Accounting Cycle MCQs With Answers

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 31, 2021

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!

Start Accounting Cycle MCQs Test here:

1. According 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 20 January, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on 20 January by Sunset Tours to record this transaction includes:

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

4. Which of the following is provided by a trial balance where total debits are equal to 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. Tick all of the correct answers. In the accounting cycle:

8. Tick all of the correct answers. Dividends:

9. The purpose of adjusting entries is to:

10. Before month-end adjustments are made, the trial balance of Rover Excursions on 31 January shows a 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
What is the firm's net income for January?

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

12. Suppose that Fisher Corporation usually earns taxable income but sustains a loss in the current period. In the following, indicate all of the correct answers. The entry to record income taxes expense in the current period will most likely:

13. Highlight all of the following that apply. The concept of materiality:

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. Select any correct items for which generally accepted accounting principles require disclosure in notes accompanying the financial statements.

20. Ski West adjusts its accounts at the end of each month but closes them only at the end of the calendar year (31 December). The ending balances in the equipment rental revenue account and the cash account in February and March appear below.
Feb. 28Mar. 31
Cash$14,200$26,500
Equipment 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 ended 31 March, the equipment rental revenue 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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