Business Accounting
Mock Exam
Course Introduction
Business Accounting introduces students to the fundamental principles and practices of accounting as they apply to business organizations. This course covers essential topics such as the accounting cycle, preparation and analysis of financial statements, recording and reporting of assets, liabilities, equity, revenues, and expenses. Students will gain an understanding of key accounting concepts, the use of accounting software, and the role of accounting information in decision-making. Emphasis is placed on ethical practices and the interpretation of financial data for effective business management.
Recommended Textbook
Financial Accounting 4th Edition by Robert Kemp
Available Study Resources on Quizplus
12 Chapters
1893 Verified Questions
1893 Flashcards
Source URL: https://quizplus.com/study-set/1488 Page 2
Chapter 1: Business, Accounting, and You
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/29548
Sample Questions
Q1) Which of the financial statements includes a listing of assets owned by the company?
A)Statement of Cash Flows
B)Income Statement
C)Balance Sheet
D)Statement of Retained Earnings
Answer: C
Q2) If a business is planning on growth, it will generally issue additional dividends to shareholders.
A)True
B)False Answer: False
Q3) Accrual accounting recognizes business transactions when cash is received or paid. A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing and Recording Business Transactions
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/29552
Sample Questions
Q1) When the bank takes money out of a company's account, why does the bank say that they have debited that account?
A)The bank has increased the company's assets and assets increase with debits.
B)The bank has decreased its' liability to the company and liabilities decrease with debits.
C)The bank has decreased the company's assets and assets decrease with debits.
D)The bank has increased its' liability to the company and liabilities increase with debits.
Answer: B
Q2) The trial balance is an official financial statement.
A)True
B)False
Answer: False
Q3) Items such as salaries and interest that have been incurred, but not yet paid, are called:
A)accrued assets.
B)accrued liabilities.
C)accrued revenues.
D)accrued notes.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Adjusting and Closing Entries
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/29553
Sample Questions
Q1) After preparing the adjusted trial balance, those figures are used to complete the Balance Sheet only.
A)True
B)False
Answer: False
Q2) Recording Accounts Receivable would be an example of a(n):
A)deferred expense.
B)deferred revenue.
C)accrued expense.
D)accrued revenue.
Answer: D
Q3) The adjusted trial balance will directly show the:
A)amount of the adjustments made to expense accounts only.
B)final balance in the Retained Earnings account.
C)amount of the adjustment made to each account.
D)adjusted balances for every account affected by an adjusting entry.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Accounting for a Merchandising Business
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/29554
Sample Questions
Q1) Transferring title refers to a:
A)change of ownership.
B)change of buyer.
C)change of seller.
D)legal document.
Q2) When a customer returns goods, the merchandiser will NOT:
A)Decrease net sales revenue
B)Decrease Cost of Goods Sold
C)Increase Accounts Receivable
D)Increase Inventory
Q3) A 5-year note payable to be repaid in equal payments throughout the 5-year period, would be listed on the Balance Sheet as a long-term liability only.
A)True
B)False
Q4) Under the perpetual inventory system, Sales Returns cause:
A)an increase in Cost of Goods Sold.
B)an increase in Revenue.
C)a decrease in Cost of Goods Sold.
D)no effect on cost of goods sold.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Inventory
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/29555
Sample Questions
Q1) The Classics Collectibles, an antique shop, would most likely use the FIFO method of accounting for inventory.
A)True
B)False
Q2) When using LIFO, an accounting department only needs to know:
A)how many units were sold, not which units were sold.
B)which units were sold, not how many units were sold.
C)the specific price of a specific unit.
D)the average price of a specific unit.
Q3) Merchandise inventory represents the goods that a merchandiser has available to sell to its customers.
A)True
B)False
Q4) A method of valuing inventory based on the assumption that the newest goods will be sold first is called the:
A)LIFO method.
B)average cost method.
C)specific identification method.
D)FIFO method.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: The Challenges of Accounting: Standards, Internal
Control, Audits, Fraud, and Ethics
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/29556
Sample Questions
Q1) Which element of internal control deals with the establishment of a company's policies?
A)Control environment
B)Control activities
C)Information and communication
D)Risk assessment
Q2) Which of the following items is NOT a limit to the effectiveness of internal control systems in an organization?
