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General Financial Accounting Test Answers (new)

There is a lot of hourly and monthly basis Accounting job in Upwork, if you are accounting expert make profile in upwork and have this test.

In this post you will find General Financial Accounting Test answers of Upwork Financial and Accounting category, press Ctrl + F to find your desired answers of the test questions.

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1. Which of the following is NOT an example of a period expense?
 Answers: • Inventory costs

 2. Which of the journal entries below is incorrectly recorded?
 Answers: • Dr: Prepaid Insurance, Dr: Cash - Paid in advance for a 1-year insurance policy

 3. Which of the following accounts would NOT appear on a corporation's Balance Sheet?
 Answers: • Premium on Common Stock

 4. Which of the following transactions would NOT result in revenue being reported?
 Answers: • Collection of an account receivable

 5. ________________ is the financial obligation of a company in regards to a loan that accrues with the passage of time.
 Answers: • Interest Payable

 6. XYZ Company failed to record the purchase of inventory on account at the end of 2008. In which of the following ways is the Balance Sheet misstated?
 Answers: • Assets and liabilities are both understated.

 7. Which of the following is recorded only when another business enterprise is acquired?
 Answers: • Goodwill

 8. ______________ refers to shares originally issued and outstanding that have been reacquired from the owners.
 Answers: • Preferred Stock

 9. Amounts paid for various fees incurred in organizing a corporation are called ____________.
 Answers: • Organization Costs

 10. A manufacturing firm's cost of producing its product is called ______________.
 Answers: • product costs


 11. XYZ Company publishes a monthly sports magazine. The company has fiscal year of Jan-Dec. On July 1 of Year 1, the company sold 1000 two-year subscriptions for $200 each. On December 31 of Year 1, the amount reported as a liability on the Balance Sheet and the amount reported as revenue on the Income Statement are, respectively:
 Answers: • $150,000 and $50,000

 12. Which of the following accounts accumulate amounts for only a single accounting period?
 Answers: • Temporary Accounts

 13. Which of the following would cause the accounting equation to be out of balance?
 Answers: • All of the above

 14. From the following list of accounts and account balances, determine the amount that would be properly classified as Property, Plant, & Equipment.

 $100,000 - Land Used in Business
 $60,000 - Machinery Leased from Others
 ($80,000) - Accumulated Depreciation
 $140,000 - Inventories
 $40,000 - Land Held for Future Plant Site
 $200,000 - Building
 $50,000 - Investment in Stock of Construction Company
 Answers: • $360,000

 15. At the beginning of the year, XYZ Company reported Accounts Receivable of $39,000. During the year, the company had credit sales totaling $288,000. At year end, the Accounts Receivable balance was $8,000 higher than the beginning balance. How much cash was collected on the accounts during the year?
 Answers: • $280,000

 16. XYZ Company has just completed its first year of operations in Year 1. The company distributed dividends of $50,000. If the ending balance of Retained Earnings on December 31 of Year 1 is $70,000, and the company had revenues of $400,000 from Year 1 sales, then what is the total of the company's Year 1 expenses?
 Answers: • $280,000

 17. A ____________ is the right to use property owned by someone else.
 Answers: • lease

 18. A trial balance prepared at the end of the accounting period after adjusting entries are made is called a/an _________________.
 Answers: • Adjusted Trial Balance

 19. XYZ Company has assets and liabilities of $15,000 and $12,000, respectively. If the company issues an additional $1,500 of stock for cash, what will be the balance in shareholders' equity following the transaction?
 Answers: • $4,500

 20. XYZ Company purchased a 1-year insurance policy for $3,000 on April 1 of Year 1. The amount of prepaid insurance reported on the Balance Sheet and the amount of insurance expense reported on the Income Statement on December 31 of Year 1 are, respectively:
 Answers: • $750 and $2,250

 21. Unused materials for manufacturing products are called ______________.
 Answers: • inventory

 22. XYZ Company is interested in disposing of one of its subsidiaries and is trying to decide on the maximum price it might be able to charge. Which valuation method below would the company be most likely to use?
 Answers: • Present Value

