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ACC 101 Quiz 2

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Accounting 1 Quiz 2



Question 1


Cash and office supplies are both classified as current assets. Select one:

True False Feedback

Question 2


The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements and recording closing and adjusting entries.

Select one: True False


Question 3


Mattel had net sales of $4,235 million and ending accounts receivable of $775 million. Its days' sales uncollected equals:

Select one:

a.298 days.

  1. b.  66.8 days.

c.19.4 days.

  1. d.  81.8 days.
  2. e.  65.2 days.


 Question 4


Managers place a high priority on internal control systems because the systems assist managers in the:

Select one:

a.Prevention of avoidable losses.

  1. b.  Planning of operations.

c.Monitoring of company performance.

  1. d.  Monitoring of employee performance.
    1. e.  All of these.



Question 5


The entry to record a cash receipt from a customer when the service to be provided has not yet been performed involves a debit to an unearned revenue account.

Select one: True False


Question 6


Assume that a buyer receives a shipment of MODEL SD010 with an invoice amount of $780, although $870 worth of goods were received. The purchase order was for $870. Since the difference was in the buyer's favor, the buyer's purchasing department should authorize payment of $780.

Select one: True False



Question 7


Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct?






Select one:

a.Choice A

  1. b.  Choice B

c.Choice C

  1. d.  Choice D
  2. e.  Choice E



 Question 8


The recurring steps performed each reporting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:

Select one:

a.Accounting period.

  1. b.  Operating cycle.

c.Accounting cycle.

  1. d.  Closing cycle.
  2. e.  Natural business year.


Question 9


Adjusting entries are made after the preparation of financial statements. Select one:

True False

 Question 10


The accounting cycle refers to the sequence of steps in preparing the work sheet. Select one:

True False


Question 11


The difference between the cost of an asset and the accumulated depreciation for that asset is called

Select one:

a.Depreciation Expense.

  1. b.  Unearned Depreciation.

c.Prepaid Depreciation.

  1. d.  Depreciation Value.
  2. e.  Book Value.


Question 12


A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

Select one: True False

 Question 13


A seller of goods or services, usually a manufacturer or wholesaler, is known as a:

Select one:


  1. b.  Payee.


  1. d.  Creditor.
  2. e.  Debtor.



Question 14


The impact of technology on internal controls includes: Select one:

a.Reduced processing errors.

  1. b.  Elimination of the need for regular audits.

c.Elimination of the need to bond employees.

  1. d.  Elimination of separation of duties.
  2. e.  Elimination of fraud.


 Question 15


At the beginning of 2009, a company's balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner's Capital = $50,000. During 2009, the company reported revenues of $46,000 and expenses of $30,000. In addition, owner's withdrawals for the year totaled

$20,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

Select one: a. $66,000. b. $86,000. c. $(4,000). d. $46,000.

e. cannot be determined from the information provided.



Question 16


A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Select one: True False


Question 17


Basic bank services such as bank accounts, bank deposits, and checking contribute to the control and safeguarding of cash.

Select one: True False


Question 18


The number of days' sales uncollected: Select one:

a.Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.

  1. b.  Can be used for comparisons to other companies in the same industry.

c.Can be used for comparisons between current and prior periods.

  1. d.  Reflects the liquidity of receivables.
    1. e.  All of these.


Question 19


The Unadjusted Trial Balance columns of a company's work sheet show the balance in the Office Supplies account as $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is:

Select one:

a.$325 debit.

  1. b.  $325 credit.

c.$425 debit.

  1. d.  $750 debit.
  2. e.  $750 credit.


Question 20


Accrued expenses reflect transactions where cash is paid before a related expense is recognized.

Select one: True False


Question 21


When merchandise is needed, a department manager must inform the purchasing department of its needs by preparing and signing a purchase requisition, which lists the merchandise needed and requests that it be purchased.

Select one: True False



Question 22


Each adjusting entry affects only one or more income statement account and never cash.

Select one: True False


 Question 23



A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)



Select one:

a. $16,780 debit.

  1. b.  $ 7,180 credit.

c.$16,780 credit.

  1. d.  $18,280 credit.
  2. e.  $23,780 credit.



Question 24


The balance in Tee Tax Services' office supplies account on February 1 and February 28 was $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February?

Select one: a. $1,075 b. $1,500 c. $1,525 d. $2,325 e. $3,100


Question 25


If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:

Select one:

a.A debit to Cash and a credit to Salaries Payable.

  1. b.  A debit to Cash and a credit to Prepaid Salaries.

c.A debit to Salaries Payable and a credit to Cash.

  1. d.  A debit to Salaries Payable and a credit to Salaries Expense.
  2. e.  No entry would be necessary on January 5.


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