08 Aug What is the balance of the supplies account

1/ Wolfe & Associates purchased $400 of office supplies on account and treated the supplies as a prepaid expense. The journal entry would require a:

O A. debit to Office Supplies Expense and a credit to Office Supplies.

OB. debit to Office Supplies and a credit to Accounts Payable.

O C. debit to Office Supplies Expense and a credit to Cash.

D. debit to Office Supplies and a credit to Cash..

2/ Given the following T- Account information, what is the balance of the supplies account?

Supplies 123

1/5

230

1/19 115

470

OA. $115 credit balance

OB. $585 debit balance

O C. $700 debit balance

3/ Given the following T- Account information, what is the balance of the supplies account?

OA. $115 credit balance

OB. $585 debit balance

O c. $700 debit balance

OD. $585 credit balance

4/ Austin borrowed money for his business from a local bank. What accounts will be affected?

OA. Accounts Payable and Revenue

OB. Cash and Accounts Payable

O C. Cash and Notes Payable

OD. Accounts Receivable and Revenue

5/ Recording the purchase of supplies in a prepaid account would be an example of a(n):

O A. deferred expense.

OB. deferred revenue.

O C. accrued expense.

OD. accrued revenue.

6/ Dividends paid and net losses are:

OA. subtractions from net income..

OB. additions to Retained Earnings.

O C. subtractions from Retained Earnings.

OD. additions to net income.

7/ Which of the following is NOT a revenue account?

OA. Fees Earned

OB. Professional Fees

OC. Salaries

OD. Sales

8/ The account “Accounts Receivable” began with a zero balance and then had the following changes: increase of $700, decrease of $300, increase of $325 and increase of $150. The final balance is a:

A. debit balance of $1,475.

OB. credit balance of $875.

O C. debit balance of $875.

OD. credit balance of $1,475.

9/ Austin owns an antique store. In his accounting records, he includes his car-which is solely used for personal purposes. Which principle is Austin violating?

O A. Personal property

B. Cost

O C. Business entity

OD. Reliability

10/Star Corporation has $88,000 in Liabilities and $113,000 in Stockholders’ Equity. What is the value of the company’s Assets?

OA. $113,000

O B. $25,000

O C. $201,000

OD. Not enough information provided

11/ Respectively, dividends, revenues, and expenses are:

A. all temporary accounts.

O B. all permanent accounts.

O C. temporary, permanent, and temporary accounts.

OD. temporary, temporary, and permanent accounts.

12/ Which of the following would start with a 1 in the chart of accounts?

OA. Depreciation Expense and Marketing Expense

O B. Receivables and Equipment

O C. Common Stock and Dividends

OD. Merchandise Sales and Rent Revenue

13/ GAAP tries to ensure that accounting information is:

OA. relevant, understandable, and reliable.

O B. reliable, historical, and accurate.

OC. accurate, relevant, and factual.

OD. understandable, realizable, and error-free.

14/ AT account has a $2,110 credit balance. This account is most likely:

OA. a dividend account.

OB. an asset.

OC. an expense.

OD. a stock account.

15/ During a recent week, incurred wages were $800. However, $480 of the wages had not been paid. Assume no other adjusting entries have been done this fiscal year. The adjusting entry for wages would be:

OA. debit Wages Expense, $480; credit Wages Payable, $480.

B. debit Wages Expense, $320; credit Wages Payable, $320.

O C. debit Wages Payable, $320; credit Wages Expense, $320.

OD. debit Wages Payable, $480; credit Wages Expense, $480.

16/ Which of the following is an advantage of a sole proprietorship?

OA. Ease of formation

O B. Limited liability of owner

O C. Ease of raising capital

D. Unlimited life

17/ The adjusted balance for Prepaid Insurance is a $5,424 debit. Insurance Expense for the period was $1,536. What was the balance for Prepaid Insurance on the unadjusted trial balance?

OA. $3,888 credit

B. $6,960 debit

OC. $3,888 debit

OD. $1,536 debit

18/ At the beginning of the period, the Supplies account has a balance of $600. At the end of the period, the balance in the account was $175. The adjusting entry would be:

OA. debit Supplies, $175; credit Supplies Expense, $175.

OB. debit Supplies Expense, $175; credit Supplies, $175.

O C. debit Supplies Expense, $425; credit Supplies, $425.

D. debit Supplies, $425; credit Supplies Expense, $425.

19/ Closing entries included debits to revenues for a total of $5,400, credits to expenses for a total of $3,100, and a credit to dividends for $1,000. The net change in Retained Earnings for the month was:

OA. $4,400.

O B. $2,300.

OC. $1,300.

OD. $3,100.

20/ Recording Social Security Taxes Payable would be an example of a(n):

O A. deferred expense.

OB. deferred revenue.

C. accrued expense.

D. accrued revenue.

21/ Caesar Company’s trial balance contains the following balances:

Cash $680

Accounts Receivable $580 Dividends $220

Common Stock $700

Accounts Payable $780

What is the amount of total credits for this trial balance?

A. $1,700

OB. $1,960

OC. $1,600

OD. $1,480

22/ The unadjusted trial balance for Prepaid Insurance shows a normal balance of $1,350. $500 of the balance was unexpired at year’s end. On the adjusted trial balance, the balance for Prepaid Insurance is a:

OA. $500 debit.

OB. $850 credit.

OC. $500 credit.

OD. $850 debit.

23/ What do we call amounts of money borrowed from lenders?

OA. Expense

B. Asset

O C. Liability

OD. Revenue

24/ The account “Notes Payable” began with a zero balance and then had the following changes: increase of $800, increase of $400, decrease of $550, and an increase of $260. The final balance is a:

A. credit balance of $910.

OB. debit balance of $1,460.

O C. debit balance of $910.

OD. credit balance of $550.

25/ GAAP is the acronym for generally accepted

principles.

A. auditing

B. accounting

OC. associated

OD. averaging