Accounting knowledge Quiz # 1

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

Sales value

Cost value

"Whatever value the company finds most convenient to use "

None of the above

Check all of the following groups that are related to inventory control (check all that apply):

Raw materials

Cost of goods sold

Work in process

Finished goods

Who pays the shipping costs in a FOB destination situation?

Seller

Buyer

Third party

None of the above

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?

FIFO

LIFO

Specific Identification Method

Weighted Average

None of the above

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

Statement of Changes in Equity

Balance Sheet

Income Statement

Statement of Cash Flows

None of the above

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

Current liability

Current asset

Noncurrent liability

Noncurrent asset

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

Revenues

Owner's equity

Net Assets

Expenses

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

I-9

W-2

W-4

SF-181

Sales analysis is beneficial for a __ entity.

For profit

Not for profit

All of the above

None of the above

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

Worker's compensation

Social security

Medicare

None of the above

Who contributes to FICA (check all that apply)?

Employee

Employer

IRS

Both A and B

All of the above

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

T-account

General ledger

Chart of accounts

Balance Sheet

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

Services rendered

Grants/contributions

Goods sold

None of the above

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

Debited

Credited

All of the above

None of the above

What is a general ledger?

A bookkeeping area in which accounts, sales, and purchases are kept together

A record of all transactions

A book of all finances

All of the Above

Which of the following are liability accounts? (check all that apply)

Accrued expenses

Customer deposits

Equipment

Insurance Expense

Notes Payable

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

I-9

W-2

W-4

SF-181

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

Debt

Credit

Account

None of the above

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

Indirect

Direct

All of the above

None of the above

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

Statement of Financial Position

Statement of Activity

Statement of Cash Flow

Statement of Functional Expenses

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

Revenues

Owner's equity

Net Assets

Expenses

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

Medicare tax

Social Security tax

Unemployment tax

None of the above

Check all of the following subgroups that sales analysis could be broken down into (check all that apply):

Sales by region

Sales by product

Sales by customer

Sales by demographic

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

Gross

Net

Difference

None of the above

_____ is permitted financing for a not for profit entity.

Sale of equity securities

Debt

All of the above

None of the above

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

Salary

Wages

Contribution

None of the above

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

Union dues

Child support

Insurance premiums

All of the above

None of the above

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

Current liability

Current asset

Noncurrent liability

Noncurrent asset

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

Statement of Financial Position

Statement of Activity

Statement of Cash Flow

Statement of Functional Expenses

What is the contra account related to accounts receivable?

Bad debt expense

Allowance for doubtful accounts

Sales returns and allowances

None of the above

Quiz:	Accounting knowledge Quiz # 1
Subject:	Basic Accounting Test
Total Questions:	94 MCQs
Time:	94 Minutes