Week 1 Quiz 1
Question 1
The accounting equation will appear on every published financial statement.
o True
o False
Question 2
Accounting has its own language.
o True
o False
Question 3
Assets identify what a firm owes.
o True
o False
Question 4
Liabilities identify what a firm owns.
o True
o False
Question 5
All accounting must be done using an Excel spreadsheet.
o True
o False
Week 1 Quiz 2
Question 1
A balance sheet reveals the assets, liabilities and equity of a particular business over a designated period of time.
o True
o False
Question 2
An Income Statement reveals a firms assets, liabilities and equity at a particular moment in time.
o True
o False
Question 3
The Statement of Retained Earnings builds a bridge between the retained earnings that existed at the beginning and the end of the accounting period.
o True
o False
Question 4
A Cash Flow Statement is identical to the firm’s bank account and is used to reconcile the checking account each month.
o True
o False
Question 5
GAAP is the organization that makes the rules for accounting that all firms follow.
o True
o False
Week 1 Quiz 3
Question 1
Journal entries must be prepared before financial statements can be created for a firm.
o True
o False
Question 2
T-accounts are part of the published financial reporting package of statements each month.
o True
o False
Question 3
An Income Statement will explain the value of current assets a firm has acquired.
o True
o False
Question 4
Liabilities will be listed on a firm’s balance sheet.
o True
o False
Question 5
Dividends are part of current assets for a firm since they will be paid with cash.
o True
o False
Week 1 Quiz 4
Question 1
In accounting a debit indicates an increase in an account.
o True
o False
Question 2
In accounting a credit increases a liability account.
o True
o False
Question 3
In accounting a credit increases an asset account.
o True
o False
Question 4
In accounting there are no debits or credits entered in the equity accounts.
o True
o False
Question 5
A trial balance is a listing of all accounts and their balances at a given moment in time.
o True
o False
Week 1 Quiz 5
Question 1
In accounting the concept of materiality refers to ________________.
o Keeping the business running
o How to account for matters that would bear on a decision-making process about the entity
o How much money the firm is making
o Materiality is not a concept in terms of accounting
Question 2
Typically accounting transactions are recorded and reported at _______________.
o Depreciated value
o Expected sales value
o Discounted value
o Historical cost
Question 3
The accounting equation is ____________________________.
o Liabilities + Equity = Assets
o Assets + Liabilities = Equity
o Assets + Equity = Liabilities
o Not listed here
Question 4
An accountant should be able to work in the profession in the ___________________.
o Private sector
o Public Sector
o Government sector
o All of these listed
Question 5
In accounting, a debit means ________________________.
o A negative number
o A positive number
o The left side of an account
o Nothing that is relevant
Accounting Cycle
Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different companies have different accounting cycles?
Would you expect the steps of the accounting cycle to be the same for each company? Why, or why not?
For a written transcript, please click here.
Guided Response:
Review several of your peers’ posts and identify what steps of the accounting cycle that you feel are the most critical. Respond to at least two of your peers and provide recommendations to extend their thinking.
Challenge your peers by asking a question that may cause them to reevaluate their positions on the accounting cycle.
Bank Reconciliation
For a written transcript, please click here.
Guided Response:
A bank reconciliation reconciles the bank account balance per the books to the actual bank balance. Outstanding checks, deposits in transit, and bank errors are reasons there are differences between the cash reported in the accounting records and the cash balance in the bank statements.
Week 2 Quiz 1
Question 1
Cash received from a customer in advance of an order being shipped is considered revenue by the firm.
o True
o False
Question 2
If no cash is received then revenue cannot be recognized based on the matching principle.
o True
o False
Question 3
The cash account will never have an adjusting entry when closing the books.
o True
o False
Question 4
Expenses must be paid for before they can be recognized.
o True
o False
Question 5
The accounting cycle for a firm is considered to be one year.
o True
o False
Week 2 Quiz 2
Question 1
Postage stamps would be considered a cash equivalent.
o True
o False
Question 2
A note receivable due in 16 months would be considered a cash equivalent.
o True
o False
Question 3
A good cash control is to take cash register receipts and hide them in the back room until later in the week when a bank deposit can be made.
o True
o False
Question 4
An accounts receivable is an amount due from a customer.
o True
o False
Question 5
A note receivable and an account receivable are the same thing, just with a different name.
o True
o False
Week 2 Quiz 3
Question 1
Cash control refers to insuring everyone has access to the petty cash drawer so they can make change when needed.
o True
o False
Question 2
A bank reconciliation by someone external to the cash process is considered an internal control.
o True
o False
Question 3
Petty cash is the primary account for a firm to pay bills out of.
o True
o False
Question 4
The Direct Write-off method of bad debt recognition is not recognized by GAAP as acceptable.
o True
o False
Question 5
The Allowance Method of recognizing bad debt expense is not recognized as GAAP acceptable.
o True
o False
Week 2 Quiz 4
Question 1
The accrual basis of accounting means_______________________.
o Sales are recorded as cash is received
o To accumulate over time, based on a natural observable increase
o None of the answers listed defines the meaning of accrual accounting
o Gather together like transactions for more efficient entry to the accounting system
Question 2
Under accrual basis accounting revenue is not recognized until _________________.
o The product is sold and delivered to the end customer.
o A customer agrees to a price and they shake hands with the sales person
o A customer purchase order is received
o Cash is received
Question 3
The matching principle states ______________________________.
o All of these answers are correct relating to the matching principle
o Expenses that have not related to any future period should be expensed in the current period
o Expenses that recur should be recorded in a systematic manner
o Expenses associated with revenue creation should be recorded in the same period as the revenue
Question 4
Adjusting entries apply to ___________________________
o All of these entries
o Prepaid
o Depreciation
o Unearned revenue
Question 5
Depreciation is _________________________________________.
o The valuation of assets of a business
o A method to increase an assets book value
o The transfer of an asset’s cost to expense over the expected useful life of the asset
o The opposite of residual value
LIFO vs. FIFO
The controller of Sage hen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods?
For a written transcript, please click here
Guided Response:
Analyze several of your peers’ posts. Let at least two of your peers know if a company is better off if it switches from a LIFO method to a FIFO method. Explain your reasoning.
Depreciation
A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation.
Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?
For a written transcript, please click here.
Guided Response:
Let at least two of your peers know if a company would use an accelerated depreciation method for their financial statements or their tax returns. Why do you believe this would be the case?
Week 3 – Assignment
- Listen to the video below for the exercise/problem. The video completes the problems using the book numbers.
- Open the Guidance Report and rework the problem with the changed numbers and place your answers on the guidance report. Do not alter the guidance report.
- Submit the guidance report using the Assignment Submission tab below.