 23. Which of the following assets is a monetary asset?
 Answers: • Accounts Receivable

 24. A debit balance is normal for all of the following accounts except _______________.
 Answers: • Preferred Stock

 25. At the beginning of the year, XYZ Company owed $14,500 to its creditors for inventory purchases. At year end, the company owed $9,150. During the year, the company made payments totaling $48,500 to its creditors for inventory purchases. What was the cost of the additional inventory that was purchased during the year?
 Answers: • $43,150

 26. Payments made in advance for goods or services a firm will receive at a later date are called ______________.
 Answers: • Advances to Suppliers

 27. Amounts due from customers, for which the claim is in the form of a written promise to pay, are called ________________.
 Answers: • Notes Receivable

 28. A residual claim of owners having certain preferences relative to other owners' claims is called __________________.
 Answers: • Preferred Stock

 29. Which of the following operations is NOT considered part of the accounting process leading to financial statement preparation?
 Answers: • Auditing statements

 30. Amounts borrowed by a business for a relatively long period of time under a formal written contract or indenture are called _________________.
 Answers: • Unsecured Loans

 31. Amounts owed for goods or services acquired under an informal credit agreement are called ___________________.
 Answers: • Notes Payable

 32. The process of transferring entries in the general journal to the accounts in the general ledger is called ________________.
 Answers: • journalizing

 33. The balance in all asset accounts combined is $100,000 on December 1. During December, the following transactions took place:

 - Purchase of $10,000 of inventory for cash
 - Purchase of $15,000 of machinery on account
 - Retirement of $20,000 in bonds with cash

 Given this information, what is the combined balance in the asset accounts on December 31?
 Answers: • $95,000

 34. XYZ Company completed its second year of operations in Year 2. On January 1 of Year 2, the balance in Retained Earnings was $84,000. During the year, the company declared and paid a dividend of $65,000 to shareholders. The company reported net earnings of $105,000 in its Year 2 Income Statement. What was the balance in Retained Earnings on December 31 of Year 2?
 Answers: • $124,000

 35. Temporary revenue and expense accounts may be closed _________________.
 Answers: • to a temporary "Income Summary" account

 36. Amounts received for the par value of a firm's voting stock are called ___________.
 Answers: • Common Stock

 37. ________________ is/are a measure of the inflow of net assets from selling goods and providing services.
 Answers: • Revenues

 38. The Accumulated Depreciation account reflects _____________________.
 Answers: • cumulative depreciation on the asset since acquisition

 39. Which of the following accounts represents distributions of earnings to shareholders of the firm?
 Answers: • Dividends

 40. XYZ Company reported a balance in Accounts Receivable of $40,500 on January 1 of year 2. During Year 2, the company collected $127,500 from its customers who had purchased on account. On December 31 of Year 2, the company reported a balance in Accounts Receivable of $21,250. How much were XYZ Company's credit sales for Year 2?
 Answers: • $146,750

 41. Which of the following accounts is NOT an expense?
 Answers: • Dividends Declared

 42. At the beginning of the year, XYZ Company reported a $7,200 balance in its Prepaid Insurance account. At year end, the company reported Insurance Expense of $9,000 in its Income Statement and a balance of $3,800 in the Prepaid Insurance account. What was the cost of the additional insurance that was purchased during the year?
 Answers: • $5,600

 43. During the year, XYZ Company's inventory account balance increased from $26,000 to $31,500. During the year, the company made payments totaling $152,500 to creditors for inventory purchases and reported Cost of Goods Sold of $159,500 on its Income Statement. How much inventory was purchased during the year?
 Answers: • $158,000

 44. Which of the following accounts is not closed during the closing process?
 Answers: • Accumulated Depreciation

 45. XYZ Company purchased some equipment for $120,000 on July 1 of Year 1. The equipment has an estimated useful life of 10 years and an estimated salvage value of $7,500. XYZ Company computes depreciation on a straight-line basis. How much depreciation should be recorded for Year 1?
 Answers: • $11,250

 46. A right granted to an individual or company that excludes others from manufacturing, using, or selling a certain process or device is called a _____________.
 Answers: • patent

 47. Which of the following accounts is NOT a temporary account that should be closed during the closing process?
 Answers: • Prepaid Insurance

 48. A trial balance that shows revenue and expense accounts with zero balances and balance sheet accounts at the end of the period is called a __________________.
 Answers: • Post-Closing Trial Balance

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