ACCT 2000 LATEST COMPREHENSIVE EXAM ALL
QUESTIONS AND ANSWERS SURE A+
✔✔Which operating cycle generally takes more time, service company or
merchandising company? - ✔✔merchandising company
✔✔What are the normal balances of the sales returns and allowances and sales
discounts contra revenue accounts? - ✔✔debit
✔✔Both interest revenue and gains on sales would be included in what section of a
multi-step income statement? - ✔✔other revenues and gains
✔✔The Profit Margin Ratio may be calculated by dividing ______________________
by ___________________. - ✔✔net income; net sales
✔✔When a merchandise return is accepted by the seller, which two accounts are
debited? - ✔✔sales returns and allowances and inventory
✔✔Which account will have a zero balance after a company has journalized and posted
closing entries? - ✔✔service revenue
, ✔✔Deposits held by a bank are considered what type of account for the bank? -
✔✔liability
✔✔Electronic payments made out of a bank account are recorded by the bank with a
__________. - ✔✔debit
✔✔The return of an NSF check to the bank would show as a reconciling item for the
bank or the book? - ✔✔book
✔✔What account is always affected by bank reconciliation adjusting entries? - ✔✔cash
✔✔What are the only accounts that appear on the post-closing trial balance? -
✔✔permanent
✔✔What account would be credited by the company to record interest earned on an
account from the bank? - ✔✔interest revenue
✔✔In a bank reconciliation, deposits in transit are: - ✔✔added to the bank balance
✔✔In a bank reconciliation, outstanding checks are: - ✔✔deducted from the bank
balance
✔✔To record the adjusting entry for an NSF check received by the bank, a company
would: - ✔✔debit accounts receivable
✔✔Why should a bank reconciliation be prepared? - ✔✔To explain any difference
between the depositor's balance per books and the balance per bank
✔✔Which type of accounting is approved by GAAP, cash or accrual basis? - ✔✔Accrual
Basis
✔✔Adjusting entries ___________ involve cash. - ✔✔never
✔✔What are the two types of adjusting entries? - ✔✔deferrals and accruals
✔✔One side of the adjusting entry must come from the _____________
_____________ and the one side must come from the ______________
___________________. - ✔✔balance sheet; income statement
✔✔Adjusting entries are necessary every time a company prepares a ______________
________________. - ✔✔Financial Statement
QUESTIONS AND ANSWERS SURE A+
✔✔Which operating cycle generally takes more time, service company or
merchandising company? - ✔✔merchandising company
✔✔What are the normal balances of the sales returns and allowances and sales
discounts contra revenue accounts? - ✔✔debit
✔✔Both interest revenue and gains on sales would be included in what section of a
multi-step income statement? - ✔✔other revenues and gains
✔✔The Profit Margin Ratio may be calculated by dividing ______________________
by ___________________. - ✔✔net income; net sales
✔✔When a merchandise return is accepted by the seller, which two accounts are
debited? - ✔✔sales returns and allowances and inventory
✔✔Which account will have a zero balance after a company has journalized and posted
closing entries? - ✔✔service revenue
, ✔✔Deposits held by a bank are considered what type of account for the bank? -
✔✔liability
✔✔Electronic payments made out of a bank account are recorded by the bank with a
__________. - ✔✔debit
✔✔The return of an NSF check to the bank would show as a reconciling item for the
bank or the book? - ✔✔book
✔✔What account is always affected by bank reconciliation adjusting entries? - ✔✔cash
✔✔What are the only accounts that appear on the post-closing trial balance? -
✔✔permanent
✔✔What account would be credited by the company to record interest earned on an
account from the bank? - ✔✔interest revenue
✔✔In a bank reconciliation, deposits in transit are: - ✔✔added to the bank balance
✔✔In a bank reconciliation, outstanding checks are: - ✔✔deducted from the bank
balance
✔✔To record the adjusting entry for an NSF check received by the bank, a company
would: - ✔✔debit accounts receivable
✔✔Why should a bank reconciliation be prepared? - ✔✔To explain any difference
between the depositor's balance per books and the balance per bank
✔✔Which type of accounting is approved by GAAP, cash or accrual basis? - ✔✔Accrual
Basis
✔✔Adjusting entries ___________ involve cash. - ✔✔never
✔✔What are the two types of adjusting entries? - ✔✔deferrals and accruals
✔✔One side of the adjusting entry must come from the _____________
_____________ and the one side must come from the ______________
___________________. - ✔✔balance sheet; income statement
✔✔Adjusting entries are necessary every time a company prepares a ______________
________________. - ✔✔Financial Statement
