lOMoARcPSD|23478024
PA review - This is the Principle of Accounting Final Exam
Practice Materials. This is made
Principle of Accounting (Western Sydney University)
Studocu is not sponsored or endorsed by any college or university
Downloaded by Lizy Steven ()
, lOMoARcPSD|23478024
1. A private accountant can perform many activities in a business organization but
would not work in
a. accounting information systems.
b. external auditing.
c. budgeting.
d. tax accounting.
2. The chart of accounts is a
a. list of accounts and their balances at a given time.
b. listing of the accounts and the account numbers which identify their location in the
ledger.
c. device used to prove the mathematical accuracy of the ledger.
d. required step in the recording process.
3. If total credits in the income statement columns of a worksheet exceed total
debits, the enterprise has net income.
a. F
b. T
4. GAAP stands for
a. Generally Accepted Auditing Procedures.
b. Generally Accepted Accounting Principles.
c. Generally Accepted Auditing Principles.
d. Generally Accepted Accounting Procedures.
5. The information for preparing a trial balance on a worksheet is obtained from
a. business documents.
b. financial statements.
c. general ledger accounts.
d. general journal entries.
6. Which one of the following is not a justification for adjusting entries?
a. Adjusting entries are necessary to ensure that the revenue recognition principle is
followed.
b. Adjusting entries are necessary to enable financial statements to be in conformity
with GAAP.
c. Adjusting entries are necessary to ensure that the expense recognition principle is
followed.
d. Adjusting entries are necessary to bring the general ledger accounts in line with the
budget.
7. The owner's drawings account is a permanent account whose balance is
carried forward to the next accounting period.
a. F
b. T
8. An account consists of
Downloaded by Lizy Steven ()
PA review - This is the Principle of Accounting Final Exam
Practice Materials. This is made
Principle of Accounting (Western Sydney University)
Studocu is not sponsored or endorsed by any college or university
Downloaded by Lizy Steven ()
, lOMoARcPSD|23478024
1. A private accountant can perform many activities in a business organization but
would not work in
a. accounting information systems.
b. external auditing.
c. budgeting.
d. tax accounting.
2. The chart of accounts is a
a. list of accounts and their balances at a given time.
b. listing of the accounts and the account numbers which identify their location in the
ledger.
c. device used to prove the mathematical accuracy of the ledger.
d. required step in the recording process.
3. If total credits in the income statement columns of a worksheet exceed total
debits, the enterprise has net income.
a. F
b. T
4. GAAP stands for
a. Generally Accepted Auditing Procedures.
b. Generally Accepted Accounting Principles.
c. Generally Accepted Auditing Principles.
d. Generally Accepted Accounting Procedures.
5. The information for preparing a trial balance on a worksheet is obtained from
a. business documents.
b. financial statements.
c. general ledger accounts.
d. general journal entries.
6. Which one of the following is not a justification for adjusting entries?
a. Adjusting entries are necessary to ensure that the revenue recognition principle is
followed.
b. Adjusting entries are necessary to enable financial statements to be in conformity
with GAAP.
c. Adjusting entries are necessary to ensure that the expense recognition principle is
followed.
d. Adjusting entries are necessary to bring the general ledger accounts in line with the
budget.
7. The owner's drawings account is a permanent account whose balance is
carried forward to the next accounting period.
a. F
b. T
8. An account consists of
Downloaded by Lizy Steven ()
