会计学基础学习知识原理练习进步题.doc

-* True / False Questions 1.Accounting records are also referred to as the books.TRUE 3.Preparation of a trial balance is the first step in the analyzing and recording process.FALSE 4.Source documents provide evidence of business transactions and are the basis for accounting entries.TRUE 5.Items such as sales tickets, bank statements, checks, and purchase orders are source documents.TRUE 6.An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.TRUE 7.A customers promise to pay is called an account payable to the seller.FALSE 9.As prepaid expenses are used, the expired costs of the assets become expenses.TRUE 10.Land and buildings are generally recorded in the same ledger account.FALSe 13.Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business.FALSE 15.The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.TRUE 16.An account balance is the difference between the debits and credits for an account including any beginning balance.TRUE 18.In a double-entry accounting system, the total amount debited must always equal the total amount credited.TRUE 19.Increases in liability accounts are recorded as debits.FALSE 20.Debits increase asset and expense accounts.TRUE 21. Credits always increase account balances.FALS 23.Double entry accounting requires that each transaction affect, and be recorded in, at least two accounts.TRUE 24.A revenue account normally has a debit balance.FALSE 25.Accounts are normally decreased by debits.FALSE 26.The owners withdrawal account normally has a credit balance since it is an equity account.FALSE 28.An owners capital account normally has a debit balance.FALSE 29.A debit entry is always favorable.FALSE 30.A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.TRUE 31.A transaction that increases an asset and decreases a liability must also affect one or more other accounts.TRUE 34.If a company purchases land paying cash, the journal entry to record this transaction will include a debit to Cash.FALSE If a company provides services to a customer on credit the selling company should credit Accounts Receivable.FALSE When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.FALSE 37. The debt ratio helps to assess the risk a company has of failing to pay its debts and is helpful to both its owners and creditors.TRUE 38. 38.The higher a companys debt ratio is, the higher the risk of a company not being able to meet its obligations. TRUE The debt ratio is calculated by dividing total assets by total liabilities. FALSE40.A company that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.TRUE 41.If a company is highly leveraged, this means that it has relatively low risk of not being able to repay its debt. FALSE 42.Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%. FALSE$105 million/$350 million = 30.0% 43.High financial leverage is always bad for a companys owners. FALSE 44.A compound journal entry affects no more than two accounts. FALSE 45.Posting is the transfer of journal entry information to the ledger. TRUE 46.Transactions are first recorded in the ledger. FALSE 47.The journal is known as a book of original entry. TRUE 48.A journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction. TRUE AICPA FN: Decision Making Difficulty: Easy Learning Objective: C1  49.The journal is known as the book of final entry because financial statements are prepared from it. FALSE AICPA FN: Decision Making Difficulty: Hard Learning Objective: C1 50.A trial balance that balances is not proof of complete accuracy in recording transactions. TRUE AICPA FN: Decision Making Difficulty: Easy Learning Objective: P2 51.The trial balance is a list of all accounts and their balances at a point in time taken from the ledger. TRUE AICPA FN: Decision Making Difficulty: Easy Learning Objective: P2 52.Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts, that is, assets first, then liabilities, then owners capital and withdrawals, followed by revenues and expenses. TRUE AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: P2  53.The trial balance can serve as a replacement for the balance sheet, since debits must equal with credits. FALSE AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: P2 54.A trial balance that is in balance is proof that no errors were made in journalizing the transactions, posting to the ledger, and preparing the trial balance. FALSE AICPA FN: Decision Making Difficulty: Medium Learning Objective: P2 55.If cash was incorrectly debited for $100 instead of correctly credited for $100, the cash account is out of balance by $100. FALSE AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: P2 56.The balance sheet provides a link between beginning and ending income statements. FALSE AICPA FN: Decision Making Difficulty: Medium Learning Objective: P3  57.The heading on each financial statement lists the three Ws – Who (the name of the organization), What (the name of the statement), and Where (the organizations address) FALSE Difficulty: Medium Learning Objective: P3 58.An income statement reports the revenues earned less expenses incurred by a business over a period of time. TRUE Difficulty: Medium Learning Objective: P3 59.The balance sheet reports the financial position of a company at a point in time. TRUE Difficulty: Medium Learning Objective: P3  Multiple Choice Questions 60.The accounting process begins with: A.Analysis of business transactions and source documents. B.Preparing financial statements and other reports. C.Summarizing the recorded effect of business transactions. D.Presentation of financial information to decision-makers. E.Preparation of the trial balance. AICPA FN: Decision Making Difficulty: Easy Learning Objective: C1 61.A sales invoice: A.Is a type of source document. B.Is used by sellers to record the sale. C.Is used by buyers to record purchases. D.Gives rise to an entry in the accounting process. E.All of these. AICPA FN: Decision Making Difficulty: Easy Learning Objective: C2 62. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C2  63.Source documents: A.Include the ledger. B.Are the sources of accounting information. C.Must be in electronic form. D.Are based on accounting entries. E.Include the chart of accounts. