BBK99E1 Practical Exam Answer Sheet
Solved 100%
Springville Distributors made sales using a list prie of $880 and a trade discount of
30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616 - -D
-Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange
Commission (SEC) final say on matters of financial reporting by publicly owned
corporations.
A) True
B) False - -A
-When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease - -A
-Tax planning is any activity associated with the preparation of tax returns and the
audit of those returns.
A) True
B) False - -B
-The frequency of deposits of federal income taxes withheld and social security and
Medicare taxes is determined by the amount owed.
A) True
B) False - -A
-Which of the following is not a reason why the book balance of cash may not agree
with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit - -B
-Most cash transactions involve checks.
A) True
B) False - -A
-The entry to transfer a net loss to the owner's capital account would include a
debit to
A) the owner's capital account and a credit to Income Summary
B) the owner's capital account and a credit to Cash
C) Income Summary and a credit to the owner's capital account
Solved 100%
Springville Distributors made sales using a list prie of $880 and a trade discount of
30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616 - -D
-Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange
Commission (SEC) final say on matters of financial reporting by publicly owned
corporations.
A) True
B) False - -A
-When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease - -A
-Tax planning is any activity associated with the preparation of tax returns and the
audit of those returns.
A) True
B) False - -B
-The frequency of deposits of federal income taxes withheld and social security and
Medicare taxes is determined by the amount owed.
A) True
B) False - -A
-Which of the following is not a reason why the book balance of cash may not agree
with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit - -B
-Most cash transactions involve checks.
A) True
B) False - -A
-The entry to transfer a net loss to the owner's capital account would include a
debit to
A) the owner's capital account and a credit to Income Summary
B) the owner's capital account and a credit to Cash
C) Income Summary and a credit to the owner's capital account
