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Accounting I - Objective 2 Keller

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Test review for objective 2 in Accounting I
Kathleen Keller
Quiz by Kathleen Keller, updated more than 1 year ago
Kathleen Keller
Created by Kathleen Keller about 9 years ago
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Resource summary

Question 1

Question
Bill James discovered that a transaction for Utilities Expense was journalized and posted in error as a debit to Repair Expense, $250. What is the entry to correct the error?
Answer
  • Debit Utilities Expense, $250; credit Cash, $250
  • Debit Utilities Expense, $250; credit Repairs Expense, $250
  • Debit Repair Expense, $250; credit Utilities Expense, $250
  • Debit Cash, $250; debit Utilities Expense, $250

Question 2

Question
Please use the following passage for this question. Scenario 2.02 B Jackson Company has Sales of $7,500. The company has the following expenses: Advertising Expense - $1,300 Insurance Expense - $850 Rent Expense - $900 Supplies Expense - $250 Utilities Expense - $175 What is the component percentage for Rent Expense?
Answer
  • 12%
  • 2.5%
  • 2.3%
  • 16%

Question 3

Question
Mary is preparing a Balance Sheet. What must she do after she completes the heading information?
Answer
  • Prepare the Asset section.
  • Write the titles of all the liability accounts.
  • Prepare the Owner's Equity section.
  • Double rule across the left and right columns.

Question 4

Question
On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a...
Answer
  • Net income of $400
  • Net loss of $400
  • Net income of $2,000
  • Net loss of $2,000

Question 5

Question
Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Assets for the Balance Sheet?
Image:
25315199-9c2b-4025-9134-ac0ceffe01e9 (image/png)
Answer
  • $1,700
  • $2,000
  • $2,900
  • $3,000

Question 6

Question
Scenario 2.02 B Jackson Company has Sales of $7,500. The company has the following expenses: Advertising Expense - $1,300 Insurance Expense - $850 Rent Expense - $900 Supplies Expense - $250 Utilities Expense - $175 In Scenario 2.02 B, what is the component percentage for Utilities Expense?
Answer
  • 2%
  • 2.5%
  • 2.3%
  • 16%

Question 7

Question
Scenario 2.02 B Jackson Company has Sales of $7,500. The company has the following expenses: Advertising Expense - $1,300 Insurance Expense - $850 Rent Expense - $900 Supplies Expense - $250 Utilities Expense - $175 In Scenario 2.02 B, what is the component percentage for Total Expenses?
Answer
  • 36.6%
  • 20.9%
  • 46.3%
  • 51.3%

Question 8

Question
The ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a...
Answer
  • Net loss of $150
  • Net income of $150
  • Net income of $1,350
  • Net loss of $1,350

Question 9

Question
Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Net Income?
Image:
e231ed32-9c58-419a-9bc9-ccfe3317729e (image/png)
Answer
  • 33.3%
  • 60%
  • 66.7%
  • 100%

Question 10

Question
Scenario 2.02 B Jackson Company has Sales of $7,500. The company has the following expenses: Advertising Expense - $1,300 Insurance Expense - $850 Rent Expense - $900 Supplies Expense - $250 Utilities Expense - $175 In Scenario 2.02 B, what is the component percentage for Net Income?
Answer
  • 62.5%
  • 53.7%
  • 100%
  • 63.4%

Question 11

Question
When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?
Answer
  • Write the name of the company.
  • Prepare the Assets Section.
  • Calculate the total of the liabilities.
  • Double rule across the left and right columns.

Question 12

Question
On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a:
Answer
  • Net income of $4,550
  • Net income of $250
  • Net loss of $4,550
  • Net loss of $250

Question 13

Question
Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Total Expenses?
Image:
0c5f1c60-cf35-465c-ad7b-3bbe10168da8 (image/png)
Answer
  • 33.3%
  • 60%
  • 66.7%
  • 100%

Question 14

Question
Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Liabilities for the Balance Sheet?
Image:
cd620b20-b2e1-4773-b470-d514e114c437 (image/png)
Answer
  • $975
  • $1.075
  • $1,125
  • $2,000

Question 15

Question
John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?
Answer
  • Record the balance of the revenue account.
  • Write the balance of each expense account.
  • Calculate the net income or net loss.
  • Double rule across both amount columns.

