Accounting Skills Test Review
Vocabulary
Checking
Financial
Statements
Accounting
Equation
Journals
Misc.
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20
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30
40
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60
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90
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90
100
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100
Final
Vocabulary - 10
•
What is the length of time for which a
business analyzes and reports financial
data?
–
–
–
–
term
trial balance
worksheet
fiscal period
Vocabulary - 20
•
When financial records for a business
and its owner’s personal belongings are
kept separate, this is an application of
which concept?
a)
b)
c)
d)
Business Entity
Adequate Disclosure
Consistent Reporting
Going Concern
Vocabulary - 30
•
Which accounting concept assumes that
the business will continue to operate
indefinitely?
a)
b)
c)
d)
Consistent Reporting
Going Concern
Adequate Disclosure
Business Entity
Vocabulary - 40
•
The steps completed to record financial
information for a fiscal period is known
as the accounting ___________
a)
b)
c)
d)
system
cycle
method
equation
Vocabulary - 50
•
What is the term for recording business
transactions in chronological order?
a)
b)
c)
d)
Balancing accounts
Journalizing
Posting
Analyzing transactions
Vocabulary - 60
•
Which of the following is used to make
sound business decisions about the
financial status of a company?
a)
b)
c)
d)
journals
Financial statements
Source documents
ledgers
Vocabulary - 70
•
What is the term for the owner’s net
worth in a business
a)
b)
c)
d)
Owner’s equity
asset
expense
liability
Vocabulary - 80
•
What is an economic event that affects at
least two accounts?
a)
b)
c)
d)
Business transaction
Drawing/withdrawal
expense
revenue
Vocabulary - 90
•
What document shows a list of all
accounts and their account numbers?
a)
b)
c)
d)
Chart of Accounts
Balance sheet
Income Statement
Source document
Vocabulary - 100
• What accounts are closed at the end of a
fiscal period?
a)liability
b)permanent
c) temporary
d)asset
Checking - 10
•
What is a check that has been written but
not presented to a bank for payment?
a)
b)
c)
d)
Deposited check
Cashed check
Outstanding check
Voided check
Checking - 20
•
What are deposits made by a depositor
but not shown on a bank statement?
a)
b)
c)
d)
Canceled checks
Outstanding checks
Outstanding deposits
Post-dated depostis
Checking - 30
•
How does a NSF/dishonored check
affect the checkbook balance?
a)
b)
c)
d)
Decreases cash
Increases cash
Decreases petty cash
Decreases cash
Checking - 40
•
What is a check returned by the bank
because there are not enough funds in
the drawer’s checking account?
a)
b)
c)
d)
Canceled check
Outstanding check
Dishonored/NSF check
Voided check
Checking - 50
•
Find a question
a)
b)
c)
d)
Clipboard
Indents
Margins
Tabs
Checking - 60
•
Find a question
a)
b)
c)
d)
Application Software
Boot Process
Computer Viruses
Operating Systems
Checking - 70
•
What is the term for bringing a bank
statement and a checkbook into
agreement?
a)
b)
c)
d)
Posting a bank statement
Reconciling a bank statement
Journalizing a bank statement
Preparing a bank statement
Checking - 80
•
What type of check endorsement
includes “For Deposit Only”?
a)
b)
c)
d)
Restrictive endorsement
Endorsement in full
Blank endorsement
Special endorsement
Checking - 90
•
What is the entry to record a bank
service charge?
a) Debit Dishonored Check Charge and credit
Cash
b) Debit Misc. Expense and credit Petty Cash
c) Debit Cash and credit Misc. Expense
d) Debit Misc. Expense and credit Cash
Checking - 100
•
The following information is obtained from the bank
statement and from the records of the business. What
is the adjusted balance after the bank reconciliation is
prepared?
a)
b)
c)
d)
$2,490
$2,700
$2,110
$2,300
Bank statement balance: $2,500
Bank Service Charge: $10
Outstanding deposits: $750
Outstanding checks: $950
Checkbook balance: $2310
Financial Statements - 10
•
Which date range represents a fiscal
year?
a)
b)
c)
d)
August 1, 2011 to July 31, 2012
October 1, 2011 to December 21, 2011
November 1, 2011 to January 21, 2012
January 1, 2011 to June 30, 2011
Financial Statements - 20
•
What form is used to prove equality of
debits and credits after posting?
