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- Download: http://solutionzip.com/downloads/20-mcq-the-income-statement-is-used-to-report/
- 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.
- 1. The income statement is used to report
- A. results of operations for a specific period.
- B. the financial position for a specific period.
- C. the financial position on a specific date.
- D. results of operations for a specific date.
- 2. A T-account has which major parts?
- A. A title, a debit side, and a credit side
- B. A debit side, a credit side, and a balance
- C. A debit side, a credit side, and a total column
- D. A title, a current date, and a balance
- 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?
- A. Debit supplies expense, $350; credit supplies, $350.
- B. Debit supplies, $550; credit supplies expense, $550.
- C. Debit supplies expense, $550; credit supplies, $550.
- D. Debit supplies, $350; credit supplies expense, $350.
- 4. Accounts payable, taxes payable, and notes payable
- A. decrease on the debit side, increase on the credit side, and are liabilities.
- B. increase on the debit side, decrease on the credit side, and are assets.
- C. increase on the debit side, decrease on the credit side, and are expenses.
- D. decrease on the debit side, increase on the credit side, and are revenues.
- 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?
- A. Some other number
- B. $215,500
- C. $345,000
- D. $474,500
- 6. Rick lists his building at current replacement value, rather than the price he paid for the building. Which principle is Rick violating?
- A. Going concern
- B. Reliability
- C. Entity
- D. Cost
- 7. By definition, which type of organization has stockholders?
- A. Corporations
- B. Partnerships
- C. Sole proprietorships
- D. Limited liability companies
- 8. The closing entries show a debit to retained earnings of $350 and a credit to retained earnings of $750.
- There was also a credit to dividends payable of $100. This company had a
- A. net income of $400.
- B. net loss of $400.
- C. net income of $500.
- D. net loss of $500
- 9. Which business form is similar to a corporation in regard to owner liability?
- A. Limited liability company
- B. Limited liability corporation
- C. Partnership
- D. Sole proprietorship
- 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?
- A. Advertising expense will be correct.
- B. Cash will be correct.
- C. The trial balance will still balance.
- D. Delivery expense will be understated.
- 11. Interest revenue would be an example of a/an
- A. accrued revenue.
- B. accrued expense.
- C. deferred expense.
- D. deferred revenue.
- 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
- A. $6,000.
- B. $3,000.
- C. $3,500.
- D. $2,500.
- 13. Collecting rent from a client three months in advance would be an example of a/an
- A. accrued expense.
- B. deferred revenue.
- C. accrued revenue.
- D. deferred expense.
- 14. Which account would not appear on a post-closing trial balance?
- A. Common stock
- B. Sales tax payable
- C. Dividends
- D. Accounts receivable
- 15. The balance sheet is used to report
- A. the financial position on a specific date.
- B. results of operations for a specific period.
- C. the financial position for a specific period.
- D. results of operations for a specific date.
- 16. Which financial statement illustrates the accounting equation?
- A. Statement of cash flows
- B. Balance sheet
- C. Income statement
- D. Statement of retained earnings
- 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
- A. $1,015 debit.
- B. $545 debit.
- C. $545 credit.
- D. $1,015 credit.
- 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
- A. debit balance of $363.
- B. credit balance of $110.
- C. debit balance of $253.
- D. credit balance of $253.
- 19. Beginning retained earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid
- are $3,500. How much is the net income or loss for the company?
- A. ($7,000)
- B. ($3,500)
- C. $26,000
- D. $0
- 20. The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509.
- The amount of supplies expense would be a
- A. $176 credit.
- B. $333 debit.
- C. $509 debit.
- D. $176 debit.
- End of exam
- Download: http://solutionzip.com/downloads/20-mcq-the-income-statement-is-used-to-report/
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