商业英语选择题.doc

1. which of the following statements is false?A. The partnership form of business organization protects the personal assets of the owners from creditors of the business.B. A proprietorship has a single owner.C. Accounting is the information system that measures business activities, processes that information into reports, and communicates the results to decision makers.D. The FASB determines how accounting is practiced in the United States.2. The primary objective of financial reporting is _.A. to present information in an ethical mannerB. to provide information to the federal governmentC. to provide information useful for investment and lending decisionsD. to provide information useful to managers in making daily decisions3. The principle or concept that holds that an entity will remain in operation for the foreseeable future is the _.A. going-concern concept B. stable-monetary-unit conceptC. reliability principleD. cost principle 4. Which of the following statements is true?A. Revenues are assets because they represent economic benefitsB. Assets are economic resources that are expected to benefit future periodsC. The accounting equation can be stated as Assets+Liabilities = Owners EquityD. Liabilities are economic obligations to insiders5. Aftin Co. performs services on account. When Aftin collects the account receivable _.A. assets increaseB. assets do not change C. owners equity decreasesD. liabilities decrease 6. Which of the following transactions would not affect owners equity?A. Payment of an account payableB. Collection of service revenue C. Service provided on accountD. Withdrawal of cash by owner7. An income statement reports _.A. the assets, liabilities, and owners equity on a particular date B. the change in the owners capital during the period C. the cash receipts and cash payments during the periodD. the difference between revenues and expenses during the period 8. If assets increase $80000 during the period and owners equity decreases $16000 during the period, liabilities must have _.A. increased $64000B. increased $96000C. decreased $64000D. decreased $960009. The following information about the assets and liabilities at the end of 2001 and 2002 is given below: 20012002Assets$75000$90000Liabilities 36000 45000If net income was $1500 and there were no withdrawals, how much did the owner invest?A. $4500B. $6000C. 45000D. 4350010. The amount of net income shown on the income statement also appears on the _.A. statement of financial position B. balance sheet C. statement of owners equity D. statement of cash flows11. Which of these is an asset account?A. Service RevenueB. WithdrawalsC. SuppliesD. All of the above12. Traylor Company paid $2850 on account. The effect of this transaction on the accounting equation is to _.A. decrease assets and decrease owners equityB. increase liabilities and decrease owners equityC. have no effect on total assetsD. decrease assets and decrease liabilities13. Which of these statements is false?A. Increases in assets and increases in revenues are recorded with a debit.B. Increases in liabilities and increases in owners equity are recorded with a creditC. Increases in both assets and withdrawals are recorded with a debitD. Decreases in liabilities and increases in expenses are recorded with a debit.14. Note Payable has a normal beginning balance of $30000. During the period, new borrowings total $63000 and the ending balance in Note Payable is $41000. Determine the ayments on loans during the period.A. $74000B. $52000C. $134000D. cannot be determined from the information given15. Which of these statements is not correct?A. The account is a basic summary device used in accounting.B. A business transaction is recorded first in the journal and then posted to the ledger.C. The ledger is a chronological listing of all transactions.D. The debit entry is recorded first in a journal entry, then the redit entry.16.Which of these accounts has a normal debit balance?A. Rent ExpenseB. WithdrawalsC. Service revenueD. both A and B17. The journal entry to record the collection of $890 from a customer on account is _.A. Accounts Payable 890B. Cash 890 Cash 890 Accounts Receivable 890 C. Cash 890D. Cash 890 Accounts Payable 890 Service Revenue 89018. The ending Cash account balance is $57600. During the period, cash receipts equal $124300. If the cash payments during the period total $135100, then the beginning Cash amount must be _A. $68400B. 46800C. 181900D. D. cannot be determined from the information given.19. Use the following selected information for the Alecia Company to calculate the correct credit column total for a trial balance _.Accounts Receivable $ 7200Accounts Payable 6900Building 179400Cash 15800Capital 64000Insurance Expense 6500Salary Expense 56100Salary Payable 3600Service Revenue 190500A. $201000B. $137100C. $265000D. $7450020. Which of the following statements is correct?A. The chart of accounts is a list of all accounts with their balances.B. The trial balance is a list of all accounts with their balances, divided as debit or