Introduction to Accounting Practice Questions - 4705 Verified Questions

Introduction to Accounting Practice Questions https://quizplus.com/study-set/3661 26 Chapters 4705 Verified Questions

Introduction to Accounting Practice Questions Course Introduction Introduction to Accounting provides students with a foundational understanding of the principles and practices involved in the recording, summarizing, and reporting of financial transactions. This course covers essential topics such as the accounting cycle, preparation of financial statements, basic bookkeeping, and the interpretation of financial information for decision-making purposes. Students will explore the roles of accounting in business and society, develop familiarity with commonly used terminology, and gain practical experience in applying accounting concepts to real-world scenarios. By the end of the course, learners will possess a solid groundwork for further study in accounting and related business disciplines.

Recommended Textbook Financial Managerial Accounting 14th Edition by Carl Warren

Available Study Resources on Quizplus 26 Chapters 4705 Verified Questions 4705 Flashcards Source URL: https://quizplus.com/study-set/3661

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Chapter 1: Introduction to Accounting and Business Available Study Resources on Quizplus for this Chatper 176 Verified Questions 176 Flashcards Source URL: https://quizplus.com/quiz/72876

Sample Questions Q1) Which of the following is not a certification for accountants? A) CIA B) CMA C) CISA D) IRS Answer: D Q2) No significant differences exist between the accounting standards issued by the FASB and the IASB. A)True B)False Answer: False Q3) Financial reports are used by A) management B) creditors C) investors D) all are correct Answer: D Q4) Prepare a statement of retained earnings for the current year ended March 31. Answer: 11ea8952_b5d8_f6d9_861b_658e86ca2d01_TB6238_00 To view all questions and flashcards with answers, click on the resource link above. Page 3

Chapter 2: Analyzing Transactions Available Study Resources on Quizplus for this Chatper 210 Verified Questions 210 Flashcards Source URL: https://quizplus.com/quiz/72868

Sample Questions Q1) What is the posting reference that will be found in the cash account? A) 11 B) 15 C) 3 D) 13 Answer: C Q2) A transaction that is recorded in the journal is called a journal entry. A)True B)False Answer: True Q3) To determine the balance in an account,always subtract credits from debits. A)True B)False Answer: False Q4) The post reference notation used in the journal is the page number. A)True B)False Answer: False Q5) Prepare a trial balance,listing the accounts in their proper order. Answer: 11ea8952_b5b6_efd3_861b_e994a5741833_TB6238_00 Page 4 To view all questions and flashcards with answers, click on the resource link above.

Chapter 3: The Adjusting Process Available Study Resources on Quizplus for this Chatper 183 Verified Questions 183 Flashcards Source URL: https://quizplus.com/quiz/72867

Sample Questions Q1) A company realizes that the last two days' revenue for the month was billed but not recorded.The adjusting entry on December 31 is a debit to Accounts Receivable and a credit to Fees Earned. A)True B)False Answer: True Q2) The matching principle requires expenses be recorded in the same period that the related revenue is recorded. A)True B)False Answer: True Q3) If there is a balance in the unearned subscriptions account after adjusting entries are made,it represents a(n) A) deferral B) accrual C) dividend D) revenue Answer: A To view all questions and flashcards with answers, click on the resource link above. Page 5

Chapter 4: Completing the Accounting Cycle Available Study Resources on Quizplus for this Chatper 168 Verified Questions 168 Flashcards Source URL: https://quizplus.com/quiz/72866

Sample Questions Q1) Which one of the steps below is not aided by the preparation of the end-of-period spreadsheet? A) preparing the adjusted trial balance B) posting to the general ledger C) preparing the financial statements D) preparing the closing entries Q2) A net loss is shown on the end-of-period spreadsheet in the credit columns of both the Income Statement columns and the Balance Sheet columns. A)True B)False Q3) A fiscal year that ends when business activities have reached their lowest point is called the natural business year. A)True B)False Q4) The dividends account is a temporary account. A)True B)False Q5) Describe a classified balance sheet. To view all questions and flashcards with answers, click on the resource link above. Page 6

Chapter 5: Accounting for Merchandising Businesses Available Study Resources on Quizplus for this Chatper 205 Verified Questions 205 Flashcards Source URL: https://quizplus.com/quiz/72865

