Quiz  /  Trial Balance Gate & PSU MCQ Questions With Answers

  • 1. 
    Which of the following entries records the utility bill incurred but not paid from the water company?

  • Debit Utilities Expense; credit Accounts Payable
  • Debit Accounts Payable; credit Utilities Payable
  • Debit Accounts Payable; credit Cash
  • Debit Utilities Payable; credit Accounts Receivable

  • 2. 
    In 2013, Abbott Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Abbott in 2014. If Abbott uses the cash basis of accounting, then Abbott will report:

  • a. revenue of $10,000 in 2013.
  • b. revenue of $10,000 in 2014.
  • c. expenses of $3,000 in 2014.
  • d. net income of $7,000 in 2013.

  • 3. 
    Which account will have a zero balance after a company has journalized and posted closing entries?

  • (a)Service Revenue.
  • (b)Supplies.
  • c)Prepaid Insurance.
  • (d)Accumulated Depreciation.

  • 4. 
    Classify the item : Advertising

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 5. 
    1. Little Corporation received $5,000 from a customer for whom it is to perform work in the future, debiting Cash and crediting Unearned Revenue. At the end of the accounting period, Little has earned $2,000 of the revenue. The adjusting entry will require a:

  • a. debit to Cash for $2,000.
  • b. debit to Service Revenue for $2,000.
  • c. credit to Service Revenue for $2,000.
  • d. credit to Service Revenue for $3,000.

  • 6. 
    Classify the item : Capital

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 7. 
    Classify the item : Discount Allowed

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 8. 
    Classify the item : Discount Received

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 9. 
    Classify the item : Drawings

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 10. 
    Refers to the allocation of the cost of the asset over its estimated useful life.

  • Consumption
  • Deterioration
  • Contra Asset
  • Depreciation

  • 11. 
    Classify the item : Fixtures and Fittings

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 12. 
    Maria inventoried the office supply cabinet and determined $267 in supplies have been used in the last month. She will now

  • A. credit Supply Expense, debit Supplies
  • B. debit Supply Expense, credit Supplies
  • C. make a $267 adjusting entries on the Trial Balance Work Sheet
  • A and C
  • B and C

  • 13. 
    Classify the item : Carriage Inward

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 14. 
    Interest incurred but not yet paid.

  • accrual
  • accrued interest expense
  • accrued expenses
  • deferral

  • 15. 
    Classify the item : Office Rent

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 16. 
    We purchased Indian Insurance (Prepaid Insurance) on June 1st, 2020 for $252. What is the Insurance Expense as of December 31, 2020?

  • $105
  • $50.40
  • $147
  • none of the above

  • 17. 
    Adjustments for prepaid expenses:

  • (a)decrease assets and increase revenues.
  • (b)decrease expenses and increase assets.
  • (c)decrease assets and increase expenses.
  • (d)decrease revenues and increase assets.

  • 18. 
    Adjustments for unearned revenues:

  • a)decrease liabilities and increase revenues.
  • (b)increase liabilities and increase revenues.
  • (c)increase assets and increase revenues.
  • d)decrease revenues and decrease assets.

  • 19. 
    Classify the item : Bank Overdraft

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 20. 
    Classify the item : Insurance

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 21. 
    Classify the item : Long Term Loan

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 22. 
    Classify the item : Trade payable

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 23. 
    Classify the item : Purchase

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses

  • 24. 
    Classify the item : Mortgage

  • Assets
  • Liabilities
  • Owner's Equity
  • Revenues
  • Expenses
Report Question
warning
access_time
  Time