‫‪first year‬‬

‫‪Edit by Dr. Magdy kamel‬‬

‫‪Exam‬‬
‫‪Tel/ 01273949660‬‬ ‫‪from 2020 to 2024‬‬

‫مكتبة الباشمحاسب‬ ‫العنوان‪ :‬مركز سيجما ‪ -‬شارع دمحم عىل‬

‫شارع المكتبات‬ ‫مكارم – امام مطعم سلطانة‬

‫‪1 | Page‬‬ ‫‪dr. magdy kamel‬‬ ‫‪tel / 01273949660‬‬

 Assuit university Model (1) Time: two hours
Faculty of commerce Year 1 January, 2024
Department of accounting Eight pages Financial accounting
Choose the right answer a, b, c, d
1. For the basic accounting equation to stay in balance, each transaction
recorded must
a. affect two or less accounts.
b. affect two or more accounts.
c. always affect exactly two accounts.
d. affect the same number of asset and liability accounts.
2. An awareness of the normal balances of accounts would help you spot
which of the following as an error in recording?
a. A debit balance in the drawing account
b. A credit balance in an expense account
c. A credit balance in a liabilities account
d. A credit balance in a revenue account

3. expenses paid in advance are called

a. prepaid expenses. b. expenses payable.
c. interim expenses. d. unearned expenses.

4. Expenses not yet paid or recorded are called

a. prepaid expenses
b. expenses payable
c. interim expenses
d. unearned expenses

5. Unearned revenues are

a. received in advance and recorded as liabilities.
b. received in advance and recorded as assets.
c. earned but not yet received or recorded.
d. earned and already received and recorded.

6. Accumulated Depreciation is
a. an expense accounts
b. an owner's equity account.
c. a liability account.
d. a contra asset account
1. b 2. b 3. a 4. b 5. a 6. d
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7. A net profit will result during a time period when
a. liabilities are more than assets.
b. drawings are more than investments.
c. expenses are more than revenues.
d. revenues are more than expenses.

8. A balance sheet shows

a. revenues, liabilities, and owner's equity.
b. expenses, drawings, and owner's equity.
c. revenues, expenses, and drawings.
d. assets, liabilities, and owner's equity.

9. An income statement
a. summarizes the changes in owner's equity for a specific period of time.
b. reports the changes in assets, liabilities, and owner's equity over a period of time
c. reports the assets, liabilities, and owner's equity at a specific date.
d. presents the revenues and expenses for a specific period of time.

10. Owner's capital at the end of the period is equal to

a. owner's capital at the beginning of the period plus net income minus liabilities
b. owner's capital at the beginning of the period plus net income minus drawings
c. net income.
d. assets plus liabilities.

11. On January 14, Franco Industries purchased supplies of $500 for cash . The
entry to record the purchase will include
a. a debit to Supplies and a credit to Accounts Payable.
b. a debit to Supplies Expense and a credit to Accounts Receivable.
c. a debit to Supplies and a credit to Cash.
d. a debit to Accounts Receivable and a credit to Supplies.

12. Kent Company purchased office supplies costing $6,000 and debited office
supplies for the full amount. At the end of the accounting period, a physical
count of office supplies revealed $2,400 was used during period.
The adjusting journal entry to be made at the end of the period would be
a. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
b. Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600.
c. Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600.
d. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.

7. d 8. d 9. d 10. b 11. c 12. a

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13. On October 1, Dexter Shoe Store paid in advance $15,000 to Ace Realty for 5 months
rent. Prepaid Rent was debited for the full amount , the annual adjusting entry to be
made by Dexter Shoe Store on December 31 is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000.
b. Debit Prepaid Rent, $6,000; Credit Rent Expense, $6,000.
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000.
d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.

14. On October 1, Dexter Shoe Store paid in advance $15,000 to Ace Realty for 5 months
rent. Rent expense was debited for the full amount., the annual adjusting entry to be
made by Dexter Shoe Store on December 31 is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000. ‫المساله دى‬
b. Debit Prepaid Rent, $6,000; Credit Rent Expense, $6,000. Correction
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000. ‫اعاده تصحيح خطا‬

d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.

