaid insurance:
a. Debit the asset account Prepaid Insurance and Credit Accounts Payable
b. Debit Bank and Credit Prepaid Insurance
c. Debit Accounts Payable and Credit Accounts Receivable
d. Debit the credit account Prepaid Insurance Expense and Credit Bank
4.
At the end of the period make the adjustment for Prepaid Insurance by:
a. Prepaid Insurance DR; and Bank CR
b. Insurance & Supplies Expense DR; and Income CR
c. Insurance Expense DR; and Prepaid Insurance CR
d. Insurance Expense DR; and Bank CR
5.
The order for the top three lines on a Balance Sheet are:
a. What, Who When
b. Balance Sheet, Company name, date in numeric format
c. Who, When, What
d. Who, What, When
6.
In preparing a Balance Sheet it is very useful to use:
a. Word processing graphs
b. Database software
c. Scientific calculator
d. Spreadsheet
7.
In MS Excel if you type Ctrl Shift ; (control shift semi) in one cell and Ctrl ; (control semi)
in the next cell you will get:
a. The equal sum “=sum( )” for the column
b. Time and date
c. Cell formatting (bold) and cell formatting (underline)
d. Double-underline for the answer cell
8.
The accounting term for “what you owe”:
a. Assets
b. Liabilities
c. Equity
d. Capital
9.
If total assets is $400 and total liabilities are $100, Owner’s Equity is:
a. $100
b. $300
c. $400
d. $500
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Name______________________________
Another term for “Capital”?
a. Liabilities & Owner’s Equity
b. Accounts Receivable
c. Owner’s Equity or Net Worth
d. Investment Interest Income
Assets = (Owners Equity + ? )
a. Capital & Equipment
b. Long Term Debt
c. Liabilities
d. Accounts Payable
Which of the following is spelled correctly:
a. Buisiness
b. Debt
c. Finanse
d. Princple
Where do accountants find rules and regulations?
a. Internet site for CGAs
b. BC Accountants’ Licensing Board
c. CICA handbook
d. Canadian Federation of Management Accounts’ Regulations Bulletins
What does GAAPs stand for?
a. Government acceptable accountability policies
b. Generally approved acuity principles
c. General accountants applied principles
d. Generally accepted accounting principles
Which GAAP is the rule for keeping owners’ finances separate from business finances?
a. The Principle of Conservatism
b. The Business Entity Concept
c. The Objectivity Principle
d. The Materiality Principle
What is “objective evidence”?
a. People given the same evidence arrive at the same values
b. No opinions are involved
c. Accounting evidence
d. All of the above
The accounting principle that says receipts are used and kept for accounting?
a. The Principle of Conservatism
b. The Business Entity Concept
c. The Objectivity Principle
d. The Materiality Principle
ABC Company sold goods “on account” to J. Murphy. The accounts affected would be:
a. A/R - J. Murphy, Net Income
b. Income, A/P - J. Murphy
c. Capital, A/P - J. Murphy
d. A/R - J. Murphy, Sales
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Name______________________________
The owner, M. Smart, took his usual monthly drawings for his personal monthly expenses.
The 2 accounts affected:
a. (M. Smart, Capital); M. Smart, Drawings
b. M. Smart, Drawings; Bank
c. Bank; A/P - M. Smart
d. Salaries Expense; Bank
An office desk was purchased for ABC Company. Payment is due to XYZ Company within
60 days. Which 2 accounts are affected, in the books of ABC Company?
