Accounting Cycle MCQs with Answers

Accounting cycle MCQs questions with answers can be helpfull for the students to learn the concept of accounting cycle clearly. Try to answer each question and get the result after submission. Best of Luck!

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1. Accounting to the rules of debit and credit for balance sheet accounts:

 
 
 
 

2. Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The Journal entry made on January 20 by Sunset Tours to record this transaction includes:

 
 
 
 

3. Indicate all of the following statements that correctly describe net income. Net income:

 
 
 
 

4. Which of the following is provided by a trial balance which total debits equal total credits?

 
 
 
 

5. Which of the following explains the debit and credit rules relating to the recording of revenue and expenses?

 
 
 
 

6. Which of the following is not considered an analytical aspect of the accounting profession?

 
 
 
 

7. Indicate all correct answers. In the accounting cycle:

 
 
 
 

8. Indicate all correct answers. Dividends:

 
 
 
 

9. The purpose of adjusting entries is to:

 
 
 
 

10. Before month-end adjustments are made, the January 31 trial balance of Rover Excursions contains revenue of $27,900 and expenses of $17,340. Adjustments are necessary for the following items:

Portion of prepaid rent applicable to January $2,700
Depreciation for January $1,440
Portion of fees collected in advance earned in January $3,300
Fees earned in January, not yet billed to customers $1,950

Net Income for January is:

 
 
 
 

11. The CPA firm auditing Mason Street Recording Studios found that total stockholders’ equity was understated and liabilities were overstated. Which of the following errors could have been the cause?

 
 
 
 

12. Assume Fisher Corporation usually earns taxable income, but sustains a loss in the current period. The entry to record income taxes expense in the current period will most likely (indicate all correct answers):

 
 
 
 

13. The concept of materiality (Indicate all correct answers):

 
 
 
 

14.  

For a publicly owned company, indicate which of the following accounting activities are likely to occure at or shortly after year-end. (More than one answer may be correct.)

 
 
 
 

15. Which of the following financial statements is generally prepared first?

 
 
 

16. Which of the following accounts would never be reported in the income statement as an expense?

 
 
 
 

17. which of the following accounts would never appear in the after-closing trial balance? (More than one answer may be correct.)

 
 
 
 

18. Which of the following journal entries is required to close the income Summary account of a profitable company?

 
 
 
 

19. Indicate those items for which generally accepted accounting principles require disclosure in notes accompanying the financial statements. (More than one answer may be correct.)

 
 
 
 

20. Ski West adjusts its accounts at the end of each month but closes then only at the end of the calendar year (December 31). The ending balances in the Equipments Rental Revenue account and the Cash account in February and March appear below.

Feb. 28 Mar. 31
Cash $14,200 $26,500
Equipments rental revenue 12,100 18,400

Ski West prepares financial statements showing separately the operating results of each month. In the financial statements prepared for the month the monthly ended March 31, Equipment Rental Revenye and Cash should appear as follows:

 
 
 
 

21. Which of the following accounts is not closed to the Income Summary account at the end of the accounting period? (More than one answer may be correct.)

 
 
 
 

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