ACCT 301 Week 2 Quiz

ACCT 301 Week 2 Quiz

1. (TCO 1) Which of the following would not be considered an external user of accounting data for XYZ Company?

2. (TCO 1) The cost of assets consumed or services used is also known as _________.

3. (TCO 1) The financial statement that summarizes the changes in retained earnings for a specific period of time is the _________.

4. (TCO 1) Pinson Company began the year with retained earnings of $210,000. During the year, the company recorded revenues of $300,000, expenses of $228,000, and paid dividends of $24,000. What was Pinson’s retained earnings at the end of the year?

5. (TCO 4) Which of the following statements is not true?

6. (TCO 4) Using the following balance sheet and income statement data, what is the current ratio? Current assets $7,000 Net income $12,000 Current liabilities 4,000 Stockholders’ equity 21,000 Total assets 30,000 Total liabilities 9,000 Average common shares outstanding was 10,000

7. (TCO 4) Using the following balance sheet and income statement data, what is the total amount of working capital? Current assets $7,000 Net income $12,000 Current liabilities 4,000 Stockholders’ equity 21,000 Total assets 30,000 Total liabilities 9,000 Average common shares outstanding was 10,000

8. (TCO 4) Using the following balance sheet and income statement data, what is the debt to total assets ratio? Current assets $7,000 Net income $12,000 Current liabilities 4,000 Stockholders’ equity 21,000 Total assets 30,000 Total liabilities 9,000 Average common shares outstanding was 10,000

9. (TCO 2) Powers Company paid its office rent of $1,000 with cash. As a result of this event, _________.

10. (TCO 2) Which accounts normally have debit balances?

11. (TCO 2) In the first month of operations, the total of the debit entries to the cash account amounted to $700 and the total of the credit entries to the cash account amounted to $300. The cash account has a _________

12. (TCO 2) A trial balance would only help in detecting which one of the following errors?

13. (TCO 3) From an internal control standpoint, the asset most susceptible to improper diversion and use is _________

14. (TCO 3) Ron Jones has been a trusted employee for over 10 years. He is responsible for ordering merchandise inventory, receiving the inventory items, and authorizing the payment for these items. Which internal control principle, if any, is being violated?

15. (TCO 3) A check written by the company for $167 is incorrectly recorded by a company as $176. On the bank reconciliation, the $9 error should be _________