Introduction to Accounting Test Preparation
Course Introduction
Introduction to Accounting provides students with a foundational understanding of the principles and practices of financial and managerial accounting. The course covers topics such as the accounting cycle, preparation and analysis of financial statements, basic accounting concepts, and the role of accounting in business decision-making.
Emphasizing the practical application of accounting information, students learn how to record business transactions, understand internal controls, and interpret financial data to support effective management. This course is essential for anyone seeking to comprehend how financial information is generated, recorded, and utilized in organizations.
Recommended Textbook Survey of Accounting 5th Edition by Carl S. Warren
Available Study Resources on Quizplus
15 Chapters 1711 Verified Questions 1711 Flashcards
Source URL: https://quizplus.com/study-set/3733 Page 2
Chapter 1: The Role of Accounting in Business
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/74463
Sample Questions
Q1) Rights to payments from customers are
A)liabilities.
B)prepaid expenses.
C)accounts receivable.
D)accounts payable.
Answer: C
Q2) Who has first preference to assets in case a business fails?
A)Stockholders
B)Long-term creditors
C)Customers
D)Employees
Answer: B
Q3) Manufacturing businesses change basic inputs into products that are sold to individual customers.
A)True
B)False
Answer: True
Q4) Name and describe the three forms of businesses and their advantages and disadvantages (if any).
Answer: 11ea8a6e_31e9_c152_96ef_b704583ed607_TB6232_00
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Basic Accounting Concepts
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/74462
Sample Questions
Q1) BNC Company earns revenues and as a result collects cash.Which of the following financial statement elements are increased?
A)Cash only
B)Stockholders' equity only
C)Liabilities
D)Cash and stockholders' equity
Answer: D
Q2) Fees earned and received in cash will increase operating activity cash flows as well as retained earnings.
A)True
B)False
Answer: True
Q3) Gibbs Company has $16,000 in Retained Earnings,$27,000 in Assets,and $5,000 in Liabilities.How much is in Common Stock?
A)$22,000
B)$16,000
C)$11,000
D)$6,000
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Accrual Accounting Concepts
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/74461
Sample Questions
Q1) Which asset is NOT depreciated as it usually does NOT lose its ability to provide service?
A)Prepaid insurance
B)Equipment
C)Building
D)Land
Answer: D
Q2) On April 1,Smart,Inc.paid $7,200 for an insurance premium on a three-year insurance policy.How does this transaction affect Smart's accounts?
A)Increase insurance expense and decrease cash by $7,200 each
B)Increase prepaid insurance and decrease cash by $7,200 each
C)Increase unearned insurance and decrease cash by $7,200 each
D)Increase prepaid insurance and decrease retained earnings by $7,200 each Answer: B
Q3) Under the accrual basis of accounting,net cash flows from operating activities on the statement of cash flows will normally be the same as net income.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Accounting for Merchandising Businesses
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/74460
Sample Questions
Q1) If merchandise costing $2,500,terms FOB destination,2/10,n/30,with prepaid transportation costs of $100,is paid within 10 days,the amount of the purchases discount is $48.
A)True
B)False
Q2) Office salaries,depreciation of office equipment,and office supplies are examples of what type of expense?
A)Selling expense
B)Miscellaneous expense
C)Administrative expense
D)Other expense
Q3) Gross profit is determined by subtracting the cost of merchandise sold from what?
A)The cost of merchandise purchased
B)Fees earned
C)Accounts receivable
D)Net sales
Q4) Purchase discounts reduce sales.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Sarbanes-Oxley,internal Control,and Cash
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/74459
Sample Questions
Q1) Bank customers are considered owners of the bank so the bank shows their accounts as an asset on the bank's records.
A)True
B)False
Q2) A voucher
A)is received from customers to explain the purpose of a payment.
B)is normally prepared in the Accounting Department.
C)system is used to control cash receipts.
D)system is an internal control procedure to verify that the assets in the records are the ones the company owns.
Q3) A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.
A)True B)False
Q4) Separating the responsibilities for purchasing,receiving,and paying for equipment is an example of the control procedure: separating operations,custody of assets,and accounting.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Receivables and Inventories
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/74458
Sample Questions
Q1) The term "inventory" indicates
A)merchandise held for sale in the normal course of business.
B)materials in the process of production or held for production.
C)both of these.
D)neither of these.
Q2) Of the three widely used inventory costing methods (FIFO,LIFO,and average),the FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.
A)True
B)False
Q3) During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of merchandise sold is A)FIFO.
B)average cost.
C)LIFO.
D)All methods will generate the same cost of merchandise sold.
Q4) The due date of a 60-day note dated July 10 is September 9.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Fixed Assets and Intangible Assets
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/74457
Sample Questions
Q1) A company acquired some land for $80,000 to construct a new office complex.Legal fees paid were $2,300,delinquent taxes assumed were $3,400,and $5,850 was paid to remove an old building from which salvaged materials sold for $1,950.What is the cost basis for the land?
A)$93,500
B)$91,550
C)$85,700
D)$89,600
Q2) If a capital expenditure is treated as a revenue expenditure,then
A)expenses are overstated and owners' equity is understated.
B)expenses are overstated and assets are overstated.
C)expenses are understated and owners' equity is overstated.
D)net income is overstated and owners' equity is understated.
Q3) Goodwill equals the purchase price of a company over the fair market value of its net assets.
A)True
B)False
Q4) Fixed assets may be shown at book value on the balance sheet.
