YouScience Accounting 1 Practice Exam

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• Delgado sold services on account to Valley Landscaping for $500. What is the correct entry?
• Which accounts are permanent (real) accounts?
• An outstanding deposit is recorded by the company but not yet reflected on the bank statement.
• What is the normal balance of the Prepaid Insurance account?
• Which statement about voided checks is most accurate?
• To increase the balance of an asset account, you would?
• What is the normal balance of the Accounts Payable account?
• Which statement is true regarding voiding checks when there is an error?
• Distinguish between the direct method and indirect method for the cash flow statement.
• Which option describes a voided check most accurately?
• What is the normal balance of the Sales account?
• What does a trial balance verify when debits equal credits?
• Permanent accounts are closed at the end of each accounting year.
• Which of the following is true about replenishing petty cash?
• Differentiate between an asset and an expense with examples.
• Under accrual-basis revenue recognition, when is revenue recognized?
• In a sale on account, which accounts are debited and credited?
• Which equation defines working capital, and what does it indicate?
• Gross margin is:
• Which document is prepared each time cash or checks are deposited into the company bank account?
• How is accrued revenue recognized at period end?
• What is the normal balance of the Owners Drawing account?
• Accounts Payable is classified as an?
• If net income increases while average shareholders’ equity remains constant, ROE will:
• Assets, Liabilities and Owner's Equity are permanent accounts and are never closed.
• Which statement would properly identify a voided check?
• Describe the closing process and the purpose of closing temporary accounts.
• Prepaid insurance appears on which financial statement?
• Are permanent accounts closed at the end of the accounting year?
• Which statement best distinguishes revenue from gains?
• If any kind of error is made in preparing a check, which of the following actions should be taken?
• Which description matches a voided check?
• Which accounts are increased by a sale on account?
• Select the statement that accurately defines a voided check.
• Paid cash for office supplies, $1,000. Which is the correct journal entry?
• How is bad debt expense recorded under the allowance method, including write-offs?
• Office supplies are classified as which type of account on the balance sheet before use?
• Under a periodic inventory system, COGS is calculated as:
• When petty cash on hand equals the recorded amount, there is no petty cash shortage.
• Accounts Receivable is classified as an?
• What is the normal balance of an Expense account?
• ROE is related to profitability ratios; which of the following is a related measure?
• A bank reconciliation is a process performed by a company to ensure that the company's records are correct and that the bank's records are also correct.
• A lost check with a blank endorsement on it can be cashed by
• Do you add outstanding checks when you reconcile the bank statement?
• Which of the following is a temporary account?
• Which type of accounts are not closed at year-end and carry balances to the next period?
• During reconciliation, outstanding checks reduce the bank statement balance.
• Which statement best defines a liability?
• To increase the balance of a liability account, you would?
• Cash is classified as which type of account?
• In the transaction 'Paid cash for supplies, $1,000', which account is credited?
• What is the fundamental accounting equation and how does it remain balanced?
• Voided checks should be recorded in the journal.
• Which of the following is a contra-asset account?
• The journal entry serves as the source for postings to the:
• What best defines a voided check?
• The check register, the general ledger account, and the balance sheet are used in a bank reconciliation to verify that the bank's records are correct.
• Compare perpetual and periodic inventory systems and their impact on COGS and ending inventory.
• Reconciling the last check stub with the bank statement helps identify errors that can affect which of the following?
• In common banking terms, which statement about voided checks is accurate?
• Which financial statement reports expenses such as rent?
• If the amount on hand in petty cash is less than the recorded amount, petty cash is short.
• Is a voided check still eligible for processing by the bank?
• To decrease the balance of an expense account, you would?
• What is a petty cash fund, and how is it established and replenished?
• What entry records wages paid to employees when payment occurs?
• Which of the following is a current asset?
• Owners Drawing is classified as an which type of account?
• Under the indirect method for the cash flow statement, what is the starting point for operating activities?
• Which account is classified as a liability?
• Closing the cash account at the end of the accounting cycle is required.
• Which action should be taken when a check has an error and needs to be corrected?
• Which of the following is a permanent account?
• Which entry increases Owner's Equity?
• How is a prepaid expense initially recorded, and how is it adjusted over time?
• Which statement correctly pairs expenses and losses?
• To decrease the balance of a sales account, you would?
• Office equipment appears on which financial statement?
• Which journal entry records purchasing supplies on account?
• How is depreciation on equipment recorded?
• What does Sales Returns and Allowances represent?
• Revenue appears on which financial statement?
• What is the normal balance of the Supplies account?
• The closing entries will include a __ to the Sales account.
• Which account is classified as an asset?
• Which statement differentiates sales discounts from sales allowances and their journal entries?
• The entry to establish a $200.00 petty cash fund is
• To record a decrease in the balance of an asset account, you would?
• Which of the following entries correctly records a bank service charge in the books?
• Which action increases the balance of a liability account?
• What term describes a check that has no validity for payment?
• Which account is closed to the Owner's Capital account at year end?
• How is gross profit calculated?
• Where does Accounts Payable appear?
• An endorsement on the back of a check consisting only of a signature is a
• Received cash on account from Scott Company. What is the correct entry?
• An outstanding check is one that has been issued but not yet reported on a bank statement.