15. ABC company purchased a computer for 24,000 on January 1. The company
expected to use the computer for 4 years. It has $4,000 residual value
Annual depreciation expense at 31/12 on the computer is:
a. $5000 b. $7000
c. $500 d. $6,000

16. ABC company purchased a machine for 27,000 on January 1. The company
expected to use the machine for 4 years. It has $3,000 residual value
monthly depreciation expense at 31/12 on the machine is:
a. $500 b. $6750
c. $7,500 d. $6,000
17. ABC company purchased an equipment for 35,000 on june 30. the estimated
useful life is 5 years. It has $5,000 residual value annual depreciation expense
at 31/12 on the equipment is:
a. $7000 b. $3,500
c. $3,000 d. $6,000

18. Maple Tree Inc. purchased a 10-month insurance policy on April 30, for $20,000.
At may 31, the monthly adjusting journal entry is
a. a debit to Insurance Expense and a credit to Prepaid Insurance for $20,000.
a. a debit to Prepaid Insurance and a credit to Insurance Expense for $2,000
c. a debit to Insurance Expense and a credit to Prepaid Insurance for $2,000.
d. a debit to Insurance Expense and a credit to prepaid insurance for $16,000.

13. a 14. b 15. a 16. a 17. c 18. c

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19. Maple Tree Inc. purchased a 10-month insurance policy on April 30, for $20,000.
At December 31, the annual adjusting journal entry is
a. a debit to Insurance Expense and a credit to Prepaid Insurance for $20,000.
a. a debit to Prepaid Insurance and a credit to Insurance Expense for $2,000
c. a debit to Insurance Expense and a credit to Prepaid Insurance for $2,000.
d. a debit to Insurance Expense and a credit to prepaid insurance for $16,000.

20. Adel company rendered services to some customers on 31/12 for $4,000.
But this amount not yet collected or recorded, the adjusting entry is
a. cash debit $4,000 and service revenue credit $4,000
b. cash debit $4,000 and Accounts receivable credit $4,000
c. accounts receivable debit $4,000, and service revenue credit $4,000
d. service revenue debit $4,000 and accounts receivable credit $4,000.

21. On January 1, 2018, Jackson Company reported owner’s equity of $490,000. During the
year, the owner withdrew cash of $20,000. At December 31, 2018, the balance in owner’s
equity was $500,000.
What amount of net income or net loss would the company report for 2018?
a. Net income of $30,000 b. Net loss of $50,000
c. Net income of $10,000 d. Net income of $50,000

22. The balance of unearned revenue is 50,000

If you learn that unearned revenue was collected in advance for 5 months started
on 31/10. The annual adjusting entry is :
a. debit to service revenue and a credit to unearned revenue $30,000
b. debit to service revenue and a credit to unearned revenue $20,000
c. debit to unearned revenue and a credit to service revenue $30,000
d. debit to unearned revenue and a credit to service revenue $20,000

23. the balance of prepaid salaries is 90,000

if you learn that monthly salaries are $15,000 started on 1/9 .
the annual adjusting entry is
a. debit to prepaid salaries and a credit to salaries expense $15,000
b. debit to prepaid salaries and a credit to salaries expense $60,000
c. debit to salaries expense and a credit to prepaid salaries $15,000
d. debit to salaries expense and a credit to prepaid salaries $60,000

19. d 20 . C 21. a 22. d 23. d

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24. the balance of prepaid salaries is 60,000
if you learn that prepaid salaries were paid in advance for 4 months started on
30/9 . the monthly adjusting entry is
a. debit to prepaid salaries and a credit to salaries expense $15,000
b. debit to prepaid salaries and a credit to salaries expense $45,000
c. debit to salaries expense and a credit to prepaid salaries $15,000
d. debit to salaries expense and a credit to prepaid salaries $45,000

25. A gift shop signs a three-month loan payable to help finance the shop.
The loan is signed on November 1 in the amount of $50,000 with annual
interest of 12%. What is the monthly adjusting entry to be made on
December 31 for the interest expense accrued to that date?
a. debit to interest expense and credit to interest payable $1,000
b. debit to interest expense and credit to interest payable $ 500
c. debit to interest expense and credit to cash $1,000
d. debit to interest expense and credit to cash $500

26. A gift shop signs a three-month loan payable to help finance the shop.
The loan is signed on November 1 in the amount of $50,000 with annual
interest of 12%. What is the annual adjusting entry to be made on
December 31 for the interest expense accrued to that date?
a. debit to interest expense and credit to interest payable $1,000
b. debit to interest expense and credit to interest payable $ 500
c. debit to interest expense and credit to cash $1,000
d. debit to interest expense and credit to cash $500