Sample Questions Q1) The abbreviation FOB stands for "free on board." A)True B)False Q2) Under the perpetual inventory system,all purchases of merchandise are debited to the account A) Inventory B) Cost of Goods Sold C) Inventory Available for Sale D) Purchases Q3) Generally,the revenue account for a merchandising business is entitled A) Sales B) Fees Earned C) Gross Sales D) Gross Profit Q4) Purchased goods in transit,shipped FOB destination,should be excluded from ending inventory of the buyer. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 7

Chapter 6: Inventories Available Study Resources on Quizplus for this Chatper 161 Verified Questions 161 Flashcards Source URL: https://quizplus.com/quiz/72864

Sample Questions Q1) Which of the following will be the same amount regardless of the cost flow assumption adopted? A) number of items ordered B) gross profit C) cost of goods sold D) ending inventory Q2) Damaged merchandise that can be sold only at prices below cost should be valued at A) net realizable value B) LIFO C) FIFO D) average cost Q3) All of the following are documents used for inventory control except A) a petty cash voucher B) a vendor's invoice C) a receiving report D) a purchase order Q4) While taking a physical inventory,a company counts its inventory as less than the actual amount on hand.How will this error affect the income statement? To view all questions and flashcards with answers, click on the resource link above. Page 8

Chapter 7: Internal Control and Cash Available Study Resources on Quizplus for this Chatper 155 Verified Questions 155 Flashcards Source URL: https://quizplus.com/quiz/72863

Sample Questions Q1) The bank reconciles its statement to the company's records. A)True B)False Q2) For a strong internal control system over cash,it is important to have the duties related to cash receipts and cash payments divided among different employees. A)True B)False Q3) A voucher is a written authorization to make a cash payment. A)True B)False Q4) For efficiency of operations and better control over cash,a company should maintain only one bank account. A)True B)False Q5) Sarbanes-Oxley's purpose is to maintain public confidence and trust in the financial reporting of companies. A)True B)False Q6) List and define each of the five elements of internal control. Page 9 To view all questions and flashcards with answers, click on the resource link above.

Chapter 8: Receivables Available Study Resources on Quizplus for this Chatper 163 Verified Questions 163 Flashcards Source URL: https://quizplus.com/quiz/72862

Sample Questions Q1) An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400.If Allowance for Doubtful Accounts has a $1,300 debit balance,the adjustment to record the bad debt expense for the period will require a A) debit to Bad Debt Expense for $7,700 B) debit to Bad Debt Expense for $6,400 C) debit to Bad Debt expense for $5,100 D) credit to Allowance for Doubtful Accounts for $1,300 Q2) When does an account become uncollectible? A) when accounts receivable is converted into notes receivable B) when a discount is available on notes receivable C) there is no general rule for when an account becomes uncollectible D) at the end of the fiscal year Q3) The balance in Allowance for Doubtful Accounts at the end of the year includes the total of all accounts written off since the beginning of the year. A)True B)False Q4) The maturity value of a note receivable is always the same as its face value. A)True B)False Page 10 To view all questions and flashcards with answers, click on the resource link above.

Chapter 9: Long-Term Assets: Fixed and Intangible Available Study Resources on Quizplus for this Chatper 177 Verified Questions 177 Flashcards Source URL: https://quizplus.com/quiz/72861

Sample Questions Q1) The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is A) amortization B) depletion C) depreciation D) allocation Q2) A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 (fair market value)in a transaction with commercial substance.Assuming a trade-in allowance of $5,000,at what cost will the new equipment be recorded in the books? A) $54,000 B) $59,500 C) $60,000 D) $60,500 Q3) Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of 8 years.Determine

the

(a)depreciable

cost,(b)straight-line

rate,and

(c)annual

straight-line depreciation. To view all questions and flashcards with answers, click on the resource link above. Page 11

Chapter 10: Liabilities: Current,installment Notes,and Contingencies Available Study Resources on Quizplus for this Chatper 188 Verified Questions 188 Flashcards Source URL: https://quizplus.com/quiz/72886

Sample Questions Q1) If a company borrows money from a bank as an installment note,the interest portion of each annual payment will A) equal the interest rate on the note times the carrying amount of the note at the beginning of the period B) remain constant over the term of the note C) equal the interest rate on the note times the face amount D) increase over the term of the note Q2) Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities. A)True B)False Q3) Martinez Co.borrowed $50,000 on March 1 of the current year by signing a 60-day,9%,interest-bearing note.Assuming a 360-day year,when the note is paid on April 30,the entry to record the payment should include a A) debit to Interest Payable for $750 B) debit to Interest Expense for $750 C) credit to Cash for $50,000 D) credit to Cash for $54,500 Q4) List five internal controls that relate directly Page 12to payroll. To view all questions and flashcards with answers, click on the resource link above.