a. Office Furniture; A/P - XYZ Company
b. A/P - ABC Company Asset; A/R - XYZ Company
c. A/P - Office Desk; Capital
d. Office Furniture Inventory; A/R - XYZ
If the accounting equation doesn’t balance after completing a number of journal entries, it is
not likely that the accountant will:
a. Find the difference and look for this figure
b. Check arithmetic and for copying errors
c. Add the figures over and over until it balances
d. Confirm both sides of each transaction were posted
In MS Excel, if you wanted a formula to repeat the denominator no matter where you
copied the cell reference, you would:
a. Edit > Paste Special, each time you copied the cell
b. Type a second equal (=) in front of the denominator cell reference
c. Format the cell by clicking the dollar button
d. Put dollar signs in front of the Column and Row references
The function =sum(j29:j31) will:
a. Add the cells in the range
b. Repeat the cell data from the cells in the range, (j29:j31)
c. Format data values in the cells to show 2 decimal places
d. Reveal formulas within the cells in the range
Where are “beginning balances” in the Ledger from?
a. Income Statement
b. Capital Accounts
c. Customer account balances
d. Balance Sheet
While the book is called “the Ledger” the pages are called “the ___ ”
a. accounts
b. worksheets
c. values
d. balances
Which side of T-accounts are Asset balances found?
a. Left, credit side
b. Right, debit side
c. Left, debit side
d. Right, credit side
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Name______________________________
On a T-account, Owner’s Equity will go down if it is written on the ___ side of the Taccount.
a. Left, CR side
b. Right, DR side
c. Left, DR side
d. Right, CR side
What does double-entry accounting mean?
a. total debits equal total credits
b. in the General Journal, any transaction will always balance
c. debits will always equal credits in a transaction
d. All of the above
On a T-account, when the balance is on the left it has a ___ balance:
a. receivables
b. payables
c. debit
d. credit
Pin totals or pencil footings are:
a. subtracted and circled under the debit column
b. a reflection of the sum of the account totals, DR and CR
c. a way of seeing that each of the T-accounts balances
d. subtotals used at the bottom of columns
An exceptional balance of $18 in an account suggests:
a. a client overpayment
b. the customer owes more than their invoice showed
c. a transposition error
d. balance forwarded, from a previous ledger page
What is the name more often used for the Cash account?
a. Owner’s Equity
b. Capital
c. Bank
d. Accounts Receivable
Accounts in the equity section include:
a. Revenue, Drawings
b. GST recoverable, PST Payable
c. Capital, Drawings
d. Opening Balance Capital, Total Liabilities, Closing Balance Income
Sales Income and Fees Earned are part of:
a. Account Receivable
b. Revenue
c. Depreciation Expense
d. GST Recoverable
For one large construction job Charlie bought all the materials May 12, completed the work
on June 18, and was fully paid for the work on August 5. The income is recorded:
a. May 12
b. June 18
c. August 5
d. All of the above
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Name______________________________
The Generally Accepted accounting principle which applies to the above?
a. Revenue Recognition Convention
b. The Time Period Concept
c. The Matching Principle
d. The Cost Principle
Which account records the owner’s investment?
a. Income
b. GST Recoverable
c. Capital
d. Bank
“Drawings is not an expense account.” This is because:
a. an owner can take out drawings any time they want
b. drawings is an owner’s salary (income)
c. it is not part of the revenue minus expenses calculation
d. expenses are always debits, and drawings is not
Joe purchased equipment through his company. He took it home. The accounting clerk
recorded the transaction to which accounts?
a. debit Capital; credit Equity
b. debit Equipment; credit Bank
c. debit Accounts Receivable; credit Drawings
d. debit Drawings; credit Equipment
Which accounts are affected when wages are paid out?
a. A/P Hydro; Utilities Expense
b. Drawings; Accounts Payable ABC Company
c. Drawings; Bank
d. Wages Expense; Bank
Which accounts are affected when you receive a bill for utilities?
