English Accounting level 1 Test

1.

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.

2.

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.

3.

Gross profit equals the difference between net sales and

Net Income.

Operating Expenses.

Cost of Goods Sold plus Operating Expenses.

Cost of Goods Sold.

4.

The inventory costing method that matches recent costs with recent revenues is

Last-in, First-out (LIFO).

First-in, First-out (FIFO).

Average Cost.

Specific Identification.

5.

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.

6.

The general ledger account for Accounts Receivable shows a debit balance of SAR 50,000. The Allowance for Doubtful Accounts has a credit balance of SAR 1,000. If management estimates that 5% of Accounts Receivable will prove uncollectible, Bad Debts Expense would be recorded for

SAR 1,500

SAR 2,540

SAR 2,500

SAR 3,500

7.

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]

8.

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.

9.

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}

10.

Which of the following is most likely to appear on the balance sheet as a current liability?

Bonds Payable.

Accumulated Depreciation.

Long-term Notes Payable.

Wages Payable.

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