Accy 200 UIUC CQ1-CQ5 (Including Pop Quizzes) Exam #1
Questions with correct answers
the effect of any change in an accounting method will be disclosed in the financial
statements or notes thereto. - ✔✔The principle of consistency means that:
-there are no alternative methods of accounting for the same transaction.
-the same accounting methods are used by all firms in an industry.
-the effect of any change in an accounting method will be disclosed in the
financial statements or notes thereto.
-the accounting methods used by an entity never change.
A point in time in the past - ✔✔The time frame associated with a balance sheet is:
-a point in time in the past.
-a one-year past period of time.
-a function of the information included in it.
-a single date in the future.
revenues, gains, expenses and losses. - ✔✔The income statement shows amounts
for:
-revenues, assets, gains, and losses.
-revenues, expenses, gains, and fair value per share.
-revenues, gains, expenses and losses.
-revenues, expenses, losses, and liabilities.
Is designed to match revenues and expenses - ✔✔Accrual accounting:
-is designed to match revenues and expenses.
,-results in the balance sheet showing the fair value of the entity's assets.
-cannot result in the entity having net income unless cash is received from
customers.
-means that expenses are recorded when they are paid.
The ownership right of the stockholder(s) of the entity - ✔✔Stockholders' equity
refers to which of the following?
-A listing of the organization's assets and liabilities.
-The ownership right of the stockholder(s) of the entity.
-Probable future sacrifices of economic benefits.
-All of the above.
-None of the above.
An adjustment will probably be required as supplies are used - ✔✔When a firm
purchases supplies for its business:
-an adjustment will probably be required as supplies are used.
-the supplies account should always be debited.
-either the supplies account or the supplies expense account should be credited.
-the supplies expense account should always be debited.
Increase the accuracy of both the balance sheet and income statement - ✔✔The
effect of an adjustment on the financial statements is usually to:
-match revenues and assets.
-increase net income.
-increase the accuracy of both the balance sheet and -income statement.
, -make the balance sheet balance.
Dr. Supplies Expense Cr. Supplies - ✔✔When a firm purchases supplies for use in
its business, and the cost of the supplies purchased is recorded as an asset, the
following adjustment to recognize the cost of supplies used will probably be
required:
-No adjustment will probably be required.
-Dr. Supplies Cr. Supplies Expense
-Dr. Supplies Cr. Accounts Payable
-Dr. Supplies Expense Cr. Supplies
Increase liability account - ✔✔A credit entry will:
-decrease paid-in capital.
-increase an asset account.
-increase an expense account.
-increase a liability account.
To increase the accuracy of the financial statements - ✔✔The effect of an
adjustment is:
-to correct an entry that was not in balance.
-to record transactions not previously recorded.
-to close the books.
-to increase the accuracy of the financial statements.
Questions with correct answers
the effect of any change in an accounting method will be disclosed in the financial
statements or notes thereto. - ✔✔The principle of consistency means that:
-there are no alternative methods of accounting for the same transaction.
-the same accounting methods are used by all firms in an industry.
-the effect of any change in an accounting method will be disclosed in the
financial statements or notes thereto.
-the accounting methods used by an entity never change.
A point in time in the past - ✔✔The time frame associated with a balance sheet is:
-a point in time in the past.
-a one-year past period of time.
-a function of the information included in it.
-a single date in the future.
revenues, gains, expenses and losses. - ✔✔The income statement shows amounts
for:
-revenues, assets, gains, and losses.
-revenues, expenses, gains, and fair value per share.
-revenues, gains, expenses and losses.
-revenues, expenses, losses, and liabilities.
Is designed to match revenues and expenses - ✔✔Accrual accounting:
-is designed to match revenues and expenses.
,-results in the balance sheet showing the fair value of the entity's assets.
-cannot result in the entity having net income unless cash is received from
customers.
-means that expenses are recorded when they are paid.
The ownership right of the stockholder(s) of the entity - ✔✔Stockholders' equity
refers to which of the following?
-A listing of the organization's assets and liabilities.
-The ownership right of the stockholder(s) of the entity.
-Probable future sacrifices of economic benefits.
-All of the above.
-None of the above.
An adjustment will probably be required as supplies are used - ✔✔When a firm
purchases supplies for its business:
-an adjustment will probably be required as supplies are used.
-the supplies account should always be debited.
-either the supplies account or the supplies expense account should be credited.
-the supplies expense account should always be debited.
Increase the accuracy of both the balance sheet and income statement - ✔✔The
effect of an adjustment on the financial statements is usually to:
-match revenues and assets.
-increase net income.
-increase the accuracy of both the balance sheet and -income statement.
, -make the balance sheet balance.
Dr. Supplies Expense Cr. Supplies - ✔✔When a firm purchases supplies for use in
its business, and the cost of the supplies purchased is recorded as an asset, the
following adjustment to recognize the cost of supplies used will probably be
required:
-No adjustment will probably be required.
-Dr. Supplies Cr. Supplies Expense
-Dr. Supplies Cr. Accounts Payable
-Dr. Supplies Expense Cr. Supplies
Increase liability account - ✔✔A credit entry will:
-decrease paid-in capital.
-increase an asset account.
-increase an expense account.
-increase a liability account.
To increase the accuracy of the financial statements - ✔✔The effect of an
adjustment is:
-to correct an entry that was not in balance.
-to record transactions not previously recorded.
-to close the books.
-to increase the accuracy of the financial statements.
