مقدمات في شرحacc112

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[wara8 3enab]

للرفع فقط

 

 

 

وعلى فكرة الشرح مو شرحي منقوووول للافادة

[بحرينية 88]

قوة

 

مشكورة أختي وايد على الملخصات المفيدة ماقصرتي

وسمحي لي أضيف أسئلة على جبتر 1

بس بدون الإجابات علشان الكل يقدر يحلها

بدون ما يغش

وإنشالله مرة ثانية بحط جبتر 2

 

1

The recording of financial transactions and events manually or electronically is called which of the following?

A) Bookkeeping

B) Budgeting

C) Auditing

D) Reporting

E) A and B

 

 

2

Which form of ownership burdens owners with the greatest risk of loss of their personal assets?

A) Limited partnership (LP)

B) Limited liability partnership (LLP)

C) Corporation

D) Sole proprietorship

E) None of the above

 

 

3

An accountant has the responsibility to coordinate the annual budget processes of the business corporation she works for. In which of the following areas of accounting is she most likely to be employed?

A) Managerial accounting.

B) Public accounting.

C) Financial accounting.

D) Not-for-Profit accounting.

E) Auditing.

 

 

4

If at the end of the accounting period the liabilities total $18,000, and equity totals $32,000, then what must be the total of the assets?

A) $14,000

B) $18,000

C) $32,000

D) $50,000

E) None of the above

 

 

5

Which of the following financial statements covers a period of time?

A) Income statement

B) Statement of owner's equity

C) Statement of cash flows

D) Both A & C

E) Answers A, B & C

 

 

6

Which area of accounting emphasis is not a major part of financial accounting?

A) Criminal investigation

B) Regulatory

C) Internal audit

D) Planning

E) Auditing

 

 

7

Private accounting provides about what percent of the total number of accounting positions?

A) 60%

B) 40%

C) 25%

D) 20%

E) 10%

 

 

8

If the total of cash is $475,000, the sales revenue totals $2,500,000, and the net income for the period is $350,000, what is the ROI if the average assets total $1,750,000?

A) 15%

B) 20%

C) 25%

D) 40%

E) None of the above

 

 

9

Which of the following organizations is responsible for setting accounting rules and regulations?

A) H&R Block

B) SEC

C) IRS

D) AICPA

E) FASB

 

 

10

The total assets and total liabilities of a firm are reported on which of the following?

A) Income statement

B) Balance sheet

C) Statement of cash flows

D) Statement of owner's equity

E) None of the above

 

 

11

The amount a firm paid for the goods it sold during he period are reported on which of the following?

A) Income statement

B) Balance sheet

C) Statement of changes in owner's equity

D) Statement of cash flows

E) None of the above

 

 

12

A statement of cash flows will show cash flows from which of the following?

A) Operating activities

B) Financing activities

C) Investing activities

D) All of the above

E) Only A and C

 

 

13

When equity or net assets are subtracted from total assets the amount remaining is known as which of the following?

A) Total revenue

B) Total liabilities

C) Total expenses

D) Net income or net loss

E) All of the above

 

 

14

Which line of the following schedule is incorrect?Principle Major Focus or Assumption

 

A) Going-concern principle A business has an indefinite life span

 

B) Business entity principle A business is distinct from its owners

 

C) Cost principle Assets should be recorded at appraised value

 

D) Realization principle Revenues are recorded when earned

 

E) Objectivity principle Independent, unbiased evidence should be used

 

 

 

15

When cash is received from a customer in payment for an account receivable, how are the elements of the accounting equation affected?

A) Decrease assets (cash and increase assets (accounts receivable)

B) Increase assets (cash) and decrease assets (accounts receivable)

C) Increase assets and increase liabilities

D) Increase assets and increase equity

E) None of the above

 

 

16

The investment of cash in the business will result in which of the following?