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C2 64.Various types of documents and other papers that companies use when they conduct their business: A.Are called source documents. B.Can include sales tickets. C.Are the source of information for recording accounting entries. D.Can be in electronic form. E.All of these. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C2 65.A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): A.Journal. B.Posting. C.Trial balance. D.Account. E.Chart of accounts. AICPA FN: Decision Making Difficulty: Easy Learning Objective: C3  67.The account used to record the transfers of assets from a business to its owner is: A.A revenue account. B.The owners withdrawals account. C.The owners capital account. D.An expense account. E.A liability account. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C3  69.Unearned revenues are: A.Revenues that have been earned and received in cash. B.Revenues that have been earned but not yet collected in cash. C.Liabilities created when a customer pays in advance for products or services before the revenue is earned. D.Recorded as an asset in the accounting records. E.Increases to owners capital. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C3 70.Prepaid expenses are: A.Payments made for products and services that do not ever expire. B.Classified as liabilities on the balance sheet. C.Decreases in equity. D.Assets that represent prepayments of future expenses. E.Promises of payments by customers. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C3 71.A written promise to pay a definite sum of money on a specified future date is a(n): A.Unearned revenue. B.Prepaid expense. C.Credit account. D.Note payable. E.Account receivable. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C3  72.A collection of all accounts and their balances used by a business is called a: A.Journal. B.Book of original entry. C.General Journal. D.Balance column journal. E.Ledger. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C3 73.A ledger is: A.A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item. B.A journal in which transactions are first recorded. C.A collection of documents that describe transactions and events entering the accounting process. D.A list of all accounts with their debit balances at a point in time. E.A record containing all accounts and their balances used by a company. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C4 74.A list of all accounts and the identification number assigned to each account used by a company is called a: A.Source document. B.Journal. C.Trial balance. D.Chart of accounts. E.General Journal. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C4  75.The numbering system used in a companys chart of accounts: A.Is the same for all companies. B.Is determined by generally accepted accounting principles. C.Depends on the source documents used in the accounting process. D.Typically begins with balance sheet accounts. E.Typically begins with income statement accounts. AICPA FN: Decision Making Difficulty: Medium Learning Objective: C4 76.A debit is: A.An increase in an account. B.The right-hand side of a T-account. C.A decrease in an account. D.The left-hand side of a T-account. E.An increase to a liability account. AACSB: Analytic AICPA FN: Decision Making Difficulty: Easy Learning Objective: C5 77.The right side of a T-account is a(n): A.Debit. B.Increase. C.Credit. D.Decrease. E.Account balance. 79.A credit is used to record: A.A decrease in an expense account. B.A decrease in an asset account. C.An increase in an unearned revenue account. D.An increase in a revenue account. E.All of these. AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: C5 80.A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a: A.Withdrawals account. B.Capital account. C.Drawing account. D.T-account. E.Balance column sheet. AICPA FN: Decision Making Difficulty: Easy Learning Objective: C5  AACSB: Analytic AICPA FN: Decision Making Difficulty: Easy Learning Objective: C5 82. AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: C5 83.Of the following accounts, the one that normally has a credit balance is: A.Cash. B.Office Equipment. C.Sales Salaries Payable. D.Owner, Withdrawals. E.Sales Salaries Expense. AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: C5  84.A debit is used to record: A.A decrease in an asset account. B.A decrease in an expense account. C.An increase in a revenue account. D.An increase in the balance of an owners capital account. E.An increase in the balance of the owners withdrawals account. AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: C5 85.A credit entry: A.Increases asset and expense accounts, and decreases liability, owners capital, and revenue accounts. B.Is always a decrease in an account. C.Decreases asset and expense accounts, and increases liability, owners capital, and revenue accounts. D.Is recorded on the left side of a T-account. E.Is always an increase in an account. AACSB: Analytic AICPA FN: Decision Making Difficulty: Medium Learning Objective: C5 86.Double-entry accounting is an accounting system: A.That records each transaction twice. B.That records the effects of transactions and other events in at least two accounts with equal debits and credits. C.In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. D.That may only be used if T-accounts are used. E.That insures that errors never occur. AACSB: Analytic AICPA FN: Decision Making Difficulty: Hard Learning Objective: C5  87. AACSB: Analytic AICPA FN: Decision Making Difficulty: Easy Learning Objective: A1 88.Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services general journal entry to record this transaction will include a A.Debit to Unearned Management Fees for $60,000. B.Credit to Management Fees Earned for $60,000. C.Credit to Cash for $60,000. D.Credit to Unearned Management Fees for $60,000. E.Debit to Management Fees Earned for $60,000. AACSB: Analytic AICPA FN: Decision Making Difficulty: Easy Learning Objective: A1 89.Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a: A.Debit to Accounts Payable. B.Debit to Accounts Receivable. C.Credit to Cash. D.Credit to Accounts Payable. E.Credit to Wisconsin Rentals, Capital. AACSB: Analytic AICPA FN: Decision Making Difficulty: Easy Learning Objective: A1  90.An asset created by prepayment of an expense is: A.Recorded a