UTA Accounting Entrance Exam
Jones Dairy purchased a new milking machine for $40,000 cash. To record the
transaction on Jones' books, you would: - answerdebit an asset account and credit an
asset account.
Rent Expense typically would have: - answera 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: - answerpurchases 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: - answerin at least two different accounts.
The trial balance should be prepared: - answerBefore 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? - answerMake 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? - answerD: Insurance
Expense 2,000
C : Prepaid Insurance 2,000
Gross profit is calculated by: - answersubtracting cost of goods sold from net sales.
The operating expense section of an income statement for a wholesaler would not
include: - answercost 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: - answer$15,000
Which of the following would not be considered a current asset? - answerAll of the
above are current assets.
, Which of the following would appropriately be included in the Cash account on a
balance sheet? - answerUnrestricted foreign currency
In preparing a typical bank reconciliation, how would outstanding checks be handled? -
answerSubtracted from "balance per bank."
During 2004, ABC Company had $750,000 of net credit sales. Accounts Receivable had
a December 31, 2004, balance of $250,000. No amounts have been added to the
Allowance for Doubtful Accounts during 2004. Before adjustment on December 31,
2004, the Allowance for Doubtful Accounts had a credit balance of $2,000. ABC
estimates that 3% of net credit sales will become uncollectible. What will be the
adjusted balance in Allowance for Doubtful Accounts at December 31? - answer$24,500
During 2004, Allied Associates had $750,000 of net credit sales. Accounts Receivable
had a December 31, 2004, balance of $250,000. No amounts have been added to the
Allowance for Doubtful Accounts during 2004. Before adjustment on December 31,
2004, the Allowance for Doubtful Accounts had a credit balance of $2,000. Allied
estimates that 6% of receivables will become uncollectible. What will be the adjusted
balance in Allowance for Doubtful Accounts at December 31? - answer$15,000
Assume that Jones Company purchased $100 of inventory on credit. If Jones Company
uses the Periodic Inventory system the journal entry to record this purchase would be: -
answerD : Purchases 100
C: Accounts Payable 100
Adams Inc. started the year with merchandise inventory of $20 (4 widgets @ $5 each).
During the year the following activity occurred:
Date Purchases Sales
February 1 $42 (7 widgets @ $6) _________________
March 20 ________________________ 5 widgets sold
July 10 $21 (3 widgets @ $7) ____________________
October 15 $45 (5 widgets @ $9) ____________________
November 4 ______________________ 8 widgets sold
If Adams uses the Periodic Inventory method (LIFO basis) the ending merchandise
inventory will have a recorded value of: - answer$32
Jones Company began the year with $100 of merchandise inventory. During the year
Jones purchased inventory that cost $200 and also paid $15 of freight costs on the
purchased inventory. At the end of the year Jones Company determined that the cost of
Jones Dairy purchased a new milking machine for $40,000 cash. To record the
transaction on Jones' books, you would: - answerdebit an asset account and credit an
asset account.
Rent Expense typically would have: - answera 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: - answerpurchases 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: - answerin at least two different accounts.
The trial balance should be prepared: - answerBefore 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? - answerMake 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? - answerD: Insurance
Expense 2,000
C : Prepaid Insurance 2,000
Gross profit is calculated by: - answersubtracting cost of goods sold from net sales.
The operating expense section of an income statement for a wholesaler would not
include: - answercost 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: - answer$15,000
Which of the following would not be considered a current asset? - answerAll of the
above are current assets.
, Which of the following would appropriately be included in the Cash account on a
balance sheet? - answerUnrestricted foreign currency
In preparing a typical bank reconciliation, how would outstanding checks be handled? -
answerSubtracted from "balance per bank."
During 2004, ABC Company had $750,000 of net credit sales. Accounts Receivable had
a December 31, 2004, balance of $250,000. No amounts have been added to the
Allowance for Doubtful Accounts during 2004. Before adjustment on December 31,
2004, the Allowance for Doubtful Accounts had a credit balance of $2,000. ABC
estimates that 3% of net credit sales will become uncollectible. What will be the
adjusted balance in Allowance for Doubtful Accounts at December 31? - answer$24,500
During 2004, Allied Associates had $750,000 of net credit sales. Accounts Receivable
had a December 31, 2004, balance of $250,000. No amounts have been added to the
Allowance for Doubtful Accounts during 2004. Before adjustment on December 31,
2004, the Allowance for Doubtful Accounts had a credit balance of $2,000. Allied
estimates that 6% of receivables will become uncollectible. What will be the adjusted
balance in Allowance for Doubtful Accounts at December 31? - answer$15,000
Assume that Jones Company purchased $100 of inventory on credit. If Jones Company
uses the Periodic Inventory system the journal entry to record this purchase would be: -
answerD : Purchases 100
C: Accounts Payable 100
Adams Inc. started the year with merchandise inventory of $20 (4 widgets @ $5 each).
During the year the following activity occurred:
Date Purchases Sales
February 1 $42 (7 widgets @ $6) _________________
March 20 ________________________ 5 widgets sold
July 10 $21 (3 widgets @ $7) ____________________
October 15 $45 (5 widgets @ $9) ____________________
November 4 ______________________ 8 widgets sold
If Adams uses the Periodic Inventory method (LIFO basis) the ending merchandise
inventory will have a recorded value of: - answer$32
Jones Company began the year with $100 of merchandise inventory. During the year
Jones purchased inventory that cost $200 and also paid $15 of freight costs on the
purchased inventory. At the end of the year Jones Company determined that the cost of
