Q.1
A suspense account facilitates the preparation of_____ even if the ____ has not been tallied.
  • Trial Balance, Financial Statements
  • Ledger, Trial Balance
  • Trial Balance, Ledger
  • Financial Statements, Trial Balance.
Q.2
Which account will have a zero balance after a company has journalized and posted closing entries?
  • (a)Service Revenue.
  • (b)Supplies.
  • c)Prepaid Insurance.
  • (d)Accumulated Depreciation.
Q.3
Balances of the Accounts are transferred to:
  • Trial Balance
  • Trading Account
  • Profit & Loss Account
  • Balance Sheet
Q.4
Which of the following entries records the utility bill incurred but not paid from the water company?
  • Debit Utilities Expense; credit Accounts Payable
  • Debit Accounts Payable; credit Utilities Payable
  • Debit Accounts Payable; credit Cash
  • Debit Utilities Payable; credit Accounts Receivable
Q.5
Bhandari’s trial balance was showing difference of ₹ 5,(debit side exceeds). While checking of total sales register, he found that the total is over – cast by ₹ 2,After correction in sales register what would be the difference in his trial balance.
  • Debit side exceeds by ₹7,000
  • Debit side exceeds by ₹5,000
  • Debit side exceeds by ₹3,000
  • Credit side exceeds by ₹3,000
Q.6
Salaries paid ₹ 4,is shown in credit side of trial balance. In the total of trial balance the debit side will be short by -----------
  • Short by ₹ 4,500
  • Excess by ₹ 4,500
  • Short by ₹9,000
  • Excess by ₹ 9,000.
Q.7
Which of the following in Trial Balance is contradictory to each other?___________.
  • Inventory and Drawings
  • Sales and Purchase Return
  • Carriage Inward and Outward
  • Trade Receivable and Liability
Q.8
Trial Balance creates __________ accuracy.
  • (a) Principle
  • (b) Arithmetical
  • (c) Clerical
  • (d) None
Q.9
When the amounts of a transaction must be recorded in a minimum of two accounts-
  • double-entry
  • debit
  • credit
  • accounting equation
Q.10
A transaction is omitted completely from the books so that there is no debit and credit entry of the transaction. This is an example of what errors?
  • Omission
  • Commission
  • Principle
  • Reverse
Q.11
Permanent accounts are used to accumulate information until it is transferred to the owner’s capital account.
  • True
  • False
Q.12
The balances of the liability accounts must be reduced to zero to prepare the accounts for he next period.
  • True
  • False
Q.13
Which of the following is a temporary account?
  • a. The dividends account
  • b. An asset account
  • c. A liability account
  • d. A stockholders' equity account
Q.14
Little Corporation received $5,from a customer for whom it is to perform work in the future, debiting Cash and crediting Unearned Revenue. At the end of the accounting period, Little has earned $2,of the revenue. The adjusting entry will require a:
  • a. debit to Cash for $2,000.
  • b. debit to Service Revenue for $2,000.
  • c. credit to Service Revenue for $2,000.
  • d. credit to Service Revenue for $3,000.
Q.15
InAbbott Company performs work for a customer and bills the customer $10,it also pays expenses of $3,The customer pays Abbott inIf Abbott uses the cash basis of accounting, then Abbott will report:
  • a. revenue of $10,000 in 2013.
  • b. revenue of $10,000 in 2014.
  • c. expenses of $3,000 in 2014.
  • d. net income of $7,000 in 2013.
Q.16
(LO 7)Which types of accounts will appear in the post-closing trial balance and have a balance?
  • (a)Permanent accounts.
  • (b)Temporary accounts.
  • (c)Expense accounts.
  • (d)None of the above.
Q.17
Adjustments for unearned revenues:
  • a)decrease liabilities and increase revenues.
  • (b)increase liabilities and increase revenues.
  • (c)increase assets and increase revenues.
  • d)decrease revenues and decrease assets.
Q.18
Adjustments for prepaid expenses:
  • (a)decrease assets and increase revenues.
  • (b)decrease expenses and increase assets.
  • (c)decrease assets and increase expenses.
  • (d)decrease revenues and increase assets.
Q.19
We purchased Indian Insurance (Prepaid Insurance) on June 1st,for $ What is the Insurance Expense as of December2020?
  • $105
  • $50.40
  • $147
  • none of the above
Q.20
Refers to the allocation of the cost of the asset over its estimated useful life.
  • Consumption
  • Deterioration
  • Contra Asset
  • Depreciation
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