Principles of Accounting Exam Solutions
Course Introduction
Principles of Accounting introduces students to the fundamental concepts and techniques used in the accounting profession. The course covers the basics of recording, classifying, and summarizing financial transactions through the accounting cycle, including journal entries, ledgers, trial balances, and the preparation of financial statements. Emphasis is placed on understanding generally accepted accounting principles (GAAP), the importance of accurate financial reporting, and the ethical responsibilities of accountants. By the end of the course, students will have a solid foundation in accounting practices essential for business decision-making and further studies in the field.
Recommended Textbook
Computer Accounting with QuickBooks 2014 16th Edition by Donna Kay
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12 Chapters
332 Verified Questions
332 Flashcards
Source URL: https://quizplus.com/study-set/2616
Page 2
Chapter 1: Introduction to PFP
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/52096
Sample Questions
Q1) Which icon is used to add a document on your computer into QuickBooks?
A)Docs icon
B)Customer icon
C)Vendor icon
D)All of these
Answer: A
Q2) Management reports help identify:
A)Overdue customer accounts
B)Least profitable product
C)Most profitable product
D)All of these.
Answer: D
Q3) Which of the following file types identifies a QuickBooks Portable file?
A).QBM
B).QBB
C).QBX
D).QBW
Answer: A
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Chapter 2: Time Value of Money
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) To Re-sort the Chart of Accounts,first display the Chart of Accounts window,then:
A)Click on the Company heading bar
B)Click Account > Re-sort List
C)Click File > Sort
D)Right click Sort by Name
Answer: B
Q2) A Mortgage Payable account:
A)Has real estate as collateral
B)Is identical to a Loan Payable account
C)Is a type of Owner's Equity account
D)None of these
Answer: A
Q3) Which QuickBooks version is designed for mid-sized businesses?
A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions
Answer: D
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4
Chapter 3: Beginning the Planning Process
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) A Check Register is a record of all transactions affecting the __________.
A)Payroll account
B)Petty cash account
C)Checking account
D)Taxes payable account
Answer: C
Q2) A business checking account may be used for which of the following purchases?
A)Furniture for the office
B)Furniture for the owner's home
C)Utility bills for the owner
D)Owner's car payment
Answer: A
Q3) Documents that prove a transaction occurred are:
A)Source documents
B)Receipts
C)Paid invoices
D)All of these
Answer: D
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Chapter 4: Household Finance
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Credit sales are:
A)Recorded using a Create Invoices window
B)Recorded in a Credit Card Sales window
C)Recorded using the Create Sales Receipts window
D)None of these
Q2) Online billing allows you to:
A)Sell goods over the internet
B)Email invoices to customers
C)Receive online payments from customers
D)QuickBooks does not support online billing
Q3) Which report provides information to help in tracking accounts receivable?
A)Customers with Open Invoices
B)Accounts Receivable Aging Summary
C)Collections Reports
D)All of these
Q4) When a credit sale is recorded on an invoice,QuickBooks records:
A)An increase to Sales and a decrease to Accounts Receivable
B)An increase to Sales and an increase to Accounts Payable
C)An increase to Sales and an increase to Accounts Receivable
D)A decrease to Sales and a decrease to Accounts Payable
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Chapter 5: Financial Statements Analysis
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Which one of the following activities is not shown in the Vendor section of the Home page?
A)Write Checks
B)Pay Sales Taxes
C)Pay Bills
D)Purchase Orders
Q2) Sales taxes are:
A)Charged on sales to other retailers
B)Charged on retail sales to customers
C)Paid by the retailer on sales to customers
D)Paid by the vendor
Q3) Which of the following reports is typically used when counting inventory on hand?
A)Inventory Valuation Summary
B)Inventory Valuation Detail
C)Inventory Stock Status by Item
D)Physical Inventory Worksheet
Q4) What are Inventory Items,Non-inventory items,and Services? Provide examples.
Q5) Briefly describe how sales tax payments flow from customers to government entities.
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Chapter 6: Cash Flow Planning
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Which of the following activities and QuickBooks window used to record it is incorrect?
A)Enter time worked;Weekly Timesheet
B)Pay payroll liabilities;Write Check
C)Enter employee information;Employee List
D)Pay payroll taxes;Pay Liabilities
Q2) In QuickBooks,time data is listed on customer invoices using the:
A)Timesheet icon
B)Pay Sales Taxes icon
C)Pay Employees button
D)Time/Costs button
Q3) What is purpose of Federal Form 940?