Chapter 11: Liabilities: Bonds Payable Available Study Resources on Quizplus for this Chatper 154 Verified Questions 154 Flashcards Source URL: https://quizplus.com/quiz/72885

Sample Questions Q1) Basil Corporation issues for cash $1,000,000 of 8%,10-year bonds,interest payable annually,at a time when the market rate of interest is 7%.The straight-line method is adopted for the amortization of bond discount or premium.Which of the following statements is true? A) The carrying amount increases from its amount at issuance date to $1,000,000 at maturity. B) The carrying amount decreases from its amount at issuance date to $1,000,000 at maturity. C) The amount of annual interest paid to bondholders increases over the 10-year life of the bonds. D) The amount of annual interest expense decreases as the bonds approach maturity. Q2) Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500.If the issuing corporation redeems the bonds at 98 1 / 2,what is the amount of gain or loss on redemption? A) $500 loss B) $15,500 loss C) $15,500 gain D) $500 gain To view all questions and flashcards with answers, click on the resource link above.

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Chapter 12: Corporations: Organization, stock Transactions, and Dividends Available Study Resources on Quizplus for this Chatper 193 Verified Questions 193 Flashcards Source URL: https://quizplus.com/quiz/72884

Sample Questions Q1) Earnings per share A) is the earnings available to common shareholders B) must be reported by public company C) helps compare companies of different sizes D) all of the answers are correct Q2) The initial stockholders of a newly formed corporation are called directors. A)True B)False Q3) Which of the following would appear as a prior period adjustment? A) loss resulting from the sale of fixed assets B) difference between the actual and estimated uncollectible accounts receivable C) error in the computation of depreciation expense in the preceding year D) loss from the restructuring of assets Q4) The reduction in the par or stated value of common stock,accompanied by the issuance of a proportionate number of additional shares,is called a stock split. A)True B)False Q5) The retained earnings statement may be combined with the income statement. Page 14 A)True B)False To view all questions and flashcards with answers, click on the resource link above.

Chapter 13: Statement of Cash Flows Available Study Resources on Quizplus for this Chatper 175 Verified Questions 175 Flashcards Source URL: https://quizplus.com/quiz/72883

Sample Questions Q1) Sales reported on the income statement were $372,000.The accounts receivable balance declined $4,500 over the year.The amount of cash received from customers was $367,500. A)True B)False Q2) Cash dividends of $45,000 were declared during the year.Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year.The amount of cash for the payment of dividends during the year is A) $50,000 B) $40,000 C) $55,000 D) $35,000 Q3) If a gain of $11,000 is realized in selling (for cash)office equipment having a book value of $55,000,the total amount reported in the cash flows from investing activities section of the statement of cash flows is A) $44,000 B) $11,000 C) $55,000 D) $66,000 To view all questions and flashcards with answers, click on the resource link above. Page 15

Chapter 14: Financial Statement Analysis Available Study Resources on Quizplus for this Chatper 189 Verified Questions 189 Flashcards Source URL: https://quizplus.com/quiz/72882

Sample Questions Q1) What are the dividends per common share for Diane Company? A) $20.00 B) $3.00 C) $0.67 D) $1.50 Q2) Short-term creditors are typically most interested in analyzing a company's A) marketability B) profitability C) operating results D) liquidity Q3) A balance sheet that displays only component percentages is a A) trend balance sheet B) comparative balance sheet C) condensed balance sheet D) common-sized balance sheet Q4) Leverage implies that a company A) contains debt financing B) contains equity financing C) has a high current ratio D) has a high earnings per share Page 16 To view all questions and flashcards with answers, click on the resource link above.

Chapter 15: Introduction to Managerial Accounting Available Study Resources on Quizplus for this Chatper 195 Verified Questions 195 Flashcards Source URL: https://quizplus.com/quiz/72881

Sample Questions Q1) Prime costs are the combination of direct materials and direct labor costs. A)True B)False Q2) Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost. A)True B)False Q3) Rent expense on a factory building would be treated as a(n) A) period cost B) product cost C) indirect cost D) direct material cost Q4) Which of the following would be least likely to be considered a managerial accounting report? A) a report to analyze potential efficiencies and savings for the purchase of new production equipment B) a schedule of total manufacturing costs incurred C) a statement of cost of goods manufactured D) a statement of stockholders' equity Q5) Differentiate between a line department and a staff department. Page 17 To view all questions and flashcards with answers, click on the resource link above.

