NACM CBA PRACTICE TEST QUESTIONS
WITH COMPLETE SOLUTIONS!!
1 of 75
Term
The entry to adjust for the cost of supplies used during the
accounting period is:
-Supplies, debit; income summary, credit
-Income summary, debit; supplies, credit
-Accounts payable, debit; supplies, credit
-Supplies expense, debit; supplies, credit
Give this one a try later!
, -Supplies expense, debit; supplies, credit
Chapter 3, Nature of the Adjusting Process, pages 106-107 of 25th Edition
of Accounting by Warren, Reeve, and Duchac.
-the time required to convert accounts receivable into cash.
Chapter 6, Net Trade Cycle, pages 204-205 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
-Increase rent expense with debits and the normal balance is a debit.
Chapter 2, Normal Balances, pages 56-57 of 25th Edition of Accounting by
Warren, Reeve, and Duchac.
-financing, investing, and operating activities.
Chapter 4, Statement of Cash Flows, page 150 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
Don't know?
2 of 75
Term
Public credit can be defined as:
-The extension of credit to, or borrowing by, units of government,
states and municipalities as well as the federal government.
-The extension of credit to or used by the general public or
individuals.
-The extension of credit to or used by publicly held companies.
,-The extension of credit to or used by both the general public and
publicly held companies.
Give this one a try later!
-the firm recognizes income even if no cash is received.
Chapter 3, Equity Earnings, page 108 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
-The extension of credit to, or borrowing by, units of government, states
and municipalities as well as the federal government.
Business Credit Principles, 7th Edition, page 9.
-Increase rent expense with debits and the normal balance is a debit.
Chapter 2, Normal Balances, pages 56-57 of 25th Edition of Accounting by
Warren, Reeve, and Duchac.
-The delay between the time a check is deposited at the bank and the time a
depositor's account is credited with the collected funds.
Business Credit Principles, 7th Edition, page 22.
Don't know?
3 of 75
Term
, Availability Float can be defined as:
-The delay between the time an invoice is mailed and the time the
buyer mails the check.
-The delay between the time a check is deposited at the bank and
the time a depositor's account is credited with the collected funds.
-The delay between the time an invoice is mailed and the time the
buyer receives the invoice.
-The available discount offered by the seller.
Give this one a try later!
-The extension of credit to, or borrowing by, units of government, states and
municipalities as well as the federal government.
Business Credit Principles, 7th Edition, page 9.
-the financial statements fairly present the financial position, operations, and
cash flow in conformity with generally accepted accounting principles.
Chapter 1, Auditor's Report, page 10 of NACM's Custom Edition of Understanding
Financial Statements by Fraser and Ormiston.
-$4,650
(5,000 + 300) - 600 = 4,700
Choose the most correct answer.
Chapter 6, Freight, pages 264-267 of 25th Edition of Accounting by Warren,
Reeve, and Duchac.
WITH COMPLETE SOLUTIONS!!
1 of 75
Term
The entry to adjust for the cost of supplies used during the
accounting period is:
-Supplies, debit; income summary, credit
-Income summary, debit; supplies, credit
-Accounts payable, debit; supplies, credit
-Supplies expense, debit; supplies, credit
Give this one a try later!
, -Supplies expense, debit; supplies, credit
Chapter 3, Nature of the Adjusting Process, pages 106-107 of 25th Edition
of Accounting by Warren, Reeve, and Duchac.
-the time required to convert accounts receivable into cash.
Chapter 6, Net Trade Cycle, pages 204-205 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
-Increase rent expense with debits and the normal balance is a debit.
Chapter 2, Normal Balances, pages 56-57 of 25th Edition of Accounting by
Warren, Reeve, and Duchac.
-financing, investing, and operating activities.
Chapter 4, Statement of Cash Flows, page 150 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
Don't know?
2 of 75
Term
Public credit can be defined as:
-The extension of credit to, or borrowing by, units of government,
states and municipalities as well as the federal government.
-The extension of credit to or used by the general public or
individuals.
-The extension of credit to or used by publicly held companies.
,-The extension of credit to or used by both the general public and
publicly held companies.
Give this one a try later!
-the firm recognizes income even if no cash is received.
Chapter 3, Equity Earnings, page 108 of NACM's Custom Edition of
Understanding Financial Statements by Fraser and Ormiston.
-The extension of credit to, or borrowing by, units of government, states
and municipalities as well as the federal government.
Business Credit Principles, 7th Edition, page 9.
-Increase rent expense with debits and the normal balance is a debit.
Chapter 2, Normal Balances, pages 56-57 of 25th Edition of Accounting by
Warren, Reeve, and Duchac.
-The delay between the time a check is deposited at the bank and the time a
depositor's account is credited with the collected funds.
Business Credit Principles, 7th Edition, page 22.
Don't know?
3 of 75
Term
, Availability Float can be defined as:
-The delay between the time an invoice is mailed and the time the
buyer mails the check.
-The delay between the time a check is deposited at the bank and
the time a depositor's account is credited with the collected funds.
-The delay between the time an invoice is mailed and the time the
buyer receives the invoice.
-The available discount offered by the seller.
Give this one a try later!
-The extension of credit to, or borrowing by, units of government, states and
municipalities as well as the federal government.
Business Credit Principles, 7th Edition, page 9.
-the financial statements fairly present the financial position, operations, and
cash flow in conformity with generally accepted accounting principles.
Chapter 1, Auditor's Report, page 10 of NACM's Custom Edition of Understanding
Financial Statements by Fraser and Ormiston.
-$4,650
(5,000 + 300) - 600 = 4,700
Choose the most correct answer.
Chapter 6, Freight, pages 264-267 of 25th Edition of Accounting by Warren,
Reeve, and Duchac.