a. A/P Hydro; Utilities Expense
b. Drawings; Accounts Payable ABC Company
c. Drawings; Bank
d. Wages Expense; Bank
Repair work was done for a customer. $100 cash was received, with the remaining $342
due 25 days later. In recording this transaction, the accountant should:
a. credit Revenue $100
b. credit Revenue $442
c. debit Bank $442
d. debit Accounts Receivable $100
Two types of accounts have the effect of decreasing owner’s equity:
a. Capital and Revenue
b. Losses and Expenses
c. Drawings and Expenses
d. Plant and Equipment
The account which increases on the credit side:
a. Salaries
b. Drawings
c. Automobile
d. Fees Earned
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Name______________________________
Calculate the missing figure: Beginning Capital is $4000; Revenue $1000; Expenses $800;
Drawings $500, Ending Capital _____.
a. $1700
b. $3700
c. $4700
d. $6300
Indicate the generally accepted accounting principle that is being applied in the following
situation: The owner records as revenue the amount charged for accounting work done,
even though payment will not be received until 30 days later.
a. The Time Period Concept
b. The Matching Principle
c. The Revenue Recognition Convention
d. The Cost Principle
Identify the accounts to be debited and credited. Paid rent for office space:
a. debit Rent Expense; credit Bank
b. debit Accounts Payable; credit Supplies
c. debit Bank; credit Revenue
d. debit Revenue; credit Accounts Payable
Returned supplies bought on account:
a. debit Bank; credit Revenue
b. debit Accounts Payable; credit Supplies
c. debit Rent Expense; credit Bank
d. debit Revenue; credit Accounts Payable
Sold services for cash
a. debit Bank; credit Revenue
b. debit Rent Expense; credit Bank
c. debit Accounts Payable; credit Supplies
d. debit Revenue; credit Accounts Payable
Liability accounts are numbered in the 00’s or 000’s, starting with a:
a. one
b. two
c. three
d. four
e. five
In Simply Accounting, to see the journal for the transaction:
a. Ctrl F3
b. Ctrl Alt t
c. Ctrl j
d. click Process
The Trial Balance would be out of balance if:
a. A debit of $50 to Supplies was recorded to Equipment.
b. An debit balance of $360 was recorded to the credit side.
c. The Accounts Payable balance of $810 was recorded as a Bank Loan.
d. The Trial Balance would not be out of balance.
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Name______________________________
The trial balance prepared by your company at month-end did not balance. In reviewing the
entries for the month, the accountant noticed that one of the transactions was recorded as a
debit to Bank of $1000 and debit to J. Lo, Capital of $1000. This transaction involved a
service to a customer paid by cash. The result would be:
a. Capital account was overstated
b. Total for the debit column of the trial balance was understated
c. Bank account was understated
d. Credit column of trial balance was understated
Normally, accounts with debit balances include:
a. liabilities
b. capital
c. revenue
d. assets
The Debit/Credit rules do NOT include:
a. debit to increase assets
b. credit to increase capital
c. debit to decrease revenue
d. credit to decrease capital
Within the Chart of Accounts, 500s would be:
a. Assets
b. Liabilities
c. Equity & Revenue
d. Expenses
The GAAP that says: Accounting records cover equal lengths of time.
a. Matching Principle
b. Time Period Concept
c. Revenue Recognition Convention
d. Cost Principle
An accounting or economic period of time is called:
a. annual general meeting
b. fiscal period
c. for the period ending
d. month-end
Revenue – Expenses = Profit or Net Loss
a. the Balance Sheet Equation
b. the Cost Principle
c. the Income Formula
d. GAAP, Generally Accepted Accounting Principle
Which financial statement is used to determine whether a business is doing well or not?
a. Income Statement
b. Work Sheet
c. Balance Sheet
d. Annual Report
Why do sole proprietor business owners have to send a copy of their Income Statement to
the government?
a. acceptance
b. convention
c. taxation
d. tradition
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Name______________________________
The fundamental accounting equation is:
a. Assets + Liabilities = Owner’s Equity
b. Owner’s Equity – Assets = Liabilities
c. Liabilities – Owner’s Equity = Assets
d. Owner’s Equity + Liabilities = Assets
An accounting or economic period of time = “___”
a. fiduciary period
b. fiscal period
c. fractional concept
d. financial time period
The accounting principle that says: Expenses must be recorded within the same time period
as the revenue they helped to generate.
