UTA Accounting Entrance Exam
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questions with answers |\ |\
Jones Dairy purchased a new milking machine for $40,000
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cash. To record the transaction on Jones' books, you
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would: - CORRECT ANSWERS ✔✔debit an asset account
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and credit an asset account.
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Rent Expense typically would have: - CORRECT ANSWERS
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✔✔a debit balance.
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If the beginning balance in the Machinery account is
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$35,000, and if the ending balance in the Machinery
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account is $57,000, then: - CORRECT ANSWERS
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✔✔purchases and sales of machinery cannot be |\ |\ |\ |\ |\ |\ |\
determined from the information given. |\ |\ |\ |\
A double-entry system of accounting requires that each
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transaction or event be recorded: - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\
✔✔in at least two different accounts.
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The trial balance should be prepared: - CORRECT
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ANSWERS ✔✔Before financial statements are prepared.|\ |\ |\ |\ |\
, At the end of an accounting period when accounts are
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ready to be closed, which of the following activities must
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be performed? - CORRECT ANSWERS ✔✔Make closing
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entries and prepare post closing trial balance
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The Prepaid Insurance account has an account balance of
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$3,000. At the end of an accounting period, the controller
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has decided that $2,000 of the balance has expired.
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Which of the following adjusting entries should be made?
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- CORRECT ANSWERS ✔✔D: Insurance Expense 2,000
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|\ C : Prepaid Insurance 2,000
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Gross profit is calculated by: - CORRECT ANSWERS
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✔✔subtracting cost of goods sold from net sales. |\ |\ |\ |\ |\ |\ |\
The operating expense section of an income statement
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for a wholesaler would not include: - CORRECT ANSWERS
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✔✔cost of goods sold. |\ |\ |\
Cramer Corp. reported the following for 2004: total
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assets, $90,000; total liabilities, $35,000; contributed
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capital (i.e., total paid in capital), $40,000. Therefore,
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retained earnings was: - CORRECT ANSWERS ✔✔$15,000 |\ |\ |\ |\ |\ |\
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questions with answers |\ |\
Jones Dairy purchased a new milking machine for $40,000
|\ |\ |\ |\ |\ |\ |\ |\
cash. To record the transaction on Jones' books, you
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
would: - CORRECT ANSWERS ✔✔debit an asset account
|\ |\ |\ |\ |\ |\ |\ |\
and credit an asset account.
|\ |\ |\ |\
Rent Expense typically would have: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔a debit balance.
|\ |\
If the beginning balance in the Machinery account is
|\ |\ |\ |\ |\ |\ |\ |\ |\
$35,000, and if the ending balance in the Machinery
|\ |\ |\ |\ |\ |\ |\ |\ |\
account is $57,000, then: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔purchases and sales of machinery cannot be |\ |\ |\ |\ |\ |\ |\
determined from the information given. |\ |\ |\ |\
A double-entry system of accounting requires that each
|\ |\ |\ |\ |\ |\ |\ |\
transaction or event be recorded: - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\
✔✔in at least two different accounts.
|\ |\ |\ |\ |\
The trial balance should be prepared: - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Before financial statements are prepared.|\ |\ |\ |\ |\
, At the end of an accounting period when accounts are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ready to be closed, which of the following activities must
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
be performed? - CORRECT ANSWERS ✔✔Make closing
|\ |\ |\ |\ |\ |\ |\
entries and prepare post closing trial balance
|\ |\ |\ |\ |\ |\
The Prepaid Insurance account has an account balance of
|\ |\ |\ |\ |\ |\ |\ |\ |\
$3,000. At the end of an accounting period, the controller
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
has decided that $2,000 of the balance has expired.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Which of the following adjusting entries should be made?
|\ |\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔D: Insurance Expense 2,000
|\ |\ |\ |\ |\ |\ |\
|\ C : Prepaid Insurance 2,000
|\ |\ |\ |\
Gross profit is calculated by: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔subtracting cost of goods sold from net sales. |\ |\ |\ |\ |\ |\ |\
The operating expense section of an income statement
|\ |\ |\ |\ |\ |\ |\ |\
for a wholesaler would not include: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔cost of goods sold. |\ |\ |\
Cramer Corp. reported the following for 2004: total
|\ |\ |\ |\ |\ |\ |\ |\
assets, $90,000; total liabilities, $35,000; contributed
|\ |\ |\ |\ |\ |\
capital (i.e., total paid in capital), $40,000. Therefore,
|\ |\ |\ |\ |\ |\ |\ |\
retained earnings was: - CORRECT ANSWERS ✔✔$15,000 |\ |\ |\ |\ |\ |\
