QUESTION What is the name given to a record book or computer program containing the daily record of a firm’s transactions? A) double-entry book B) accounting log C) financial report D) journal E) ledger ANSWER Answer: D Explanation: D) A journal is a record book or computer program containing the daily record of a […]
Date: September 3rd, 2020
QUESTION Why is the format for recording each journal entry known as double-entry bookkeeping? A) because two accountants work together on the journal B) because the journal entries are reviewed twice daily C) because each transaction is recorded in two different accounts D) because photocopies are always taken of each journal page E) because firms […]
Date: September 3rd, 2020
QUESTION Which of the following is TRUE of the Financial Accounting Standards Board (FASB)? A) It is a federal agency. B) It is regulated by the government. C) It delegates the primary responsibility for GAAP to the SEC. D) It is responsible for only two of the four generally accepted accounting principles. E) It establishes, […]
Date: September 3rd, 2020
QUESTION Which of the following is one of the organizations in which the authority for the GAAP rests? A) Securities and Exchange Commission B) Governmental Accounting Board of Standards C) Government Accountability Office D) Federal Accounting Board of Management E) Congress ANSWER Answer: A Explanation: A) The authority for the GAAP is with two […]
Date: September 3rd, 2020
QUESTION Suppose the total of all debits is less than the total of all credits in a double-entry bookkeeping journal. What must be the explanation for this? A) An error has occurred. B) There has been a profit for the day. C) There has been a loss for the day. D) GAAP standards were not […]
Date: September 3rd, 2020
QUESTION What is the name given to the specialized record book or computer program that contains summaries of all journal transactions by category? A) trial balance B) balance sheet C) ledger D) income statement E) statement of cash-flows ANSWER Answer: C Explanation: C) The ledger is the specialized record book or computer program that […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT one of the reports or financial statements the bookkeeper issues at the end of every accounting period? A) balance sheet B) income statement C) statement of cash flows D) income tax return E) profit-and-loss statement ANSWER Answer: D Explanation: D) Once the bookkeeper has the correct figures, […]
Date: September 3rd, 2020
QUESTION At the end of every accounting period, the bookkeeper for Tina’s Toy Shack does a check for accuracy. What is this called? A) ledger report B) balance sheet check C) income statement review D) trial balance run E) financial statement overview ANSWER Answer: D Explanation: D) At the end of every accounting period, […]
Date: September 3rd, 2020
QUESTION If Geraldine is an accountant for a not-for profit, which of the following is TRUE about her? A) She is mostly concerned with the organization’s efficiency. B) She prepares exactly the same types of reports as for-profit accountants. C) She’s employed only by large corporations. D) She cannot become a CPA. E) She cannot […]
Date: September 3rd, 2020
QUESTION When are financial reports required of a company? A) on December 31 B) on June 30 C) at the end of the firm’s fiscal year D) at the end of each month E) weekly ANSWER Answer: C Explanation: C) Fiscal reports are required at the end of the firm’s fiscal year. This could […]
Date: September 3rd, 2020