27. workers are paid their wages at the end of each week, on Friday, on the basis
of five working days. The daily wages is $15,000. the wages were paid on Friday,
December 27th, 2022 and there for the next payment will be on January 3rd ,
2023. Accordingly, there will be number days related to the month of December,
2022 that have not yet been paid or recorded.
The adjusting entries at end of December, 2022 is :
a. wages expense debit $45,000 and wages payable credit $45,000
b. wages expense debit $15,000 and wages payable credit $15,000
c. wages payable debit $30,000 and wages expenses credit $30,000
d. wages expense debit $30,000 and wages payable credit $30,000

24. c 25. b 26. a 27. d

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28. Harvard university held a football league that included 10 games and sold
tickets for these matches in cash for $250,000. This amount debited to cash and
credited to unearned ticket revenue. These games will be held during the months of
November, December and January.
seven games have actually been held in November and December.
the annual adjusting entry at the end of December is:
a. debit to tickets revenue and credit to unearned tickets revenue $175,000
b. debit to tickets revenue and credit to unearned tickets revenue $25,000
c. debit to unearned tickets revenue and a credit to tickets revenue $25,000
d. debit to unearned tickets revenue and a credit to tickets revenue $175,000

29. Grayton Industries purchased equipment for $5,200. This amount will be paid
within 30 days. The journal entry was recorded at $2,500.
The correcting entry is :
a. debit to equipment $2,500 and credit to accounts payable $2,500
b. debit to accounts payable $2,500 and credit to equipment $2,500
c. debit to equipment $2,700 and credit to accounts payable $2,700
d. debit to accounts payable $2,700 and credit to equipment $2,700

Use the following information for questions 29–37.

The following items are taken from the financial statements of Cerner Company for
the year ending December 31, 2008:
Accounts payable $ 18,000
Accounts receivable 11,000
Accumulated depreciation – equipment 28,000
Advertising expense 21,000
Cash 15,000
Cerner, Capital (1/1/08) 102,000
Cerner, Drawing 14,000
Depreciation expense 12,000
Insurance expense 3,000
Mortgage 70,000
Prepaid insurance (12-month policy) 6,000
Rent expense 17,000
Salaries expense 32,000
Service revenue 133,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000

28. d 29. c
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30. What is the company’s net income for the year ending December 31, 2008?
a. $133,000
b. $42,000
c. $28,000
d. $12,000
31. What are total current assets at December 31, 2008?
a. $26,000
b. $32,000
c. $36,000
d. $218,000

32. What are total assets at December 31, 2008?

a. $182,000
b. $32,000
c. $36,000
d. $218,000

33. What are total current liabililites at December 31, 2008?

a. $18,000
b. $70,000
c. $88,000
d. $0

34. What are total long-term liabilities at December 31, 2008?

a. $0
b. $70,000
c. $88,000
d. $90,000

35. The entry to close the drawing accounts includes a

a. debit to drawing and a credit to capital for 14,000
b. credit to Income Summary and a credit to drawing for $14,000
c. debit to capital and a credit to drawing for 14,000
d. debit to drawing and a credit to income summary for $14,000

36. What is the balance of the owner’s equity at December 31, 2008?
a. $102,000
b. $130,000
c. $144,000
d. $158,000

30. b 31. c 32. d 33. a 34. b 35. c 36. b

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36. What is total liabilities and owner’s equity at December 31, 2008?
a. $176,000
b. $190,000
c. $218,000
d. $232,000

37. What is the book value of the equipment at December 31, 2008?
a. $238,000 b. $210,000
c. $182,000 d. $170,000

Use the following information for questions 38 – 40.

The income statement for the year 2008 of Nova Co. contains the following
information:
Revenues $82,500
Expenses:
 Wages Expense $45,000
 Rent Expense 12,000
 Advertising Expense 6,000
 Supplies Expense 6,000
 Utilities Expense 2,500
 Insurance Expense 2,000
Total expenses 73,500
Net income $9,000

38. The entry to close the revenue account includes a

a. debit to Income Summary for $9,000.
b. credit to Income Summary for $9,000.
c. debit to Revenues for $82,500.
d. credit to Revenues for $82,500.

