General Financial Accounting Test
______________ refers to shares originally issued and outstanding that have been reacquired from the owners.
________________ is the financial obligation of a company in regards to a loan that accrues with the passage of time.
________________ is/are a measure of the inflow of net assets from selling goods and providing services.
A ____________ is the right to use property owned by someone else.
A debit balance is normal for all of the following accounts except _______________.
A manufacturing firm's cost of producing its product is called ______________.
A residual claim of owners having certain preferences relative to other owners' claims is called __________________.
A right granted to an individual or company that excludes others from manufacturing, using, or selling a certain process or device is called a _____________.
A trial balance prepared at the end of the accounting period after adjusting entries are made is called a/an _________________.
A trial balance that shows revenue and expense accounts with zero balances and balance sheet accounts at the end of the period is called a __________________.
Amounts borrowed by a business for a relatively long period of time under a formal written contract or indenture are called _________________.
Amounts due from customers, for which the claim is in the form of a written promise to pay, are called ________________.
Amounts owed for goods or services acquired under an informal credit agreement are called ___________________.
Amounts paid for various fees incurred in organizing a corporation are called ____________.
Amounts received for the par value of a firm's voting stock are called ___________.
At the beginning of the year, XYZ Company owed $14,500 to its creditors for inventory purchases. At year end, the company owed $9,150. During the year, the company made payments totaling $48,500 to...
At the beginning of the year, XYZ Company reported a $7,200 balance in its Prepaid Insurance account. At year end, the company reported Insurance Expense of $9,000 in its Income Statement and a bal...
At the beginning of the year, XYZ Company reported Accounts Receivable of $39,000. During the year, the company had credit sales totaling $288,000. At year end, the Accounts Receivable balance was ...
Deduction or valuation accounts that accumulate amounts subtracted from other accounts are called _____________________.
Different balance sheet items employ different valuation methods. Which of the following valuation applications is NOT generally accepted?
During the year, XYZ Company's inventory account balance increased from $26,000 to $31,500. During the year, the company made payments totaling $152,500 to creditors for inventory purchases and rep...
From the following list of accounts and account balances, determine the amount that would be properly classified as Property, Plant, & Equipment. $100,000 - Land Used in Business $60,000 - Machine...
From the following list of selected account balances, determine the total for the shareholders' equity section of the Balance Sheet for XYZ Company. $2,500 - Investment in Stock of ABC Company $...
Goods on hand that have been purchased for resale are called ______________.
In preparing its Year 1 adjusting entries, the XYZ Company neglected to adjust rental fees received in advance from the amount of rental fees earned during Year 1. Which of the following reflects t...
In preparing its year-end adjusting entries, XYZ Company neglected to adjust prepaid insurance for the amount of insurance expired during Year 1. Which of the following reflects the result of this ...
Insurance premiums paid for future coverage are called ______________.
Ms. Brown is an attorney who collects a retainer fee from all of her new clients. At the beginning of the year, the Unearned Retainer Fee account had a balance of $24,000. Ms. Brown collected addit...
On December 26 of Year 1, XYZ Company hired three sales associates to begin work immediately on an after-Christmas sale. The associates were paid on January 9 of Year 2. Disregarding amounts, what ...
On December 31 of Year 1, XYZ Company reported total shareholders' equity of $225,000, of which $180,000 represented contributed capital. If revenues, expenses, and dividends during Year 2 were $50...
Payments made in advance for goods or services a firm will receive at a later date are called ______________.
Stocks and bonds that can be readily converted into cash are called _____________.
Temporary revenue and expense accounts may be closed _________________.
The Accumulated Depreciation account reflects _____________________.
The amount of income tax postponed for payments to future years is called ________________.
The amount of proceeds from the sales of Preferred Stock in excess of par value is called _______________.
The amount subtracted from the cost of a fixed asset to get the Net Book Value is called the ___________________.
The balance in all asset accounts combined is $100,000 on December 1. During December, the following transactions took place: - Purchase of $10,000 of inventory for cash - Purchase of $15,000 of...
The balance in the ________________ account is the amount owed to the company by its customers.
The balance in the _________________ account reflects the cumulative depreciation of an asset since its acquisition.
The Balance Sheet reflects the application of various valuation methods. Which of the following methods may be used on a Balance Sheet that follows generally accepted accounting principles?
The charge made to the current operations for the portion of cost of long-lived assets consumed during the current period is called _________________.
The concept of present value ____________________.
The cumulative amount of net income in excess of dividends declared that has been earned by a business since its inception is called ___________________.
The estimated and unpaid liability for current income taxes is called ______________.
The following entry was made on March 12 for XYZ Company: Dr: Machinery Cr: ACCounts Payable For which of the following transactions was this entry made?
The normal balances in Depreciation Expense and its related Accumulated Depreciation accounts are ______________________.
The process of recording transactions in the general journal or in a special journal is called ________________.
The process of transferring entries in the general journal to the accounts in the general ledger is called ________________.
Unused materials for manufacturing products are called ______________.
Which of the following accounts accumulate amounts for only a single accounting period?
Which of the following accounts is NOT a temporary account that should be closed during the closing process?
Which of the following accounts is NOT an expense?
Which of the following accounts is not closed during the closing process?
Which of the following accounts represents distributions of earnings to shareholders of the firm?
Which of the following accounts would NOT appear on a corporation's Balance Sheet?
Which of the following assets is a monetary asset?
Which of the following does NOT represent an acceptable presentation of the Balance Sheet equation?
Which of the following is a permanent account?
Which of the following is a type of liquid asset, such as a demand deposit?
Which of the following is NOT an account title for liabilities?
Which of the following is NOT an example of a period expense?
Which of the following is recorded only when another business enterprise is acquired?
Which of the following liabilities would be accounted for at the present value of future cash payments?
Which of the following operations is NOT considered part of the accounting process leading to financial statement preparation?
Which of the following options would NOT be classified as a current liability account?
Which of the following statements about the rules of debit and credit is incorrect?
Which of the following transactions would NOT result in revenue being reported?
Which of the following would cause the accounting equation to be out of balance?
Which of the journal entries below is incorrectly recorded?
XYZ Company completed its second year of operations in Year 2. On January 1 of Year 2, the balance in Retained Earnings was $84,000. During the year, the company declared and paid a dividend of $65...
XYZ Company failed to record the purchase of inventory on account at the end of 2008. In which of the following ways is the Balance Sheet misstated?
XYZ Company has assets and liabilities of $15,000 and $12,000, respectively. If the company issues an additional $1,500 of stock for cash, what will be the balance in shareholders' equity following...
XYZ Company has just completed its first year of operations in Year 1. The company distributed dividends of $50,000. If the ending balance of Retained Earnings on December 31 of Year 1 is $70,000, ...
XYZ Company is interested in disposing of one of its subsidiaries and is trying to decide on the maximum price it might be able to charge. Which valuation method below would the company be most lik...
XYZ Company publishes a monthly sports magazine. The company has fiscal year of Jan-Dec. On July 1 of Year 1, the company sold 1000 two-year subscriptions for $200 each. On December 31 of Year 1, t...
XYZ Company purchased a 1-year insurance policy for $3,000 on April 1 of Year 1. The amount of prepaid insurance reported on the Balance Sheet and the amount of insurance expense reported on the In...
XYZ Company purchased some equipment for $120,000 on July 1 of Year 1. The equipment has an estimated useful life of 10 years and an estimated salvage value of $7,500. XYZ Company computes deprecia...
XYZ Company reported a balance in Accounts Receivable of $40,500 on January 1 of year 2. During Year 2, the company collected $127,500 from its customers who had purchased on account. On December 3...