Upwork Booking Keeping Test Answers 2018
40 Answered Test Questions:
1)A payment of cash for the purchases of services should be recorded in the:a)cash payments journal
b)purchases journal
c)revenue journal
d)cash receipts journals
2)This question is based upon the figure shown below
3 Dr Cr
1) Purchases 2,000
Accounts Payable 2,000
2)Accounts Payable 1,960
Cash 1,960
3)Accounts Payable 1,960
Purchase Discount Cost 40
cash 2,000
4)Accounts Payable 2,000
Cash 2,000
Refer to the given image:
On February 1, Crown & Co purchased $2,000 worth of merchandise terms 2% /10 net 30 days They Use the gross method of recording purchases Payment of the accounts payable was made on February 26 Which of the following journal entries would be appropriate for the February 26.
a)1
b)2
c)3
d)4
3)The best inventory method to adopt for a company that sells a product in large quantities, for example nail, would be.
a)FIFO
b)LIFO
c)Average Cost
d)Specific Cost
4)Why is the Accounts Receivable function important?
a)All companies have it so it must be important
b)It is good to have someone people can call with invoice questions
c)It turns the receivables into cash
d)Sales would go down without an AR department
5)Why would a company choose to invoice customers weekly rather than monthly?
a)It keeps the accounting staff busy
b)It increase cash flow
c)Customers expect it
d)It is required by law
6)With the job order cost system a credit blance in the Factory Overhead account at the end of an accounting period would indicate:
a)that an error in the job cost system has occurred
b)that the company lost money during the period
c)The presence of under applied overhead
d)the preence of over applied overhead
7)Office Mart's financial statements revealed an uncollectible accounts expense of $8,000 accounts receivable of $140,000. and allowance for uncollectible accounts of $12,000. The net realization value of Office Mart's account receviable is
a)$128,000
b)$132,000
c)$136,000
d)$152,000
8)Which of the followin is a personal account?
a)Building
b)Wages
c)Debtors
d)Rent
9)In which section of the balance sheet should inventory accounts be classified?
a)Current assets
b)Investments
c)Property plant and equipment
d)Intangible
10)Which of the following statements concerning job cost sheets is incorrect?
a)A job cost sheet would show the direct materials used on that specific job.
b)A job cost sheet would reveal the selling costs associated with a particular job
c)The Total costs recorded on a job cost sheet should also be reflected in the work in Process account in the general ledger
d)The amount of overhead on a job cost sheet is the applied factory overhead rather than teh actual factory overhead.
11)Which of the following statements concening job costing systems is incorrect?
a)Cost drivers are those items which cause actual overhead to exceed applied overhead
b)Job costing system are appropriate to both manufacturing and service businesses
c)Traditionally direct labor has been a very popular overhead application base
d)In a service business, indirect costs of providing a service are treated as overhead and applied in a manner similar to that factory overhead.
12)Of the following manufacturing operations, which is best suited to the utilization of a job order system?
a)Helicopter manufacturing
b)Soft drink bottling operation
c)Crude oil refining
d)Plastic molding operation
13)The correct journal entry to reconcile teh interest earned on a bank balance is:
a)Debit cash, Credit Interest Revenue
b)Debit Cash, Credit Accounts Payable
c)Debit Cash, Credit Accounts Receivable
d)Debit Accounts Receivable, Credit Cash
14)What does Accounts Payable show?
a)Credit Balance
b)Debit Blance
c)No Blance
d)None of the above
15)Accounts payable refer to the current?
a)Liability of a business or an organization
b)Asset of a business or an organization
c)Expense of a business or organization
d)Income of a business or organization
16)Trade accounts receivable.
a)arise from the sale of a company's products or services
b)are reporte in the non current asset section of the balance sheet
c)Include deposits with utilities
d)Generally comprise the minority of the total receivables blance
17)Which of the following is a liabiliy?
a)Creitors for Goods
b)Machinery
c)cash at Bank
d)Motor Vehicles
18)Which of the following comments relating to the recording process is correct?
a)The general ledger is a chronological record of transactions
b)The general ledger is posted form the transactions recorded in the general journal
c)The trial balance provides the primary source document for recording transactions`
d)Transposition is the transfer of information from the general jounal to the general ledger
19)The correct journal entry to reconcile an NSF check returned by the bank is:
a)Debit Accounts Receivable Credit NSF
b)Debit Cash, Credit Accounts Receivable
c)Debit NSF expense, Credit Cash
d)Debit Account Receivable Credit Cash
20)If you want ot make sure that your money remain safe when checks ent are lsot in the post you should.
