Penn Foster Exam 061520

1.

During a recent week, incurred wages were $700. However, $280 of the wages hadn’t been paid. The adjusting entry for wages would be

A. debit wages expense, $420; credit wages payable, $420.

B. debit wages payable, 420; credit wages expense, $420.

C. debit wages expense, $280; credit wages payable, $280.

D. debit wages payable, $280; credit wages expense, $280.

2.   Rick owns a sporting goods store. In his initial accounting records, he included his personal computer and all of his personal sporting gear. Rick is violating which principle of accounting?

A. Reliability

B. Cost

C. Entity

D. Going concern

3.   A T-account has which major parts?

A. A debit side, a credit side, and a total column

B. A title, a debit side, and a credit side

C. A debit side, a credit side, and a balance

D. A title, a current date, and a balance

4.   Accounts payable, taxes payable, and notes payable

A. increase on the debit side, decrease on the credit side, and are expenses.

B. increase on the debit side, decrease on the credit side, and are assets.

C. decrease on the debit side, increase on the credit side, and are liabilities.

D. decrease on the debit side, increase on the credit side, and are revenues.

5.   The closing entries show a debit to retained earnings of $350 and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a

A. net income of $400.

B. net loss of $500

C. net loss of $400.

D. net income of $500.

6.   Rick lists his building at current replacement value, rather than the price he paid for the building. Which principle is Rick violating?

A. Cost

B. Going concern

C. Entity

D. Reliability

7.   Dividends are paid with cash to shareholders. Dividends are in which category of the chart of accounts?

A. Stockholders’ equity

B. Liabilities

C. Assets

D. Revenue

8.   Which financial statement illustrates the accounting equation?

A. Statement of cash flows

B. Statement of retained earnings

C. Income statement

D. Balance sheet

9.   Beginning retained earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the net income or loss for the company?

A. ($7,000)

B. $0

C. $26,000

D. ($3,500)

10.   Casey’s is famous for its submarine sandwiches. At the end of 2009, Casey’s total assets were $345,000, and total liabilities were $129,500. How much was Casey’s stockholders’ equity?

A. $215,500

B. Some other number

C. $345,000

D. $474,500

11.   The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509. The amount of supplies expense would be a

A. $509 debit.

B. $176 debit.

C. $333 debit.

D. $176 credit.

12.   Collecting rent from a client three months in advance would be an example of a/an

A. accrued expense.

B. deferred expense.

C. deferred revenue.

D. accrued revenue.

13.   Expenses paid in advance, such as rent and insurance, are classified as prepaid expenses. Into which category are they placed?

A. Expenses

B. Assets

C. Liabilities

D. Revenues

14.   By definition, which type of organization has stockholders?

A. Partnerships

B. Corporations

C. Sole proprietorships

D. Limited liability companies

15.   On the trial balance, which of the following should have the balances listed in the debit column?

A. Assets, revenues, and dividends

B. Assets, dividends, and expenses

C. Liabilities, revenues, and dividends

D. Liabilities, revenues, and common stock

16.   The balance sheet is used to report

A. results of operations for a specific date.

B. the financial position on a specific date.

C. the financial position for a specific period.

D. results of operations for a specific period

17.   The income statement is used to report

A. the financial position for a specific period.

B. results of operations for a specific period.

C. results of operations for a specific date.

D. the financial position on a specific date.

18.   Which account would not appear on a post-closing trial balance?

A. Dividends

B. Accounts receivable

C. Common stock

D. Sales tax payable

19.   The total revenues of $6,500, total expenses of $3,500, and dividends of $500 were recorded in the closing entries. The net change in retained earnings for the month was

A. $6,000.

B. $3,500.

C. $3,000.

D. $2,500.

20.   A cash payment was made to pay for delivery expenses but was mistakenly charged to advertising expenses. Which effect will this have on the balance of the trial balance?

A. Delivery expense will be understated.

B. Cash will be correct.

C. The trial balance will still balance.

D. Advertising expense will be correct.