• An outstanding check is a check that has been reported on the bank statement.
• A bank reconciliation is performed to ensure both the company's and the bank's records agree after adjustments.
• Which accounts are affected by a sale on account for $1,000?
• To decrease the balance of a liability account, you would?
• Explain current versus noncurrent asset and liability classification on the balance sheet.
• Which account type is a contra-asset?
• In banking terms, a voided check is best described as:
• Which statement best matches the definition of a voided check?
• How are bank service charges and interest income recorded in the books?
• Expenses is classified as an which type of account?
• Which accounts are considered nominal accounts?
• Which of the following is a current liability?
• Which of the following is an asset?
• To increase the balance of the owner's capital account, you would?
• End-of-year balances in the revenue accounts will become the beginning balances of the next year.
• A voided check cannot be processed for what reason?
• The petty cash fund is a liability with a normal debit balance.
• How do you prepare an income statement under accrual basis?
• Which scenario would describe a voided check?
• When cash is short, the entry to replenish petty cash includes a..
• Which of the following increases owner's equity?
• Distinguish cash basis from accrual basis accounting.
• Why are adjusting entries necessary at period end, and what types of accounts are typically adjusted?
• Each time you prepare cash or checks to be put in the company bank account, you will prepare a
• Rent expense would be reported on which financial statement?
• Notes to the financial statements typically disclose which of the following?
• To increase the balance of a sales account, you would?
• What is a trial balance, and what does it indicate when total debits equal total credits?
• Accounts Receivable is a component of which financial statement?
• Which account typically has a credit balance?
• To decrease the balance of an expense account, you would?
• If Revenues are 80,000 and Expenses 65,000, what is the Net Income?
• What is the purpose of the general journal and how does it relate to the ledger?
• Which accounts typically increase with a debit?
• The journal entry to start a petty cash fund for your business would be a debit to the __________ account and credit to the ____________.
• What is the normal balance of the Cash account?
• Under accrual accounting, which statement is true about revenue recognition?
• To increase the balance of an asset account, you would?
• What is the general ledger?
• Sales is classified as an which type of account according to the material?
• How do you compute accounts payable turnover and what does it indicate about payments to suppliers?
• Explain FIFO, LIFO, and Weighted Average methods and how they affect COGS and ending inventory.
• In a bank reconciliation, which item would increase the book balance but not yet appear on the bank statement?
• What is the normal balance of the Owners Capital account?
• Accounts Payable is classified as which type of account?
• Differentiate accruals and deferrals with an example of each in accounting.
• What is a revenue recognition principle violation and how should it be corrected?
• What is the correct annual depreciation under straight-line method for cost 10,000, salvage 1,000, life 9 years?
• Adjusting entries for supplies on hand at period end should be recorded as which of the following?
• Which statement best describes a voided check?
• Supplies is classified as an which type of account?
• To decrease the balance of the owner's capital account, you would?
• The balances in the owner's drawing account are transferred to the owner's capital account at year-end.
• Which calculation yields net income given revenues and expenses?
• Where does Cash appear?
• What is the normal balance of the Accounts Receivable account?
• Depreciation expense is a noncash item. Under the indirect method, how is it treated?
• Temporary accounts are closed at the end of each accounting year.
• Prepaid Insurance is recorded as which type of account?
• Under accrual accounting, when is revenue recognized?
• Which item represents an operating activity in the cash flow statement?
• What is the relationship between accounts receivable and allowance for doubtful accounts?
• Which journal entry records accrued interest at period end?
• A contra-asset account has what effect on the related asset?
• Which of the following is the correct formula for return on equity (ROE)?
• What are the three sections of the statement of cash flows and the function of each?
• What is a bank reconciliation and why is it performed?
• Distinguish equity accounts in a sole proprietorship versus a corporation.
• How are owner withdrawals recorded in a sole proprietorship and how do they affect equity?
• Prepaid Insurance is classified as an which type of account?
• Which item is a current asset?
• Which statement best describes the reason for bank reconciliation against the bank statement?
• How is depreciation recorded, and what is the difference between straight-line and an accelerated method?
• Cash received from sales is recorded as which entry?
• Which entry records accrued wages?
• What does a balance sheet report and which accounts appear on it?
• When cash is received on account, which entry is recorded?
• Office supplies are typically classified as which type of account on the balance sheet prior to use?
• If a service is performed in December and billed in January, under accrual basis revenue is recognized in:
• If the amount on hand in petty cash is more than the recorded amount, petty cash is short.
• A journal entry must include:
• An outstanding deposit is added to the bank balance during reconciliation.
• What is the purpose of a post-closing trial balance?
• Owners Capital is classified as an which type of account?
• The initial entry to establish petty cash fund uses which debit and credit?
• You add outstanding deposits to the balance of the bank statement when you are doing a reconciliation.
• What is the purpose of the chart of accounts in financial record-keeping?
• The term nominal accounts is sometimes used in place of the term temporary accounts.
• Sales account has which normal balance?
• Which of the following is a liability?
• Prepaid Insurance is a temporary account.
• To decrease the balance of an asset account, you would?
• The terms real accounts is similar to permanent accounts.
• Which action decreases an owner's capital account balance?
• Which account normally has a debit balance?
• Which option best captures the meaning of a voided check?
• Which account would typically carry a credit balance?