Question 16

Question
Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be?
Answer
  • The Total Assets are greater than the Total Liabilities.
  • The Total Assets are less than the Owner's Equity.
  • The Total Assets should equal Total Liabilities plus Owner's Equity.
  • The Total Assets plus Total Liabilities equal Owner's Equity.

Question 17

Question
Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST Samuel will do in preparing this statement?
Answer
  • Write the name of the company.
  • Prepare the Revenue Section.
  • Calculate the net income or net loss.
  • Calculate the component percentages.

Question 18

Question
If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the worksheet is to debit:
Answer
  • Insurance Expense and credit Prepaid Insurance $1,200.
  • Insurance Expense and credit Prepaid Insurance $2,200.
  • Prepaid Insurance and credit Insurance Expense $1,200.
  • Prepaid Insurance and credit Insurance Expense $2,200.

Question 19

Question
If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the worksheet is to debit:
Answer
  • Supplies and credit Supplies Expense $500.
  • Supplies and credit Supplies Expense $1,000.
  • Supplies Expense and credit Supplies $500.
  • Supplies Expense and credit Supplies $1,500.

Question 20

Question
Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?
Answer
  • Prepare the Expense section.
  • Prepare the Liability section.
  • Prepare the Owner's Equity section.
  • Double rule across the left and right columns.

Question 21

Question
If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the worksheet is to debit:
Answer
  • Supplies and credit Supplies Expense $700.
  • Supplies and credit Supplies Expense $1,500.
  • Supplies Expense and credit Supplies $700.
  • Supplies Expense and credit Supplies $1,500.

Question 22

Question
When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?
Answer
  • Add each column to verify that debits equal credits.
  • Write each column's total below the single line.
  • Double rule across both amount columns.
  • Single rule across both amount columns below the last amounts.

Question 23

Question
If the beginning prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the worksheet is to debit:
Answer
  • Insurance Expense and credit Prepaid Insurance $1,200.
  • Insurance Expense and credit Prepaid Insurance $800.
  • Prepaid Insurance and credit Insurance Expense $1,200.
  • Prepaid Insurance and credit Insurance Expense $800.

Question 24

Question
Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform?
Answer
  • Journalize an entry to transfer net income or net loss to the owner's capital account and close the Income Summary account.
  • Journalize an entry to close the owner's drawing account.
  • Journalize an entry to close income statement accounts that have a debit balance.
  • Journalize an entry to close income statement accounts that have a credit balance.

Question 25

Question
The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:
Answer
  • Drawing, credit owner's equity account for $275.
  • Drawing, credit Income Summary for $275.
  • Owner's equity account, credit drawing account for $275.
  • Income summary, credit drawing account for $275.

Question 26

Question
Mary is closing the income summary account. Her company had a net loss of $2,000. The correct journal entry is to debit:
Answer
  • Drawing, and credit Income Summary, $2,000.
  • Owner's equity, and credit Income Summary, $2,000.
  • Sales, and credit Income Summary, $2,000.
  • Income Summary, and credit Drawing, $2,000.

Question 27

Question
The Sales account has a balance of $3,875. To close the Sales account, debit:
Answer
  • Sales $3,875 and credit Income Summary $3,875.
  • Income Summary $3,875 and credit Sales $3,875.
  • Sales $3,875 and credit Owner's Equity $3,875.
  • Owner's Equity $3,875 and credit Sales $3,875.

Question 28

Question
When closing the Advertising Expense account, debit:
Answer
  • Owner's Equity and credit Advertising Expense.
  • Advertising Expense and credit Income Summary.
  • Income Summary and credit Advertising Expense.
  • Advertising Expense and credit Owner's Equity.

Question 29

Question
The beginning supplies balance is $2,300 and the ending supplies balance is $2,200. The correct adjusting entry will be to debit:
Answer
  • Supplies and credit Supplies Expense $100.
  • Supplies and credit Supplies Expense $2,300.
  • Supplies Expense and credit Supplies $100.
  • Supplies Expense and credit Supplies $2,300.

