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

Question 2 2. Money that is paid out of a company for items necessary for daily operations is called _____.

Question 3 3. A(n) _____ is a listing of all the accounts of a business and their balances and is created after all transactions for a period have been journalized and posted.

Question 4 4. Source documents give the information needed to complete _____.

Question 5 5. The type of account that 'shows what a company owes' is a(n) ___________ account.

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Question 6 6. The first place that a transaction is written in accounting is the:

Question 7 7. Which of the following is NOT an asset for a company?

Question 8 8. How many accounts are to be recorded by a business transaction with a double-entry accounting?

Question 9 9. The visuals that are used to help accounting professionals see the effects of transactions on accounts are called _____.

Question 10 10. Using the image of the balance sheet, what is this company's current ratio?

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Question 11 11. In which account is equity that comes from the sale of stocks or bonds categorized?

Question 12 12. What is an example of a source document?

Question 13 13. The _________ ledger contains information on all the accounts.

Question 14 14. The most important thing to remember when analyzing business transactions is that all debits and credits _____.

Question 15 15. What part of the basic accounting equation is broken down into three other categories to create the extended accounting equation?

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Question 16 16. Return on Assets measures how well a company uses its assets to generate _____.

Question 17 17. The book of final entry is called the:

Question 18 18. Money that is brought in as payment for goods or services is called _____.

Question 19 19. The items that a company owes are called:

Question 20 20. The book that contains every single transaction that has occurred in a business and is recorded in chronological order is called a _____.

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Question 21 21. Calvin owns a flower business and has to pay an electricity bill amounting to $290. How will his account officer record the transaction?

Question 22 22. Which of the following accounts has balance increases when it is debited and balance decreases when it is credited?

Question 23 23. The chart of accounts is broken down into _____ types of accounts.

Question 24 24. What is the money that an owner has personally invested in their company called?

Question 25 25. Which of the following are part of the accounting equation?

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Question 26 26. Once source documents are in hand, where is the journal entry recorded?'

Question 27 27. Which of the following represents the accounting equation?

Question 28 28. Money that is paid to investors as a return on their investments is called _____.

Question 29 29. The double-entry accounting system states that for each and every transaction that a company has _____ or more accounts will be affected.

Question 30 30. The account category that shows what a company owns is called _____.

Mechanics of the Accounting Cycle 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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