FINANCIAL ACCOUNTING
QUESTIONS WITH ANSWERS
Management of a business enterprise is the major external user of
information.
True or False - Ans--False
Accounting information is used only by external users with a financial
interest in a business enterprise.
True or False - Ans--False
haroah's Computer Repair Shop started the year with total assets of
$312000 and total liabilities of $220000. During the year, the business
recorded $499000 in computer repair revenues, $312000 in expenses, and
Pharoah paid dividends of $50400. Stockholders' equity at the end of the
year was
Entry field with incorrect answer
A $279000.
B $228600.
C $187000.
D $92000. - Ans--B ($312000 - $220000) + ($499000 - $312000) - $50400 =
$228600.
Credits
A increase both assets and liabilities.
B decrease both assets and equity.
C increase liabilities and decrease assets.
D decrease both assets and liabilities. - Ans--C
An account will show a debit balance if the
A first transaction posted was a debit.
, B total of the debit amounts exceeds the credits.
C last transaction posted was a debit.
D number of debits exceeds the number of credits. - Ans--B
A credit to a revenue account
A must be accompanied by a debit to an expense account.
B indicates an increase in revenues earned.
C is an error.
D indicates a decrease in revenues earned. - Ans--B
Debits
A decrease assets and increase liabilities.
B increase assets and decrease liabilities.
C increase both assets and liabilities.
D decrease both assets and liabilities. - Ans--B
The purchase of supplies on account should result in
A a debit to Cash and a credit to Supplies.
B a debit to Accounts Payable and a credit to Supplies.
C a debit to Supplies and a credit to Accounts Payable.
D a debit to Supplies and a credit to Accounts Receivable. - Ans--C
The Cash account had a normal balance of $48,000 at the beginning of the
month. During the month, Langdon Company received cash payments from
its customers of $22,000 and made cash payments of $8,000 for expenses
incurred and $6,000 on account. The balance in the Cash account after
posting these transactions is
A $12,000 debit balance.
B $56,000 debit balance.
C $84,000 credit balance.
D $56,000 credit balance. - Ans--D
A trial balance will not balance if
QUESTIONS WITH ANSWERS
Management of a business enterprise is the major external user of
information.
True or False - Ans--False
Accounting information is used only by external users with a financial
interest in a business enterprise.
True or False - Ans--False
haroah's Computer Repair Shop started the year with total assets of
$312000 and total liabilities of $220000. During the year, the business
recorded $499000 in computer repair revenues, $312000 in expenses, and
Pharoah paid dividends of $50400. Stockholders' equity at the end of the
year was
Entry field with incorrect answer
A $279000.
B $228600.
C $187000.
D $92000. - Ans--B ($312000 - $220000) + ($499000 - $312000) - $50400 =
$228600.
Credits
A increase both assets and liabilities.
B decrease both assets and equity.
C increase liabilities and decrease assets.
D decrease both assets and liabilities. - Ans--C
An account will show a debit balance if the
A first transaction posted was a debit.
, B total of the debit amounts exceeds the credits.
C last transaction posted was a debit.
D number of debits exceeds the number of credits. - Ans--B
A credit to a revenue account
A must be accompanied by a debit to an expense account.
B indicates an increase in revenues earned.
C is an error.
D indicates a decrease in revenues earned. - Ans--B
Debits
A decrease assets and increase liabilities.
B increase assets and decrease liabilities.
C increase both assets and liabilities.
D decrease both assets and liabilities. - Ans--B
The purchase of supplies on account should result in
A a debit to Cash and a credit to Supplies.
B a debit to Accounts Payable and a credit to Supplies.
C a debit to Supplies and a credit to Accounts Payable.
D a debit to Supplies and a credit to Accounts Receivable. - Ans--C
The Cash account had a normal balance of $48,000 at the beginning of the
month. During the month, Langdon Company received cash payments from
its customers of $22,000 and made cash payments of $8,000 for expenses
incurred and $6,000 on account. The balance in the Cash account after
posting these transactions is
A $12,000 debit balance.
B $56,000 debit balance.
C $84,000 credit balance.
D $56,000 credit balance. - Ans--D
A trial balance will not balance if