Chapter 16: Job Order Costing Available Study Resources on Quizplus for this Chatper 185 Verified Questions 185 Flashcards Source URL: https://quizplus.com/quiz/72880

Sample Questions Q1) The amount of time spent by an employee in the factory is usually recorded on A) time tickets B) job order cost sheets C) employees' earnings records D) statement of owners' equity Q2) Cranston Company estimates the following overhead costs for the coming year: Equipment depreciation $160,000 Equipment maintenance 60,000 Supervisory salaries 40,000 Factory rent 100,000 Total $360,000 Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. (a)Calculate the predetermined overhead rate using direct labor costs as the allocation base. (b)Calculate the predetermined overhead rate using machine hours as the allocation base. Q3) List the accounts used in the cost flow for (a)a manufacturer and (b)a service provider. To view all questions and flashcards with answers, click on the resource link above. Page 18

Chapter 17: Process Cost Systems Available Study Resources on Quizplus for this Chatper 180 Verified Questions 180 Flashcards Source URL: https://quizplus.com/quiz/72879

Sample Questions Q1) The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs. A)True B)False Q2) Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete.The equivalent units totaled 30,200. A)True B)False Q3) Which of the following is not a characteristic of a process cost system? A) manufacturing costs are grouped by departments B) the system may use several work in process accounts C) the system measures costs for each completed job D) the system allocates costs between completed and partially completed units within a department Q4) Using the FIFO method,the number of equivalent units of conversion costs was A) 14,400 B) 14,380 C) 14,550 D) 15,850 To view all questions and flashcards with answers, click on the resource link above. Page 19

Chapter 18: Activity-Based Costing Available Study Resources on Quizplus for this Chatper 110 Verified Questions 110 Flashcards Source URL: https://quizplus.com/quiz/72878

Sample Questions Q1) What is the Assembly Department overhead rate per labor hour? A) $10.50 B) $19.50 C) $3.75 D) $4.38 Q2) Service companies can effectively use activity-based costing to compute product (service)costs. A)True B)False Q3) Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour. A)True B)False Q4) Activity cost pools are cost accumulations associated with a given activity. A)True B)False Q5) Calculate the cost of services for a highlight. 20 click on the resource link above. To view all questions and flashcards withPage answers,

Chapter 19: Cost-Volume-Profit Analysis Available Study Resources on Quizplus for this Chatper 421 Verified Questions 421 Flashcards Source URL: https://quizplus.com/quiz/72877

Sample Questions Q1) Rental charges of $40,000 per year plus $3 for each machine hour over 18,000 hours is an example of a fixed cost. A)True B)False Q2) A rental cost of $20,000 plus $0.70 per machine hour of use is an example of a mixed cost. A)True B)False Q3) Lee Industry sales are $525,000,variable costs are 53% of sales,and operating income is $19,000.What is the contribution margin ratio? A) 47% B) 26.5% C) 9.5% D) 53% Q4) For the past year,Pedi Company had fixed costs of $70,000,unit variable costs of $32,and a unit selling price of $40.For the coming year,no changes are expected in revenues and costs,except that property taxes are expected to increase by $10,000.Determine the break-even sales (units)for (a)the past year and (b)the coming year. To view all questions and flashcards with answers, click on the resource link above. Page 21

Chapter 20: Variable Costing for Management Analysis Available Study Resources on Quizplus for this Chatper 151 Verified Questions 151 Flashcards Source URL: https://quizplus.com/quiz/72875

Sample Questions Q1) Property taxes on a factory building would be included as part of the cost of products manufactured under the absorption costing concept. A)True B)False Q2) Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department. A)True B)False Q3) The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured: A) exceed units sold B) equal units sold C) are less than units sold D) are equal to or greater than units sold Q4) Under absorption costing,the cost of finished goods includes only direct materials,direct labor,and variable factory overhead. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 22

Chapter 21: Budgeting Available Study Resources on Quizplus for this Chatper 181 Verified Questions 181 Flashcards Source URL: https://quizplus.com/quiz/72874

