Acct Review Test

1.

2 points

Which account listed below is a contra account?

Purchases Returns and Allowances

Purchases

Accounts Payable

Petty Cash

2.

2 points

Cash over would be entered as a

Debit

Credit

Neither

Both

3.

2 points

Which Journal would be used when purchasing merchandise for cash with a trade discount of 40%?

Cash Payments

Purchases

General

Cash Receipts

4.

2 points

When replenishing the Petty Cash fund, what account is always credited?

Petty Cash

Cash

Expenses

Cash Short and Over

5.

2 points

Liabilities + Owner's Equity =

Assets

Liabilities

Owner's Equity

Revenue

6.

2 points

Permanent accounts include

Assets, Liabilites and Revenues

Assets, Liabilites and Expenses

Liabilities and Owner's Equity

Revenues and Expenses

7.

4 points

If the beginning balance in Supplies was $2,000 and physical count at the end of the year shows a balance of $800, what would the adjusting entry be?

Debit $800 to Supplies, Credit $800 to Supplies Expense

Debit $1200 to Supplies, Credit $1200 to Supplies Expense

Credit $1200 to Supplies, Debit $1200 to Supplies Expense

Credit $800 to Supplies, Debit $800 to Supplies Expense

8.

2 points

At the end of the accounting cycle, when financial statments have been prepared, Revenues and Expenses are represented in which of the following accounts?

Accounts Receivable

Capital

Revenues

Expenses

9.

2 points

In the process of reconciling the petty cash fund, the books state the balance of the Petty Cash fund to be $24.10. The actual cash count shows that there is actually $23.10. What situation is evident?

Cash Short

Cash Over

Neither

Cash Goat

10.

2 points

What are the first two columns of a Worksheet titled?

Balance Sheet

Income Statement

Adjustments

Trial Balance

11.

2 points

Which Journal would be used to record a purchase of supplies on account?

Cash Payments

Purchases

General

Cash Receipts

12.

2 points

Cash short would be entered as a

Credit

Debit

Neither

Both

13.

2 points

Temporary Accounts are

Assets & Liabilites

Liabilities and Owner's Equity

Assets and Revenues

Expenses and Revenues

14.

2 points

Which Journal would be used to record the entry to pay off an accounts payable account?

Cash Payments

Purchases

General

Cash Receipts

15.

2 points

Accounts numbered in the 400 range are

Assets

Expenses

Revenues

Liabilities

16.

2 points

Which accounts are closed out at the end of the year or accounting cycle?

Assets & Liabilities

Revenues & Capital

Expenses & Revenues

Capital and Expenses

17.

2 points

Debits are on the

Right

Left

Center

Both

18.

2 points

Which Journal would be used to record a purchase of merchandise on account?

Cash Payments

Purchases

General

Cash Receipts

19.

2 points

An item with an original price of $1000 and a trade discount of 40% would appear on the invoice at which price?

$1000

$400

$600

None of the Above

20.

2 points

Which journal would be used for a cash purchase of merchandise?

Purchases

Cash Payments

General

Cash Receipts

21.

2 points

When paying cash to owner for personal use, what account is debited?

Cash

Capital

Account Payable

Drawing

22.

2 points

In the process of reconciling the petty cash fund, the books state the balance of the Petty Cash fund to be $24.10. The actual cash count shows that there is actually $23.10. What would the journal entry be?

Debit Cash Short

Credit Cash Short

Debit Cash Over

Credit Cash Over

23.

2 points

An item is listed with an original price of $1000 and a trade discount of 40%. If purchased at the discount, what account would be debited (consider the item to be merchandise that will be used for resale)?

Merchandise

Accounts Payable

Accounts Receivable

Purchases

24.

2 points

The normal balance of a Liability is

Credit

Debit

No Normal Balance

Either

25.

2 points

Assets - Liabilities =

Assets

Liabilities

Owner's Equity

Expenses

26.

2 points

Accounts in the 500 series are

Assets

Expenses

Revenues

Liabilities

27.

2 points

If the Credit Column Total of Income Statment on a worksheet is greater than the Debit Column, there is a net

Loss

Income

Exchange

Sum

28.

2 points

If Sales on the Income Statement are equal to $5000 and Total Expenses are $3000, what is the component percentage of Total Expenses to Sales?

40%

70%

60%

80%

29.

2 points

When establishing a Petty Cash fund which account is debited?

Cash

Petty Cash

Expneses

Accounts Receivable

30.

2 points

Credits are on the

Right

Left

Center

Both