Which of the following kinds of companies would use a 990 tax form?
Sole proprietorship
LLC
Non-profit
LLP
CONCEPT
2
Greg is an employee who records and organizes a company’s transactions.
What is his role?
Accountant
Auditor
Controller
Bookkeeper
CONCEPT
3
Because Mike is only accountable for the $20,000 he invested in his friend Matt's company, the two have created which of the following business types?
Limited Liability Partnership
Dual Proprietor Structure
Limited Liability Company
Private Corporation
CONCEPT
4
Instances of fraud and misconduct caused the government to implement which piece of legislation?
International Financial Reporting Standards
General Accepted Accounting Principles
Sarbanes-Oxley Act
Miller-Townsend Act
CONCEPT
5
Which of the following is responsible for the creation and governance of accounting standards in the United States?
Financial Standards Accounting Board (FASB)
Securities and Exchange Commission (SEC)
Sarbanes-Oxley Act
Generally Accepted Accounting Principles (GAAP)
CONCEPT
6
Which of the following is NOT true of a natural balance?
Each account group has a natural balance.
An account increase occurs on the opposite side of the account's natural balance.
Each account is associated with only one account group.
Each individual account has a natural balance.
CONCEPT
7
Transferring $12,000 in revenue and $8,000 in expenses into equity would be performed during which phase of the accounting cycle?
Close
Journalize
Report
Adjust
CONCEPT
8
In early December, the Snowland Resort was paid $1,600 by a company to host its holiday party that month.
In addition to receiving the cash, the $1,600 is considered which of the following?
Revenue
Profit
Expense
Equity
CONCEPT
9
Brian discussing the financial position of his company with Mike, who is interested in acquiring Brian's company, is an example of which of the following?
Financial accounting
Managerial accounting
Investment accounting
External accounting
CONCEPT
10
Which image below correctly shows a general ledger?
- Second option is correct
CONCEPT
11
The bookkeeper for Dr. Mark Scholz, DVM, informed the veterinarian that the business' revenue for the day was $18,920.
Which statement below best describes how the bookkeeper would record this?
$18,920 would be recorded on the credit side of the cash account.
$18,920 would be recorded on the debit side of the owner's equity account.
$18,920 would be recorded on the debit side of the purchases account.
$18,920 would be recorded on the credit side of the revenue account.
CONCEPT
12
Which of the following is NOT a permanent account?
Equity
Revenue
Liabilities
Assets
CONCEPT
13
Which of the following is a responsibility of the FASB?
Overseeing publicly-traded companies
Developing and controlling the U.S. GAAP.
Investigating the use of public funds
Developing rules for security laws
CONCEPT
14
The ____________ provides a numerical label for each account, so that activity can easily be tracked for a given account.
Book-Entry
Accounting Model
Double-Entry Accounting
Chart of Accounts
CONCEPT
General Journal and General Ledger
15
Which illustration below correctly shows Jen opening her frozen yogurt store with a monetary investment of $5,000?
- Second option is correct
CONCEPT
16
What is the name of the accounting system documented in the 15th century by Luca Pacioli?
Managerial
Monetary unit
Double-entry
Cost
CONCEPT
17
Which of the following is NOT a good use of a T-account?
Analyzing a complicated transaction, prior to recording the event in the general journal
Prior to recording an entry, to see the effect of the debits and credits on each account
To make sure the debits and credits in each transaction are equal
Transferring final balances of accounts to the company's financial records