39. The entry to close the expense accounts includes a

a. debit to Income Summary for $9,000.
b. credit to Income Summary for $9,000.
c. debit to Income Summary for $73,500.
d. debit to Wages Expense for $73,500.

40. The entry to close Income Summary to Nova, Capital includes

a. a debit to Revenue for $82,500.
b. credits to Expenses totalling $73,500.
c. a credit to Income Summary for $9,000.
d. a credit to Nova, Capital for $9,000.
36. c 37. c 38. c 39. c 40. d

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 Assuit university Model (2) Time: two hours
Faculty of commerce Year 1 January, 2023
Department of accounting Eight pages Financial accounting
Choose the right answer a, b, c, d
8. A net loss will result during a time period when
a. liabilities are more than assets.
b. drawings are more than investments.
c. expenses are more than revenues.
d. revenues are more than expenses.
12. Kent Company purchased office supplies costing $5,000 and debited office
supplies for the full amount. At the end of the accounting period, a physical
count of office supplies revealed $1,400 still on hand.
The appropriate adjusting journal entry to be made at the end of the period
would be
a. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
b. Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600.
c. Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600.
d. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.

13. ABC company purchased a computer for 20,000 on January 1. The company
expected to use the computer for 3 years. It has $2,000 residual value
Annual depreciation expense at 31/12 on the computer is:
a. $500 b. $100
c. $1,500 d. $6,000

15. On November 1, Dexter Shoe Store paid $9,000 to Ace Realty for 3 months
rent beginning. Prepaid Rent was debited for the full amount. If financial
statements are prepared on December 31, the annual adjusting entry to be
made by Dexter Shoe Store is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000.
b. Debit Prepaid Rent, $6,000; Credit Rent Expense, $6,000.
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000.
d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.
18. ABC company purchased an equipment for 40,000 on june 30. The
company expected to use the equipment for 5 years. It has $5,000 residual
value annual depreciation expense at 31/12 on the equipment is:
a. $500 b. $3,500
c. $7,000 d. $6,000

8. c 12. c 13. d 15. c 18. b

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16. On November 1, Dexter Shoe Store paid $9,000 to Ace Realty for 3 months
rent beginning. Prepaid Rent was debited for the full amount. If financial
statements are prepared on December 31, the monthly adjusting entry to be
made by Dexter Shoe Store is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000.
b. Debit Prepaid Rent, $6,000; Credit Rent Expense, $6,000.
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000.
d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.

17. Maple Tree Inc. purchased a 12-month insurance policy on March 1, for $2,400.
At march 31, the monthly adjusting journal entry is
a. a debit to Insurance Expense and a credit to Prepaid Insurance for $2,400
b. a debit to Prepaid Insurance and a credit to Insurance Expense for $200.
c. a debit to Insurance Expense and a credit to prepaid insurance for $200.
d. a debit to Insurance Expense and a credit to Prepaid Insurance for $2,000.

19. The balance of unearned revenue is 50,000

If you learn that unearned revenue was collected in advance for 5 months started
on 1/10. The annual adjusting entry is :
a. debit to service revenue and a credit to unearned revenue $30,000
b. debit to service revenue and a credit to unearned revenue $20,000
c. debit to unearned revenue and a credit to service revenue $30,000
d. debit to unearned revenue and a credit to service revenue $20,000

20. the balance of prepaid salaries is 60,000

if you learn that monthly salaries are $15,000 started on 30/9 . the annual adjusting
entry is
a. debit to prepaid salaries and a credit to salaries expense $15,000
b. debit to prepaid salaries and a credit to salaries expense $45,000
c. debit to salaries expense and a credit to prepaid salaries $15,000
d. debit to salaries expense and a credit to prepaid salaries $45,000

22. Maple Tree Inc. purchased a 12-month insurance policy on March 31, for
$2,400. At december 31, the annual adjusting journal entry is
a. a debit to Insurance Expense and a credit to Prepaid Insurance for $2,400
b. a debit to Prepaid Insurance and a credit to Insurance Expense for $200.
c. a debit to Insurance Expense and a credit to prepaid insurance for $200.
d. a debit to Insurance Expense and a credit to Prepaid Insurance for $1,800.