credit.C. The ledger is maintained in chart-of-accounts order.D. Both B and C are correct.21. When should revenue be recorded under the accrual-basis and cash-basis of accounting?Accrual-BasisCash-BasisA. When receivedWhen the service is performedB. When the service is performedWhen the customer is billedC.When the customer is billedWhen cash is receivedD.When the service is performedWhen cash is received22. During 2004, Bustamante Co. incurred salary expense of $240000. Beginning and ending Salary payable was $4000 and $8000, respectively. In 2004, Bustamante paid salaries of _.A. $248000B. $240000C. $236000D. $24400023. During 204, Bustamante received $600000 for revenue. Bustamante has not received $30000 for services already performed in 2004. Bustamante also invested $20000 into the business. Bustamante should report service revenue for 2004 of _.A. $550000B. $570000C. $580000D. $63000024. Recording an expense when it is paid instead of when incurred is a violation of _.A. the matching principleB. the time period conceptC. the reliability conceptD. the revenue principle25. On July 31, $3600 is paid for a one-year insurance policy. On December 31, the adjusting entry for prepaid insurance would include:A. a debit to Insurance Expense, $3600B. a credit to Prepaid Insurance, $3600C. a dedit to Insurance Expense, $1500D. a credit to Prepaid Insurance, $210026. Failure to record an adjusting entry for an accrued expense, will result in the following _.Liabilities Net Income A.no effect understateB. understate overstate C. overstateunderstateD. understateno effect 27. An adjusting entry could contain all of the following except _.A. a debit to Unearned RevenueB. a credit to CashC. a debit to Interest ReceivableD. a credit to Salary Payable 28. The 2003 income statement showed Rent Expense of $6100. The related balance sheet account, Prepaid Rent, had a beginning balance of $1400 and an ending balance of $1200. The amount of cash paid for rent during 2003 is _.A. $6100B. $1200C. $6300D. $5900Exhibit 1 Lemon Car RentalTrial Balance December 31, 2004AccountDebitCreditCash$7450Prepaid Insurance1600Equipment19000Acumulated Depreciation$4200Accounts Payble5000Lemon, Capital15600Withdrawals 6000Rental Revenue23400Insurance Expense7000Salary Expense 4000Prepaid Expense3150Total4820048200Adjusting entries include:(1) Prepaid insurance used 1600(2) Depreciation 1300 290029. Refer to Exhhibit 1. The credit colum of the adjusted trial balance should total _.A. $45300 B. $49300 C. $49500 D. $51100 30. Refer to Exhibit 1. Assume the net income is $8000. The ending balance of Lemon, Capital should be _.A. $17600B. $15600C. $13600D. $200031. The following is an alphabetized list of various steps in the accounting cycle: I. Adjusting entries, journalized and postedII. Closing entries, journalized and postedIII. Financial statements preparedIV. Work sheet completed The proper order for completing these steps is _.A. IV,III,I, and IIB. III,IV,I, and IIC. I,II,IV, and IIID. IV,I,III, and II32. Which one of these statements regarding the worksheet is false?A. To balance the work sheet, net income is entered as an amount on the credit side of the balance columns and on the debit side of the income statement columns.B. The Capital balance on the balance sheet columns of the work sheet is the same amount as the Capital balance reported on the financial statements.C. To balance the work sheet, net loss is entered as an amount on the debit side of the balance sheet columns and on the credit side of the income statement columns.D. Withdrawals appear as a debit in the balance sheet columns.33. The entry required to close withdrawals at the end of the period should include a _.A. debit to Income SummaryB. credit to Capital C. debit to CapitalD. debit to Withdrawals34. Which of the following groups of accounts correctly appear on the postclosing trial balance?A. Rent Expense, Prepaid Rent, Capital.B. Withdrawals, Equipment, Accumulated Depreciation.C. Income Summary, Interest Receivable, Note Payable.D. Capital, Cash, Unearned Revenue.35. Which of the following statements is true?A. The operating cycle is the time required to acquire goods and services, sell the goods and sevices, and collect the cash.B. On a classified balance sheet, Land would be considered more liquid than Prepaid Rent.C. Generally, a businesss operating cycle will be longer than a year.D. On a classified balance sheet, long-term liabilities would appear first in the liabilities section.36. Which of the following statements is true?A. Gross profit Cost of goods sold = Net SalesB. Net Sales + Gross profit = Cost of goods soldC. Gross profit = Net Sales Cost of Goods SoldD. Net Sales + Cost of goods sold = Gross profit37. Sea and Ski purchased merchandise for $1600, terms 1/10, n/30. Sea and Ski later returned $200 of the merchandise. The supplier paid the $40 freight and sent an invoice for the merchandise retained plus the freight. The entry to record the payment of the invoice within the discount period would include all of the following except _.A. credit