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Test Your Accounting Knowledge

Are you ready to challenge yourself with our comprehensive accounting quiz? This quiz covers essential concepts including sales transactions, accrual accounting, and inventory valuation among many others!

17 carefully crafted questions
Multiple choice and checkbox formats
Ideal for accounting students and professionals alike

17 Questions4 MinutesCreated by BalancingBooks101

Asume Apple Inc. sold Iphone for $100 million to a merchandiser on account with 2/10 , net 30 term. Based on past experience, the merchandiser have met the discount term so Apple recognized Net sales

Debit to cash 100 million/ Credit to AR 98 million and gain 2 million

Debit to cash 98 million and Sales discount 2 million/Credit to AR100 million

Debit to cash 100 million/ Credit to AR million and other revenue 2 million

Debit to cash 100 million/Credit to AR 100 million

Assume Apple inc sold i-phone for $100 million to a merchandiser on account with 2/10, net 30 term. Based on past experience, the merchandiser have NOT met the discount term, so Apple recognized gross sales. But the merchandiser does fulfills its obligation to pay within the discount period paying within 10 days. Record Apples journal entry when the merchandiser pays.

Debit to cas 98 million and sales discount 2 million/ credit to AR 100 million

Debit to cash 100 million/ Credit to AR 98 million and other revenue 2 million

Debit to cash 100 million/Credit to AR 98 million and gain 2 million

Debit to cash 100 million/ Credit to AR 100 million

Which balance sheet account shows the amount of accounts receivable that the business does NOT expect to collect?

Accounts Receivable

Unearned sales revenue

Allowance for uncollectible accounts (bad debts)

Uncollectible Account expense

The accounting equation can be stated as:

Assets+Stockholders'equity= Liabilities

Assets-Stockholders'equity+Liabilities=Zero

Assets=Liabilities-stockholders'equity

Assets=Liabilities+Stockholders'Equity

At the end of the current accounting period account balances were as follows: Cash of $29000,Account receivable of $44000, common stock of $18000, retained earnings of $12000. Liabilities for the period were:

$55000

$73000

$61000

$43000

Under accrual accounting, revenue is recorded:

When the services are performed, regardless of when the cash is received

Only if the cash is received at the same time the services are performed

At the end of every month

When the cash is received regardless of when the services are performed.

Which of the following is a TRUE statement regarding expense?

The expense recognition principle revenue in the same period in which the related revenues are earned.

The critical event for recording salary expense is the payment of cash

Expenses will never result in the creation of a liability account

Expense represent future benefit to the company

The book value of a plant asset is the

Cost of the asset

Cost of the asset less the accumulated depreciation

Accumulated depreciation less the cost of the asset

Balance in the accumulated depreciation account.

On december 1, 2015, carries day care receives $1500 in advance from an agreement to care for susans children for the months of december, january and february. Carries day care will make an adjusting entry on december 31, 2015 to:

Credit revenue for $1500

Credit revenue for $1000

Debit unearned revenue for $500

Credit prepaid revenue for $1000

Cost of goods sold= Beginning Inventory+ Purchased inventory- ending inventory where, beginning inventory is equal to ending inventory of the prior year

True

False

If inventory costs are rising and a company is using LIFO, large purchases of inventory nearr the end of the year will:

Cannot be determined

Not change the amount of income taxes paid

Decrease income taxes paid

Increase income taxes paid

Transaction1. Your company paid $3000000 for inventory of tshirts in which SF Glants, written as the winner of 2017 world series. Transaction 2. On its fiscal year end, it recognized the market value of the inventory as $2000000 because SF Giants lost the world series. Journal entry Transaction 1. Inventory 3000000/ cash 3000000 complete the journal entry of transaction 2.

Debit to COGS 1000000/Credit to Inventory 1000000

Debit to Inventory 1000000/Credit to COGS 1000000

Debit to COGS 1000000/ credit to sales 1000000

Debit to sales 1000000/credit to inventory 1000000

Test Your Accounting Knowledge

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