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20 MCQ The income statement is used to report

Jan 28th, 2014
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  1.  
  2. Download: http://solutionzip.com/downloads/20-mcq-the-income-statement-is-used-to-report/
  3. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.
  4. 1. The income statement is used to report
  5. A. results of operations for a specific period.
  6. B. the financial position for a specific period.
  7. C. the financial position on a specific date.
  8. D. results of operations for a specific date.
  9. 2. A T-account has which major parts?
  10. A. A title, a debit side, and a credit side
  11. B. A debit side, a credit side, and a balance
  12. C. A debit side, a credit side, and a total column
  13. D. A title, a current date, and a balance
  14. 3. Supplies on hand were $900 at the start of the year. At the end of the year, it was determined that $350 of supplies had been used. What is the adjusting entry for supplies?
  15. A. Debit supplies expense, $350; credit supplies, $350.
  16. B. Debit supplies, $550; credit supplies expense, $550.
  17. C. Debit supplies expense, $550; credit supplies, $550.
  18. D. Debit supplies, $350; credit supplies expense, $350.
  19. 4. Accounts payable, taxes payable, and notes payable
  20. A. decrease on the debit side, increase on the credit side, and are liabilities.
  21. B. increase on the debit side, decrease on the credit side, and are assets.
  22. C. increase on the debit side, decrease on the credit side, and are expenses.
  23. D. decrease on the debit side, increase on the credit side, and are revenues.
  24. 5. Casey’s is famous for its submarine sandwiches. At the end of 2009, Casey’s total assets were $345,000, and total liabilities were $129,500. How much was Casey’s stockholders’ equity?
  25. A. Some other number
  26. B. $215,500
  27. C. $345,000
  28. D. $474,500
  29. 6. Rick lists his building at current replacement value, rather than the price he paid for the building. Which principle is Rick violating?
  30. A. Going concern
  31. B. Reliability
  32. C. Entity
  33. D. Cost
  34. 7. By definition, which type of organization has stockholders?
  35. A. Corporations
  36. B. Partnerships
  37. C. Sole proprietorships
  38. D. Limited liability companies
  39. 8. The closing entries show a debit to retained earnings of $350 and a credit to retained earnings of $750.
  40. There was also a credit to dividends payable of $100. This company had a
  41. A. net income of $400.
  42. B. net loss of $400.
  43. C. net income of $500.
  44. D. net loss of $500
  45. 9. Which business form is similar to a corporation in regard to owner liability?
  46. A. Limited liability company
  47. B. Limited liability corporation
  48. C. Partnership
  49. D. Sole proprietorship
  50. 10. A cash payment was made to pay for delivery expenses but was mistakenly charged to advertising expenses. Which effect will this have on the balance of the trial balance?
  51. A. Advertising expense will be correct.
  52. B. Cash will be correct.
  53. C. The trial balance will still balance.
  54. D. Delivery expense will be understated.
  55. 11. Interest revenue would be an example of a/an
  56. A. accrued revenue.
  57. B. accrued expense.
  58. C. deferred expense.
  59. D. deferred revenue.
  60. 12. The total revenues of $6,500, total expenses of $3,500, and dividends of $500 were recorded in the closing entries. The net change in retained earnings for the month was
  61. A. $6,000.
  62. B. $3,000.
  63. C. $3,500.
  64. D. $2,500.
  65. 13. Collecting rent from a client three months in advance would be an example of a/an
  66. A. accrued expense.
  67. B. deferred revenue.
  68. C. accrued revenue.
  69. D. deferred expense.
  70. 14. Which account would not appear on a post-closing trial balance?
  71. A. Common stock
  72. B. Sales tax payable
  73. C. Dividends
  74. D. Accounts receivable
  75. 15. The balance sheet is used to report
  76. A. the financial position on a specific date.
  77. B. results of operations for a specific period.
  78. C. the financial position for a specific period.
  79. D. results of operations for a specific date.
  80. 16. Which financial statement illustrates the accounting equation?
  81. A. Statement of cash flows
  82. B. Balance sheet
  83. C. Income statement
  84. D. Statement of retained earnings
  85. 17. The unadjusted trial balance for depreciation expense shows a $780 balance. The expense was adjusted by $235. The adjusted trial balance figure for depreciation expense is now a
  86. A. $1,015 debit.
  87. B. $545 debit.
  88. C. $545 credit.
  89. D. $1,015 credit.
  90. 18. The account “Cash” had the following changes: increase of $250, decrease of $75, increase of $113, and decrease of $35. The final balance is a
  91. A. debit balance of $363.
  92. B. credit balance of $110.
  93. C. debit balance of $253.
  94. D. credit balance of $253.
  95. 19. Beginning retained earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid
  96. are $3,500. How much is the net income or loss for the company?
  97. A. ($7,000)
  98. B. ($3,500)
  99. C. $26,000
  100. D. $0
  101. 20. The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509.
  102. The amount of supplies expense would be a
  103. A. $176 credit.
  104. B. $333 debit.
  105. C. $509 debit.
  106. D. $176 debit.
  107. End of exam
  108.  
  109. Download: http://solutionzip.com/downloads/20-mcq-the-income-statement-is-used-to-report/
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