16. d 17. c 19. c 20. d 22. d

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21. the balance of prepaid salaries is 60,000
if you learn that monthly salaries are $15,000 started on 30/9 . the monthly
adjusting entry is
a. debit to prepaid salaries and a credit to salaries expense $15,000
b. debit to prepaid salaries and a credit to salaries expense $45,000
c. debit to salaries expense and a credit to prepaid salaries $15,000
d. debit to salaries expense and a credit to prepaid salaries $45,000

23. adam company rendered services to some customers on 31/12 for $4,000.
But this amount not yet collected or recorded, the adjusting entry is
a. cash debit $4,000 and service revenue credit $4,000
b. accounts receivable debit $4,000, and service revenue credit $4,000
c. cash debit $4,000 and Accounts receivable credit $4,000
d. service revenue debit $4,000 and accounts receivable credit $4,000.

24. A gift shop signs a three-month note payable to help finance the shop.
The note is signed on November 1 in the amount of $50,000 with annual
interest of 12%. What is the annual adjusting entry to be made on
December 31 for the interest expense accrued to that date?
a. interest expense …………………………………… 1,000
interest payable …………………………………… 1,000
b. interest expense …………………………………… 1,500
interest payable …………………………………… 1,500
c. interest expense …………………………………… 1,000
cash ……………………………………………………… 1,000
d. interest expense …………………………………… 1,000
notes payable …….………………………………… 1,000

25. A gift shop signs a three-month note payable to help finance the shop.
The note is signed on November 1 in the amount of $50,000 with annual
interest of 12%. What is the monthly adjusting entry to be made on
December 31 for the interest expense accrued to that date?
a. interest expense …………………………………… 1,000
interest payable …………………………………… 1,000
b. interest expense …………………………………… 500
interest payable …………………………………… 500
c. interest expense …………………………………… 1,000
cash ……………………………………………………… 1,000
d. interest expense …………………………………… 1,000
notes payable …….………………………………… 1,000
21. c 23. b 24. a 25. b

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26. Grayton Industries purchased equipment for $5,200. This amount will be paid
within 30 days. The journal entry was recorded at $2,500.
The correcting entry is :
a. equipment …………………………………… 2,500
accounts payable ………………………………. 2,500
b. accounts payable ………………………… 2,500
equipment ……………………………. 2,500
c. equipment …………………………………… 2,700
accounts payable ………………………………. 2,700
d. accounts payable ………………………… 2,700
equipment ……………………………. 2,700

27. On January 1, 2018, Jackson Company reported owner’s equity of $470,000.

During the year, the owner withdrew cash of $20,000. At December 31, 2018, the
balance in owner’s equity was $500,000.
What amount of net income or net loss would the company report for 2018?
a. Net income of $30,000
b. Net loss of $50,000
c. Net income of $10,000
d. Net income of $50,000

28. Grayton Industries purchased equipment for $2,500. This amount will be paid
within 30 days. The journal entry was recorded at $5,200.
The correcting entry is :
a. equipment …………………………………… 2,500
accounts payable ………………………………. 2,500
b. accounts payable ………………………… 2,500
equipment ……………………………. 2,500
c. equipment …………………………………… 2,700
accounts payable ………………………………. 2,700
d. accounts payable ………………………… 2,700
equipment ……………………………. 2,700

26. c 27. d 28. d

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 ‫ مع عمل مقارنه بين النقاط المتشابهه‬2222 ‫ بدون تكرار اسئله مع امتحان‬2222 ‫امتحان‬
1. The business entity assumption requires that the activities
a. of different entities can be combined if all the entities are corporations.
b. must be reported to the Securities and Exchange Commission.
c. of a sole proprietorship cannot be distinguished from the personal economic events
of its owners.
d. of an entity be kept separate from the activities of its owner.

2. A problem with the monetary unit assumption is that

a. the currency has not been stable over time.
b. the currency has been stable over time.
c. the currency is a common medium of exchange.
d. it is impossible to account for international transactions

3. A stable currency assumption means that

a. the currency has not been stable over time.
b. the currency has been stable over time.
c. the currency is a common medium of exchange.
d. it is impossible to account for international transactions

4. a private accountant is
a. an engineer in a certain firm
b. an employee in a certain firm
c. public accountant in private office
d. an accountant in a governmental unit

5. The drawing account

a. appears on the income statement along with the expenses of the business
b) must show transactions every accounting period
c) is increased with debits and decreased with credits
d) is not a proper subdivision of owner's equity

6. The drawing account

a. appears on the income statement along with the expenses of the business
b) must show transactions every accounting period
c) is contra capital account
d) is not a proper subdivision of owner's equity

1. d 2. a 3. b 4. b 5. c 6. c

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7. If the owner's equity account increases from the beginning of the year to the end of the
year, then
a. net profit is less than owner drawings.
b. a net loss is less than owner drawings.
c. additional owner investments are less than net losses.
d. net profit is greater than owner drawings.