A) An increase in cash and a decrease in equity

B) An increase in cash and an increase in equity

C) A decrease in cash and an decrease in liabilities

D) An increase in fees earned and an increase in equity

E) A increase in cash and a increase in liabilities

 

 

17

Keith Farfalle withdrew $5,000 from his pet store, KM's Pets. Recording the withdrawal will result in which of the following changes to the components of the accounting equation?

A) Increase in an asset and increase a liability

B) Decrease in an asset and decrease a liability

C) Increase in an asset and increase in equity

D) Decrease in an asset and decrease in equity

E) Increase in one asset and decrease in another asset

 

 

18

Assets total $100,000 and liabilities total $20,000. What is the equity of the business?

A) $80

B) $800

C) $8,000

D) $80,000

E) None of the above

 

 

19

If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change?

A) Increased by $12,000

B) Increased by $8,000

C) Decreased by $12,000

D) Decreased by $8,000

E) Decreased by $6,000

 

 

20

If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change?

A) Increased by $10,000

B) Increased by $4,000

C) Decreased by $4,000

D) Decreased by $10,000

E) Decreased by $18,000

 

 

21

Purchasing equipment on account will have what effect on the components of the accounting equation?

A) Increase in equipment and a decrease in equity

B) Increase in equipment and an increase in equity

C) Increase in equipment and an increase in liabilities

D) Increase in equipment and a decrease in liabilities

E) None of the above

 

 

22

Services rendered for which cash has not yet been received will have what effect on the components of the accounting equation?

A) Increase in accounts receivable and a decrease in equity

B) Increase in accounts receivable and an increase in equity

C) Decrease in accounts receivable and an increase in equity

D) Increase in fees earned and a decrease in equity

E) Decrease in accounts receivable and a decrease in equity

 

 

23

Beginning capital was $10,000. Withdrawals were $24,000. The owner made additional investments during year of $60,000. The ending capital balance was $90,000. What was the net income or net loss for the period?

A) Net income, $56,000

B) Net loss, $44,000

C) Net income, $44,000

D) Net income, $30,000

E) None of the above

 

 

24

Total revenues were $105,000, total expenses, except for wage expense were $50,000, and net income was $35,000. What was the amount of wage expense?

A) $15,000

B) $20,000

C) $55,000

D) $70,000

E) Cannot be determined from information provided

 

 

25

When compared to other types of bond investments, U.S. treasury bonds will usually provide which of the following?

A) Low risk

B) High risk

C) Moderate return

D) Moderate risk

E) High return

 

 

26

Which activity is a financing activity?

A) Issuing common stock of a corporation

B) Lending money

C) Purchasing inventory to sell to customers

D) Purchasing production equipment for a factory

E) None of the above

 

 

[wara8 3enab]

مشكورة خيو بحرينية 88

وياريت كل من عنده شي يخص المقرر ينزله هني علشان كل من يستفيد

[رحيل]

شكراً لكل من ساهم في هذا الموضوع وبالذات الأخت الغالية ورق عنب

عندي نوتات لجبتر 1 و 3 واسئلة ايضاً
ولكن لضيق الوقت سأنزل اسئلة لجبتر 2 فقط لكي تستفيدوا منهم للاكوز


1 Which of the following is not an equity account?

A) Owner's Capital


B) Owner's Withdrawals


C) Revenue


D) Unearned Revenue


E) Expenses

Feedback: Equity accounts include owner's capital, owner's withdrawals, revenues, and expenses. Withdrawals decrease owner's equity, revenues increase owner's equity, and expenses decrease owner's equity. Unearned revenue is a liability account, not an equity account.


2 CORRECT An account titled Prepaid Services would be classified as which of the following?

A) Asset account


B) Liability account

C) Revenue account

D) Expense account

E) None of the above

Feedback: All prepaid accounts (prepaid insurance, prepaid rent, prepaid services, prepaid advertising) are asset accounts. These accounts are debited when funds are paid in advance for services to be consumed in the future.



3 CORRECT A provider of health insurance received payment of $24,000 cash from a customer for insurance coverage for the next two years. Recording the receipt of this cash will require which of the following?