Sample Questions Q1) The cash budget presents the expected inflow and outflow of cash for a specified period of time. A)True B)False Q2) If the expected sales volume for the current period is 8,000 units,the desired ending inventory is 1,400 units,and the beginning inventory is 1,200 units,the number of units set forth in the production budget,representing total production for the current period,is A) 10,600 B) 8,200 C) 66,000 D) 6,800 Q3) Total budgeted sales of both products for the year would be A) $42,000 B) $200,000 C) $264,000 D) $464,000 Q4) Budget preparation is best determined in a top-down managerial approach. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 23

Chapter 22: Evaluating Variances From Standard Costs Available Study Resources on Quizplus for this Chatper 130 Verified Questions 130 Flashcards Source URL: https://quizplus.com/quiz/72873

Sample Questions Q1) Standard costs are divided into which of the following components? A) variance standard and quantity standard B) materials standard and labor standard C) quality standard and quantity standard D) price standard and quantity standard Q2) If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable. A)True B)False Q3) The formula to compute the direct materials price variance is to calculate the difference between A) Actual costs - (Actual quantity × Standard price) B) Actual cost + Standard costs C) Actual cost - Standard costs D) (Actual quantity × Standard price)- Standard costs Q4) Standard costs should always be revised when they differ from actual costs. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 24

Chapter 23: Evaluating Decentralized Operations Available Study Resources on Quizplus for this Chatper 175 Verified Questions 175 Flashcards Source URL: https://quizplus.com/quiz/72872

Sample Questions Q1) Responsibility accounting reports that are given to lower level managers are usually very detailed,in turn,higher level managers will be given a summary report. A)True B)False Q2) Controllable expenses are those that can be influenced by the decisions of the profit center management. A)True B)False Q3) A manager in a cost center also has responsibility and authority over the revenues. A)True B)False Q4) The profit margin for Chicks is A) 25% B) 22% C) 15% D) 27.5% To view all questions and flashcards with answers, click on the resource link above.

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Chapter 24: Differential Analysis and Product Pricing Available Study Resources on Quizplus for this Chatper 173 Verified Questions 173 Flashcards Source URL: https://quizplus.com/quiz/72871

Sample Questions Q1) Manufacturers must conform to the Robinson-Patman Act,which prohibits price discrimination within the United States unless differences in prices can be justified by different costs of serving different customers. A)True B)False Q2) Assuming that Widgeon Co.can sell all of the products it can make,what is the maximum contribution margin it can earn per month? A) $49,000 B) $70,000 C) $56,000 D) $34,000 Q3) What pricing concept is used if all costs are considered and a fair markup is added to determine the selling price? A) total cost concept B) demand-based concept C) variable cost concept D) fixed cost concept To view all questions and flashcards with answers, click on the resource link above.

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Chapter 25: Capital Investment Analysis Available Study Resources on Quizplus for this Chatper 186 Verified Questions 186 Flashcards Source URL: https://quizplus.com/quiz/72870

Sample Questions Q1) In net present value analysis for a proposed capital investment,the expected future net cash flows are reduced to their present values. A)True B)False Q2) The average rate of return for this investment is A) 5% B) 10% C) 25% D) 15% Q3) A project has estimated annual net cash flows of $80,000.It is estimated to cost $600,000.Determine the cash payback period. Q4) Using the tables above,what is the present value of $3,000 (rounded to the nearest dollar)to be received at the end of each of the next 4 years,assuming an earnings rate of 12%? A) $10,815 B) $7,206 C) $9,111 D) $1,908 To view all questions and flashcards with answers, click on the resource link above. Page 27

Chapter 26: Lean Manufacturing and Activity Analysis Available Study Resources on Quizplus for this Chatper 121 Verified Questions 121 Flashcards Source URL: https://quizplus.com/quiz/72869

Sample Questions Q1) In a lean system,there are fewer transactions to record than there are in a traditional system. A)True B)False Q2) In a push manufacturing system,raw materials are released to production based on actual customer orders. A)True B)False Q3) Which of the following is characteristic of the traditional cost system? A) Many work in process account transactions. B) Reliance on financial performance measures. C) Many process control points. D) All of the above. Q4) From the above schedule of activity costs,determine the external failure costs. A) $39,000 B) $19,000 C) $12,000 D) $31,000 Q5) From the above schedule,calculate the (a)prevention and (b)appraisal costs. Page 28 Q6) From the above schedule,calculate the external failure costs. To view all questions and flashcards with answers, click on the resource link above.