a. the Objectivity Principle
b. the Time Period Concept
c. the Matching Principle
d. the Revenue Recognition Convention
Which accounts are the 200s or 2000s?
a. Owner’s Equity
b. Assets
c. Liabilities
d. None of the above
What numbers are used for Capital & Drawings, and for Expenses?
a. 100s, 1000s; 200, 2000s
b. 300s, 3000s; 400s, 4000s
c. 300s, 3000s; 500s, 5000s
d. 500s, 5000s, 200, 2000s
Which one is NOT a Debit/Credit Rule?
a. to decrease Liabilities? Debit
b. to increase Revenue? Debit
c. to decrease Assets? Credit
d. to increase Capital? Credit
Normally what kind of balance do liabilities, capital & revenue have?
a. asset
b. debit
c. contra
d. credit
In the General Journal how many debit entries are there in “the Opening Entry” for a new
company?
a. it depends on how many accounts there are
b. either five or six
c. nine
d. the same number as credit entries
Which account names are indented when you record a transaction in the General Journal?
a. assets
b. credits
c. debits
d. liabilities
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Name______________________________
Why is it called a “2 column” general journal?
a. the third column is used for the account balance
b. one column is for Debits and the other is for the cumulative Balance
c. the auditor can follow each transaction from journalizing to posting
d. a column for debits, and a column for credits
The second step in the accounting cycle:
a. ledger accounts are balanced with trial balance
b. transaction occurs, indicated by the source documents
c. journal entries are posted to ledger accounts
d. accounting entries recorded in the journal
The trial balance (of the ledger accounts) is out by $60. The General Journal might reveal:
a. an arithmetic error, with a multiple of 10, has been made
b. a transposition or decimal error has been made
c. a transaction worth $60 was not recorded
d. a transaction of $30 was recorded twice on the debit side
When you buy something “on account” you record the transaction from the:
a. cheque copy
b. packing slip
c. purchase invoice
d. sales invoice
If your business receives cheques the clerk must do up a:
a. Cash Receipts Daily Summary
b. Cash Sales Slip
c. Summary of Charge Card Transactions
d. Point of Sales POS Summary
Which source document would produce the following entry?
DR Bank Charges; CR Bank
a. Bank Advice
b. Cheque Copy
c. Point of Sales Summary
d. Cash Receipts Daily Summary
The generally accepted accounting principle that says an asset is valued at the amount you
paid for it.
a. the Revenue Recognition Convention
b. the Objectivity Principle
c. the Matching Principle
d. the Cost Principle
The accounting entry for charge cards and debit card daily totals?
a. DR Revenue; CR Cost of Good Sold
b. DR Inventory; CR Sales Expense
c. DR Bank; CR Sales
d. DR Sales Expense; CR Bank
When collecting PST the debit is Bank. What are two credit accounts?
a. GST Payable and GST Recoverable
b. Revenue and PST Expense
c. Sales and PST Payable
d. None of the above
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Name______________________________
The name of the liability account in which PST accumulates during the month?
a. PST Payable
b. PST Receivable
c. PST Recoverable
d. PST Collectable
How is the dollar amount of PST calculated?
a. subtotal * 0.07/ 1.07
b. subtotal * 0.07
c. sales /1.07
d. sales *1.07
“Who” pays sales tax? The
a. supplier but not the final consumer
b. wholesaler but not the manufacturer
c. final consumer but not the retailer
d. retailer but not the final consumer
Who collects PST?
a. the retailer from the wholesaler
b. the wholesaler from the final consumer
c. the retailer from the end user
d. the final consumer
Where are the rules and forms for PST found?
a. tax lawyers and accountants
b. municipal government, e.g. City Hall
c. legislature in Victoria, receptionist
d. internet gov.bc.ca
Who makes changes to PST rules?
