Business Accounting
Solved Exam Questions
Course Introduction
Business Accounting is an essential course that introduces students to the fundamental concepts and practices of financial and managerial accounting within a business context. The course covers the principles of recording, summarizing, and interpreting financial transactions, equipping students with skills to prepare and analyze financial statements. Topics include the accounting cycle, asset valuation, liability management, income measurement, and the use of accounting information for decision-making.
Emphasis is placed on understanding how accounting information supports business planning, control, and performance evaluation, preparing students for roles in accounting, finance, and management.
Recommended Textbook College Accounting A Practical Approach 12th Canadian Edition by Jeffrey Slater
Available Study Resources on Quizplus
25 Chapters
3155 Verified Questions
3155 Flashcards
Source URL: https://quizplus.com/study-set/3532
Page 2
Chapter 1: Accounting Concepts and Procedures
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70162
Sample Questions
Q1) Withdrawals are considered an expense of doing business.
A)True
B)False
Answer: False
Q2) An expense should be recorded when:
A)the bill is paid.
B)the expense is incurred.
C)a bill is received in the mail.
D)None of the above are correct.
Answer: B
Q3) The four parts of owner's equity include capital, liabilities, revenue, and expenses.
A)True
B)False
Answer: False
Q4) Withdrawals are business expenses that are included on the balance sheet.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Debits and Credits: Analyzing and Recording
Business Transactions
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70151
Sample Questions
Q1) A chart of accounts:
A)is set up in alphabetical order.
B)includes account balances.
C)is a listing of all the accounts used by a company.
D)All of the above are correct.
Answer: C
Q2) A list of all the accounts from the ledger with their ending balances is called a:
A)normal balance.
B)trial balance.
C)chart of accounts.
D)footing.
Answer: B
Q3) Cash is debited when the business makes a payment for supplies.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Beginning the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70144
Sample Questions
Q1) A running balance is maintained in the ledger after each transaction is posted.
A)True
B)False
Answer: True
Q2) On July 1, Hill's Construction paid six months' insurance in advance. The journal entry to record this transaction is:
A)Debit Prepaid Insurance; Credit Cash
B)Debit Insurance Expense; Credit Cash
C)Debit Cash; Credit Prepaid Insurance
D)Debit Cash; Credit Insurance Expense
Answer: A
Q3) The process that begins with recording business transactions and includes the completion of the financial statements is the:
A)calendar year.
B)natural business years.
C)fiscal year.
D)accounting cycle.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Accounting Cycle Continued
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70143
Sample Questions
Q1) Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the transaction?
A)Debit Telephone Expense; credit Cash
B)Debit Accounts Payable; credit Telephone Expense
C)Debit Telephone Expense; credit Accounts Payable
D)Debit Accounts Payable; credit Cash
Q2) Total wages per week are $4,800. You need to accrue $4,000 of wages. The adjusting entry would include which of the following?
A)Credit Wages Expense, $4,000; debit Wages Payable, $4,000
B)Debit Wages Expense, $4,000; credit Wages Payable, $4,000
C)Debit Wages Expense, $4,800; credit Wages Payable, $4,800
D)Debit Wages Expense, $4,800; credit Cash, $4,800
Q3) The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense. This would:
A)overstate the assets.
B)understate the assets.
C)overstate net income.
D)None of these are correct.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: The Accounting Cycle Completed
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70142
Sample Questions
Q1) All closing entries must be posted before preparing the post-closing trial balance.
A)True
B)False
Q2) The Withdrawals account is closed to the Owner's Capital account.
A)True
B)False
Q3) When closing the Income Summary account when there is a net income:
A)Capital would increase.
B)Capital would decrease.
C)Capital would remain the same.
D)None of these are correct.
Q4) The post-closing trial balance contains the true ending figure for Capital. A)True
B)False
Q5) Closing entries are found in the adjustment columns of the worksheet. A)True
B)False
Q6) Why will the Income Summary account never appear on a financial statement?
