ACCOUNTING 101 FINAL EXAM QUIZ UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
Which of the following does not occur during the closing
process?
Answer:
Journal entries are made to return the balance in all real accounts to zero.
Question:
The purchase of office equipment on credit has what
effect on the accounting equation?
Answer:
Assets increase and liabilities increase
Question:
Which one of the following is a correct expression of the
accounting equation?
Answer:
Assets = Liabilities + Owners' Equity
Question:
Indicate on which statement each account would appear.
Answer:
Equipment
Common Stock
Accounts Payable
Service Revenue
Salary Expense
Question:
Which of the following items would be considered a cash
equivalent if it was held at the balance sheet date?
Answer:
U.S. Treasury bill purchased when there were 90 days until maturity.
Question:
During a period of increasing cost prices, which inventory
costing method will yield the lowest cost of goods sold?
Answer:
FIFO
Question:
Which of the following is an account in stockholders'
equity?
Answer:
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
Which of the following does not occur during the closing
process?
Answer:
Journal entries are made to return the balance in all real accounts to zero.
Question:
The purchase of office equipment on credit has what
effect on the accounting equation?
Answer:
Assets increase and liabilities increase
Question:
Which one of the following is a correct expression of the
accounting equation?
Answer:
Assets = Liabilities + Owners' Equity
Question:
Indicate on which statement each account would appear.
Answer:
Equipment
Common Stock
Accounts Payable
Service Revenue
Salary Expense
Question:
Which of the following items would be considered a cash
equivalent if it was held at the balance sheet date?
Answer:
U.S. Treasury bill purchased when there were 90 days until maturity.
Question:
During a period of increasing cost prices, which inventory
costing method will yield the lowest cost of goods sold?
Answer:
FIFO
Question:
Which of the following is an account in stockholders'
equity?
Answer:
