FREE AND STUDY GAMES ABOUT ACC-101 FINAL EXAM

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FREE AND STUDY GAMES ABOUT ACC-101 FINAL EXAM

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -75 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: The ending merchandise inventory for 2019 is the same as the beginning merchandise inventory for 2020.

Answer:

True

Question 2: The excess of issue price over par of common stock is termed a(n)

Answer:

premium

Question 3: A capital expenditure results in a debit to

Answer:

an asset account Question 4: During periods of increasing costs, the use of the FIFO method of costing inventory will yield an inventory amount for the balance sheet that is higher than LIFO would produce.

Answer:

True

Question 5: The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

Answer:

authorized stock Question 6: After analyzing transactions, the next step would be to post the transactions in the ledger.

Answer:

False Question 7: Receiving payments on an account receivable increases both equity and assets.

Answer:

False Question 8: If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000, then the assets also total $300,000.

Answer:

False

Question 9: The income statement is prepared from the adjusted trial balance.

Answer:

True Question 10: All Revenue, Expense, & Retained Earnings accounts are closed to zero during the closing process.

Answer:

False

Question 11: The chart of accounts should be the same for each business.

Answer:

False

Question 12: Expected useful life is

Answer:

estimated at the time that the asset is placed in service

Question 13: The cost principle is the basis for entering the purchase price into the accounting records.

Answer:

True Question 14: The calculation for annual depreciation using the straight-line depreciation method is

Answer:

depreciable cost / estimated useful life Question 15: The last step to the accounting cycle is the closing entries are journalized and posted to the ledger.

Answer:

False

Question 16: Inventory is reported as a current asset on the balance sheet.

Answer:

True Question 17: Dividends Decrease Stockholders Equity and are listed on the income statement as deduction from revenue

Answer:

False

Question 18: Net sales is equal to sales minus cost of merchandise sold.

Answer:

False

Question 19: A corporation is legally separate and distinct from its owners.

Answer:

True Question 20: The depreciation method that does not use residual value in calculating the first year's depreciation expense is

Answer:

double-declining-balance

Question 21: The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

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True Question 22: Accounts are records of increases and decreases in individual accounting equation elements.

Answer:

True

Question 23: Prepaid expenses are an example of an expense.

Answer:

False Question 24: When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include:

Answer:

A credit to Allowance for Doubtful Accounts Question 25: Accumulated Depreciation is reported on:

Answer:

The balance sheet Question 26: Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be

Answer:

$20,250

Question 27: Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets.

Answer:

False