A) Withdrawals to be debited, an asset to be credited


B) A liability to be debited, an asset to be credited


C) An asset to be debited, capital to be credited


D) An asset to be debited, a liability to be credited


E) One asset to be debited, another asset to be credited


Feedback: Unearned revenue increased, and its account should be credited. The asset cash increased, and its account should be debited. Assets are debited for increases and liabilities are credited for increases.



4 CORRECT A business had extra cash on hand and decided to lend it to another firm. The borrower signed a note to promise to repay the loan with interest at the end of one year. Recording the transaction requires which of the following?

A) An asset to be debited, a liability to be credited


B) A liability to be debited, an asset to be credited


C) An asset to be debited, capital to be credited


D) Withdrawals to be debited, an asset to be credited


E) One asset to be debited, another asset to be credited One asset, Notes Receivable, has increased and this account should be debited.

Feedback: Another asset, Cash, has decreased and the Cash account should be credited.



5 CORRECT Solar Mow, makers and sellers of solar powered lawn mowers, pays an equipment maintenance fee for solar charging equipment it uses. This payment is made at the beginning of each month. Recording the transaction requires which of the following?

A) An asset to be debited, a liability to be credited


B) A liability to be debited, an asset to be credited


C) An expense to be debited, an asset to be credited


D) An asset to be debited, a revenue account to be credited


E) An option other than those provided


Feedback: The maintenance fee is an expense (it is paid one month at a time), and the account Maintenance Expense should be debited. The asset cash decreased, its account should be credited.



6 CORRECT Phillip Atwood received $5,000 after he completed excavation work for a local home builder. Recording the transaction requires which of the following?

A) An asset to be debited, a liability to be credited


B) A liability to be debited, an asset to be credited


C) Withdrawal to be debited, an asset to be credited


D) An asset to be debited, revenue to be credited


E) An option other than these provided


Feedback: The cash is an asset that increased and the Cash account should be debited. The revenue is earned because Phillip completed the work and the revenue account should be credited.



7 CORRECT Olivia, the proprietor, deposited $40,000 in the company's bank account. She received the money as the result of a settlement of a class action lawsuit and decided to invest it her business to help with expansion. Recording the transaction on the company books will require which of the following?

A) An asset to be debited, a liability to be credited


B) A liability to be debited, an asset to be credited


C) An asset to be debited, capital to be credited


D) Withdrawals to be debited, an asset to be credited


E) One asset to be debited, another asset to be credited


Feedback: Cash is an asset that increased and the Cash account should be debited for the increase. Owner's equity also increased and the owner's Capital account should be credited.



8 CORRECT Solar Mow, makers and sellers of solar powered lawn mowers, purchased the rights to be exclusive users of a new process involving solar power conversion. The rights cost $75,000 and the purchase was made by signing a Note Payable. Recording the transaction requires which of the following?

A) An expense to be debited, a liability to be credited


B) A liability to be debited, an asset to be credited


C) Withdrawal to be debited, an asset to be credited


D) An asset to be debited, revenue to be credited


E) An option other than those provided


Feedback: The cost of the rights is an asset to the firm because it will provide future benefits. Assets increased and an appropriate asset account should be debited. The rights were acquired by giving the seller a note payable. Liabilities increased and this requires a credit to a liability account.



9 CORRECT The personal residence of Samuel Leonard was landscaped with all new trees, shrubs and flowers. This improvement was paid for with a check written against Samuel's business checking account. The landscaping provides no benefit to Samuel's business. What account must be debited for this transaction?

A) Samuel Leonard, Capital


B) Samuel Leonard, Withdrawals


C) Landscaping Improvements


D) Landscaping Expense


E) None of the above


Feedback: All withdrawals of assets (cash or supplies) for personal use, including the landscaping improvements must be accounted for in the Withdrawals account.