Q7) What are the major goals of the closing process?
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Banking Procedure and Control of Cash
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70141
Sample Questions
Q1) The entry establishing a $175 petty cash fund would include a:
A)debit to Cash for $175.
B)credit to Petty Cash for $175.
C)debit to Petty Cash for $175.
D)debit to Miscellaneous Expense for $175.
Q2) Prepare the required journal entries from the bank reconciliation below as of the end of January:
The balance per general ledger is $200
There is a debit memo for interest expense, $100
There is a debit memo for a customer's NSF check $375
Outstanding checks amount to $2,000
This month's service charge amounts to $75 Deposits in transit amount to $1,500
Q3) A payment for $31 is incorrectly recorded on the checkbook stub as $13. The $18 error should be shown on the bank reconciliation as:
A)added to the balance per bank statement.
B)deducted from the balance per bank statement.
C)added to the balance per books.
D)deducted from the balance per books.
Q4) ________ Owner withdrew money from the company for personal use
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Calculating Pay and Payroll Taxes: The
Beginning of the Payroll Process
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/70140
Sample Questions
Q1) Kathy Addington earns $72,000 per year. What is her net pay for the month ended January 31, if FICA tax rates are: 6.2% for OASDI and 1.45% for Medicare; federal income tax is 20%; and union dues are $85 per month?
A)$4,100
B)$4,256
C)$4,326
D)$4,293
Q2) Valerie Chandler works 42 hours as a coffee barista and earns $12 per hour. Compute her weekly pay assuming an overtime rate of 1.5.
A)$552
B)$516
C)$480
D)$624
Q3) If the employee has $300 withheld from their check for FICA-OASDI, what is the amount that the employer would need to pay?
A)$300
B)$100
C)$0
D)$400
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70139
Sample Questions
Q1) Compute the employers payroll tax. ________
Q2) What is debited if State Unemployment Tax Payable (SUTA)is credited?
A)Payroll Tax Expense
B)Cash
C)Salaries Payable
D)Salaries Expense
Q3) Why are all of the employer payroll taxes listed in separate payable accounts?
Q4) The individual employee earnings for all employees in a company are summarized on the W-3 form.
A)True
B)False
Q5) Compute the total overtime earnings. ________
Q6) A monthly depositor:
A)is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day).
B)is determined by the amount of Form 941 taxes that they paid in the prior year.
C)will remain a monthly depositor, once classified, for one year at which time they will be reevaluated.
D)All of the above answers are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Sales and Cash Receipts
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70138
Sample Questions
Q1) Medeco sold goods for $100 to a charge customer. The customer returned for credit $25 worth of goods. Terms of the sale were 1/10, n/30. If the customer pays the amount owed within the discount period, what is the amount the customer should pay?
A)$74.25
B)$75.00
C)$100.00
D)$90.00
Q2) The accounts receivable subsidiary ledger:
A)is organized in alphabetical order.
B)is not kept in the same book as Accounts Receivable.
C)should equal the controlling account in the general ledger.
D)All of the above are correct.
Q3) Merchandise sold on credit was returned for credit and recorded with a debit to Sales Returns and Allowances and a credit to Accounts Payable. This error will cause:
A)the net income for the period to be overstated.
B)the net income for the period to be understated.
C)the assets to be overstated.
D)the liabilities to be understated.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Purchases and Cash Payments
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/70161
Sample Questions
Q1) Which of the following transactions will cause one asset to be debited and another to be credited when the periodic inventory system is in use?
A)Purchased merchandise on account
B)Purchased merchandise for cash.
C)Purchased office supplies for cash
D)Purchased office supplies on account
Q2) A purchase discount correctly taken was debited to Purchases at the time the entry was recorded. This error will cause:
A)net income to be overstated.
B)net income to be understated.
C)net income to not be affected.
D)total assets to be overstated.
Q3) The Purchases Discount account normally has a debit balance and is a contra-cost account.
