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Trial Online Exam DC ADELER i Peter F O X
Debit credit
Asset Liabilities
MC QUESTIONS Dividends Equity
Expenses Revenues
1. If total liabilities decreased by €45,000 and equity increased by €10,000 during a period
of time, then total assets must change by what amount and direction during that same
period?
A) €35,000 decrease To balance the Assets Liabilities Equity
B) €45,000 decrease assets
C) €35,000 increase equation
need to have
Assets Equity Liabilities
D) €55,000 increase gg000ft 45000 4
the same value 10000 E
2. ABC Company purchased inventory on account for €26,000. This transaction will:
A) increase liabilities and decrease equity by €26,000 Inventory recorded by
B) increase assets and increase liabilities by €26,000
C) have no effect on the accounting equation Increasing the asset account
D) increase assets and decrease equity by €26,000 inventory and increasing the
liability account accounts payable
3. An accountant has debited an asset account for €1,000 and credited a liability account
for €500. Which of the following would be an incorrect way to complete the recording
of this transaction so that the accounting equation holds?
A) Credit another liability account for €500 Asset account Debit Credit
B) Credit an asset account for €500 1000
Liability account 500
C) Debit an equity account for €500 Account X 900
D) Credit an equity account for €500
Must bebvalanced
4. At September 1, 2020, ABC Company reported equity of €272,000. During the month,
ABC generated revenues of €40,000, incurred expenses of €24,000, purchased
equipment for €10,000 and paid dividends of €4,000. What is the amount of equity at
September 30, 2020?
Equity
A) €284,000 272 Revenue A purchase of supplies on
B) €274,000 40 account is recorded in the
C) €16,000 24 Expense
4 Dividends liabilities and supplies account
D) €272,000
284
5. ABC Company's employees work overtime to finish an order that is sold and shipped on
February 28. The office sends the invoice to the customer in early March and payment is
received by mid-March. The overtime wages should be expensed in:
A) either in February or March depending on when the pay period ends
B) the period when the workers receive their checks
C) March
D) February Sales and Expenses should be recognized in February
6. ABC Company purchased office supplies costing €8,000 and debited Supplies for the
full amount. At the end of the accounting period, a physical count of the supplies
revealed that €2,200 is still on hand. The appropriate adjusting journal entry to be made
at the end of the period would be:
A) debit Supplies Expense, €2,200; credit Supplies, €2,200 Debit Credit
B) debit Supplies, €2,200; credit Supplies Expense, €2,200 Supplies
C) debit Supplies, €5,800; credit Supplies Expense, €5,800
8000
SuppliesExpense 8000
D) debit Supplies Expense, €5,800; credit Supplies, €5,800
Tobalance
the2200 Debit Credit
8000 2200 5800 SuppliesExpense 5800
Supplies 5800
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7. ABC Company has the following data related to an item of inventory:
Beginning Inventory, May 1: 3,000 units @ €4.20
Purchase, May 7: 10,500 units @ €4.40
Purchase, May 16: 2,100 units @ €4.50
Ending Inventory, May 31: 3,900 units
The value assigned to cost of goods sold for the sales during the month of May, if ABC
uses the average-cost method, is closest to:
A) €51,188 Obs BeginningInventory Inventory Purchases EndingInventory 3000 4.2 10500 4.412100 4,5
B) €52,560 110500 44121004.5 13900 4.379 68250
C) €50,700 3,0 042 55650 17062.5
D) €50,883 68290 3000 1050042100
51187.9 4.375
8. A company just starting its business made the following four inventory purchases in
June:
Date Units Total purchase price
June 1 150 units 2,600 1733
June 10 200 units 3,900
June 15 200 units 4,200 21
19.9 Risingprices
June 28 150 units 3,300 22 V
€14,000
A physical count of the inventory on June 30 reveals that there are 100 units on hand.
The inventory method which results in the highest gross profit for June is:
A) the FIFO method
B) all inventory methods result in the same gross profit In period of rising times
C) the LIFO method FIFO reports higher netincome
D) the average-cost method
9. ABC Company has the following inventory information: FIFO Cal
Nov. 1 : Inventory 45 units @ €6.00 270
Nov. 8 : Purchase 180 units @ €6.45 1161
Nov. 17 : Purchase 90 units @ g.gzgggggg.gY4gaggy.qgg
€6.30 567 72.5 567 472.5 94.
Nov. 25 : Purchase 135 units @ €6.60
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A physical count of the inventory on November 30 reveals that there are 150 units on
hand. Ending inventory under FIFO is closest to:
A) €948 L
B) €1,902
C) €1,941 150 135 15 94.5 891 985.9
D) €986 90 15 75 985.5 190 6.97
75 6.3 472.5
Trial Online Exam DC ADELER i Peter F O X
Debit credit
Asset Liabilities
MC QUESTIONS Dividends Equity
Expenses Revenues
1. If total liabilities decreased by €45,000 and equity increased by €10,000 during a period
of time, then total assets must change by what amount and direction during that same
period?
