Acc499 Bachelor Capstone in Accounting: Unit 2 Quiz

Acc499 Bachelor Capstone in Accounting Unit 2 Quiz 1. Which of the following accounts most likely would not appear in a post-closing trial balance? Retained Earnings Inventory Sales Revenue Common Stock 2. A trial balance is useful because it indicates that owners' equity is correct. net income is correct. all entries were made correctly. total debits equal total credits. 3. Adjusting entries normally involve real accounts only. nominal accounts only. real and nominal accounts. liability accounts only. 4. An example of a nominal account would be Allowance for Doubtful Accounts. Notes Payable. Prepaid Expense. Cost of Goods Sold. 5. Which of the following is presented in a balance sheet? Prepaid expenses Revenues Net income Gains 6. Which of the following would typically be considered a source document? Chart of accounts General ledger General journal Invoice received from seller 7. Failure to record depreciation expense at the end of an accounting period results in understated income. understated assets. overstated expenses. overstated assets. 8. Which of the following errors will be detected when a trial balance is properly prepared? An amount that was entered in the wrong account A transaction that was entered twice A transaction that had been omitted None of these 9. Which of the following must receive IRS permission AND is reportable in the financial records? The value of goodwill earned through business operations The value of human resources Changes in personnel Changes in inventory costing methods 10. In an accrual accounting system, all accounts have normal debit balances. a debit entry is recorded on the left-hand side of an account. liabilities, owner's capital, and dividends all have normal credit balances. revenues are recorded only when cash is received.