ACCOUNTING 2020 MULTIPLE CHOICE QUESTIONS AND ANSWERS WHICH ARE AVAILABLE AT THE LAST PAGE

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Question 1 (1 point) The Dog Groomer is a family-owned business that grooms dogs. Many of the customers pay by cash. On Mondays, the family uses Joseph, a part-time employee, to work the store. Sin... ce the store is not busy on Mondays, Joseph is able to manage grooming the dogs, collecting the payments by himself, and maintaining the accounting records. Identify the weakness in internal controls. Question 1 options: Responsibilities should be clearly assigned. Custody of assets should be separate from the accounting of assets Assets should be kept in a safe place. Rotating staff and mandatory vacations. Question 2 (1 point) How should the petty cash fund be established? Question 2 options: Credit Petty Cash Debit Cash Expense accounts are debited Debit Petty Cash Question 3 (1 point) A cheque that was outstanding on last month's bank reconciliation was not among the cancelled cheques returned by the bank this month. In preparing this month's bank reconciliation, how should this cheque be handled? Question 3 options: The book balance should be adjusted for the amount The amount of the cheque should be added to the book balance of cash It should be cancelled The amount should be deducted from the bank statement balance. Question 4 (1 point) A company purchased a stapler for $75. The stapler was recorded for $57 in the company's books but the cheque was issued for $75. How should this error be corrected? Question 4 options: No action is required Increase the bank account in the company's books for $18 Decrease the bank account in the company's books for $18 The bank should make a correcting entry for $18 Question 5 (1 point) Look at the following chart of the trend analysis for the Snow Removal Company. Which of the following statements is true regarding the performance over the three years? Question 5 options: The company is showing an overall improvement in its financial performance The company has reduced their cost of goods sold expense The company's gross profit compared to sales has been decreasing. The company's gross profit compared to sales has been increasing Question 6 (1 point) Here is the bank account balances from a comparative analysis. Bank Account in 2016 - $8952.40 Bank Account in 2015 - $4768.12 Question 6 options: A decrease of 46.7% An increase of 87.8% An increase of 46.7% A decrease of 87.8% Question 7 (1 point) Based on the following information, what is the common-size calculation for the shaded cell? Question 7 options: Net income is 6.4% Net income is 39.5% Net income is 24.5% Net income is 65.3% Use the above condensed balance sheet to answer the next 3 questions. Question 8 (1 point) Using Arnett Enterprises condensed balance sheet above, the current ratio is: Question 8 options: 2.0 : 1 2.1 : 1 0.5 : 1 47.1% Question 9 (1 point) Using Arnett Enterprises condensed balance sheet above, the debt ratio is: Question 9 options: 100.0% 32.8% 30.5% 67.3% Question 10 (1 point) Here is some additional information: 1) the net income for the year ended December 31, 2015 was $21,970. 2) The beginning owner's equity was $164,525. Using Arnett Enterprises condensed balance sheet above, the return on equity is: Question 10 options: $172,962.50 12.7% 7.4 : 1 13.3% True and False Questions. Question 11 (1 point) One of the goals of internal controls is to ensure accurate and reliable accounting information. Question 11 options: True False Question 12 (1 point) A good internal control system will make fraud and theft impossible Question 12 options: True False Question 13 (1 point) From the bank reconciliation, interest revenue and bank charges require journal entries to bring the company's books up-to-date. Question 13 options: True False Question 14 (1 point) An outstanding cheque is adjusted on the company's book balance. Question 14 options: True False Question 15 (1 point) The balance as per the bank is $562.50, the outstanding deposits are $175.00 and the outstanding cheques are $200.00. The adjusted balance as per the bank is $887.50. Question 15 options: True False [Show More]

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