MGT 103 Midterm 1 Practice Problems
Exam Questions and Answers
Paid ii$100 iifor iione iiyear's iirent. iiThe iijournal iientry iiwould iiinclude:
a. iiA iicredit iito iiaccounts iipayable
b. iiA iicredit iito iicash
c. iiA iicredit iito iirent iirevenue
d. iiNo iijournal iientry iiis iineeded ii- iiAnswers ii-b. iiA iicredit iito iicash
Purchased ii$500 iiof iisupplies iion iiaccount. iiThe iijournal iientry iiwould iiinclude:
a. iiA iidebit iito iiinventory iiexpense
b. iiA iidebit iito iiaccounts iireceivable
c. iiA iidebit iito iisupplies
d. iiNo iijournal iientry iiis iineeded ii- iiAnswers ii-c. iiA iidebit iito iisupplies
True iior iiFalse: iiAn iioverstatement iiof iiending iiinventory iiwould iicause iinet iiincome iito
iibe iioverstated. ii- iiAnswers ii-True
Accrued iiinterest iion iia iinote iireceivable iiat iithe iiend iiof iithe iiperiod iiequals ii$120.
iiOmission iiof iithis iientry iiwould iicause iiwhich iiof iithe iifollowing: ii
a. iiNet iiincome iiis iiunderstated iiand iiretained iiearnings iiis iiunderstated
b. iiNet iiincome iiis iioverstated iiand iiretained iiearnings iiis iioverstated
c. iiNet iiincome iiis iiunderstated iiand iiretained iiearnings iiis iioverstated
d. iiNo iieffect iion iithe iiincome iistatement ii- iiAnswers ii-a. iiNet iiincome iiis iiunderstated
iiand iiretained iiearnings iiis iiunderstated
Employees iiare iiowed ii$3,000 iiof iiwages iiat iithe iiend iiof iithe iiyear. iiOmission iiof iithe
iiadjusting iientry iiwould iiinclude:
a. iiNet iiincome iiis iioverstated iiand iiassets iiare iioverstated
b. iiNet iiincome iiis iioverstated iiand iiliabilities iiare iiunderstated
c. iiNet iiincome iioverstated iiand iiliabilities iiare iioverstated
d. iiNone iiof iithe iiabove ii- iiAnswers ii-b. iiNet iiincome iiis iioverstated iiand iiliabilities iiare
iiunderstated
A iigeneral iijournal:
a. iicontains iione iirecord iifor iieach iiaccount
b. iichronologically iilists iiall iitransactions iiexpressed iiin iidebits iiand iicredits
c. iilists iiall iithe iiincreases iiand iidecreases iiin iieach iiaccount iiin iione iiplace ii- iiAnswers ii-
b. iichronologically iilists iiall iitransactions iiexpressed iiin iidebits iiand iicredits
(a ii= iitrial iibalance, iic ii= iigeneral iiledger)
Exam Questions and Answers
Paid ii$100 iifor iione iiyear's iirent. iiThe iijournal iientry iiwould iiinclude:
a. iiA iicredit iito iiaccounts iipayable
b. iiA iicredit iito iicash
c. iiA iicredit iito iirent iirevenue
d. iiNo iijournal iientry iiis iineeded ii- iiAnswers ii-b. iiA iicredit iito iicash
Purchased ii$500 iiof iisupplies iion iiaccount. iiThe iijournal iientry iiwould iiinclude:
a. iiA iidebit iito iiinventory iiexpense
b. iiA iidebit iito iiaccounts iireceivable
c. iiA iidebit iito iisupplies
d. iiNo iijournal iientry iiis iineeded ii- iiAnswers ii-c. iiA iidebit iito iisupplies
True iior iiFalse: iiAn iioverstatement iiof iiending iiinventory iiwould iicause iinet iiincome iito
iibe iioverstated. ii- iiAnswers ii-True
Accrued iiinterest iion iia iinote iireceivable iiat iithe iiend iiof iithe iiperiod iiequals ii$120.
iiOmission iiof iithis iientry iiwould iicause iiwhich iiof iithe iifollowing: ii
a. iiNet iiincome iiis iiunderstated iiand iiretained iiearnings iiis iiunderstated
b. iiNet iiincome iiis iioverstated iiand iiretained iiearnings iiis iioverstated
c. iiNet iiincome iiis iiunderstated iiand iiretained iiearnings iiis iioverstated
d. iiNo iieffect iion iithe iiincome iistatement ii- iiAnswers ii-a. iiNet iiincome iiis iiunderstated
iiand iiretained iiearnings iiis iiunderstated
Employees iiare iiowed ii$3,000 iiof iiwages iiat iithe iiend iiof iithe iiyear. iiOmission iiof iithe
iiadjusting iientry iiwould iiinclude:
a. iiNet iiincome iiis iioverstated iiand iiassets iiare iioverstated
b. iiNet iiincome iiis iioverstated iiand iiliabilities iiare iiunderstated
c. iiNet iiincome iioverstated iiand iiliabilities iiare iioverstated
d. iiNone iiof iithe iiabove ii- iiAnswers ii-b. iiNet iiincome iiis iioverstated iiand iiliabilities iiare
iiunderstated
A iigeneral iijournal:
a. iicontains iione iirecord iifor iieach iiaccount
b. iichronologically iilists iiall iitransactions iiexpressed iiin iidebits iiand iicredits
c. iilists iiall iithe iiincreases iiand iidecreases iiin iieach iiaccount iiin iione iiplace ii- iiAnswers ii-
b. iichronologically iilists iiall iitransactions iiexpressed iiin iidebits iiand iicredits
(a ii= iitrial iibalance, iic ii= iigeneral iiledger)
