English Accounting level 1 Test

1.

Under the perpetual inventory system, in addition to making the entry to record a sale, a company would

Make no additional entry until the end of the period.

Debit Cost of Goods Sold and credit Inventory.

Debit Cost of Goods Sold and credit Purchases.

Debit Inventory and credit Cost of Goods Sold.

2.

The Allowance for Doubtful Accounts is necessary because

Uncollected accounts that are written off must be accumulated in a separate account.

When recording Bad Debts Expense, it is not possible to predict specifically which accounts will not be collected.

Management should know how much in credit losses have occurred over the years.

A liability results when a credit sale is made.

3.

Which of the following financial statements is concerned with the financial position of an enterprise at a point in time?

Retained Earnings Statement.

Balance Sheet.

Income Statement.

Statement of Cash Flows.

4.

A company purchased land by issuing a note payable. What was the effect on the accounting equation?

Assets {increase} , Liabilities {increase} , Stockholders’ Equity - {0}

Assets {decrease} , Liabilities {0} , Stockholders’ Equity - {decrease}

Assets {decrease} , Liabilities {decrease} , Stockholders’ Equity - {0}

Assets {increase} , Liabilities {0} , Stockholders’ Equity - {increase}

5.

Cash was collected from a customer on account. Which accounts were debited and credited?

Debit [Accounts Receivable] Credit [Cash]

Debit [Cash] Credit [Service Revenue]

Debit [Cash] Credit [Accounts Receivable]

Debit [Cash] Credit [Accounts Payable]

6.

A company received cash and issued common stock. What was the effect on the accounting equation?

Assets {increase} , Liabilities {0} , Stockholders’ Equity - {increase}

Assets {decrease} , Liabilities {0} , Stockholders’ Equity - {decrease}

Assets {increase} , Liabilities {increase} , Stockholders’ Equity - {0}

Assets {decrease} , Liabilities {decrease} , Stockholders’ Equity - {0}

7.

A company sold equipment for SAR 100,000 , the equipment had cost SAR 300,000 and had accumulated depreciation of SAR 180,000. The company’s journal entry to record the sale of the equipment would include a

Credit to Sale of Equipment for SAR 100,000.

Credit to Equipment for SAR 120,000.

Debit to Equipment for SAR 300,000.

Debit to Loss on Sale of Equipment for SAR 20,000.

8.

The Supplies account had a SAR 360 debit balance at the end of the accounting period before adjustment for supplies used, and an inventory of SAR 80 worth of unused supplies were on hand. Which of the following is the required adjusting entry?

Debit Supplies SAR 280 and credit Supplies Expense SAR 280.

Debit Supplies Expense SAR 280 and credit Supplies SAR 280.

Debit Supplies $80 and credit Supplies Expense SAR 80.

Debit Supplies Expense SAR 80 and credit Supplies SAR 80.

9.

When a magazine company receives advance payment for a subscription, it

Debits Cash and credits Subscriptions Revenue.

Debits Cash and credits Unearned Subscriptions Revenue.

Debits Unearned Subscriptions Revenue and credits Cash.

Debits Prepaid Subscriptions and credits Cash.

10.

Which of the following should be classified as a current asset?

Accumulated Depreciation.

Accounts Receivable.

Franchises.

Land Held for Future Use.

محاكاة اقرار ضريبة القيمة المضافة

برنامج قيود اليومية واثرها علي القوائم المالية

تحميل ملفات الاكسل المهمة

محتوي اكيد يهمك

حاسبة القيمة المضافة

بمعلومية المبيعات قبل القيمة المضافة

بمعلومية المبيعات بعد القيمة المضافة

اكثر الفيديوهات مشاهدة

مقالات ذات صلة

انضم الي معلومة

اساسيات المحاسبة

القوائم المالية

مفاهيم الدخل

الاصول المتداولة

شروحات عامة

الضريبة المضافة