a)
b)
c)
d)
Chart of Accounts
Income Statement
Journal
Trial Balance
Financial Statements - 30
•
What is a financial statement that reports
assets, liabilities, and capital on a
specific date?
a)
b)
c)
d)
General Ledger
Cash Flow Statement
Balance Sheet
Income Statement
Financial Statements - 40
•
How is the date written on the August
income statement?
a)
b)
c)
d)
For Month Ended August 21, 2013
August 31, 2013
8/31/2013
August 2013
Financial Statements - 50
•
All asset account balances are shown on
which financial statement?
a)
b)
c)
d)
Income Statement
Statement of Owner’s Equity
Balance Sheet
Distribution of Net Income
Financial Statements - 60
•
When preparing a trial balance, where
are all account balances obtained?
a)
b)
c)
d)
Balance Sheet
General Journal
Income Statement
General Ledger
Financial Statements - 70
•
How is net income calculated?
a)
b)
c)
d)
Assets minus liabilities
Revenue minus expenses
Expenses plus revenue minus drawing
Assets minus expenses
Financial Statements - 80
•
Which of the following groups of
accounts are included in a post-closing
trial balance?
–
–
–
–
Assets, liabilities, expenses
Assets, revenue, capital
Assets, liabilities, capital
Revenue, expenses, drawing/withdrawals
Financial Statements - 90
•
What are the three sections of an Income
Statement?
a)
b)
c)
d)
Revenue, liabilities, net income/loss
Assets, liabilities, owner’s equity
Revenue, expenses, owner’s equity
Revenue, assets, expenses
Financial Statements - 100
•
If revenue/sales is $1,000, advertising
expense is $300, miscellaneous expense
is $100, and rent expense is $800, what
is the result?
a)
b)
c)
d)
Net loss of $200
Net income of $200
Net loss of $1,200
Net income of $1,200
Accounting Equation - 10
•
The accounting equation is:
a)
b)
c)
d)
Assets + liabilities = owner’s equity
Assets = liabilities + owner’s equity
Revenue – Expenses = Net Income
Assets = liabilities – owner’s equity
Accounting Equation - 20
•
How is the accounting equation affected
when a business pays cash for rent?
a) Liabilities increase and owner’s equity
decreases
b) Assets decrease and expenses increase
c) Assets increase and expenses decrease
d) Assets decrease and owner’s equity
increases
Accounting Equation - 30
•
What account classification is Accounts
Receivable?
a)
b)
c)
d)
expense
revenue
asset
Owner’s equity
Accounting Equation - 40
•
What is the term for an amount owed by
a business?
a)
b)
c)
d)
expense
liability
Asset
Owner’s equity
Accounting Equation - 50
•
What is one way owner’s equity is
increased?
a)
b)
c)
d)
Net income
Owner’s withdrawal of merchandise
Net loss
Owner’s withdrawal of cash
Accounting Equation - 60
•
How are assets affected when the owner
invests $1,000 in the business?
a)
b)
c)
d)
Decreased by $2,000
Decreased by $1,000
Increased by $1,000
Increased by $2,000
Accounting Equation - 70
•
Which is the following accounts is a
liability account?
a)
b)
c)
d)
Cash
Accounts Payable
Accounts Receivable
Capital
Accounting Equation - 80
•
How is the accounting equation affected
when the Garcia Company buys supplies
for cash?
a) One asset increases and owner’s equity
decreases
b) One asset increases and one asset
decreases
c) One asset increases and one expense
increases
d) One asset decreases and owner’s equity
decreases
Accounting Equation - 90
•
How is the accounting equation affected
when cash is paid for equipment?
a)
b)
c)
d)
An asset and a liability are changed
Two assets are changed
An asset and capital are changed
Two liabilities are changed
Accounting Equation - 100
•
What is the balance of owner’s equity if
assets equal $32,750 and liabilities equal
$14,800?
a)
b)
c)
d)
$17,950
$17,150
$47,550
$47,250
Journals - 10
•
Which statement is true regarding the
accuracy of a journal?
a)
b)
c)
d)
Debits should equal credits
Debits should be greater than credits
Credits should be greater than debits
Debits mean decrease and credits menan
increase
Journals - 20
•
If an error in journalizing is discovered
after posting, what should be done?