a. BC legislative assembly, Victoria
b. Vancouver City Hall, counsellor and mayor
c. elected members of parliament, Ottawa, Parliament Hill
d. chartered accountants, in the CICA handbook
The price of an item is $321.75. PST is 7%. How much PST is due, and what is the DR to
Bank dollar amount?
a. $22.52 and $319.23
b. $2.25 and $324.00
c. $2.25 and $319.50
d. $22.52 and $344.27
Describe businesses that do Not have to register, collect, or pay GST.
a. small businesses, operated by a sole proprietor
b. businesses that have less than thirty thousand in Sales
c. corporations (limited companies)
d. accountants, lawyers, doctors, “service industry” businesses
Some businesses receive a refund from the government, rather than sending in GST that
their customers paid them, because:
a. businesses that collect GST don’t have to pay more than they paid to their customers in
GST
b. GST from customers > GST from suppliers, so government owes the business a refund
c. GST Payable, less: GST Recoverable is negative
d. there is more GST Payable than GST Recoverable
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Name______________________________
Name the three (3) credit accounts affected by a Sale of Good.
a. Account Payable; GST Payable; Service Revenue
b. Revenue; A/P Receiver General; GST Recoverable
c. GST Recoverable; GST Payable; PST Payable
d. Sales; GST Payable; PST Payable
An asset is purchased (debit assets, credit cash). What is the other account debited?
a. Accounts Receivable – GST
b. GST – Accounts Payable
c. GST Payable
d. GST Recoverable
GST is paid to the CCRA, which stands for ___
a. Canada Customs and Revenue Agency
b. Canadian Customers & Receivables Agency
c. Certified Customs Receivable Agency
d. Canadian Customs & Reviews Agency
Sellers of “zero-rated goods” don’t receive GST from customers, so explain why they may
get a “refund”?
a. businesses that receive a refund sell only services and not goods
b. no one who does business is entirely exempt from paying GST
c. they may still be receiving PST from customers
d. they pay GST to suppliers
In Excel, a negative (-) in front of a figure might indicate:
a. there is an error within the cell
b. the result of arithmetic is a negative number
c. the contents of the cell is too wide to fit
d. there is a refund rather than a remittance of GST
A relative cell reference, and a formula with an absolute cell reference:
a. =C15; and =A40/$C$19
b. =$C$15; and =$A$40
c. =$C15; and =A40/C19
d. =C15; and =$140/C19
A cell containing the AutoSum function:
a. sum(c3:c17)
b. =sum(a14)
c. sum(c14 to c19)
d. =sum(c9:f9)
In searching for the error you RE-added the Trial Balance columns; and check the account
balances from the ledger were transferred correctly. The third step in finding an error?
a. re-add the accounts
b. file the trial balance for future reference
c. post the Journal entries to the Ledger accounts
d. take off a Trial Balance
How do accountants evaluate the growth of a company?
a. with Excel
b. using math tools
c. create the Annual Report
d. a company audit
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Name______________________________
If Office Supplies Expense doubles between Year 4 and Year 5, what business decision
might this suggest?
a. a mistake on Trial Balance (transposition error)
b. purchase a summative company
c. look around for another supplier
d. prepare an inventory of supplies
The study of “sales over consecutive years” is called:
a. trend analysis
b. error analysis
c. control accounts
d. common-size statements
How are financial accountants able to compare profitability of small companies and large
companies, converting $ to %?
a. trend analysis
b. control accounts
c. error analysis
d. common-size income statements
To do a “common-size analysis” of two companies, the base-figure accountants use:
a. Expenses at 100%
b. Fixed Assets at 100%
c. Working Capital at 100%
d. Sales at 100%
Which balance sheet format do financial accountants use when comparing one company’s
performance over years (or when comparing 2 companies)?
