1. Financial Accounting
Accounting Basics — Quiz
Test your understanding of accounting basics with 5 practice questions.
Practice Questions
Question 1
A company receives a cash advance of $$ \$10,000 $$ for services to be performed evenly over the next five months. Which of the following journal entries is required at the end of the first month, assuming no services have been performed yet?
Question 2
A company purchased a machine for $$ \$50,000 $ on January 1. The machine has an estimated useful life of 10 years and a salvage value of $ \$5,000 $$. Using the straight-line depreciation method, what is the book value of the machine at the end of the second year?
Question 3
Which of the following scenarios would necessitate an adjusting entry to accrue salaries expense at year-end?
Question 4
A company's trial balance shows the following balances: Accounts Receivable $$ \$15,000 $, Allowance for Doubtful Accounts $ \$500 $ (credit), Sales Revenue $ \$100,000 $$. If the company estimates that 2% of its net sales will be uncollectible, what is the adjusting entry for bad debt expense?
Question 5
A company uses the perpetual inventory system. On November 1, it purchased merchandise for $$ \$8,000 $ on credit with terms 2/10, n/30. On November 5, it returned merchandise costing $ \$1,000 $$. On November 8, the company paid the balance due. What is the amount of cash paid on November 8?