• Question 1
0 out of 1 points
The owner's drawings account is closed to the Income Summary account in order to
properly determine net income (or loss) for the period.
Selected Answer: [None Given]
Answers: True
False
• Question 2
1 out of 1 points
The balance of the depreciation expense account will appear in the income statement
debit column of a worksheet.
Selected Answer:
True
Answers:
True
False
• Question 3
0 out of 1 points
The operating cycle of a company is the average time required to collect the
receivables resulting from producing revenues.
Selected Answer: [None Given]
Answers: True
False
• Question 4
0 out of 1 points
On October 3, Karl Schickele, a carpenter, received a cash payment for services
previously billed to a client. Karl paid his telephone bill, and he also bought equipment
on credit. For the three transactions, at least one of the entries will include a
Selected Answer: [None Given]
Answers: credit to Owner's Capital.
credit to Notes Payable.
debit to Accounts Receivable.
credit to Accounts Payable.
• Question 5
0 out of 1 points
Which accounting assumption assumes that an enterprise will continue in operation
long enough to carry out its existing objectives and commitments?
Selected Answer: [None Given]
, Answers: Monetary unit assumption.
Economic entity assumption.
Periodicity assumption.
Going concern assumption.
• Question 6
0 out of 1 points
Which of the following statements is not considered a disadvantage of the corporate
form of organization?
Selected Answer: [None Given]
Answers: Additional taxes
Government regulations
Limited liability of stockholders
Separation of ownership and management
• Question 7
0 out of 1 points
In liquidation, balances prior to the distribution of cash to the partners are: Cash
$240,000; Paley, Capital $112,000; Stengel, Capital $104,000, and King, Capital
$24,000. The income ratio is 6:2:2, respectively. How much cash should be
distributed to Paley?
Selected Answer: [None Given]
Answers: $100,000
$104,000
$112,000
$120,000
• Question 8
0 out of 1 points
The use of reversing entries
Selected Answer: [None Given]
Answers: is a required step in the accounting cycle.
changes the amounts reported in the financial statements.
simplifies the recording of subsequent transactions.
is required for all adjusting entries.
• Question 9
0 out of 1 points
, To close net income to owner's capital, Income Summary is debited and Owner's
Capital is credited.
Selected Answer: [None Given]
Answers:
True
False
• Question 10
0 out of 1 points
Delta Corp. issues 4,000 shares of $10 par value common stock at $14 per share.
When the transaction is recorded, credits are made to
Selected [None Given]
Answer:
Answers: Common Stock $40,000 and Paid-in Capital in Excess of Stated Value
$16,000.
Common Stock $56,000.
Common Stock $40,000 and Paid-in Capital in Excess of Par $16,000.
Common Stock $40,000 and Retained Earnings $16,000.
• Question 11
0 out of 1 points
A simple journal entry requires only one debit to an account and one credit to an
account.
Selected Answer: [None Given]
Answers:
True
False
• Question 12
0 out of 1 points
A hybrid form of business organization with certain features like a corporation is a(n)
Selected Answer: [None Given]
Answers: limited liability partnership.
limited liability company.
"S" corporation.
sub-chapter "S" corporation.
• Question 13
0 out of 1 points
A private accountant can perform many activities in a business organization but would
not work in
Selected Answer: [None Given]
, Answers: budgeting.
accounting information systems.
external auditing.
tax accounting.
• Question 14
0 out of 1 points
The trial balance will not balance when incorrect account titles are used in journalizing
or posting.
Selected Answer: [None Given]
Answers: True
False
• Question 15
0 out of 1 points
The final step in the recording process is to transfer the journal information to the
Selected Answer: [None Given]
Answers: trial balance.
financial statements.
ledger.
file cabinets.
• Question 16
0 out of 1 points
Revenue recognition under IFRS is
Selected [None Given]
Answer:
Answers: substantially different from revenue recognition under GAAP.
generally the same as revenue recognition under GAAP, but with more
detailed guidance.
generally the same as revenue recognition under GAAP, but with less
detailed guidance.
exactly the same as revenue recognition under GAAP.
• Question 17
0 out of 1 points
Michelle receives $210,000 and Stephanie receives $140,000 in a split of $350,000
net income. Which expression does not reflect the income splitting arrangement?