A) €35,000 decrease To balance the Assets Liabilities Equity
B) €45,000 decrease assets
C) €35,000 increase equation
need to have
Assets Equity Liabilities
D) €55,000 increase gg000ft 45000 4
the same value 10000 E
2. ABC Company purchased inventory on account for €26,000. This transaction will:
A) increase liabilities and decrease equity by €26,000 Inventory recorded by
B) increase assets and increase liabilities by €26,000
C) have no effect on the accounting equation Increasing the asset account
D) increase assets and decrease equity by €26,000 inventory and increasing the
liability account accounts payable
3. An accountant has debited an asset account for €1,000 and credited a liability account
for €500. Which of the following would be an incorrect way to complete the recording
of this transaction so that the accounting equation holds?
A) Credit another liability account for €500 Asset account Debit Credit
B) Credit an asset account for €500 1000
Liability account 500
C) Debit an equity account for €500 Account X 900
D) Credit an equity account for €500
Must bebvalanced
4. At September 1, 2020, ABC Company reported equity of €272,000. During the month,
ABC generated revenues of €40,000, incurred expenses of €24,000, purchased
equipment for €10,000 and paid dividends of €4,000. What is the amount of equity at
September 30, 2020?
Equity
A) €284,000 272 Revenue A purchase of supplies on
B) €274,000 40 account is recorded in the
C) €16,000 24 Expense
4 Dividends liabilities and supplies account
D) €272,000
284
5. ABC Company's employees work overtime to finish an order that is sold and shipped on
February 28. The office sends the invoice to the customer in early March and payment is
received by mid-March. The overtime wages should be expensed in:
A) either in February or March depending on when the pay period ends
B) the period when the workers receive their checks
C) March
D) February Sales and Expenses should be recognized in February
6. ABC Company purchased office supplies costing €8,000 and debited Supplies for the
full amount. At the end of the accounting period, a physical count of the supplies
revealed that €2,200 is still on hand. The appropriate adjusting journal entry to be made
at the end of the period would be:
A) debit Supplies Expense, €2,200; credit Supplies, €2,200 Debit Credit
B) debit Supplies, €2,200; credit Supplies Expense, €2,200 Supplies
C) debit Supplies, €5,800; credit Supplies Expense, €5,800
8000
SuppliesExpense 8000
D) debit Supplies Expense, €5,800; credit Supplies, €5,800
Tobalance
the2200 Debit Credit
8000 2200 5800 SuppliesExpense 5800
Supplies 5800
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i
7. ABC Company has the following data related to an item of inventory:
Beginning Inventory, May 1: 3,000 units @ €4.20
Purchase, May 7: 10,500 units @ €4.40
Purchase, May 16: 2,100 units @ €4.50
Ending Inventory, May 31: 3,900 units
The value assigned to cost of goods sold for the sales during the month of May, if ABC
uses the average-cost method, is closest to:
A) €51,188 Obs BeginningInventory Inventory Purchases EndingInventory 3000 4.2 10500 4.412100 4,5
B) €52,560 110500 44121004.5 13900 4.379 68250
C) €50,700 3,0 042 55650 17062.5
D) €50,883 68290 3000 1050042100
51187.9 4.375
8. A company just starting its business made the following four inventory purchases in
June:
Date Units Total purchase price
June 1 150 units 2,600 1733
June 10 200 units 3,900
June 15 200 units 4,200 21
19.9 Risingprices
June 28 150 units 3,300 22 V
€14,000
A physical count of the inventory on June 30 reveals that there are 100 units on hand.
The inventory method which results in the highest gross profit for June is:
A) the FIFO method
B) all inventory methods result in the same gross profit In period of rising times
C) the LIFO method FIFO reports higher netincome
D) the average-cost method
9. ABC Company has the following inventory information: FIFO Cal
Nov. 1 : Inventory 45 units @ €6.00 270
Nov. 8 : Purchase 180 units @ €6.45 1161
Nov. 17 : Purchase 90 units @ g.gzgggggg.gY4gaggy.qgg
€6.30 567 72.5 567 472.5 94.
Nov. 25 : Purchase 135 units @ €6.60
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t
A physical count of the inventory on November 30 reveals that there are 150 units on
hand. Ending inventory under FIFO is closest to:
A) €948 L
B) €1,902
C) €1,941 150 135 15 94.5 891 985.9
D) €986 90 15 75 985.5 190 6.97
75 6.3 472.5