A)Summarize the amount of unemployment tax paid and due by the company
B)Summarize the amount of federal income tax,Social Security,and Medicare withheld from employee paychecks for the quarter
C)Summarize the amount of federal income tax,Social Security,and Medicare withheld from employee paychecks for the year
D)Summarize of all your W-2 forms
Q4) Briefly describe what the "Time by Job" project reports tell management.
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Chapter 7: Debt
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) Adjusting entries should be made ______________ preparing financial statements.
A)Before
B)During
C)After
D)Never
Q2) Sales are recorded under cash basis accounting when:
A)The goods or services are provided regardless of whether the cash is collected from the customers
B)The bookkeeper has time to record the transactions
C)The cash is collected from the customers
D)The costs are incurred to earn the revenue
Q3) The Profit & Loss Statement lists:
A)Assets and Expenses
B)Assets and Liabilities
C)Net Income and Owner's Equity
D)Income and Expenses
Q4) Briefly explain 2 (two)differences between depreciation on a tax return and on a financial statement.
Q5) What is the difference between the cash basis and the accrual basis?
Page 9
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Chapter 8: Non Financial Investments
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) The Doing Business As name identifies a company for:
A)Bank accounts
B)Sales
C)Patents
D)None of these
Q2) The Vendor List contains information about:
A)Addresses,contacts and phone numbers of customers
B)Addresses,contacts and phone numbers for suppliers
C)Quantities and prices of items on hand
D)All of these
Q3) In the Easy Step Interview,you must identify:
A)Type of Industry
B)Company name
C)Company address
D)All of these
Q4) Which tax form would you select for a Subchapter S corporation?
A)Form 1120
B)Form 1120S
C)Form 1040
D)Form 1040S
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Chapter 9: Financial Investments
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) When customer payments are received and recorded,QuickBooks reduces the ________ balance.
A)Accounts Payable
B)Accounts Receivable
C)Undeposited Funds
D)Checking
Q2) QuickBooks automatically closes ________________ accounts to start each new year with a $0 balance in all _______________ accounts:
A)temporary;permanent
B)temporary;temporary
C)permanent;permanent
D)permanent;temporary
Q3) To record the payment of bills received from vendors,use the:
A)Pay Bills > Write Checks
B)Write Checks > Pay Bills
C)Enter Bills > Print Checks
D)Enter Bills > Pay Bills > Print Checks
Q4) Briefly explain how to record an owner's investment in their company.
Q5) Briefly explain the difference between a permanent and a temporary account.
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Chapter 10: Risk Management
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) A grocery store is an example of a _________ company.
A)Service
B)Retail
C)Manufacturing
D)Product-based business
Q2) When creating a new QuickBooks data file for an existing company,QuickBooks automatically offsets accounts payable balances with an entry to the:
A)Uncategorized Expenses account
B)Uncategorized Income account
C)Opening Balance Equity account
D)Capital Stock account
Q3) The Chart of Accounts:
A)Verifies the accounting system is in balance
B)Helps detect errors
C)Lists all accounts
D)All of these
Q4) Name 2 (two)differences between accounting for a service company and a retail shop.
Q5) Briefly explain how the supplies on hand account is adjusted at the end of the period.
12
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Chapter 11: Other Insurance
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) The employer must match which of the following taxes paid by an employee:
A)Medicare
B)Federal Unemployment
C)State Income Tax Withholding
D)The employer must match all of these
Q2) To view the payroll entry in the journal,go to Report Center > ________.
A)Customers and Jobs
B)Company and Financial
C)Accountant and Taxes
D)None of these
Q3) Payroll taxes a company must pay are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
Q4) You can obtain a copy of Circular E to use for payroll preparation from:
A)The Employee section of the Home page
B)The Employee Center of the Home page
C)The QuickBooks website
D)The IRS website
Page 13
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Chapter 12: Retirement Planning
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27 Flashcards
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Sample Questions
Q1) The audit trail lists:
A)All deleted transactions
B)All changes to transactions
C)User ID of person entering transactions
D)All of these
Q2) If the Estimates icon does not appear on your screen in QuickBooks,select:
A)Edit menu > Preferences > Jobs and Estimates > Company Preferences
B)Customer menu > Jobs > Estimates
C)Company menu > Estimates > Preferences
D)Company menu > Preferences > Estimates
Q3) To print an audit trail report:
A)Select Report menu > Company & Financials > Audit Trail
B)Select the Audit Trail icon in the Company Center
C)Select Report Center > Accountant & Taxes > Audit Trail
D)Select the Audit Trail report from the Company section of the Home page
Q4) QuickBooks Go Payment:
A)Is an Intuit app that connects you to your QuickBooks software.
B)Allows you to collect customer payments on the go.
C)To use: connects a credit card reader to your mobile device.
D)All of these
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