ACC 101 – Exam questions with
answers well defined 100%
Which of the following is a CORRECT statement regarding the bank reconciliation? -
ANS✅✅Journal entries need to be made for all transactions on the book side to get the accounts
In a bank reconciliation, a NSF check is: - ANS✅✅deducted from the book balance.
The ledger: - ANS✅✅contains all the accounts used by a business.
The book value of a plant asset is the: - ANS✅✅cost of the asset less the accumulated
depreciation.
Notes payable, accounts payable, taxes payable and salaries payable are all examples of: -
ANS✅✅liabilities
The trial balance is used to determine if: - ANS✅✅total debits of all the accounts equal total
credits of all the accounts.
The balance sheet reports information about: - ANS✅✅assets, liabilities, and owners' equity.
The entry to establish the petty cash fund is: - ANS✅✅a debit to Petty Cash and a credit to Cash.
Verifiability means that the information: - ANS✅✅must be capable of being checked for accuracy,
completeness and reliability.
The entry made to close Service Revenue would include a debit to: - ANS✅✅Service Revenue and
a credit to Retained Earnings.
If a company buys inventory on account: - ANS✅✅accounts payable would increase.
Dividends declared are reported on the: - ANS✅✅Statement of Retained Earnings.
, The accounting equation can be stated as: - ANS✅✅Assets -Liabilities = Stockholders' Equity.
The two types of accounting are: - ANS✅✅financial and managerial.
Which of the following is NOT a business transaction? - ANS✅✅A company fired 10 percent of the
employees due to lackluster sales.
Deposits that have been recorded on the books, but have not yet been recorded by the bank are: -
ANS✅✅deposits in transit.
In transaction analysis, the declaration and payment of dividends is recorded in the ________ and
________ columns of the accounting equation. - ANS✅✅Retained Earnings, Cash
A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual -
basis accounting, the doctor recognizes revenue: - ANS✅✅in March
Examples of liabilities include:
A.investments and note payable.
B.accounts payable and common stock.
C.accounts payable and note payable.
D.accounts payable and dividends - ANS✅✅C. accounts payable and note payable.
On July 25, Henry Company's accountant prepared a check for August's rent payment. Henry
Company mails the check on July 27 to the landlord. The landlord receives the check on July 31 and
cashes the check on August 2. When should Henry Company record the rent expense associated
with this transaction?
A.July 25
B.July 27
C.August 31
D.August 2 - ANS✅✅C.August 31
answers well defined 100%
Which of the following is a CORRECT statement regarding the bank reconciliation? -
ANS✅✅Journal entries need to be made for all transactions on the book side to get the accounts
In a bank reconciliation, a NSF check is: - ANS✅✅deducted from the book balance.
The ledger: - ANS✅✅contains all the accounts used by a business.
The book value of a plant asset is the: - ANS✅✅cost of the asset less the accumulated
depreciation.
Notes payable, accounts payable, taxes payable and salaries payable are all examples of: -
ANS✅✅liabilities
The trial balance is used to determine if: - ANS✅✅total debits of all the accounts equal total
credits of all the accounts.
The balance sheet reports information about: - ANS✅✅assets, liabilities, and owners' equity.
The entry to establish the petty cash fund is: - ANS✅✅a debit to Petty Cash and a credit to Cash.
Verifiability means that the information: - ANS✅✅must be capable of being checked for accuracy,
completeness and reliability.
The entry made to close Service Revenue would include a debit to: - ANS✅✅Service Revenue and
a credit to Retained Earnings.
If a company buys inventory on account: - ANS✅✅accounts payable would increase.
Dividends declared are reported on the: - ANS✅✅Statement of Retained Earnings.
, The accounting equation can be stated as: - ANS✅✅Assets -Liabilities = Stockholders' Equity.
The two types of accounting are: - ANS✅✅financial and managerial.
Which of the following is NOT a business transaction? - ANS✅✅A company fired 10 percent of the
employees due to lackluster sales.
Deposits that have been recorded on the books, but have not yet been recorded by the bank are: -
ANS✅✅deposits in transit.
In transaction analysis, the declaration and payment of dividends is recorded in the ________ and
________ columns of the accounting equation. - ANS✅✅Retained Earnings, Cash
A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual -
basis accounting, the doctor recognizes revenue: - ANS✅✅in March
Examples of liabilities include:
A.investments and note payable.
B.accounts payable and common stock.
C.accounts payable and note payable.
D.accounts payable and dividends - ANS✅✅C. accounts payable and note payable.
On July 25, Henry Company's accountant prepared a check for August's rent payment. Henry
Company mails the check on July 27 to the landlord. The landlord receives the check on July 31 and
cashes the check on August 2. When should Henry Company record the rent expense associated
with this transaction?
A.July 25
B.July 27
C.August 31
D.August 2 - ANS✅✅C.August 31
