2. The term ENCUMBRANCE means mostly nearly

A. Any disbursement made from an appropriation in payment of a

Legal claim

B. Debts or other legal obligation arising out of transactions

C. Reservation of all, or a portion of, an appropriation for a

Specific purchase

D. The amount of money disbursed from the appropriation of a fund

3. Which of the following is the definition of INVOICE?

A. A list of merchandise sold or services rendered showing

Charges, prices, terms, etc.

B. The form on which an order for goods is sent to a supplier

C. A receipt given by a transporter showing a list of the

merchandise it has received for transport

D. A statement from a bank showing receipts and deposits

4. An accounting system in which revenues are accounted for when

Earned or due even though not collected, and expenditures are

Accounted for as soon as such liabilities are incurred, wheatear

Paid or unpaid, is said to operate on

A. A cash basis

B. Actuarials

C. A deferred payment basis

D. An accrual basis

5. If you were told to PRORATE a charge for services you will be expected to

A. Determine who should pay for it

B. Average it

C. Divided it proportionality

D. Determine what it will be in the future

6. Accounts receivable are posted as assets because accounts available

A. Represent disbursements for goods and services

B. Are monies owing

C. Are overdue accounts

D. Are Expectation of future funds

7. Credit balance in the Accounts Payable accounts would

A. A current liability

B. An amount due from a vendor

C. An Income

D. An Assets

8. A district bought a copy machine on account for $7,239: debit

A. Office Supplies; credit Accounts Payable

B. Office Equipment; credit Accounts Payable

C. Office Equipment; credit Cash

D. Accounts Payable; credit Office Equipment

9. Made a partial payment on office supplies: debit

A. Accounts Payable; credit Cash

B. Accounts Payable; credit Office Expenses

C. Admin Expenses; credit Office Expenses

D. Office Expenses; credit Admin Expenses

10. Paid cash for a ribbon for a typewriter: debits

A. Cash; credit Office Supplies

B. Petty Cash; credit Cash

C. Accounts Payable; credit Petty Cash

D. Office Supplies; credit Cash

11. Recorded Purchase Orders issued during April: debits

A. Encumbrances to Appropriations; credit Purchases Outstanding

B. Inventory; credit Purchase Order Outstanding

C. Purchase Orders Payable; credit Requisitions

D. Purchase Orders Payable; credit Inventory

12…Which one of the following is NOT usually called an expense?

A. Salaries

B. Plant maintenance

C. Depreciation

D. Notes payable

13. Profit and loss statement and balance sheets exhibit chiefly

A. The conditions affecting the organization

B. The results of past operations

C. The prospect for the future

D. Present management attitudes

14. A debit entry is made in a liability account when

A. An asset is Increased

B. An asset is Decreased

C. A liability Is increased

D. A liability Is decreased

15. Which one the following shows most accurately the financial

Standing of a business?

