TEST 1 ACCOUNTING MULTIPLE
CHOICE
1. Which of the following would NOT be considered an internal user of
accounting data for a company?
A. the controller of a company
B. salesperson of a company
C. creditor of a company
D. the president of a company - C. creditor of a company
2. Eagle company compiled the following financial information as of Dec
31, 2015:
Service revenue $700,000
Common stock $150,000
Equipment $200,000
Operating expenses $625,000
Cash $100,000
Dividends $50,000
Supplies $25,000
Accounts payable $100,000
Accounts receivable $75,000
Retained earnings 1/1/15 $375,000
Based on the information above -
3. issuing shares of common stock in exchange for cash is an example
of a(n)
A. delivering activity
B. investing activity
C. financing activity
D. operating activity - C. financing activity
4. buying equipment to use in the business is an example of a(n)
A. financing activity
B. operating activity
, C. investing activity
D. delivering activity - C. investing activity
5. Southern services corporation had the following accounts and
balances:
a/p $18,000 equipment $20,000
a/r 3,000 land 22,000
building ? unearner service rev 6,000
cash 9000 total se 51,000
A. $81,000
B. $87,000
C. $27,000
D. $21,000 - d. 21,000
6. Which of the following is NOT one of the three forms of business
organization?
A. proprietorships
B. partnership
C. investors
D. corporations - C. investors
7. Gilkey corporation began the year with retained earnings of $465,000.
During the year, the company issued $630,000 of common stock,
recorded expenses of $1,800,000 and paid dividends of $120,000. If
gilkeys ending R/E was $495,000 what was the companies revenue for
the year?
A. $2,580,000
B. $1,830,000
C. $1,950,000
D. $2,460,000 - C. 1,950,000
8. Which of the following is the most appropriate def of accounting?
A. electronic collection, organization, and communication of vast
amounts of information
B. The information system that identifies, records, and communicates the
economic events of an organization
CHOICE
1. Which of the following would NOT be considered an internal user of
accounting data for a company?
A. the controller of a company
B. salesperson of a company
C. creditor of a company
D. the president of a company - C. creditor of a company
2. Eagle company compiled the following financial information as of Dec
31, 2015:
Service revenue $700,000
Common stock $150,000
Equipment $200,000
Operating expenses $625,000
Cash $100,000
Dividends $50,000
Supplies $25,000
Accounts payable $100,000
Accounts receivable $75,000
Retained earnings 1/1/15 $375,000
Based on the information above -
3. issuing shares of common stock in exchange for cash is an example
of a(n)
A. delivering activity
B. investing activity
C. financing activity
D. operating activity - C. financing activity
4. buying equipment to use in the business is an example of a(n)
A. financing activity
B. operating activity
, C. investing activity
D. delivering activity - C. investing activity
5. Southern services corporation had the following accounts and
balances:
a/p $18,000 equipment $20,000
a/r 3,000 land 22,000
building ? unearner service rev 6,000
cash 9000 total se 51,000
A. $81,000
B. $87,000
C. $27,000
D. $21,000 - d. 21,000
6. Which of the following is NOT one of the three forms of business
organization?
A. proprietorships
B. partnership
C. investors
D. corporations - C. investors
7. Gilkey corporation began the year with retained earnings of $465,000.
During the year, the company issued $630,000 of common stock,
recorded expenses of $1,800,000 and paid dividends of $120,000. If
gilkeys ending R/E was $495,000 what was the companies revenue for
the year?
A. $2,580,000
B. $1,830,000
C. $1,950,000
D. $2,460,000 - C. 1,950,000
8. Which of the following is the most appropriate def of accounting?
A. electronic collection, organization, and communication of vast
amounts of information
B. The information system that identifies, records, and communicates the
economic events of an organization