a)cross your checks Account Payee only Not Negotiable
b)not use the postal service in future
c)always pay by cash
d)always take the money in person
21)Account books are typically closed on a _______ basic
a)Weekly
b)Monthly
c)Quarterly
d)Yearly
22)If a customer pays an invoice twice, the best way to handle the error is.
a)Apply the payment to a holding account and don't let the client know unless they ask
b)Apply the payment to their account and hold it back in case they decide not to pay future invoices
c)Receive the cash and immediately issue a check back to them
d)Call the customer and ask them they would prefer
23)Why do companies hold back paying invoices until due?
a)They forget to pay
b)They are managing their cash flow
c)They don't like taking discounts and saving money
d)They might decide not to pay if the vendor doesn't call
24)If merchandise purchased on account is returned the buyer may inform the seller of the details by issuing:
a)a credit memorandum
b)a bill
c)a debit memorandum
d)an invoice
25)Which of the following is a typical preparid expense?
a)Rent
b)Insurance
c)Wages
d)Office Supplies
26)The following comments relate to the recording of journal entries. Which statement is ture?
a)For any given journal entry. debit must exceed credits
b)It is customary to record credits on the left and debits on the right.
c)The chart of accounts reveals the amount to debit and credit to the affected accounts.
d)Journalization is the process of converting transactions and events into the debit/credit fomat.
27)A check issued by you but not yet passed through the banking system, is
a)an outstandig check
b)a credit transfer
c)a dishonored check
d)a standing order
28)If a bank account does not reconcile what's the best thing to do?
a)Book the difference as an adjustement regardless of the magnitude
b)Let it remain unreconciled and hope it will clear up in the following month
c)Start from scratch to see if the discrepancy can be found.
29)They entry to record the payment of dividends is
a)debit cash, credit Dividend Expense
b)debit Dividend Expense, credit Cash
c)debit Dividends, credit Divident Payable
d)debit Dividend Payable, credit Cash
30)This question is based upon the figure shown below
Dr Cr
1) Purchases 990
cash 900
2)Accounts Payable 990
Cash 990
3)Accounts Payable 1,000
Purchase Discount Cost 10
cash 990
4)Accounts Payable 1,000
Cash 1,000
Refer to the given image:
On February 1, Crown & Co purchased $1,000 worth of merchandise terms 1% /10 net 30 days They Use the gross method of recording purchases Payment of the accounts payable was made on March 4 Which of the following journal entries would be appropriate for the March 4.
a)1
b)2
c)3
d)4
31)The sales Day Book is best described as:
a)a book containing customers accounts
b)a book containing real accounts
c)a list of credit sales
d)a part of the double entry system
32)The correct journal entry to reconcile an EFT payment of insurance expense is:
a)Debit Cash, Credit Interest Revenue
b)Debit Accounts Payable, Credit Cash
c)Debit bank Charge Expense Credit Cash
d)Debit insurance Expense, Credit cash
33)Which of the followinf best describes the meaning of 'Purchases'?
a)Goods paid for
b)Goods Bought for resale
c)Items bought
d)Goods bought on credit
34)The accounting profession can be divided into three major categories, specifically the public acconuting private accounting and govermental accounting. A somewhat unique and important service of public accountants is___
a)financial accounting
b)managerial accounting
c)auditing
d)cost accounting
35)Sorting the accounts Payable into current 1-30 days past due 31-60 days past due and so on is known as
a)Aging Report
b)Pending Report
c)Payable Report
d)Other Report
36)Documents used to control a bank account include the following except
a)a bank statement
b)electronic funds transfer(EFT)
c)prenumbered checks
d)a signature card
37)The appropriate journal entry to record the application of overhead in a job costing system involes a debit to Work in process and a credit to
a)Cost of Goods Sold
b)Factory Overhead
c)Cash
d)Income Summary
38)The Factory Overhead accout in a job costing system is credited for the:
a)excess of applied overhead over actual overhead
b)actual overhead
c)applied overhead
d)indirect materials and indirect labor
39)An increase in a firm's receivable turnover ratio means that:
a)it is collecting credit sales more quickly than befor
b)cash sales have decreased
c)it has intiated more liberal credit terms
d)it's inventories have inreased
40)Purchasers of merchandise may be dissatisfied with the quality of goods purchased on account and return the goods to the seller with an indication that payment will not be forthcoming. In such a case the document prepared by teh purchaser is called
a)a debit memorandum
b)a credit memorandum
c)a receiving report
d)an invoice
Emoticon