Accounting Test Questions and Answers
The two main qualities of accounting are - ANS-Relevance and reliability
The largest organization of professional accountants - ANS-AICPA
The FASB is responsible for establishing - ANS-GAAP
The owners interest in the assets of a corporation - ANS-Stockholders equity
Stockholders equity increases as a result of - ANS-owner investments, and net income
during a period
The term double entry accounting indicates that the accountant - ANS-uses at least two
accounts to record a transaction, two columns to record changes in each account
when a company receives cash for issuing stock - ANS-increases assets and increases
equity
When a company performs services for a company on account the transaction: - ANS-
increases assets and increases revenues
what is not a component of stockholders equity - ANS-Accounts Payable
Accounting transactions are originally recorded in the - ANS-journal or database
the process of posting in traditional bookkeeping - ANS-transferring data from the
journal to the ledger
the two primary methods used to account for transactions - ANS-cash basis and accural
basis
An accrual refers to an event that - ANS-when an expense or revenue is recorded
before the cash settlement
which account is credited in the adjusting entry to record insurance expired during the
current period - ANS-Prepaid insurance
what is not a purpose of internal control - ANS-to promote operational inefficiency
Who has the primary responsibility for ensuring internal control - ANS-The companies
top management
what should be added to a bank balance in the bank reconciliation - ANS-deposits in
transit
The two main qualities of accounting are - ANS-Relevance and reliability
The largest organization of professional accountants - ANS-AICPA
The FASB is responsible for establishing - ANS-GAAP
The owners interest in the assets of a corporation - ANS-Stockholders equity
Stockholders equity increases as a result of - ANS-owner investments, and net income
during a period
The term double entry accounting indicates that the accountant - ANS-uses at least two
accounts to record a transaction, two columns to record changes in each account
when a company receives cash for issuing stock - ANS-increases assets and increases
equity
When a company performs services for a company on account the transaction: - ANS-
increases assets and increases revenues
what is not a component of stockholders equity - ANS-Accounts Payable
Accounting transactions are originally recorded in the - ANS-journal or database
the process of posting in traditional bookkeeping - ANS-transferring data from the
journal to the ledger
the two primary methods used to account for transactions - ANS-cash basis and accural
basis
An accrual refers to an event that - ANS-when an expense or revenue is recorded
before the cash settlement
which account is credited in the adjusting entry to record insurance expired during the
current period - ANS-Prepaid insurance
what is not a purpose of internal control - ANS-to promote operational inefficiency
Who has the primary responsibility for ensuring internal control - ANS-The companies
top management
what should be added to a bank balance in the bank reconciliation - ANS-deposits in
transit
