Mechanics of the Accounting Cycle: Help and Review 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. How is a debit different from a credit?

Question 2 2. _____ states that for every one transaction that occurs, at least two accounts will be affected.

Question 3 3. Jarett orders and purchases two laptops for his company usage on account. The ordered laptops amounted to $1,200. Identify the two accounts that are used for this transaction.

Question 4 4. What is the money that an owner has personally invested in their company called?

Question 5 5. The items that a company owes are called:

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Question 6 6. Money that is paid out of a company for items necessary for daily operations is called _____.

Question 7 7. Calculate this company's quick ratio using the balance sheet image.

Question 8 8. According to the accounting equation, accounts are balanced when assets:

Question 9 9. Which of the following accounts has balance increases when it is debited and balance decreases when it is credited?

Question 10 10. Double entry accounting requires that for every one transaction there will be at least _____ accounts affected.

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Question 11 11. The visuals that are used to help accounting professionals see the effects of transactions on accounts are called _____.

Question 12 12. Which of the following are part of the basic accounting equation?

Question 13 13. There are five basic _____ which are calculated using information found in the balance sheet and income statement that are measures of the productivity and efficiency of a business.

Question 14 14. Which of the following represents the accounting equation?

Question 15 15. In which account is equity that comes from the sale of stocks or bonds categorized?

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Question 16 16. In accounting, pieces of paper that prove that a transaction occurred are called _____.

Question 17 17. Money that is brought in as payment for goods or services is called _____.

Question 18 18. What is an entry made on the left side of an account?

Question 19 19. Return on Assets measures how well a company uses its assets to generate _____.

Question 20 20. The book of final entry is called the:

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Question 21 21. The account type that shows what a company owes is called a(n) _____.

Question 22 22. What part of the basic accounting equation is broken down into three other categories to create the extended accounting equation?

Question 23 23. Using the image of the balance sheet, what is this company's debt-to-assets ratio?

Question 24 24. What is the first step in an accounting cycle called?

Question 25 25. The type of account that 'shows what a company owes' is a(n) ___________ account.

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Question 26 26. Why must the amount debited and the amount credited in each transaction be equal?

Question 27 27. What is an example of a source document?

Question 28 28. The double-entry accounting system states that for each and every transaction that a company has _____ or more accounts will be affected.

Question 29 29. The most important thing to remember when analyzing business transactions is that all debits and credits _____.

Question 30 30. Which of the following is NOT an asset for a company?

Mechanics of the Accounting Cycle: Help and Review 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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