8. If the owner's equity account decrease from the beginning of the year to the end of the
year, then
a. net profit is less than owner drawings.
b. additional owner investment are less than net profit
c. additional owner investments are greater than net losses.
d. net profit is greater than owner drawings.

9. purchased equipment for $15,000, of which made $3,000 a cash down payment and the
rest for notes after two months.
a. equipment debit 15,000 and cash credit 15,000.
b. cash debit 3,000, notes receivable debit 12,000 and equipment credit 15.000
c. equipment debit 15,000, cash credit 3,000 and accounts payable credit 12,000
d. equipment debit 15,000, cash credit 3,000 and notes payable credit 12,000

10. Noran started her business by depositing $90,000 cash in a bank account.
a. capital debit 90,000 & cash credit 90,000.
b. cash debit 90,000 & capital credit 90,000.
c. cash debit 90,000 & accounts payable credit 90,000.
d. cash debit 90,000 & notes payable credit 90,000.

11. services rendered to some customers for $15,000, collected $5,000 in cash and
the balance on accounts.
a. cash debit 5,000, accounts payable debit 10,000, & service revenue credit 15,000
b. Cash debit 5,000, accounts receivable debit 10,000, & service revenue credit 15,000
c. cash debit 15,000, & accounts receivable credit 10,000, service revenue credit 5,000
d. cash debit 15,000 & accounts payable credit 10,000, service revenue credit 5,000.

12. In the first month of operations, the total of the debit entries to the cash
account amounted to $9,000 and the total of the credit entries to the cash
account amounted to $5,000. The cash account has a(n)
a. $5000 credit balance. b. $9000 debit balance.
c. $4000 debit balance. d. $4000 credit balance

7. d 8. a 9. d 10. b 11. b 12. c

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13. Dawson’s Delivery Service purchased equipment for $2,500. Dawson paid $500 in cash
and signed a note for the balance. Dawson debited the Equipment account 2,500 , credited
Cash 500 and
a. nothing further must be done.
b. debited the Dawson, Capital account for $2,000.
c. credited a liability account for $2,000.
d. credited another asset account for $500.

14. On June 1, 2008, Delbert Inc. reported a cash balance of $14,000. During June,
Delbert made deposits of $3,000 and made payments totaling $16,000.
What is the cash balance at the end of June?
a. $1,000 debit balance b. $16,000 debit balance
c. $1,000 credit balance d. $4,000 credit balance

15. On June 1, 2008, Delbert Inc. reported a cash balance of $12,000. During June,
Delbert made deposits of $3,000 and made payments totaling $16,000.
What is the cash balance at the end of June?
a. $1,000 debit balance b. $15,000 debit balance
c. $1,000 credit balance d. $4,000 credit balance

Use the following information for questions 16–17.

Berwick Company compiled the following financial information as of December 31, 2008:
 Revenues $140,000
 Berwick, Capital (1/1/08) 105,000
 Equipment 40,000
 Expenses 125,000
 Cash 35,000
 Berwick, Drawings 10,000
 Supplies 5,000
 Accounts payable 20,000
 Accounts receivable 15,000

16. Berwick’s assets on December 31, 2008 are

a. $235,000. b. $170,000.
c. $80,000. d. $95,000.

17. Berwick’s owner’s equity on December 31, 2008 is

a. $105,000. b. $110,000.
c. $80,000 d. $120,000.

13. c 14. a 15. c 16. d 17. b

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20. On October 1, Dexter Shoe Store paid $15,000 to Ace Realty for 5 months rent.
Prepaid Rent was debited for the full amount. If financial statements are prepared on
December 31, the monthly adjusting entry to be made by Dexter Shoe Store is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000.
b. Debit Prepaid Rent, $3,000; Credit Rent Expense, $3,000.
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000.
d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.

