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General Accounting Concepts Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. _____are the money that is owed to a company by customers for goods sold or services rendered.

Question 2 2. Why would the Accounts Receivable account balance decrease?

Question 3 3. Monica reads in the newspaper that in the year ended December 31, 2015, Profit For Two Inc made $1 million profit. Monica wants to confirm for herself that this is really the case. What financial statement of Profit For Two Inc should Monica read to confirm the newspaper report?

Question 4 4. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

Question 5 5. Why must the amount debited and the amount credited in each transaction be equal?

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Question 6 6. _____ states that for every one transaction that occurs, at least two accounts will be affected.

Question 7 7. How many basic accounting principles make up GAAP?

Question 8 8. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 9 9. The one thing that must always be true in a journal entry is:

Question 10 10. The general journal records:

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Question 11 11. Entering a journal entry in a general ledger account is called what?

Question 12 12. The general ledger is used to directly create which financial document?

Question 13 13. Why is accounting important to business?

Question 14 14. Which of the following is NOT a financial statement?

Question 15 15. Which of the following statements best defines 'cash flow?'

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Question 16 16. If a company sells $20,000 of their inventory for $30,000 in cash, how does owners' equity change?

Question 17 17. Using a manual accounting system takes specialized knowledge. Is this an advantage or disadvantage?

Question 18 18. Which sentence best describes a manual accounting system?

Question 19 19. What is one disadvantage of a computerized accounting system?

Question 20 20. What is one reason a business may need a customized accounting system?

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Question 21 21. Accounts payable usually relate to which types of purchases?

Question 22 22. Which of the following is an example of an account payable?

Question 23 23. Which two things are required for an Accounts Receivable?

Question 24 24. Djokovic is the Chief Information Officer for InfoTech Inc. Murray is the Chief Lending Officer at the Bank where InfoTech has a large bank loan. Which statement is true for both Djokovic and Murray, in connection with InfoTech?

Question 25 25. A furniture manufacturing company just bought a new piece of machinery. Shelby, the accountant, considered which accounts the expense will affect. She then determined the specific account that was to be credited and which would be debited. What is Shelby's next step in regard to this expense?

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Question 26 26. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Question 27 27. Which is not a column generally found in the general journal?

Question 28 28. Where can you find a list of accounts that should be listed in the general ledger?

Question 29 29. What does ALOE stand for?

Question 30 30. What term refers to when each transaction has two sides: debit and credit?

General Accounting Concepts Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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