Accounting Kahoot Final Review

The owner of a business maintains separate checkbooks for his business and his personal affairs. This describes...

A) Business Entity Concept
B) Going concern concept
C) Monetary Unit Concept
D) Periodicity concept

The reporting of profits of a business be done at regular intervals throughout the life of the business is which

A) Periodicity concept
B) Monetary Unit Concept
C) Going concern concept
D) Business Entity Concept

Which of the following is not a correct relationship?

A) Marketing Function- Advertising
B) Human Resource function- Lay off employees
C) Finance Function- Borrow Cash
D) Production Function - Determine wants & needs of consumers

A business structure which is legally separate, distinct from its owners, and has shareholders is a

A) Partnership
B) Corporation
C) Sole proprietorship
D) Merhandiser

The Report of the Independent Auditor states that financial statements are

A) free from fraud
B) fairly presented
C) correct as reported
D) presented fairly in accordance with GAAP

The cash flow activity involving receiving cash from sales and paying expenses are

A) Operating activities
B) Investing activities
C) Planning activities
D) Financing activities 

An accounting firm borrows $100,000 to buy a new computer system. This is an example of a(n):

A) Planning activities
B) Investing activities
C) Operating activities
D) Financing activities 

Which of the following financial statements represents the accounting equation?

A) Cash flows statement
B) Income statement
C) Balance sheet
D) Statement of Equity

Net income is found/represented on which of the following two statements?

A) Statement of Cash flows and balance sheet
B) Statement of Equity and Balance sheet
C) Statement of Equity and Income statement
D) Balance sheet and income statement

How are assets ordered on a Balance Sheet?

A) By liquidity
B) By value
C) alphabetical

The balanced scorecard approach has four perspectives, which of the following is NOT one of those perspectives?

A) Learning and growth perspective
B) Internal control perspective
C) Financial perspective
D) Customer perspective

Which of the following measures the liquidity of a company?

A) Return on investment
B) Gross margin ratio
C) Quick ratio
D) Return on Owner's equity

A store requires employees to ring up sales & place all cash received in the cash register. Which internal control...

A) Requiring proper authorization
B) Separating incompatible duties
C) Physically controlling assets and documents
D) Maintaining adequate documents and records

Which of the following is NOT part of the conversion process?

A) Storing the raw material used in production
B) Machine set ups
C) Storing finished manufactured goods until sold
D) Paying for the raw material used in production

Which of the following is NOT part of the expenditure process?

A) Receiving goods and services
B) Paying suppliers
C) Ordering goods and services
D) Using equipment to manufacture products

A document sent by the purchasing department to order a specific quantity of goods or services is called a:

A) Purchase order
B) Purchasing report
C) Vendor invoice
D) Purchase requisition

A sales invoice originates (begins) with the:

A) Purchasing department
B) Sales department
C) Vendor
D) Accounting department

Maui Company paid for its insurance for one year in advance. This event results in a(n):

A) Decrease in assets and an increase in owners' equity
B) Decrease in assets and increase in assets
C) Decrease in assets and an increase in liabilities
D) Increase in assets and a decrease in owners' equity

Big Island Company issued capital stock for $200,000. This event results in an:

A) Increase in assets and an increase in liabilities
B) Increase in assets and an increase in owner's equity
C) Increase in assets and a decrease in assets
D) Increase in assets and a decrease in owner's equity

Which of the following is withheld from an employee's pay and also paid by the employer?

A) Union dues
B) Social security
C) Vacation pay
D) Income tax

Which of the following is not withheld from the employee's check?

A) Federal income tax
B) Federal unemployment Tax
C) Social security
D) Union dues

Which of the following is not a product cost?

A) Hard drive for a computer
B) Cost to shop the product to the consumer
C) Utility cost for building where computer assembled
D) Salary of person who inspects final product

Which of the following is not a characteristic of an accounting event?

A) Must be the result of a management decision 
B) Must be specific to the entity for which records are being kept
C) Must be measurable in monetary term
D) Must impact the entity's assets, liabilities, and/or owner's equity

Which of the following is an index for the accounts listed in the ledger?

A) Chart of accounts
B) Adjusted trial balance
C) Ledger account index
D) Trial balance

Which of the following could not be an adjusting entry?

A) A decrease in an asset and a decrease in a liability
B) A decrease in a liability and an increase in a revenue
C) An increased in an expense and a decrease in an asset
D) An increased in a revenue

After closing entries are made which of the following grouping of accounts will all have balances?

A) Assets, revenue, liability 
B) Assets, liabilities, expenses
C) Liabilities, assets, expenses
D) Owner's equity, assets, liabilities

If a company fails to accrue the appropriate wage expense at the end of the accounting period.

A) Owners equity and current assets will both be overstated 
B) Net income will be overstated and current liabilities will be understated
C) Current liabilities and current assets will both be understated
D) Current assets will be overstated and net income will be understated

Which of the following entries reflects the use of a periodic inventory system?

A) Deb: Purchases, Cr: A/P
B) Deb: A/P, Cr: Purchases
C) Deb: A/P, Cr: Cash
D) Deb: Inventory, Cr: A/P

Which of the following entries reflects the use of a perpetual inventory system?

A) Deb: COGS, Cr: A/P
B) Deb: A/P, Cr: Purchases returns
C) Deb: Purchases, Cr: A/P
D) Deb: COGS, Cr: Inventory

The current ratio shows the relationship between

A) Current assets and long-term assets
B) Current liabilities and long-term liabilities
C) Current assets and current liabilities
D) Current assets and long-term liabilities