Accounting (B)

1 Trial balance statement showed balances: Supplies €1000 và Supplies expenses €0. Inventory count revealed that Supplies on hand end of period is €600, so adjusting entry:

• A.Debit Supplies expenses 400, Credit Supplies 400.
• B.Debit Supplies 600, Credit Supplies expenses 600.
• C.Debit Supplies 400, Credit Supplies expenses 400.
• D.Debit Supplies expenses 600, Credit Supplies 600.

2.What types of account will NOT appear in the post-closing trial balance:

• A.None of the sentences are correct.
• B.Permanent & Temporary accounts.
• C.Temporary accounts.
• D.Permanent accounts.

3.Which of the following is a MAIN type (or group) of ADJUSTING entries?

• A.Accrued Expenses.
• B.Recording Expenses.
• C.Recording Revenues.
• D.Earned Revenues.

4.ADJUSTING entries for Unearned Revenues:

• A.Have a relationship between Assets and Revenue.
• B.Decrease Revenue and Decrease Assets.
• C.Increase Liabilites and Increase Revenue.
• D.Decrease Liabilites; Increase Revenues.

5.UNEARNED REVENUES belong to ..... group. Fill in the blank:

• A.Liabilities.
• B.Assets.
• C.Revenues.
• D.Equity.

6.The trial balance will NOT be balanced if:

• A.A journal entry is transferred twice.
• B.Buy Supplies on account £500 recorded debit Supplies £500; credit Cash £500.
• C.A payment £400 of Accounts Payable recorded Debit Accounts Payable £400; credit Cash £40.
• D.Purchase Equipment £1000 recorded debit Equipment £100 and credit Cash £100.

7.On May 1, company X bought an equipment worth $12,000 in cash and plan to use it for 5 years. Question: Record the journal entry on May 1 & the adjusted entry for depreciation expense on May 31:

• A.(1/5) Debit Equipment 12000 - Credit Cash 12000 ; (31/5) Debit Depreciation expense 200 - Credit Accumulated Depreciation - Equipment 200.
• B.(1/5) Debit Equipment 12000 - Credit Cash 12000 ; (31/5) Debit Depreciation expense 200 - Credit Equipment 200.
• C.(1/5) Debit Equipment 12000 - Credit Cash 12000 ; (31/5) Debit Depreciation expense 2400 - Credit Accumulated Depreciation - Equipment 2400.
• D.(1/5) Debit Equipment 12000 -Credit Acccounts Payable 12000 ; (31/5) Debit Depreciation expense 200 - Credit Accumulated Depreciation - Equipment 200.

8.Net PROFIT earned over a period of time when:

• A.Expenses exceed Revenues.
• B.Assets exceed Revenues.
• C.Assets exceed Liabilities.
• D.Revenues exceed Expenses

9.According to result of Adjusted Trial Balance, The financial statements are prepared in order:

• A.Income Statement, Statement of Financial Position, Retained Earnings Statement.
• B.Retained Earnings Statement, Income Statement, Statement of Financial Position.
• C.Statement of Financial Position, Retained Earnings Statement, Income Statement.
• D.Income Statement, Retained Earnings Statement & Statement of Financial Position.

10.All of the following are REQUIRED steps in the accounting cycle EXCEPT:

• A.Journalise entries and post to Ledger accounts.
• B.Correcting entries.
• C.Prepare Financial statements.
• D.Closing entries.