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1) for which of the following errors should the appropriate amount be subtracted from
the balance per book on a bank reconciliation?
a.check written for $43, but recorded as $34
b.deposit of $500 recorded by bank as $50
c.a returned $200 check recorded by bank as $20
d.check written for $35, but recorded as $53
2) if the amount of uncollectible account expense is understated at year end
a.net income will be understate
b.stockholders equity will be understated
c.allowance for doubtful accounts will be overstated
d.net accounts receivable will be overstated
3) if bonds have been issued at a discount, then over the life of the bonds the
a.carrying value of the bonds will decrease
b.carrying value of the bonds will increase
c.interest expense will increase, if the discount is being amortized on a straight-line
basis
d.unamortized discount will increase
4) jamal company began the year with $84,000 in its common stock account and a
debit balance in retained earnings of $36,000. during the year, the company earned net
income of $18,000 and declared and paid $6,000 of dividends. in addition, the company
sold additional common stock amounting to $22,000. based on this information, what
should the transaction analysis show for the ending total of all stockholders' equity
accounts?
a.$154,000
b.$166,000
c.$82,000
d.$110,000
5) a revenue account
a.is increased with a debit.
b.is decreased with a credit.
c.is increased with a credit.
d.has a normal balance of a debit.
6) using the following balance sheet and income statement data, what is the debt to total
assets?
a.23 percent
b.13 percent
c.70 percent
d.30 percent
7) if hostell company has net sales of $500,000 and cost of goods sold of $300,000,
hostells gross profit rate is
a.60%
b.40%
c.20%
d.100%
8) a transaction involving a gain on the sale of equipment affects cash provided (used)
by
a.financing and investing activities
b.operating and financing activities
c.operating and investing activities
d.operating, financing, and investing activities
9) when collection is made on accounts receivable,
a.total assets will remain the same.
b.stockholders equity will increase.
c.total assets will increase.
d.total assets will decrease.
10) which of the following would not be included in the equipment account?
a.installation costs
b.freight costs
c.cost of trial runs
d.electricity used by the machine