A)True
B)False
Q4) The seller's sales invoice is the buyer's purchase invoice.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Preparing a Worksheet for a Merchandise Company
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70160
Sample Questions
Q1) Sales would be found on the worksheet in the:
A)income statement debit column.
B)income statement credit column.
C)balance sheet debit column.
D)balance sheet credit column.
Q2) The adjustment for salaries is necessary:
A)because the employer did not have enough cash to write the paychecks.
B)to recognize the revenue in the period earned.
C)to recognize the expense in the period incurred.
D)None of the above answers are correct.
Q3) The beginning inventory is assumed to be sold; therefore, it is added to cost of goods sold.
A)True
B)False
Q4) Indicate the financial statement(s)on which you would find the following items:
a)Cost of goods sold
b)Freight-In
c)Ending Inventory
d)Beginning Inventory
e)Sales Discount
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Completion of the Accounting Cycle for a Merchandise Company
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70159
Sample Questions
Q1) An item that can be converted into cash or used up during the normal operating cycle is:
A)a current asset.
B)Plant and Equipment.
C)a current liability.
D)a long-term liability.
Q2) Which of the following could be recorded as a reversing entry?
A)Depreciation of building
B)Accrual of interest expense
C)Allocation of prepaid rent in the current period
D)Correction of an error
Q3) In closing entries, the Income Summary account is closed to the Capital account after Withdrawals.
A)True
B)False
Q4) The ending merchandise inventory was overstated. This error would cause:
A)net income to be understated.
B)assets to be understated.
C)net income to be overstated.
D)expense to be overstated.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Accounting for Bad Debts
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/70158
Sample Questions
Q1) The adjusting entry for uncollectibles is based on an estimate.
A)True
B)False
Q2) The normal balance of the Allowance for Doubtful Accounts account is a debit.
A)True
B)False
Q3) Evaluate the differences of the effect on the financial statements between the income statement approach and the balance sheet approach for estimating bad debts expense on the financial statement presentation.
Q4) The two methods of accounting for uncollectible receivables are the allowance method and the:
A)cost method.
B)interest method.
C)direct write-off method.
D)equity method.
Q5) Wrote off an account using the allowance method.
Debit account ________ Credit account ________
Q6) Increase the allowance for the estimated bad debts using the percentage of receivables.
Debit account ________ Credit account ________
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Notes Receivable and Notes Payable
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/70157
Sample Questions
Q1) Calculate the simple interest and maturity value for the following:
a)$15,000, 10%, 2 1/2 years
b)$ 3,800, 7%, 7 months
c)$ 8,400, 14%, 90 days
Q2) The maturity date for a 66-day note dated June 29 is:
A)September 1.
B)September 2.
C)September 3.
D)August 31.
Q3) On March 15, Ben Jones negotiated a $25,000 bank loan for 270 days at an interest rate of 8%.
Required (show your calculations):
a)Determine the due date of the note.
b)Calculate the amount of interest charged by the bank.
c)Calculate the maturity value of the note.
Q4) To obtain an extension of time for the payment of an account, a customer may issue a note for any portion of the amount due.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Accounting for Merchandise Inventory
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70156
Sample Questions
Q1) The inventory method that matches old costs with current selling prices is:
A)LIFO.
B)FIFO.
C)weighted-average.
D)specific invoice.
Q2) An incorrect inventory figure will affect only the income statement.
A)True
B)False
Q3) Sold merchandise on account. - Perpetual Debit ________ & ________ Credit ________ & ________
Q4) Inventory purchases are entered in the Merchandise Inventory account at the expected sales price amount.
A)True
B)False
Q5) In a perpetual inventory system, the Merchandise Inventory account is updated: A)at the end of the accounting period.
B)once each month.
C)when merchandise is purchased.
D)The account never needs updating.
Q6) Title passes immediately to the buyer under FOB ________.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Accounting for Property, Plant, Equipment, and Intangible Assets
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/70155
Sample Questions
Q1) Lacy purchased equipment for $77,000 on January 1. Its residual value is $5,000 with a useful life of 9 years. The amount of depreciation expense in the first year under the straight-line method is:
A)$8,556.
