财务会计模拟试.docVIP

TRUE/FALSE 1. The excess of revenue over the expenses incurred in earning the revenue is called capital. ANS: F DIF: 2 OBJ: 08 2. Drawings are an example of an expense. ANS: F DIF: 2 OBJ: 01 3. An adjusting entry would adjust revenue so it is reported when earned and not when cash is received. ANS: T DIF: 2 OBJ: 02 4. A company depreciates its equipment $350 a year. The adjusting entry for December 31 is debit Depreciation Expense, $350 and credit Equipment, $350. ANS: F DIF: 4 OBJ: 03 5. After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns. ANS: T DIF: 3 OBJ: 02 6. The income summary account is closed to the owners capital account. ANS: T DIF: 1 OBJ: 04 7. Accounts in the ledger are usually maintained in alphabetical order. ANS: F DIF: 2 OBJ: 01 8. The increase side of all accounts is the normal balance. ANS: T DIF: 2 OBJ: 03 9. The ending merchandise inventory for 2005 is the same as the beginning merchandise inventory for 2006. ANS: T DIF: 2 OBJ: 02 10. In a perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is one of the accounts debited to record the transaction. ANS: T DIF: 2 OBJ: 03 11. When an account receivable that has been written off is subsequently collected, the account receivable is reinstated. ANS: T DIF: 2 OBJ: 04 12. A note receivable can be sold to a financial institution to secure cash before the maturity date. This type of transaction is called discounting the note receivable. ANS: T DIF: 1 OBJ: App 13. All property, plant, and equipment assets are depreciated over time. ANS: F DIF: 2 OBJ: 01 14. Capital expenditures are costs that are charged to Stockholders Equity accounts. ANS: F DIF: 1 OBJ: 03 15. Interest expense is reported in the operating expense section of the income statement. ANS: F DIF: 2 OBJ: 02 16. Dividends in arrears are liabilit