Name: Score:
43 Multiple choice questions
Term 1 of 43
Jacob's Chocolates had beginning retained earnings of $4,00
0; net income of $10,000; and dividends of $300, calculate the ending balance in the retained
earnings account.
$4,000 beginning balance + $10,000 net income - $300 dividends. $13,700
$4,000 beginning balance + $10,000 net income + $300 dividends. $14,300
$4,000 beginning balance - $10,000 net income - $300 dividends. -$6,300
$4,000 beginning balance - $10,000 net income + $300 dividends. -$5,700
Term 2 of 43
The approach to preparing financial statements based on recording revenues when products and
services are delivered and recording expenses when incurred is:
income statement
accrual basis accounting
net sales
revenue recognition principle
Term 3 of 43
Equity is composed of contributed capital and ______
operating expenses
retained earnings
long-term debt
current liabilities
,Term 4 of 43
A graphical presentation of data to help in understanding their significance is called data ______
collection
storage
analysis
visualization
Term 5 of 43
All of the following are part of the FASB conceptual framework: (Select all that apply).
$4,000 beginning balance + $10,000 net income - $300 dividends. $13,700
- common stock
- dividends
- revenues
- expenses
retained earnings
- Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Term 6 of 43
If a period-end inventory amount is reported in error, it can cause a misstatement in all of the
following except:
gross profit
net sales
revenue
retained earnings
, Term 7 of 43
Internal controls that should be applied when a business takes a physical count of inventory
should include all of the following except:
counters of inventory should be external consultants hired for the task
counters of inventory should be employees from the sales department
counters of inventory should be independent auditors not involved in inventory
management
counters of inventory should be those who are responsible for the inventory
Term 8 of 43
On 8/1, supplies costing $500 were purchased on credit. Record this transaction in the accounting
equation by:
increasing cash; increasing common stock
increasing Supplies, and increasing Accounts Payable
common stock, equipment, accounts payable
increasing cash; increasing revenues
Term 9 of 43
Sally Smith decided to start a sea shell business organized as a corporation. Her initial investment
in the business consisted of $10,000 in cash in exchange for common stock. Record this
transaction in the accounting equation of the new business by:
increasing cash; increasing revenues
increasing Accounts payable; Increasing Revenues.
increasing Cash; increasing Common Stock
increasing cash; increasing expenses.
43 Multiple choice questions
Term 1 of 43
Jacob's Chocolates had beginning retained earnings of $4,00
0; net income of $10,000; and dividends of $300, calculate the ending balance in the retained
earnings account.
$4,000 beginning balance + $10,000 net income - $300 dividends. $13,700
$4,000 beginning balance + $10,000 net income + $300 dividends. $14,300
$4,000 beginning balance - $10,000 net income - $300 dividends. -$6,300
$4,000 beginning balance - $10,000 net income + $300 dividends. -$5,700
Term 2 of 43
The approach to preparing financial statements based on recording revenues when products and
services are delivered and recording expenses when incurred is:
income statement
accrual basis accounting
net sales
revenue recognition principle
Term 3 of 43
Equity is composed of contributed capital and ______
operating expenses
retained earnings
long-term debt
current liabilities
,Term 4 of 43
A graphical presentation of data to help in understanding their significance is called data ______
collection
storage
analysis
visualization
Term 5 of 43
All of the following are part of the FASB conceptual framework: (Select all that apply).
$4,000 beginning balance + $10,000 net income - $300 dividends. $13,700
- common stock
- dividends
- revenues
- expenses
retained earnings
- Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Term 6 of 43
If a period-end inventory amount is reported in error, it can cause a misstatement in all of the
following except:
gross profit
net sales
revenue
retained earnings
, Term 7 of 43
Internal controls that should be applied when a business takes a physical count of inventory
should include all of the following except:
counters of inventory should be external consultants hired for the task
counters of inventory should be employees from the sales department
counters of inventory should be independent auditors not involved in inventory
management
counters of inventory should be those who are responsible for the inventory
Term 8 of 43
On 8/1, supplies costing $500 were purchased on credit. Record this transaction in the accounting
equation by:
increasing cash; increasing common stock
increasing Supplies, and increasing Accounts Payable
common stock, equipment, accounts payable
increasing cash; increasing revenues
Term 9 of 43
Sally Smith decided to start a sea shell business organized as a corporation. Her initial investment
in the business consisted of $10,000 in cash in exchange for common stock. Record this
transaction in the accounting equation of the new business by:
increasing cash; increasing revenues
increasing Accounts payable; Increasing Revenues.
increasing Cash; increasing Common Stock
increasing cash; increasing expenses.