B)$8,000.
C)$16,940.
D)$15,840.
Q2) A budgeted item such as a building is listed as a ________.
Q3) If an asset is being sold or exchanged, the gain or loss is always computed by comparing the:
A)market value and cost.
B)book value and salvage value.
C)market value and salvage value.
D)market value and book value.
Q4) Patents, copyrights, and franchises are intangible assets with the same number of years of useful life.
A)True
B)False
Page 18
Q5) Two depreciation methods that ignore the salvage value are ________ and ________.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Partnership
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/70154
Sample Questions
Q1) Partners Ron and Sandra have $3,000 capital balances and share income and losses in a 2:1 ratio, respectively. Cash equals $1,000, noncash assets are $10,000, and liabilities are $5,000. If all the noncash assets are sold for $5,500, and each partner agrees to make up any capital deficits with personal cash contributions, Sandra eventually will receive cash of:
A)$0.
B)$1,000.
C)$1,500.
D)$2,000.
Q2) The last step in a partnership liquidation is to divide any remaining proceeds between and among the partners.
A)True
B)False
Q3) A partnership is defined by the Uniform Partnership Act.
A)True
B)False
Q4) Able accepted Baker into the partnership with an investment of cash, inventory, and store equipment, including accumulated depreciation.
Debit ________ & ________ & ________ Credit ________ & ________ &
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Corporations: Organizations and Stock
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/70153
Sample Questions
Q1) When stock is exchanged for non-cash assets:
A)debit the asset for prior book value; credit Common Stock for cash received.
B)debit assets for market value; credit Common Stock for par value and, if needed,
Paid-in Capital in Excess of Par.
C)debit assets for market value; credit Common Stock for market value.
D)debit assets for par value; credit Common Stock for par value.
Q2) Purchased machinery for cash.
Debit ________ & ________ & ________
&
Q3) Stockholders pay federal income tax on their stock dividends. A)True B)False
Q4) Birch Company issued 200 shares of common stock with a par value of $12 per share in exchange for equipment with a fair market value of $3,000. Record the journal entry for the stock issuance.
Q5) Describe a stock subscription plan.
Q6) Sold common stock at a price above the par value.
Debit
Page 20
Q7) Double taxation is said to be a disadvantage of a corporation. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 19: Corporations: Stock Values, Dividends, Treasury
Stocks, and Retained Earnings
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/70152
Sample Questions
Q1) If treasury stock is sold for less than cost, the entry to record the transaction would include a:
A)debit to Treasury Stock.
B)credit to Treasury Stock.
C)debit to Common Stock.
D)None of these answers are correct.
Q2) The Tiger Football Corporation has 7,500 shares of common stock issued and outstanding. The board of directors declared a $2.00 per share cash dividend on January 9, payable on March 9, to stockholders of record on February 9. Prepare the appropriate journal entries.
Q3) Which of the following dividend dates does not get a formal journal entry?
A)Date of payment
B)Date of declaration
C)Date of record
D)All receive formal journal entries.
Q4) The price at which shares are bought and sold on the open market is called:
A)book value.
B)dividend value.
C)market value.
D)redemption value.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Corporations and Bonds Payable
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/70150
Sample Questions
Q1) Bonds payable issued with collateral are called:
A)debenture bonds.
B)serial bonds.
C)callable bonds.
D)secured bonds.
Q2) A special type of long-term interest-bearing note payable issued by a corporation to raise capital is called a:
A)short-term note payable.
B)bond payable.
C)stock issue.
D)treasury stock issue.
Q3) When the total amount of a bond issue matures at a certain date at which time the bondholder can convert into shares of stock, the bonds are called convertible bonds.
A)True
B)False
Q4) Paid the bond holders the amount due, face value plus accrued interest, using the sinking fund.
Debit ________ & ________ & ________ Credit ________ & ________ &
Q5) A premium bond's ________ decreases over time until it reaches face value.