a. account form
b. report form
c. classified form
d. balance sheet form
Two asset classifications (major categories) used on a balance sheet:
a. Revenue and Operating Expenses
b. Fixed Assets and Long-Term Liabilities
c. Drawings and Plant & Equipment
d. Total and Balance
Two liabilities classifications within a balance sheet?
a. Current and Long-Term
b. Current and Fixed
c. Beginning balance and Period Ended balance
d. Total Liabilities and Closing Capital Balance
Formula for Working Capital?
a. difference between current assets and current liabilities
b. difference between total assets and long-term liabilities
c. current assets plus fixed assets divided by total liabilities and owner’s equity
d. fixed assets divided by plant and equipment times 100
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Name______________________________
Why are lenders and owners interested in the working capital figure? If working capital is
relatively
a. low, the company has more freedom to use current assets for business improvements
b. high, investors and lenders are reassured that fixed assets are being sold to pay bills
c. high, the company doesn’t need further loans and can pay bills
d. low, the company is more likely to need investment, rather than using further capital
(investment) carelessly
Identify the comparison (ratio) which indicates debt is being used to finance the purchase of
fixed assets to create long-term profit?
a. fixed assets over long-term liabilities
b. current assets over current liabilities
c. total Assets over Capital
d. Sales over Total Assets
Lenders are interested in Trend Analysis as it:
a. points out problems when you can see % growth
b. compares consecutive periods
c. shows unusual changes
d. all of the above
On the balance sheet “everything is compared to Total Assets.” This is a useful technique
for reporting data because:
a. then it doesn’t matter whether you use the account form or the report form
b. income statements can compare expenses to sales
c. a percentage of Sales can then be compared to Liabilities as a percent of Assets
d. accountants can communicate explanations in everyday language
How are the “balance column” ledger sheets different from T-accounts?
a. columns don’t need adding
b. there is a balance column
c. T-accounts are just a learning tool
d. all of the above
An example of a PR in a ledger:
a. J16
b. L16
c. PR16
d. 101
What makes an auditor suspicious?
a. account balances
b. erasures
c. error corrections
d. ledger audits
If you find an error in an entry 6 months later, what do you do?
a. a correcting error
b. correcting entry
c. a correction
d. consolidated accounts review
In Particulars it says forwarded. What two other items will you find on the same line?
a. Date, Balance
b. Year, journal reference (e.g. J2)
c. Date but not month, ledger account number
d. All of the above
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Name______________________________
Four steps in the accounting cycle?
a. transaction, journal, ledger, trial balance
b. assets, liabilities, capital, drawings
c. trial balance, error detection, correcting entries, new trial balance
d. all of the above
“Businesses need financial statements,” because statements:
a. ensure success for the business
b. fulfill legal requirements
c. guide and direct business decisions
d. reassure investors and lenders to provide capital
The financial statements which are the responsibility of senior accountants:
a. worksheet, income statement, balance sheet
b. journal, ledger, trial balance, worksheet
c. source documents, income statement, balance sheet
d. transactions, adjustments, post-closing trial balance
The “statements” on a 6-column worksheet?
a. common-size balance sheet and common-size income statement
b. debits and credits for both the income statement and the balance sheet
c. Net Income from both the Income Statement & the Balance Sheet
d. trial balance, income statement, balance sheet
Examples of control accounts:
a. Owner’s Equity, Liabilities
b. GST Recoverable, Drawings
c. Income (accounts), Expense accounts
d. Accounts Receivable, Accounts Payable
What does the “balancing figure” represent? (what is written beside the balancing figure on
the worksheet)?
a. account balances for each of the accounts
b. Net Income
c. the difference between DR columns and Credit columns
d. Totals, for each of the 6 (or 8) columns
Who (which type of staff) in the accounting department balances the ledger with a trial
balance?
a. senior accountant
b. technical accounting staff
c. accounting clerk
d. all of the above
Which type of accounting staff prepares the income statement and the balance sheet?
a. accounting clerk
b. senior accountant
c. technical accounting staff
d. none of the above
What parts of the accounting cycle are the accounting clerk’s responsibility?
a. transaction; journal; ledger; trial balance
b. worksheet; income statement; balance sheet; adjustments
c. journal and post-closing entries; the post-closing trial balance
d. All of the above
Accounting; work quickly—i.e. 8 mins/pg
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125.
