Practice Quiz

Consulting Case Interview Practice Questions - Question List

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146. The first entry of a transaction takes place in which of the following:
  1. The journal
  2. The chart of accounts
  3. The general ledger
  4. The trial balance
  5. The balance sheet
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147. Jenny’s Bakery was paid $500 in July to bake a wedding cake in August. Assuming Jenny’s Bakery operates on a normal monthly accounting cycle and on an accrual basis, in July her accountant will record the $500 payment as:
  1. Accounts receivable
  2. Accounts payable
  3. Revenue payable
  4. Unearned revenue
  5. Earned revenue
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148. If Jenny’s Bakery purchased an insurance policy, assuming the accrual accounting method is still being used, when would the company report the cost of the policy as an expense?
  1. When Jenny signs the policy
  2. When payment is made
  3. When the bakery receives the benefits of the policy
  4. When the bakery receives payments from the insurance company
  5. When the invoice is received
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149. In a corporation, when expenses are greater than revenues in a given period and there are no other gains or losses, ­­­_________________
  1. stockholders’ equity will not be impacted.
  2. stockholders’ equity will be increased.
  3. stockholders’ equity will be decreased.
  4. the impact cannot be determined without further information.
  5. stockholder’s equity is not recognized for corporations.
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150. Common stock has a ________ balance and is a/an ______ to the Corporation.
  1. debit; liability
  2. credit; liability
  3. debit; asset
  4. credit; asset
  5. credit; equity
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