A. An Inventory of assets

B. A Statement of profit and loss

C. A Balance Sheet

D. A Trail Balance

17. In double-entry bookkeeping, debit and credit balance in the personal ledger are

A. Equal only if receipts and expenditures are in balance

B. Different by an amount which represents a surplus

C. Different by an amount which represents a deficit

D. Equals if the entries have been properly made

18. Entries in a cashbook should be made in

A. Alphabetical order

B. Chronological order

C. Numerical order by size and entry

D. Numerical order by check number

19. RECONCILIATION refers to the accounting procedure

A. Two or more accounts are brought into agreement

B. Fund are transferred from one account to…

C. The balances in all journal accounts are

D. Projections for the next budget year are

20. Transactions recorded on an ACCURAL basis are posted when

A. Bank statements are received

B. The obligation is incurred

C. Deposits are made

D. Payment has been made

21. The term POSTING as used in bookkeeping refers to

A. An entry made in the cash book

B. The establishment of a temporary account

C. The transfer to the ledger of an original entry

D. The preparation of profit and loss statements

E. The transfer of figures to the work sheet

22. Bookkeeping is primarily a process of

A. adjusting ,summarizing, and reporting

B. interpreting, recording , and reporting

C. recording, Classifying, and summarizing

D. recording, Classifying, and interpreting

23. Double-entry bookkeeping is a method that requires

A. One debit and one credit entry for each transaction

B. Debit and credit entries of equal amount for each transaction

C. Two separate entries in the same account for some transactions

D. Debit and credit entry to be posted to the ledger at the

E. Same time as they are recorded in the journal

24 The main purpose of encumbering an account is to

A. expedite the preparation of financial statements

B. provide an accurate account of expenditures

C. provide authority for approving payment of purchase orders

D. prevent overspending of an appropriate

25. One of the basic reasons to use budget in the administration of

Government is to

A. improve and centralize administrative control

B. provide advance control of the spending of public funds

C. furnish a broad perspective of management polices

D. control spending cycles with the lease interruption of operations

26. A budget should be developed primarily based upon the

A. Amount of money spent during previous years

B. Services to the be performed

C. Revenue available

D. All of these

27. School district budget estimates should be monitored

A. As close as possible to the start of the fiscal period

B. Continuously throughout the fiscal period

C. At specific Intervals during the fiscal period

D. When experience can ensure the accuracy of estimates

28. Which one of the following records is most important?

A. Capital account

B. Accounts payable

C. Cash account

D. Accounts receivable

29. A good System of internal control in the handling of cash is needed

to do which one of the following?

A. eliminate errors in recording cash

B. Prevent misappropriations of funds

C. Eliminate the need for audits of cash by outside auditors

D. Make it easier to determine budgetary accounts

30. Which one of the following is NOT a part of the internal control of an accounting system for the handling of cash?

A. All receipts should be deposited in the banks daily, with

Duplicate receipts to the treasurer and auditor

B. Those handling Cash should not have access to the accounting control records

C. Employees handing or recording cash should use independent judgment

D. Rotation of employees in jobs involving the handling or

Recording of cash should be regular procedure

31. If an error has been made in writing a check, whether it has been

Signed or not, which one of the following is the most satisfactory procedure to follow?

A. Cross out the incorrect item, and write the correct one above

B. Discard the incorrect check, and write a new one, marked

C. Destroy the incorrect check, and write a new one from the back

D. Mark the check and stub “void” and write a new one

36. A credit balance in the Profit and Loss account after closing the various income and expense accounts into it represents

A. Net loss

B. Gross profit on

C. Net profit

D. Operating expenses

38. Journalize: “In order to renew the cash in the imprest petty cash

Fund, a check was issued for $75. “The petty cash clerk submitted a

Schedule of miscellaneous expenditures for that amount”

A. Debit petty cash; credit miscellaneous expense

B. Debit cash; credit petty cash

C. Debit petty cash; credit cash

D. Debit miscellaneous expenses; credit cash

39. The trail balance of J.M. Harris books show a debit balance in the account of customer Hall & Co. This account represents

A. An asset

B. An operating expense

C. A net loss

D. A liability

40. In a trail balance, which one of the following is a liability?

A. Accounts payable

B. Accounts receivable

C. Prepaid rent

D. Purchases

41. If the difference between trail balance totals is divisible by 9

It is probable that the error is caused by

A. Posting a debit or credit twice

B. Omission of an account balance

C. Transposition of figures in an item

D. Posting an item to the wrong side of an account

42. If the difference between the trail balances is divisible by 2. It is probable that the error is caused by

A. Posting an item to the wrong account

B. Posting an item to the wrong side of an account

C. Transposition of figures in an item

D. Posting an item to both side of the same account

49. A school collected $420 in fees during the month of April, in May

Is collected a sum 17.5% greater than the collections for April

And in June, it collected a sum 20% greater than the average of the

previous 2 months’ collections. What was the total collected

during the quarter?

A. $1,226.40

B. $1,417.50

C. $1,461.60

D. $2,009.70

50. A district is considering a medical contract that requires at least

75% of the employees to enroll before the contract goes into

Effect. Sixty percent of the employees have agreed to sign and

More are needed. How many employees work in this district?

A. 150

B. 225

C. 300

D. 360

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