21. On October 1, Dexter Shoe Store paid $15,000 to Ace Realty for 5 months rent.
Prepaid Rent was debited for the full amount. If financial statements are prepared on
December 31, the annual adjusting entry to be made by Dexter Shoe Store is
a. Debit Rent Expense, $9,000; Credit Prepaid Rent, $9,000.
b. Debit Prepaid Rent, $9,000; Credit Rent Expense, $9,000.
c. Debit Rent Expense, $6,000; Credit Prepaid Rent, $6,000.
d. Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.
22. ABC company purchased an equipment for 35,000 on june 30,2019 . the estimated
useful life is 5 years. It has $5,000 residual value annual depreciation expense
at 31/12/2019 on the equipment is:
a. $500 b. $3,000
c. $6,000 d. $9,000

23. ABC company purchased an equipment for 35,000 on june 30, 2019 . the estimated
useful life is 5 years. It has $5,000 residual value annual depreciation expense
at 31/12/2020 on the equipment is:
a. $500 b. $3,000
c. $6,000 d. $9,000
24. Southeastern Louisiana University sold season tickets for the 2008 football season for
$160,000. A total of 8 games will be played during September, October and November. In
September, three games were played.
The adjusting journal entry at September 30
a. is not required. No adjusting entries will be made until the end of the
season in November
b. will include a debit to Cash and a credit to Ticket Revenue for $60,000.
c. will include a debit to Unearned Ticket Revenue and a credit to Ticket
Revenue for $60,000.
d. will include a debit to Ticket Revenue and a credit to Unearned Ticket
Revenue for $100,000.

20. d 21. a 22. b 23. d 24. c

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25. Southeastern Louisiana University sold season tickets for the 2008 football season for
$160,000. A total of 8 games will be played during September, October and November.In
September, two games were played. In October, three games were played. The balance in
Unearned Revenue at October 31 is
a. $0. b. $40,000.
c. $60,000. d. $100,000.
26. Southeastern Louisiana University sold season tickets for the 2008 football season for
$160,000. A total of 8 games will be played during September, October and November.
Assuming all the games are played, the Unearned Revenue balance that will be reported on
the December 31 balance sheet will be
a. $0. b. $60,000.
c. $100,000. d. $160,000.

25. c 26. a
Use the following information for questions 29–38.
The following items are taken from the financial statements of Cerner Company for the year
ending December 31, 2008:

Accounts payable $ 18,000

Accounts receivable 11,000
Notes payable 32,000
Notes receivable 24,000
Accumulated depreciation – equipment 30,000
Advertising expense 21,000
Cash 25,000
Cerner, Capital (1/1/08) 92,000
Cerner, Drawing 14,000
Depreciation expense – equipment 10,000
Insurance expense 3,000
Mortgage 80,000
Prepaid insurance 6,000
Rent expense 17,000
Salaries expense 32,000
Service revenue 131,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000

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29. What are total long-term liabilities at December 31, 2008?
a. $0
b. $80,000
c. $130,000
d. $112,000

30. What is the balance that would be reported for owner’s equity at December 31, 2008?
a. $120,000
b. $102,000
c. $148,000
d. $160,000

31. What is the company’s net profit or loss for the year ending December 31, 2008?
a. $133,000 b. $(38,000)
c. $42,000 d. $12,000

32. The entry to close the expense accounts includes a

a. debit to Income Summary for $89,000.
b. credit to Income Summary for $89,000.
c. credit to Income Summary for $42,000.
d. debit to Expense for $89,000.

33. The entry to close the revenue account includes a

a. debit to Income Summary for $131,000.
b. credit to Income Summary for $42,000.
c. credit to Revenues for $42,000.
d. debit to Revenues for $131,000.

34. The entry to close Income Summary to Cerner, Capital includes

a. a debit to Revenue for $42,000.
b. credits to Expenses totalling $42,000.
c. a credit to Income Summary for $42,000.
d. a credit to cerner, Capital for $42,000.
‫اسئلة اضافية من عندى‬
35. What is the book value of the equipment at December 31, 2008?
a. $230,000
b. $210,000
c. $180,000
d. $170,000

29. b 30. a 31. c 32. a 33. d 34. d 35. c

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36. What are total current assets at December 31, 2008?
a. $62,000
b. $72,000
c. $70,000
d. $65,000

37. What are total current liabililites at December 31, 2008?

a. $78,000
b. $70,000
c. $50,000
d. $55,000

38. What is total liabilities and owner’s equity at December 31, 2008?
a. $236,000
b. $250,000
c. $228,000
d. $232,000

36. c 37. c 38. b

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