ACCT 201A FINAL comprehensive
Questions and Answers with Verified
Solutions
Question 1:
Which types of accounts will appear in the post-closing trial balance?
Select one: a. Permanent accounts. b. Temporary accounts. c. Expense
accounts. d. None of the above.
Answer:
A
Question 2:
Which statement presents information as of a specific point in time?
Select one: a. Balance sheet. b. Income statement. c. Retained earnings
statement. d. Statement of cash flows.
Answer:
A
Question 3:
Which statement is incorrect concerning the adjusted trial balance?
Select one: a. An adjusted trial balance proves the equality of the total
debit balances and the total credit balances in the ledger after all
adjustments are made. b. The adjusted trial balance provides the primary
basis for the preparation of financial statements. c. The adjusted trial
balance does not list temporary accounts. d. The company prepares the
adjusted trial balance after it has journalized and posted the adjusting
entries.
Answer:
C
,Question 4:
Which statement about users of accounting information is incorrect?
Select one:
Answer:
B
Question 5:
Which statement about an account is true? Select one: a. An account
consists of a title, a debit side, and a ledger side. b. An account is an
individual accounting record of increases and decreases in specific asset,
liability, and stockholders' equity items. c. There are separate accounts
for specific assets and liabilities but only one account for stockholders'
equity items. d. The left side of an account is the credit, or decrease, side.
Answer:
A
Question 6:
Which sales accounts normally have a debit balance? Select one: a.
Sales Discounts b. Sales Returns and Allowances. c. Both (a) and (b) d.
Neither (a) nor (b).
Answer:
c
Question 7:
Which principle dictates that efforts (expenses) be recorded with
accomplishments (revenues)? Select one: a. Expense recognition
principle. b. Historical cost principle.
Answer:
A
, Question 8:
Which one of these statements about the accrual basis of accounting is
false? Select one: a. Companies record events that change their financial
statements in the period in which events occur, even if cash was not
exchanged. b. Companies recognize revenue in the period in which the
performance obligation is satisfied. c. This basis is in accordance with
generally accepted accounting principles. d. Companies record revenue
only when they receive cash and record expense only when they pay out
cash.
Answer:
D.
Question 9:
Which of these would cause inventory turnover to increase the most?
Select one: a. Increasing the amount of inventory on hand. b. Keeping the
amount of inventory on hand constant but increasing sales. c. Keeping
the amount of inventory on hand constant but decreasing sales. d.
Decreasing the amount of inventory on hand and increasing sales.
Answer:
D
Question 10:
Which of these statements about a journal is false? Select one: a. It
contains only revenue and expense accounts. b. It provides a
chronological record of transactions. c. It helps to locate errors because
the debit and credit
Answer:
A
Questions and Answers with Verified
Solutions
Question 1:
Which types of accounts will appear in the post-closing trial balance?
Select one: a. Permanent accounts. b. Temporary accounts. c. Expense
accounts. d. None of the above.
Answer:
A
Question 2:
Which statement presents information as of a specific point in time?
Select one: a. Balance sheet. b. Income statement. c. Retained earnings
statement. d. Statement of cash flows.
Answer:
A
Question 3:
Which statement is incorrect concerning the adjusted trial balance?
Select one: a. An adjusted trial balance proves the equality of the total
debit balances and the total credit balances in the ledger after all
adjustments are made. b. The adjusted trial balance provides the primary
basis for the preparation of financial statements. c. The adjusted trial
balance does not list temporary accounts. d. The company prepares the
adjusted trial balance after it has journalized and posted the adjusting
entries.
Answer:
C
,Question 4:
Which statement about users of accounting information is incorrect?
Select one:
Answer:
B
Question 5:
Which statement about an account is true? Select one: a. An account
consists of a title, a debit side, and a ledger side. b. An account is an
individual accounting record of increases and decreases in specific asset,
liability, and stockholders' equity items. c. There are separate accounts
for specific assets and liabilities but only one account for stockholders'
equity items. d. The left side of an account is the credit, or decrease, side.
Answer:
A
Question 6:
Which sales accounts normally have a debit balance? Select one: a.
Sales Discounts b. Sales Returns and Allowances. c. Both (a) and (b) d.
Neither (a) nor (b).
Answer:
c
Question 7:
Which principle dictates that efforts (expenses) be recorded with
accomplishments (revenues)? Select one: a. Expense recognition
principle. b. Historical cost principle.
Answer:
A
, Question 8:
Which one of these statements about the accrual basis of accounting is
false? Select one: a. Companies record events that change their financial
statements in the period in which events occur, even if cash was not
exchanged. b. Companies recognize revenue in the period in which the
performance obligation is satisfied. c. This basis is in accordance with
generally accepted accounting principles. d. Companies record revenue
only when they receive cash and record expense only when they pay out
cash.
Answer:
D.
Question 9:
Which of these would cause inventory turnover to increase the most?
Select one: a. Increasing the amount of inventory on hand. b. Keeping the
amount of inventory on hand constant but increasing sales. c. Keeping
the amount of inventory on hand constant but decreasing sales. d.
Decreasing the amount of inventory on hand and increasing sales.
Answer:
D
Question 10:
Which of these statements about a journal is false? Select one: a. It
contains only revenue and expense accounts. b. It provides a
chronological record of transactions. c. It helps to locate errors because
the debit and credit
Answer:
A