a)
b)
c)
d)
Erase the journal entry
Write the correction above the error
Journalize the correcting entry
Draw a line through the journal entry
Journals - 30
•
What is the journal entry when a check is
received from a customer to apply on
account?
a)
b)
c)
d)
Debit Cash and credit Accounts Payable
Debit Cash and credit Accounts Receivable
Debit Accounts Receivable and credit Cash
Debit Accounts Payable and credit Cash
Journals - 40
•
What is the entry to establish a petty
cash fund?
a)
b)
c)
d)
Debit Misc. Expense and credit Cash
Debit Cash and credit Petty Cash
Debit Petty Cash and credit Cash
Debit Petty Cash and credit Misc. Expense
Journals - 50
•
Where are individual account balance
located?
a)
b)
c)
d)
Journal Entries
Income Statement
General Journal
General Ledger
Journals - 60
•
What is the next step in the accounting
cycle after analyzing a source
document?
a)
b)
c)
d)
Preparing financial statements
Posting to the ledger
Recording transactions in a journal
Preparing the trial balance
Journals - 70
•
Which transaction closes expense
accounts?
a)
b)
c)
d)
Debit Expenses and credit Capital
Debit Expenses and credit Income Summary
Debit Capital and credit Expenses
Debit Income Summary and credit expenses
Journals - 80
•
After the closing entries, which account
would still have a balance?
a)
b)
c)
d)
Revenue/Sales
Drawing/Withdrawals
Capital
Income Summary
Journals - 90
•
What is the journal entry when a check is
written to make payment on account?
a)
b)
c)
d)
Debit Cash and credit Accounts Receivable
Debit Accounts Receivable and credit Cash
Debit Accounts Payable and credit Cash
Debit Cash and credit Accounts Payable
Journals - 100
•
What transaction closes the income
summary account with a net loss?
a) Debit Income Summary and credit
Revenue/Sales
b) Debit Capital and credit Revenue/Sales
c) Debit Capital and credit Income Summary
d) Debit Income Summary and credit Capital
Misc. - 10
•
What is the term for a business owned
by one person?
a)
b)
c)
d)
proprietorship
Partnership
cooperative
corporation
Misc. - 20
•
What type of business charges a fee for
work performed?
a)
b)
c)
d)
Merchandising business
Retail business
Manufacturing business
Service business
Misc. - 30
•
How is the capital account affected when
the owner invests cash in a business?
a)
b)
c)
d)
Increased by a credit
Increased by a debit
Decreased by a credit
Decreased by a debit
Misc. - 40
•
How is the accounting equation affected
if a business receives $5,000 from
revenue/sales?
a) Decrease assets and decrease revenue
b) Increase liabilities and decrease owner’s
equity
c) Increase asssets and decrease liabilities
d) Increase assets and increase revenue
Misc. - 50
•
How are accounts affected when the
owner withdraws cash for personal use?
a) Assets decrease and drawing/withdrawals
increase
b) Liabilities increase and assets decrease
c) Assets decrease and drawing/withdrawals
decrease
d) Liabilities decrease and assets decrease
Misc. - 60
•
What is the process of transferring
amounts for a journal to a ledger?
a)
b)
c)
d)
Balancing
Posting
Reconciling
Journalizing
Misc. - 70
•
At the beginning of a new fiscal period,
what is the balance of accounts that
have been closed?
a)
b)
c)
d)
credit
zero
debit
unchanged
Misc. - 80
•
What account is debited when a
company pays for a radio commercial?
a)
b)
c)
d)
Supplies Expense
Miscellaneous Expense
Cash
Advertising Expense
Misc. - 90
• Beginning capital is $30,000,
revenue/sales is $4000, expenses are
$1,500, and the owner’s
drawing/withdrawals account has a $500
balance. What is the updated capital
account balance?
A. $25,000
B. $32,000
C. $28,000
D. $34,000
Misc. - 100
• Accounts receivable had a balance of
$1,500 on May 31. There were debit
postings of $900 and credit postings of
$700 during June. What was the accounts
receivable balance on June 30?
A. $1,700 credit
B. $1,300 debit
C. $1,300 credit
D. $1,700 debit
Final
•
To prepare for the competency test,
which option is your best bet for a great
score?
a)
b)
c)
d)
Bribe your teacher
Sleep during the test
Stay up late
Study hard
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