Question 30

Question
The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry will be to debit:
Answer
  • Prepaid Insurance and credit Insurance Expense $1,500.
  • Insurance Expense and credit Prepaid Insurance $1,500.
  • Prepaid Insurance and credit Insurance Expense $3,700.
  • Insurance Expense and credit Prepaid Insurance $3,700.

Question 31

Question
When closing the Miscellaneous Expense account, debit:
Answer
  • Owner's Equity and credit Miscellaneous Expense.
  • Miscellaneous Expense and credit Owner's Equity.
  • Miscellaneous Expense and credit Income Summary.
  • Income Summary and credit Miscellaneous Expense.

Question 32

Question
James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:
Answer
  • Drawing, and credit Income Summary, $900.
  • Income Summary, and credit Drawing, $900.
  • Sales, and credit Income Summary, $900.
  • Income Summary, and credit Owner's Equity, $900.

Question 33

Question
Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?
Answer
  • Journalize an entry to transfer net income or net loss to the owner's capital account and close the income summary account
  • Journalize an entry to close the owner's drawing account
  • Journalize an entry to close income statement accounts that have a debit balance
  • Journalize an entry to close income statement accounts that have a credit balance

Question 34

Question
In preparing adjusting entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT?
Answer
  • Record the debit amount in the General Debit column
  • Record the credit amount in the General Credit column
  • Write the title of the account debited in the Account Title column
  • Write the title of the account credited in the Account Title column

Question 35

Question
Group Material 2.03 B contains a partial worksheet. The correct closing entry for the revenue account is to debit:
Image:
b28c9d4d-d9bb-478a-9391-052a5d741f80 (image/png)
Answer
  • Anthony Coleman, Capital $7,225 and credit Sales $7,225.
  • Income Summary $7,225 and credit Sales $7,225.
  • Sales $7,225 and credit Income Summary $7,225.
  • Sales $7,225 and credit Anthony Coleman, Capital $7,225.

Question 36

Question
Group Material 2.03 B contains a partial worksheet. The correct closing entry for the income summary account is to debit:
Image:
7f11a847-2b34-4a96-9edb-c5d7b5cec7ed (image/png)
Answer
  • Anthony Coleman, Drawing $325 and credit Income Summary $325.
  • Anthony Coleman, Capital $1,875 and Income Summary $1,875.
  • Income Summary $4,625 and credit Anthony Coleman, Capital $4,625.
  • Income Summary $1,875 and credit Anthony Coleman, Capital $1,875.

Question 37

Question
Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column. What will he do NEXT?
Answer
  • Rule a single line below the last amount in each column
  • Write the account balance in either the debit or credit column
  • Write the account titles of all general ledger accounts that have balances in the Account Title column
  • Write the heading

Question 38

Question
Group Material 2.03 B contains a partial worksheet. The correct closing entry for the owner's drawing account is to debit:
Image:
fb73fd4d-1eff-4bda-8e84-92454d0da353 (image/png)
Answer
  • Anthony Coleman, Capital $325 and credit Anthony Coleman Drawing $325.
  • Amos Maxwell, Drawing $325 and credit Income Summary $325.
  • Amos Maxwell, Drawing $325 and credit Amos Maxwell, Capital $325.
  • Income Summary $325 and credit Anthony Coleman, Drawing $325.

Question 39

Question
On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?
Answer
  • Record the credit amount in the General Credit column
  • Record the debit amount in the General Debit column
  • Write the title of the account credited in the Account Title column
  • Write the title of the account debited in the Account Title column

Question 40

Question
Group Material 2.03 B contains a partial worksheet. The correct closing entry for the Advertising Expense account is to debit:
Image:
71dc23c9-d569-403e-bcf2-7a486307e31f (image/jpeg)
Answer
  • Advertising Expense $550 and credit Anthony Coleman, Capital $550.
  • Income Summary $550 and credit Advertising Expense $550.
  • Anthony Coleman, Capital $550 and credit Advertising Expense $550.
  • Advertising Expense $550 and credit Income Summary $550.

Question 41

Question
Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT?
Answer
  • Rule a single line below the last amount in each column
  • Write the account balance in either the debit or credit column
  • Write the account titles of all general ledger accounts that have balances in the Account Title column
  • Write the account totals
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