Name Date Section

CHAPTER 2
TEN-MINUTE QUIZ

Circle the letter of the best response.

1. Which of the following is true? A OE+L

=

A. Owners’ Equity - Assets = Liabilities 2

LA OE
B. Assets – Owners’ Equity = Liabilities
= -

-> -

C. Assets + Liabilities = Owners’ Equity

D. Liabilities = Owners’ Equity + Assets

2. G. Harrison Inc experienced a decrease in total assets of $2,000 during the current year. During
the same year, total liabilities decreased $6,000. If dividends for the year were $10,000 and the
owners made no additional investment, how much was net income?
- A. $14,000 A 0EFL
=

B. $6,000 A 2000
(0E 10.000) +(L 6.000)
-

C. $18,000
= -

A
D. $2,000 2000 OEtnet income + L 16.000
-
=

netinzome
-

re-exp A 0E + 1 14.000 14.000

3. -> is true?
Which of the following statements
- +
=

A. The income statement reports all changes in assets, liabilities, and stockholders’ equity of
the business during the period. X
B. Revenues and expenses are reported only on the balance sheet. X
C. The statement of cash flows reports cash flows from three types of business activities--
cash receipts, cash payments, and investing. ???
- D. r On the statement of retained earnings, the net income for the period is added to the
beginning balance of retained earnings. RE REO + het income- dividends
=

Table 2-1
The following information is taken from the accounting records after the first period of operation
Accounts payable $ 9 Service revenue 38
Cash 25 Equipment 10
Common stock 200 Retained earnings (ending balance) 0?

S
Dividends 15 Accounts receivable 4
Land 100 Office supplies 5 se va a

Utilities expense 2 Salary expense 8 sacar de

la diferencia
Cash receipts: Cash payments:
cast
Collections from customers 34 Acquisition of land 60 en el

Issuance of stock to owners 70 Dividends 15

To suppliers 6
Sale of equipment 5

4. Total assets are: 25 100

+

10
+ +
4 5 + =

144 RE=receipts
-

payments
A. $150.
RE
= 104 86 18
=

B. $181.
-

- C. $144.
D. $158.

1-1
 38-2-8 28
<rev-exp
= =

5. Net income is:

-
A. $28.
B. $13.
C. $120.
D. $38.
in Balance sheet
OE
6. On which financial statement can the ending balance in retained earnings be found?
r A. Balance sheet
B. Income statement
V
C. Statement of retained earnings
I D. Both A and C

1-2
Name Date Section

CHAPTER 3
TEN-MINUTE QUIZ

Circle the letter of the best response.

1. Which of these is (are) an example of an asset account?
A. Service Revenue -> netincome rev-exD
=

B. Dividends -> RE REO +netinome- dividends

=

- C. Accounts Receivable
D. All of the above are assets. X
acc. receivable
->

2. Thomas Company received $1,200 on account. The effect of this transaction on Thomas’
accounting equation is to: debit credit
A. decrease liabilities and increase stockholders’ equity.
B. increase assets and decrease liabilities. ↑A ↑rev 48E =

C. have no effect on total assets.

I D. increase assets and increase stockholders’ equity.

3. Which of these statements is false? debit credit

I
A. Increases in liabilities and decreases in revenues are recorded with a debit.
↑A NA
B. v Increases in assets and decreases in stockholders’ equity are recorded with a debit.
C. v Increases in both assets and expenses are recorded with a debit. ↓h ↑L
D. v Decreases in assets and increases in liabilities are recorded with a credit. ↓ OF OE
-> viabilitie Acredit Judebit EXP rev
4. Note Payable has a normal beginning balance of $40,200. During the period, new borrowings
total $100,000 and payments on loans total $20,600. Determine the correct ending balance in
Note Payable.
A. $39,200, debit
note
-
payable

⑱1008
I B. $119,600, credit
C. $39,200, credit
D. None of the above

5. Which of these statements is correct?

A. ~ The account is a basic summary device used in accounting. e ubro mayor

B. r A business transaction is recorded first in the journal and then posted to the ledger.
C. In the journal entry, all accounts that are increased are listed first and then all accounts
that are decreased are listed next. X
- D. Both A and B are correct.

6. Which of these accounts has a normal debit balance?

A. r
Utility Expense
r debit credit
B. Dividends
C. Service Revenue ↑ exp ↑
rev
- D. Both A and B dOE
dividends=
4

2-1
 s. o

no- x
.

error correct

7. The July 31 trial balance reports a debit balance of $5,000 for Cash. During the month, one entry
for $40 had been posted in error as a credit to Cash. What is the correct balance of Cash at July
31?
A. $5,000
-> B. $5,040
C. $4,960
D. Cannot determine from the information given
desembolso
, gasto
8. The beginning Cash account balance is $38,700. During the period, cash disbursements totaled
$144,600. If ending Cash is $51,200, then cash receipts must have been:
A. $105,900.

an.800/30700
B. $234,500. +x-14600:sie
C. $132,100.
X 157, 100
D. $157,100.
=

->

9. Use the following selected information for the Perriman Company to calculate the correct
credit column total for a trial balance:
debit credit
Accounts receivable A =