10 CORRECT Which of the following is not correct with regard to how each item is increased or decreased, and its normal balance? Item Increases Decreases Normal Balance


A) Assets debit credit debit



B) Liabilities credit debit credit



C) Expenses debit credit credit



D) Revenue credit debit credit



E) Capital credit debit credit



Feedback: The only error in the table above is that expenses have a normal debit balance, not a normal credit balance.



11 CORRECT Which of the following is correct with regard to the trial balance when a $225 credit to Accounts Payable was posted in error to Unearned Revenue? Amount out of balance Column having larger total


A) $225 Credit



B) $450 Debit



C) $ 00 Neither



D) $225 Debit



E) $450 Credit



Feedback: Since a credit was posted, although to an inappropriate account, the trial balance will balance, and total debits will equal total credits.



12 CORRECT Which of the following is correct with regard to the trial balance when a $370 credit to Accounts Receivable was posted as a debit to Office Supplies? Amount out of balance Column having larger total


A) $370 Credit



B) $740 Debit



C) $ 00 Neither



D) $370 Debit



E) $740 Credit



Feedback: There would have been two $370 debits posted with no offsetting credits, the debit to Office Supplies and the debit to the resources (Cash or other assets) received in settlement of the Account Receivable.



13 CORRECT Which of the following is correct with regard to the trial balance when an error in which a $440 credit to Rental Revenue was not posted? Amount out of balance Column having larger total


A) $440 Credit



B) $880 Debit



C) $ 00 Neither



D) $440 Debit



E) $880 Credit



Feedback: A debit for $440 was posted but the credit was not. Therefore, the debit column will be larger by $440. To avoid such errors requires attentiveness and thoroughness on the part of the bookkeeper.



14 CORRECT Which of the following statements is true?

A) Journalizing precedes posting


B) Revenue accounts are increased by debit entries


C) An account shows increase and decreases, but does not show the balance


D) Debit entries are entries involving the right-hand side on an account


E) Journalizing errors should be erased and a correct entry made


Feedback: This statement is true.



15 CORRECT You've discovered that a check written for $820 was credited in error to Accounts Receivable, rather than to Cash, for $280. The other portion of the entry included a debit to Supplies Expense for $280. The correcting entry should include which of the following?

A) A debit to Accounts Receivable for $820


B) A credit to Supplies Expense for $540


C) A credit to Cash for $280


D) A debit to Supplies Expense for $540


E) A credit to Cash for $540


Feedback: Original entry: Supplies Expense, debit, $280; Accounts Receivable, credit, $280. Correct entry: Supplies Expense, debit $820; Cash, credit, $820. Correcting entry: Accounts Receivable, debit, $280; Supplies Expenses, debit, $540; Cash, credit, $820.



16 CORRECT Assets total $80,000 and Liabilities total $20,000. What is the debt ratio?

A) .10


B) .25


C) .50


D) .75


E) 1.00


Feedback: Total liabilities of $20,000 divided by total assets of $80,000 = a debt ratio of .25 or 25%.



17 CORRECT The debt ratios of the company at the end of each of the past five years are listed below. Which year was the best year for this ratio?

A) 1998 .253


B) 1999 .292


C) 2000 .284


D) 2001 .281


E) 2002 .268


Feedback: 1998 was the best year for the debt ratio. The lower the number, the better the ratio. In 1998 the liabilities were only 25.3% of total assets.



18 CORRECT Below are steps of the transaction analysis process:
Prepare and analyze the trial balance.
Analyze each transaction and event from source documents.
Post journal information to ledger accounts.
Record relevant transactions and events in a journal.
What is the correct order to these steps?


A) 1,2,3,4


B) 3,1,2,4


C) 1,3,4,2


D) 2,4,1,3


E) 2,4,3,1


Feedback: The correct order for the steps is analyze transactions, journalize relevant data, post to the ledger and prepare trial balance.

واي خدمة حاضرة لكم

رحــــــيل(أنثى لاتعرف المستحيل) Edited أكتوبر 18, 2006 by رحيل

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