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/70149
Sample Questions
Q1) If equipment is sold for $50,000, it is shown in the financing activities section.
A)True
B)False
Q2) The accuracy of the statement of cash flows, regardless of method used, can be verified by computing the change in the balance of:
A)cash.
B)equity.
C)revenue.
D)liabilities.
Q3) Cash generated from operating activities may be computed by using:
A)the indirect method.
B)the direct method.
C)either the direct or indirect method.
D)the combination method.
Q4) Which of the following is a cash outflow from a financing activity?
A)A purchase inventory
B)A purchase of treasury stock
C)A payment to buy property
D)A loan made to a third party
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 22: Analyzing Financial Statements
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/70148
Sample Questions
Q1) If Rick's sales decreased from $90,000 (year 1)to $45,000 (year 2)and its cost of goods sold decreased from $30,000 (year 1)to $20,000 (year 2), then vertical analysis based on sales would show the following decreases for cost of goods sold for the two periods:
A)33.33% and 44.44%.
B)44.44% and 33.33%.
C)300% and 225%.
D)None of the above.
Q2) The current ratio is:
A)quick assets divided by current liabilities.
B)assets divided by liabilities.
C)current assets divided by current liabilities.
D)net sales divided by current liabilities.
Q3) Common-size statements deal with the percentage of change in a certain item over several years.
A)True
B)False
Q4) The acid test ratio is usually higher than the current ratio. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 23: The Voucher System
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/70147
Sample Questions
Q1) Paid voucher #422, payment was within the discount period.
Debit ________ & ________ & ________ Credit ________ & ________ &
Q2) To maintain good internal control procedures, the person filing a purchase requisition should never approve the payment.
A)True
B)False
Q3) Martin Corporation used the gross method of recording purchases. A purchase of $5,600, 3/10, n30 would be recorded as:
A)debit Purchases
B)debit Purchases
$5,600; credit Accounts Payable $5,600.
$5,600; credit Vouchers Payable $5,600.
C)debit Purchases $5,432; credit Accounts Payable $5,432.
D)debit Purchases $5,432; credit Vouchers Payable $5,432.
Q4) Vouchers Payable is a liability account on the balance sheet.
A)True
B)False
Q5) In a voucher system, a schedule of vouchers payable is essentially the same as a schedule of accounts payable.
A)True
B)False
Page 26
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Departmental Accounting
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70146
Sample Questions
Q1) When preparing an income statement showing departmental contribution margin:
A)indirect expenses are combined with direct expenses.
B)indirect departmental expenses are added to contribution margin.
C)direct expenses are subtracted from contribution margin on sales.
D)None of these answers are correct.
Q2) Of two departments, the men's department has 8,000 square feet and the women's department has 22,000 square feet. Depreciation is divided by square footage. If total depreciation is $50,000, the total amount allocated to the men's department would be approximately $13,333.
A)True
B)False
Q3) The administrative department of a mall is a(n):
A)cost center.
B)profit center.
C)investment center.
D)revenue center.
Q4) The data processing department of a tax firm would be a profit center.
A)True
B)False
Q5) Explain the difference between a "cost center" and a "profit center."
Page 27
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Manufacturing Accounting
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/70145
Sample Questions
Q1) What inventories are included in determining the cost of goods sold?
A)Beginning and ending finished goods
B)Beginning and ending raw materials
C)Beginning and ending work-in-process
D)None of these answers are correct.
Q2) What inventories are included in determining total manufacturing costs?
A)Beginning and ending finished goods
B)Beginning and ending raw materials
C)Beginning and ending work-in-process
D)None of the above answers is correct.
Q3) Issued raw materials to production.
Debit ________ & ________ & ________ Credit ________ & ________ &
Q4) The overhead application rate may be based on:
A)machine hours.
B)direct labor hours.
C)direct labor dollars.
D)All of these answers are correct.
Q5) All expenses are listed on the income statement of a manufacturer.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28