Selected Answer: [None Given]
Answers: 3:2
0 out of 1 points
The owner's drawings account is closed to the Income Summary account in order to
properly determine net income (or loss) for the period.
Selected Answer: [None Given]
Answers: True
False
• Question 2
1 out of 1 points
The balance of the depreciation expense account will appear in the income statement
debit column of a worksheet.
Selected Answer:
True
Answers:
True
False
• Question 3
0 out of 1 points
The operating cycle of a company is the average time required to collect the
receivables resulting from producing revenues.
Selected Answer: [None Given]
Answers: True
False
• Question 4
0 out of 1 points
On October 3, Karl Schickele, a carpenter, received a cash payment for services
previously billed to a client. Karl paid his telephone bill, and he also bought equipment
on credit. For the three transactions, at least one of the entries will include a
Selected Answer: [None Given]
Answers: credit to Owner's Capital.
credit to Notes Payable.
debit to Accounts Receivable.
credit to Accounts Payable.
• Question 5
0 out of 1 points
Which accounting assumption assumes that an enterprise will continue in operation
long enough to carry out its existing objectives and commitments?
Selected Answer: [None Given]
, Answers: Monetary unit assumption.
Economic entity assumption.
Periodicity assumption.
Going concern assumption.
• Question 6
0 out of 1 points
Which of the following statements is not considered a disadvantage of the corporate
form of organization?
Selected Answer: [None Given]
Answers: Additional taxes
Government regulations
Limited liability of stockholders
Separation of ownership and management
• Question 7
0 out of 1 points
In liquidation, balances prior to the distribution of cash to the partners are: Cash
$240,000; Paley, Capital $112,000; Stengel, Capital $104,000, and King, Capital
$24,000. The income ratio is 6:2:2, respectively. How much cash should be
distributed to Paley?
Selected Answer: [None Given]
Answers: $100,000
$104,000
$112,000
$120,000
• Question 8
0 out of 1 points
The use of reversing entries
Selected Answer: [None Given]
Answers: is a required step in the accounting cycle.
changes the amounts reported in the financial statements.
simplifies the recording of subsequent transactions.
is required for all adjusting entries.
• Question 9
0 out of 1 points
, To close net income to owner's capital, Income Summary is debited and Owner's
Capital is credited.
Selected Answer: [None Given]
Answers:
True
False
• Question 10
0 out of 1 points
Delta Corp. issues 4,000 shares of $10 par value common stock at $14 per share.
When the transaction is recorded, credits are made to
Selected [None Given]
Answer:
Answers: Common Stock $40,000 and Paid-in Capital in Excess of Stated Value
$16,000.
Common Stock $56,000.
Common Stock $40,000 and Paid-in Capital in Excess of Par $16,000.
Common Stock $40,000 and Retained Earnings $16,000.
• Question 11
0 out of 1 points
A simple journal entry requires only one debit to an account and one credit to an
account.
Selected Answer: [None Given]
Answers:
True
False
• Question 12
0 out of 1 points
A hybrid form of business organization with certain features like a corporation is a(n)
Selected Answer: [None Given]
Answers: limited liability partnership.
limited liability company.
"S" corporation.
sub-chapter "S" corporation.
• Question 13
0 out of 1 points
A private accountant can perform many activities in a business organization but would
not work in
Selected Answer: [None Given]
, Answers: budgeting.
accounting information systems.
external auditing.
tax accounting.
• Question 14
0 out of 1 points
The trial balance will not balance when incorrect account titles are used in journalizing
or posting.
Selected Answer: [None Given]
Answers: True
False
• Question 15
0 out of 1 points
The final step in the recording process is to transfer the journal information to the
Selected Answer: [None Given]
Answers: trial balance.
financial statements.
ledger.
file cabinets.
• Question 16
0 out of 1 points
Revenue recognition under IFRS is
Selected [None Given]
Answer:
Answers: substantially different from revenue recognition under GAAP.
generally the same as revenue recognition under GAAP, but with more
detailed guidance.
generally the same as revenue recognition under GAAP, but with less
detailed guidance.
exactly the same as revenue recognition under GAAP.
• Question 17
0 out of 1 points
Michelle receives $210,000 and Stephanie receives $140,000 in a split of $350,000
net income. Which expression does not reflect the income splitting arrangement?
Selected Answer: [None Given]
Answers: 3:2