A)Properly designed controls
B)Collusion
C)Costs exceed benefits
D)Overriding controls
Q3) A requirement that employees go on vacation is an example of:
A)monitoring.
B)information and communication.
C)control activities.
D)A and C are both correct.
Q4) The Sarbanes-Oxley Act requires a company's stockholders to be more responsible.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cash and Receivables
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/29557
Sample Questions
Q1) Which is NOT a benefit to extending credit to customers?
A)Bad debt expenses
B)Increased revenues
C)Increased profits
D)Wider range of customers
Q2) The entity to whom the maker promises future payment is referred to as:
A)maker of a note.
B)creditor.
C)debtor.
D)both A and C.
Q3) Accounts Receivable are reported at current market value in the Current Assets sections of the Balance Sheet.
A)True
B)False
Q4) The bank recorded a $49 deposit as $66. On a bank reconciliation this error would be corrected by:
A)subtracting $17 from the bank balance.
B)adding $17 to the bank balance.
C)adding $17 to the book balance.
D)subtracting $17 from the book balance.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Long-Term and Other Assets
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/29558
Sample Questions
Q1) The first step in recording a disposal transaction is to figure the gain or loss on the disposal.
A)True
B)False
Q2) The cash registers at WalMart are an example of a(n)_______, which would be expensed through _________.
A)fixed asset; depreciation
B)physical asset; depletion
C)plant asset; amortization
D)intangible asset; amortization
Q3) Classy Cooks did a major overhaul of their ovens, which extended the useful life of the ovens by 4 years. The journal entry to record this included a debit to repairs expense. This entry is:
A)incorrect, and as a result assets will be overstated.
B)correct, as this is an example of an ordinary repair.
C)incorrect, and as a result net income will be understated.
D)correct, as this is an example of a betterment.
Q4) An example of an other asset would be a trademark.
A)True
B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Current Liabilities and Long-Term Debt
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/29559
Sample Questions
Q1) The debt ratio equals total assets divided by total liabilities.
A)True
B)False
Q2) Most single individuals will claim:
A)0 allowances.
B)0 or 1 allowances.
C)2 allowances.
D)more than 2 allowances.
Q3) Dante's Designs has current assets of $57,000 long-term assets of $139,000 current liabilities of $49,000 long-term liabilities of $93,000. Dante's debt ratio is: (Round your final answer to the nearest whole number.)
A)86%.
B)67%.
C)35%.
D)72%.
Q4) Bonds that mature all at the same time are:
A)serial bonds.
B)term bonds.
C)secured bonds.
D)callable bonds.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Corporations: Paid-In Capital and Retained Earnings
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/29549
Sample Questions
Q1) Mike's Motors has 220,000 shares of $6-par common stock outstanding. They have declared a 10% stock dividend. The current market price of the common stock is $14/share. The amount that will be credited to Common Stock on the date of declaration is:
A)$132,000.
B)$440,000.
C)$308,000.
D)$184,800.
Q2) A company may purchase treasury stock if they are trying to avoid a takeover. A)True
B)False
Q3) Accounting for stock at a stated value is almost identical to recording:
A)outstanding stock.
B)no-par stock.
C)issued stock.
D)par stock.
Q4) Retained Earnings represent internally generated capital. A)True
B)False
12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/29550
Sample Questions
Q1) Robbins Company distributed a 5% common stock dividend, this will be reported in the financing activity section of the cash flow statement.
A)True
B)False
Q2) Which of the following is NOT a part of operating activities?
A)Paying dividends
B)Paying payables
C)Net income
D)Paying utilities
Q3) Dividends received by a company appear in the operating activities section of a direct method cash flow statement.
A)True
B)False
Q4) Acquisitions and sales of long-term assets belong in the financing section of a cash flow statement using the indirect method.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/29551
Sample Questions
Q1) The price earnings ratio reflects the relationship of the current market price of a stock to its earnings per share.
A)True B)False
Q2) Torres Company has $51,000 in cash; $8,000 in Accounts Receivable; $27,000 in short-term investments and $90,000 in merchandise inventory. The company also has $55,000 in current liabilities. The company's current ratio is: (Round your final answer to two decimal places.)
A)0.93.
B)1.56.
C)1.07.
D)3.20.
Q3) Market analysis ratios are used to evaluate a company's ability to generate profits. A)True B)False
Q4) The return on assets measures the relationship between sales and average total assets.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14