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Name______________________________
“Providing information in a timely manner helps with making important decisions,” means
a. data is up-to-date
b. accountants, lenders and investors use financial statements
c. “time means money”
d. annual reports are a legal requirement (of limited companies)
A public accountant checks your company’s books for “internal controls.”
a. the consistency principle applies
b. the full disclosure principle applies
c. the process is called an audit
d. all of the above
Information that is important for a complete understanding of the financial picture is
considered ___ information.
a. timely
b. material
c. consistent
d. disclosure
Important issues facing the company (that are not reflected in the ledger) must be fully ___.
a. material
b. consistent
c. disclosed
d. timely
The GAAP that says a reader has a right to assume the same accounting methods are used
from one period to the next?
a. The CICA Handbook
b. The Consistency Principle
c. The Materiality Principle
d. The Full Disclosure Principle
Revenue, Expenses and Drawings are examples of:
a. balance continues
b. contra valuation accounts
c. nominal accounts
d. real accounts
Posting entries to close nominal accounts and the Post-Closing Trial Balance are done:
a. at the end of each month
b. during an audit
c. to satisfy GAAPs
d. to start a new period
Record journal entries
a. daily
b. monthly
c. end of fiscal period
d. for an audit
Worksheet adjustments, formal income statement, balance sheet are done:
a. to prepare for a new fiscal period, by senior accountant
b. daily and monthly by the accounting clerk
c. in preparation for an audit
d. to end a fiscal period, by a senior accountant
Accounting; work quickly—i.e. 8 mins/pg
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Name______________________________
Closing entries for nominal accounts, Post Closing Trial Balance are done:
a. by senior accountant to prepare for a new fiscal period
b. daily and monthly by the accounting clerk
c. in preparation for an audit
d. to end a fiscal period by a senior accountant
The Excel function, =if(A16=”A”,“20”,“30”) says that:
a. if A16 says “=” then print 20, otherwise print 0
b. if A16 says A then print 20, otherwise print 30
c. if cell A says 20, print 30, otherwise print 16
d. if cell A says A16, then print 30, otherwise print 20
In cell J9 on an Excel worksheet is the function =if(H9>G9,“B”,0). H9 contains 16 while
G9 contains 2. The cell J9 will return:
a. 0
b. B
c. H9
d. J9
The declining-balance method of depreciation:
a. will expense an equal amount every year (a certain percent)
b. is larger in earlier years (smaller in later years)
c. is not allowed to be used for tax purposes (according to the CCRA)
d. takes into account future sale value (salvage value)
For depreciation, the 50% method says that:
a. an asset depreciates by 50% in the first year, and at a set percent after that
b. in each year the asset can be depreciated by 50% of its book-value
c. in the first year, depreciation of the asset is 50% of a full year’s depreciation
d. only 50% of the value of the (fixed) asset can be depreciated
The straight-line method of depreciation has it so that:
a. a percentage of the asset can be written-off each year
b. an asset depreciates at a steady rate (cost/years) each year
c. the cost of an asset is written-off by a set amount within the first 4 years
The Accumulated Depreciation – Asset account is a:
a. contra account for a fixed asset on the balance sheet
b. a means of expensing a current asset on the income statement
c. a debit account (expense) on the income statement
d. a revenue account required by the CCRA
The Income Summary account is
a. used to close the R.E.and I. accounts to Capital for the start of a new period
b. prepared from the Trial Balance prior to completing the Income Statement
c. one method of depreciating expense accounts without affecting salvage value
d. an abbreviated version of the adjusting entries once they’ve been posted
Accounting; work quickly—i.e. 8 mins/pg
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