A)True
B)False
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Liabilities and Stockholders Equity
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/74456
Sample Questions
Q1) If the market rate of interest is 8% and a corporation's bonds bear interest at 7%,the bonds will sell at a premium.
A)True
B)False
Q2) The declaration of a cash dividend decreases a corporation's stockholders' equity and decreases its assets.
A)True B)False
Q3) The par value of common stock is rarely equal to its market value on the date the stock is issued.
A)True B)False
Q4) The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.
A)True B)False
Q5) On April 1,10,000 shares of $20 par common stock were issued at $24.Illustrate the effects on the accounts and the financial statements.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/74455
Sample Questions
Q1) Interpreting financial analysis should be considered in light of conditions peculiar to the industry and the general economic conditions.
A)True
B)False
Q2) The relationship of 120 to 100 can be expressed as 1.2,1.2:1,or 120%.
A)True
B)False
Q3) Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis?
A)Ratio of fixed assets to long-term liabilities
B)Ratio of net sales to assets
C)Number of days' sales in receivables
D)Rate earned on stockholders' equity
Q4) The ratio computed by dividing current assets by current liabilities is the A)current ratio.
B)earnings ratio.
C)acid-test ratio.
D)quick ratio.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Accounting Systems for Manufacturing Businesses
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/74454
Sample Questions
Q1) The Cranford Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours.Year to date,the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.If the Crawford Company uses
A predetermined overhead rate based on machine hours for applying overhead,what is that overhead rate?
A)$80 per machine hour
B)$150 per machine hour
C)$75 per machine hour
D)$40 per machine hour
Q2) The recording of the jobs completed would increase
A)Factory Overhead.
B)Finished Goods.
C)Work in Process.
D)Cost of Goods Sold.
Q3) Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in cost accounting systems.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Cost Behavior and Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/74453
Sample Questions
Q1) If fixed costs are $850,000 and the unit contribution margin is $90,what amount of units must be sold in order to have a zero profit?
A)9,445
B)8,500
C)7,650
D)85,000
Q2) Which of the following statements is TRUE regarding fixed and variable costs?
A)Both costs are constant when considered on a per-unit basis.
B)Both costs are constant when considered on a total basis.
C)Fixed costs are fixed in total,and variable costs are fixed per unit.
D)Variable costs are fixed in total,and fixed costs vary in total.
Q3) Winston Co.manufactures office furniture.During the most productive month of the year,3,500 desks were manufactured at a total cost of $84,400.In its slowest month,the company made 1,100 desks at a cost of $46,000.Using the high-low method of cost estimation,total fixed costs are
A)$56,000.
B)$28,400.
C)$17,600.
D)$29,900.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Differential Analysis and Product Pricing
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/74452
Sample Questions
Q1) The markup percentage for the company's product is
A)21.0%.
B)25.4%.
C)15.7%.
D)24.0%.
Q2) The dollar amount of desired profit from the production and sale of the company's product is
A)$97,200.
B)$67,200.
C)$73,500.
D)$96,000.
Q3) What is the differential revenue from the acceptance of the offer?
A)$45,000
B)$40,000
C)$50,000
D)$60,000
Q4) Differential revenue is the amount of income that would result from the best available alternative for the proposed use of cash.
A)True
B)False
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Budgeting and Standard Cost Systems
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/74451
Sample Questions
Q1) If the expected sales volume for the current period is 22,000 units,the desired ending inventory is 800 units,and the beginning inventory is 500 units,the number of units set forth in the production budget,representing total production for the current period,is
A)21,700.
B)21,500.
C)22,300.
D)22,800.
Q2) If the standard to produce a given amount of product is 12,000 hours at a factory overhead rate of $5 ($3 fixed,$2 variable),actual variable factory overhead was $26,400,actual fixed factory overhead was $45,000,and 100% of productive capacity is 15,000 hours,the volume variance was $9,000 favorable.
A)True
B)False
Q3) The amount of the direct labor rate variance is
A)$4,440 unfavorable.
B)$4,500 favorable.
C)$4,440 favorable.
D)$4,500 unfavorable.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Performance Evaluation for Decentralized Operations
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/74450
Sample Questions
Q1) A centralized business organization is one in which all major planning and operating decisions are made by top management.
A)True
B)False
Q2) Investment turnover (as used in determining the rate of return on investment)focuses on the rate of profit earned on each sales dollar.
A)True
B)False
Q3) Two divisions of Crowson Company (Divisions X and Y)have the same profit margins.Division X's investment turnover is larger than that of Division Y (1.2 to 1.0).Income from operations for Division X is $50,000,and income from operations for Division Y is $38,000.Division X has a higher return on investment than Division Y by A)using income from operations as a performance measure.
B)comparing income from operations.
C)applying a negotiated price measure.
D)using its assets more efficiently in generating sales.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Capital Investment Analysis
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/74449
Sample Questions
Q1) The computations involved in the net present value method of analyzing capital investment proposals are more involved than those for the average rate of return method.
A)True
B)False
Q2) When evaluating a proposal by use of the net present value method,if there is an excess of present value over the amount to be invested,the rate of return on the proposal is more than the rate used in the analysis.
A)True
B)False
Q3) Which of the following provisions of the Internal Revenue Code can be used to reduce the amount of the income tax expense arising from capital investment projects?
A)Interest deduction
B)Depreciation deduction
C)Minimum tax provision
D)Charitable contributions
Q4) Internal rate of return is often called the payback rate of return.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17