General Accounting Knowledge MCQs

1. If you were looking at the balance sheet, what value would the inventory account be shown at?

2. Check all groups that are related to inventory control (check all that apply):

3. Who pays the shipping costs in a FOB destination situation?

4. If you were at a grocery store and saw an employee moving the oldest food items to the front and stocking the newer items in the back, what inventory cost flow assumption are they most likely using?

5. What financial statement would you request to view the cost of goods sold balance?

6. On the balance sheet, inventory is reported as a _____ (check all that apply).

7. For a for profit entity, assets = liabilities + _____.

8. An employee completes a _____ form to show their exemptions/dependents they need withheld for income tax purposes.

9. Sales analysis is beneficial for a __ entity.

10. The employer pays the ____ tax which is 0.06% taken from the first $7,000 of each employee's annual income.

11. Who contributes to FICA (check all that apply)?

12. __ is a list of the company's accounts, whether they contain a balance or not (check all that apply).

13. Typically, what is a not for profit entities main source of revenue?

14. If a company returned goods to their vendor, would accounts payable be debited or credited?

15. What is a general ledger?

16. Which is liability accounts? (check all that apply)

17. An employee completes a _____ form to verify their identity and employment eligibility.

18. Accounts receivable is often referred to as buying on _____ (check all that apply).

19. For a not for profit entity, the Statement of cash flows can be prepared using what method?

20. For a not for profit entity, what financial statement would you request to view their assets and liabilities?

21. For a not for profit entity, assets = liabilities + __.

22. What does FICA refer to (check all that apply)?

23. Check all subgroups that sales analysis could be broken down into (check all that apply):

24. What is the amount that an employee actually receives before taxes and all withholdings on their check referred to as (check all that apply)?

25. _____ is permitted financing for a not for profit entity.

26. Hourly paid employee's pay is usually referred to as _____.

27. An example of a court ordered withholding is ____ (check all that apply).

28. On the balance sheet, prepaid insurance could be reported as a _____ (check all that apply).

29. For a not for profit entity, what financial statement would you request to see to view their revenues and expenses?

30. What is the contra account related to accounts receivable?

31. At what point does accrual based accounting recognize revenue?

32. ___ insurance is a cost that the employer incurs to cover work-related injuries.

33. The amount of FICA that would be withheld in 2016 on an employee's salary of $45,000 would be _____ (rounded to the nearest dollar).

34. What is a common name used for suppliers?

35. What is the FICA percentage withheld from gross wages up to $118,500 for 2016?

36. Should the accounts payable balance be decreased by a credit or debit?

37. How many accounts can be affected in a single journal entry?

38. At what point does the buyer have ownership of the goods in a FOB destination situation (check all that apply)?

39. What type of balance can a contra account have?

40. What ratio would accounts payable be found in?

41. You would find the allowance for bad debt account on the __ (check all that apply).

42. What financial statement would you request to see if you wanted to look into a company’s revenues and expenses for a specific period of time?

43. When you issue an invoice that states '2/10, net 30' what period does the 10 stand for?

44. What discount amount would be received for an invoice for $5,000 that states “2/10, net 30” if you paid within 8 days?

45. What are the main objectives of using sales analysis? (check all that apply)

46. BYX sold and delivered $50,000 worth of goods to customer A, who agreed to Cash n/30 terms. The cost to manufacture the goods was $10,000. Which of the accounts will be increased as a result of this transaction? (check all that apply)

47. Home Refurbishing, Inc. provides a 25% trade discount on a list price of $5,000. Which of the following amounts is the correct way to record the sale?

48. BYX has a retail subsidiary that sells sporting goods equipment. On May 15th, BYX sporting goods had credit card sales totaling $1,000. The credit card company charges a 2.75% fee for the daily total transactions. The sales tax rate is 8%. Which of the following is the correct transaction analysis?

49. What inventory cost flow assumption is banned by International Reporting Standards (IFRS) but can still be used under Generally Accepted Accounting Principles (GAAP)?

50. How is the general journal information organized?

51. Which method do most company’s use in the preparation of their Statement of Cash Flows?

52. What is the name of the amount that an employee has earned but has not yet been paid at the end of the accounting period?

53. Which tax is the employer required to match? (check all that apply)

54. For a not for profit organization, how is the profit distributed?

55. Revenue is only recognized when it is: (check all that apply)

56. Which is temporary accounts? (check all that apply)

57. Failure to record an adjusting entry may have which affect on the financial statements? (check all that apply)

58. Which accounts are considered balance sheet accounts? (check all that apply)

59. Which sectors are not for profit organizations a part of? (check all that apply)

60. What is another commonly known term for accounts payable?

61. Due to the time value of money, it is safe to assume that costs will rise over time, because of this which inventory cost flow assumption produces the most profit on paper?

62. What inventory cost flow assumption do companies that sell nonperishable goods usually use?

63. Which is true about comparing LIFO and FIFO methods? (check all that apply)

64. BYX is a manufacturing facility who just completed a production cycle of their circuit boards. By the end of the cycle they paid $500 for manufacturing labor, $400 for utilities and other overhead, and calculated $100 for plant equipment depreciation. Which set of journal entries accurately reflects the above transaction series?

65. What inventory cost flow assumption is it where the oldest purchased goods are linked to the most recent revenue recognized?

66. Which accounts are considered income statement accounts? (check all that apply)

67. Many not for profit organizations can gain tax exempt status, what tax/taxes does that make them exempt from?

68. How is the general ledger accounting information organized?

69. If a customer makes a return that was purchased on credit, what account would be debited?

70. What account would be debited in a payroll journal entry?

71. How does the recording for bad debt expenses differ between the method required for GAAP versus the IRS requirement?

72. What type of account is a wage expense account?

73. In which type of account are payroll deductions recorded?

74. Find and correct the error(s) in the following general journal entry which recorded a company’s payroll liability: DR Office Salaries Expense, $1,000; CR Social Security Tax Expense, $200. DR Health Insurance Premium Expense, $50. DR Cash, $750. (check all that apply)

75. Which is example of payroll liabilities? (check all that apply)

76. What are the three primary payroll deductions that federal law requires? (check all that apply)

77. Difference between gross pay and net pay?

78. What kind of account is accounts payable?

79. The main difference between for profit and not for profit entities is that not for profit entities do not have _____.

80. One of your customers purchased $1,000 on account during the fiscal year. In June of that year they filed for bankruptcy and were unable to remit the balance owed to your company. What is the adjusting entry for this scenario?

81. What are the general asset classes for non-profit organizations? (check all that apply)

82. Select the correct institution that establishes the financial reporting requirements for the non-profit accounting process.

83. What is the purpose of the schedule of accounts payable?

84. What amount would be paid for an invoice for $8,500 that states “2/10, net 30” if you paid within 6 days?

85. The accounts shown in the chart of accounts can be classified into what two categories? (check all that apply)

86. Balance sheet accounts are described as what kind of accounts?

87. The difference in payroll accounting for nonprofit versus for profit institutions is best explained by which of the following? (check all that apply)

88. Expenses for a not for profit entity are reported as what functions? (check all that apply)

89. What source of income can for profit's obtain that not for profit's cannot?

90. Ideally, what can sales analysis improve for a company ?

91. Scientific method models link __________ with __________.

92. Both job order costing and process costing ________.

93. A company should ________ when projecting cash receipts for a given month.

94. Amounts owed for products or services purchased on account are called ________.