Accounting Principles, 9e Instructor
Weygandt, Kieso, & Kimmel Section # Date
|Part | I | II | III | IV | Total |
|Points | 54 | 26 | 10 | 10 | 100 |
|Score | | | | | |
PART I —MULTIPLE CHOICE (54 points)
Instructions: Designate the best answer for each of the following questions.
____ 1. "GAAP" refers to
a. General Accounting and Auditing Principles.
b. Guidelines for American Accounting Procedures.
c. General Association of Accounting Practitioners.
d. None of the above.
____ 2. The requirement that only transactiondata capable of being expressed in terms of money be included in the accounting records relates to the
a. cost principle.
b. monetary unit assumption.
c. economic entity assumption.
d. both a and b above.
____ 3. After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer theinformation to
a. the company’s bank.
b. owner’s equity.
c. ledger accounts.
d. financial statements.
____ 4. Management could determine the amounts due from customers by examining which ledger account?
a. Service Revenue
b. Accounts Payable
c. Accounts Receivable
____ 5. If currentliabilities increased by $15,000 and owner’s equity increased by
$5,000 during a period of time, then total assets must change by what amount and direction during that same period?
a. $20,000 decrease
b. $20,000 increase
c. $25,000 increase
d. $30,000 increase
____ 6. Which of the following presents key aspects of the process of accounting in the correctchronological order?
a. Totaling, auditing, and budgeting
b. Budgeting, recording, and communicating
c. Recording, totaling, and auditing
d. Identifying, recording, and communicating
____ 7. Tritan Company received a cash advance of $500 from a customer. As a result of this event,
a. assets increased by $500.
b. owner’s equity increasedby $500.
c. liabilities decreased by $500.
d. owner’s equity decreased by $500.
____ 8. The following describes the process of identifying the economic events of an organization:
a. Keeping a chronological diary of particular events in an orderly and systematic manner.
b. Selecting the economic activities relevant to a particular organization.c. Preparing accounting reports, including financial statements.
d. Quantifying events in dollars and cents.
____ 9. The current source of "GAAP" in the private sector is the
a. Accounting Principles Board.
b. Internal Revenue Service.
c. Financial Accounting Standards Board.
d. Securities Exchange Commission.
____ 10. As of June30, 2010, Houston Company has assets of $100,000, and owner’s equity of $5,000. What are the liabilities for Houston Company as of June 30, 2010?
____ 11. For which of the following accounts is the normal balance a debit?
a. Rent Payable
b. Unearned Rent Revenue
c. Rent Revenued. Prepaid Rent
____ 12. Which of the following is false with regard to a general journal?
a. It tracks the increases and decreases in an individual account.
b. It provides a chronological record of transactions.
c. It discloses in one place the complete effect of a transaction.
d. It helps to prevent errors since the debit and credit...