$ 27,200
Accounts payable =L 15,900 A *
↑L
Building A =
359,600 &XP
↑OE
Cash A =
55,600
Common stock OE =

155,000 rev

Dividends NOE
=>
debit =

4,800
Insurance expense OE debit =>
1,800
=

Retained earnings OE => 133,800

Salary expense NOE debil=> 52,500
=

credit 15.900 155.000 +

Salary payable 3,600
=
+

Service revenue ROE= =>

credit 193,200 133.500 3600 193.100 +
+
=

A. $365,600 · comprobación: =>

501.500 E
B. $304,700 debit 27.200 359600 +5S600
=
+

↑
- C. $501,500 +

4800 1800 +S2.500 + =

D. $506,300
S01.500
=> -siquieres comprobar
el debit deberic
10. The journal entry to record the performance of services on account for $1,200 is: dar lo mismo
A. Accounts Payable 1,200 ↓

1
Service Revenue 1,200
el trial balance
B. Accounts Receivable 1,200
-
debe estar iqualado.
Service Revenue 1,200
C. Cash 1,200
Service Revenue 1,200
D. Service Revenue 1,200
Accounts Payable 1,200

debit credit
1.200
service rev

acc receivable 1.200

2-2
 Name Date Section

CHAPTER 4
TEN-MINUTE QUIZ

Circle the letter of the best response.

1. The Smallwood Corporation began operations on January 1, 20X5. During 20X5, Smallwood
collected $92,000 for management services; $12,000 of the amount collected was from a
contract to provide management services for one year beginning November 1, 20X5. An
additional $20,000 of management services had been earned but not collected by year end.
The amount of revenue that should be reported for 20X5 under the cash basis and accrual
basis is: I wandose recibed cash, wando ocurre el gasto, rev
Cash Basis Accrual Basis cash
A. v
$92,000 $80,000 92.000
B. $80,000 $100,000
C. $100,000 $112,000 accrual 12.000/12 1.000 per
=month

I D. V $92,000 ~ $102,000 20.000

inov-31de=2 mouths
50.000

2. Which of the following statements is false? -880

creo que esa es la
- A. The time-period concept requires companies to prepare financial statements at least
Falsa pero niidea quarterly. based on the
-> accrual principle
B. ~ According to the revenue principle, revenue should be recorded when a product or
service has been delivered to the customer.
C. ??? When possible, expenses that can be linked to a specific revenue should be deducted
from revenue in the same period that the revenue is recorded.
D. ??? The time-period concept, the revenue principle, and the matching principle all
support the practice of preparing adjusting entries.

3. The Armstead Company has $1,800 worth of office supplies on hand at the beginning of the
year. Purchases of office supplies totaled $4,000 during the year. A year-end inventory
revealed $2,100 worth of office supplies still on hand. Which of the following is the correct
adjusting entry for supplies?

supi
A. Supplies 2,100

go
ae
Cash 2,100
B. Supplies Expense 5,800
Supplies 5,800
C. Supplies Expense debit 3,700
.
-

Supplies ↓ A credit
=
3,700
D. None of the above is the correct adjusting entry.
-> alreadypaid= prepaid insurance
4. On November 1, 20X5, the Jernigan Company paid $4,800 for a one-year insurance policy.
On December 31, 20x5, the adjusting entry would include: nor1-dec 31= 2 months

A. a debit to Insurance Expense, $4,800.

40 400, month
4800 year
B. a credit to Insurance Payable, $800.
-
=

I C. a credit to Prepaid Insurance, $800.

D. a debit to Insurance Expense, $4,000. 2 month 800 E =

debit credit

insurance
800
exD

prepard 800
Activod =

insurance
 debit credit
RE
xxx

I
rev
XXX

closing entries
- RE x XX

5. Which of these could not be a closing entry? ex

XXX

- A. Salary Expense XX
2 XX
->

Retained Earnings <E *xXX RE XXX

B. v Retained Earnings XX dividends

xxx
Dividends XX
C. v Service Revenue XX
Retained Earnings XX
D. All of the above could be a closing entry.
6. What type of account is Unearned Revenue (asset, liability, stockholders’ equity, revenue, or
expense) and what is its normal balance, respectively? unearnedrew liability:compromiso
=

A. Asset, debit ↓
dar servicio
a

B. Expense, debit 4 L credit =

-C. Liability, credit

D. Revenue, credit
gasto
*
que ha ocurrido

7. Which of the following transactions is considered an accrued expense?

I. Salaries that employees have earned but not received
X II. Management fees received in advance
X III. Newspaper advertising that has been purchased but has not yet appeared in the
e

newspaper
- A. I only C. III only
B. II only D. Both I and II

8. Which of the following accounts is not considered a current asset?

A. Accounts Receivable C. Inventory
- B. Equipment D. Prepaid Rent

9. Which is the following accounts is not considered a current liability?

A. Accounts Payable
B. Accrued Interest Payable
-> C. Mortgage Payable
D.
E Unearned Subscription Revenue
hipoteca