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Accounting #2 Trivia Quiz

Here is another accounting quiz. Once again, please remember that I am a Canadian, so there may or not be some small differences.

A multiple-choice quiz by jdrr22. Estimated time: 4 mins.

Author
jdrr22

Time
4 mins

Type
Multiple Choice

Quiz #
86,939

Updated
Dec 03 21

# Qns
5

Difficulty
Tough

Avg Score
3 / 5

Plays
4417

Last 3 plays: gogetem (4/5), Guest 186 (5/5), Guest 206 (3/5).

One at a Time - Single Page - Timed Game

Question 1 of 5

1. A group of accounts with a common characteristic, such as all customer accounts is a...? Hint

General journal

Subsidiary ledger

Special journal

General ledger

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Question 2 of 5

2. Net credit sales are normally sold on terms of n/30 (net in 30 days). Net credit sales total $50,000, and the average net accounts receivable is $5,000 in the current period. The collection period ratio is...? Hint

36.5 days

30 days

10 days

73 days

NEXT>

Question 3 of 5

3. The Canadian Institute of Chartered Accountants assumes responsibility for establishing broad reporting guidelines of general applicability as well as specific accounting rules.

True

False

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Question 4 of 5

4. Which of the following is *not* an acceptable statement of the basic accounting equation? Hint

Assets - Liabilities = Owner's Equity

Assets = Liabilities + Owner's Debt

Assets = Liabilities + Owner's Equity

Assets - Owner's Equity = Liabilities

NEXT>

Question 5 of 5

5. Which of the following accounts would be increased with a debit? Hint

Rent Payable

Owner's Equity/Capital

Owner's Drawings

Fees Earned

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Most Recent Scores

Mar 27 2024 : gogetem: 4/5
Mar 07 2024 : Guest 186: 5/5
Feb 21 2024 : Guest 206: 3/5

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Quiz Answer Key and Fun Facts

1. A group of accounts with a common characteristic, such as all customer accounts is a...?

Answer: Subsidiary ledger

The subsidiary ledger frees the general ledger from the details of individual account balances. A subsidiary ledger is an addition to the general ledger. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 244).

Answer: 36.5 days

The collection period ratio is calculated as follows: Days in the Year divided by Receivables Turnover (Receivables Turnover = Net Credit Sales divided by Average Accounts Receivable) = the Average Collection Period. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 351). So, Receivables Turnover = $50,000 divided by $5,000, which is equal to 10 times.

Then, 365 divided by 10 = 36.5.

3. The Canadian Institute of Chartered Accountants assumes responsibility for establishing broad reporting guidelines of general applicability as well as specific accounting rules.

Answer: True

The Canadian Institute of Chartered Accountants (CICA) publishes the generally accepted accounting principles (GAAP) that are accepted in Canada. The CICA Handbook has legal status for companies that follow the regulations of the Canadian Business Corporations Act. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 11).

4. Which of the following is *not* an acceptable statement of the basic accounting equation?

Answer: Assets = Liabilities + Owner's Debt

Assets = Liabilities + Owner's Equity/Capital is the standard form of the basic accounting equation.

Assets = Liabilities + Owner's Equity/Capital - Drawings + Revenues - Expenses is an expanded form of the basic accounting equation. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 14).

5. Which of the following accounts would be increased with a debit?

Answer: Owner's Drawings

Owner's Equity/Capital has a normal credit balance. Owner's Drawings decreases Owner's Equity/Capital, and has a normal debit balance. Fees Earned is a Revenue account, which has a normal credit balance, and Rent Payable is a Liability account, which also has a normal credit balance. Accounts with normal credit balances are increased by credits and decreased by debits. Accounts with normal debit balances are decreased by credits and increased by debits.

Source: Author jdrr22

This quiz was reviewed by FunTrivia editor Brainyblonde before going online.
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