Fundamentals of Accounting Test Bank
Course Introduction
Fundamentals of Accounting introduces students to the basic concepts, principles, and procedures of accounting essential for understanding financial records and reports. The course covers topics such as the accounting cycle, recording and classifying transactions, preparation of financial statements, and understanding the importance of accurate financial information in decision-making. Students will also develop skills in using accounting systems and gain a foundational understanding of how businesses track, analyze, and report on their financial activities in compliance with ethical and regulatory standards.
Recommended Textbook
College Accounting Chapters 1 9 22nd Edition by
Available Study Resources on Quizplus
10 Chapters
980 Verified Questions
980 Flashcards
Source URL: https://quizplus.com/study-set/3517
James A. Heintz
Page 2
Chapter 1: Introduction to Accounting
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/69855
Sample Questions
Q1) ____________________ design the accounting information system and focus on analyzing and interpreting information by studying the impact of alternative decisions.
Answer: Accountants
Q2) An internal auditor can achieve professional recognition in internal auditing by receiving which of the following certificates?
A) GAAP
B) CIA
C) CMA
D) CLU
Answer: B
Q3) Rules that businesses must follow when preparing financial statements are called ____________________.
Answer: generally accepted accounting principles
GAAP
Q4) ____________________ includes preparing various reports and financial statements and analyzing operating,investing,and financing decisions.
Answer: Financial accounting
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Analyzing Transactions: the Accounting Equation
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/69854
Sample Questions
Q1) ____________________ represent probable future benefits.
Answer: Assets
Q2) ____________________ represent the amount a business charges customers for products sold or services performed.
Answer: Revenues
Q3) Amounts owed to the business by its customers are called ____________________.
Answer: accounts receivable
Q4) A(n)____________________ is a reduction in owner's equity as a result of the owner taking cash or other assets out of the business for personal use.
Answer: withdrawal
Q5) Other terms used for owner's equity include net worth and capital. A)True B)False
Answer: True
Q6) The ____________________ reports the investments and withdrawals by the owner,the profits and losses generated through operations,and how they have affected the capital account.
Answer: statement of owner's equity
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Double-Entry Framework
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/69853
Sample Questions
Q1) Footings in T accounts
A) appear to the left of the amount columns.
B) are used for accounts with more than one debit or credit.
C) are only used in asset accounts.
D) are used for accounts with only one entry. Answer: B
Q2) The accounting equation must remain in balance.
A)True
B)False Answer: True
Q3) The trial balance is used in preparing financial statements.
A)True
B)False Answer: True
Q4) Owner's equity includes four types of accounts: Owner's Capital,Revenues,Expenses,and Owner's Drawing.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Journalizing and Posting Transactions
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/69852
Sample Questions
Q1) The ____________________ is used when a single line is drawn through the incorrect account title or amount and the correct information is written directly above the line.
Q2) The simplest form of journal is one with A) four columns.
B) three columns.
C) two columns.
D) one column.
Q3) Entering the account number in the Posting Reference column of the journal is the first step in the posting process.
A)True
B)False
Q4) The flow of data through the accounting information system includes analyzing transactions,journalizing,posting,and preparing a trial balance.
A)True
B)False
Q5) Journal entries requiring more than one debit and/or one credit are called
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Adjusting Entries and the Work Sheet
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/69851
Sample Questions
Q1) The matching principle offers the best measure of net income.
A)True
B)False
Q2) The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.
Q3) A contra-asset is deducted from the related asset on the balance sheet.
A)True
B)False
Q4) If the total of the Income Statement Credit column,before determining net income or net loss,exceeds the total of the Income Statement Debit column,the result is a net loss for the year.
A)True
B)False
Q5) When assets are recorded at original value,they are recorded under the A) historical cost principle. B) original principle.
C) current principle.
D) value principle.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Financial Statements and the Closing Process
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/69850
Sample Questions
Q1) To close an expense account with a debit balance,debit the account for its balance and credit the income summary account.
A)True
B)False
Q2) Obligations that are not expected to be paid within a year and do not require the use of current assets are known as ____________________.
Q3) Number in their proper order the following steps in the accounting cycle.
____a. Frepare a trial balance.
____b. Post to the general ledger accounts.
____c. Journalize and post the closing entries.
____d. Complete an end-of-period work sheet.
____e. Prepare a post-closing trial bal ance.
____f. Journalize and post the adjusting entries.
____g. Analyze source documents.
____h. Record the adjusting entries on a work sheet.
____i. Joumalize the transactions.
____j. Prepare the financial statements.
Q4) A(n)____________________ balance sheet shows the assets on the left and the liabilities and the owner's equity sections on the right.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Accounting for Cash
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/69849
Sample Questions
Q1) A receipt called a petty cash voucher should be prepared for every payment from the petty cash fund.
A)True
B)False
Q2) A check is a document ordering the depositor to pay cash from the bank's account.
A)True
B)False
Q3) The depositor who orders the bank to pay a certain amount of money is known as the drawee.
A)True
B)False
Q4) The petty cash fund should be replenished only at the end of each accounting period so that the accounts are brought up-to-date.
A)True
B)False
Q5) Posting must be done from the petty cash payments record.
A)True
B)False
Q6) A(n)____________________ contains a listing of all items being deposited.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Payroll Accounting: Employee Earnings and Deductions
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/69848
Sample Questions
Q1) ____________________ provides pensions and disability benefits.
Q2) With ____________________,the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.
Q3) Cameron Tiller is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 hours per week and double time for work on Sunday.Tiller's regular rate is $12 per hour.During the week ended March 15,he worked 9 hours each day from Monday through Friday,6 hours on Saturday,and 4 hours on Sunday.Tiller's total regular earnings for the week ended March 15 are
A) $110.
B) $216.
C) $480.
D) $430.
Q4) The Fair Labor Standards Act provides which of the following minimum rates to be paid to employees for all hours worked over 40 hours per week?
A) one and one-half times the regular rate
B) same rate as the regular rate
C) two and one-half times the regular rate
D) two times the regular rate
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Payroll Accounting: Employer Taxes and Reports
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/69847
Sample Questions
Q1) Mark Turney owns Creative Corners.He does his banking at United Federal Bank (UFB)in Tucson,Arizona.The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security,Medicare,and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee),$3,020; Medicare tax payable (employer and employee),$734; FUTA tax payable,$84; SUTA tax payable,$414; and Employees income tax payable,$4,622.Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15,20--.
Q2) Social Security,Medicare,FUTA,and SUTA taxes have separate liability accounts.
A)True
B)False
Q3) The ____________________ encourages employers to provide regular employment to workers.
Q4) The cost of workers' compensation insurance for the employer depends on all of the following EXCEPT
A) the number of employees.
B) the riskiness of the jobs the employees perform.
C) the company's accident history.
D) the amount of FICA,FUTA,and SUTA taxes due.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Module Accounting For A Professional Service
Business The Combination Journal
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/69846
Sample Questions
Q1) More time is required if a journal contains special columns for cash debits and cash credits.
A)True
B)False
Q2) Accounting for revenue when no entry of revenue is made in the accounts until cash is received for the services performed is called
A) matching basis revenue.
B) cash basis expense.
C) service basis accounting.
D) modified cash basis.
Q3) To record wages earned but not paid under the modified cash accounting method,
A) debit Wages Payable and credit Wages Expense.
B) debit Cash and credit Wages Expense.
C) debit Wages Expense and credit Wages Payable.
D) no entry is required.
Q4) If the owner has not made any additional investments during the period,the financial statements can be prepared directly from the work sheet.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12