INTERMEDIATE ACCOUNTING. QUESTIONS AND
ANSWERS FOR 2024 REVISION.
1. Which of the following is incorrect?
A. The accounting equation must always remain in balance.
B. Asset accounts are increased by debit entries and decreased by
credit entries.
C. Expense accounts normally have debit balances.
D. Capital stock accounts are increased by debit entries and decreased
by credit entries.: D
2. How do you calculate the ending balance in Retained
Earnings? A. Beginning Balance in Retained Earnings + Net
Income + Dividends.
B. Contributed capital + Net Income - Dividends.
C. Beginning Balance in Retained Earnings + Net Income -
Dividends.
D. Shareholders' equity + Net Income - Dividends: C
3. Which is the correct accounting
equation? A. Assets = Liabilities -
Shareholders' Equity. B. Assets =
Liabilities * Shareholders' Equity.
C. Assets = Liabilities I Shareholders' Equity.
D.Assets = Liabilities + Shareholders' Equity.: D
4. Most of the financial statements in a company's annual report
show the change in financial position over time;
however, the shows the financial position at a point in time,
usually the end of the period.
A. income statement
, INTERMEDIATE ACCOUNTING. QUESTIONS AND
ANSWERS FOR 2024 REVISION.
B. statement of shareholders' equity
C. balance Sheet
D. statement of cash flows: C
5. The final step in the accounting cycle is:
A. prepare and post-closing entries.
B. prepare and post adjusting entries.
C. prepare the financial statements.: A
6. Listed below, in random order, are the steps in the accounting
cycle:(l) Prepare and post adjusting entries. (2) Post the journal
entries to the accounts in the ledger. (3) Prepare and post-closing
entries for the temporary accounts: revenues, expenses, gains, losses,
and dividend accounts. (4) Record the transactions, events, and
arrangements in a journal. (5) Prepare the financial statements. What
is the proper order of these steps?
b.(l), (2), (3), (4), (5)
d. (5), (1), (2), (4), A
7. The accounting cycle begins with recording a transaction, event,
or arrangement in a journal. This recording is based on information in
a(n)
account
A. interim statement
B. chart of accounts C. source document:
C
ANSWERS FOR 2024 REVISION.
1. Which of the following is incorrect?
A. The accounting equation must always remain in balance.
B. Asset accounts are increased by debit entries and decreased by
credit entries.
C. Expense accounts normally have debit balances.
D. Capital stock accounts are increased by debit entries and decreased
by credit entries.: D
2. How do you calculate the ending balance in Retained
Earnings? A. Beginning Balance in Retained Earnings + Net
Income + Dividends.
B. Contributed capital + Net Income - Dividends.
C. Beginning Balance in Retained Earnings + Net Income -
Dividends.
D. Shareholders' equity + Net Income - Dividends: C
3. Which is the correct accounting
equation? A. Assets = Liabilities -
Shareholders' Equity. B. Assets =
Liabilities * Shareholders' Equity.
C. Assets = Liabilities I Shareholders' Equity.
D.Assets = Liabilities + Shareholders' Equity.: D
4. Most of the financial statements in a company's annual report
show the change in financial position over time;
however, the shows the financial position at a point in time,
usually the end of the period.
A. income statement
, INTERMEDIATE ACCOUNTING. QUESTIONS AND
ANSWERS FOR 2024 REVISION.
B. statement of shareholders' equity
C. balance Sheet
D. statement of cash flows: C
5. The final step in the accounting cycle is:
A. prepare and post-closing entries.
B. prepare and post adjusting entries.
C. prepare the financial statements.: A
6. Listed below, in random order, are the steps in the accounting
cycle:(l) Prepare and post adjusting entries. (2) Post the journal
entries to the accounts in the ledger. (3) Prepare and post-closing
entries for the temporary accounts: revenues, expenses, gains, losses,
and dividend accounts. (4) Record the transactions, events, and
arrangements in a journal. (5) Prepare the financial statements. What
is the proper order of these steps?
b.(l), (2), (3), (4), (5)
d. (5), (1), (2), (4), A
7. The accounting cycle begins with recording a transaction, event,
or arrangement in a journal. This recording is based on information in
a(n)
account
A. interim statement
B. chart of accounts C. source document:
C
