oDesk Enterprise Java Beans (EJB) 2.0 Test 2015

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1. Which of the following constitute the enhancements made to EJB 2.0?
Answers:
• JMS (Java Message Service) integration
• Improved support for container-managed persistence (CMP)
• Support for RMI/IIOP protocol for network interoperability
• Management of beans relationships
• All of the above

2. A client wants to access Enterprise Java Bean for some processing. The first step will be looking up the class that implements its home interface. Which of the following should be used for the purpose?
Answers:
• JNDI
• MTS
• JTS
• JTA
• Java IDL
3. A pre-cached instance is used to load state information on creation of an EJB.
Answers:
• True
• False
4. What will happen to the running session beans if the EJB container crashes or restarts?
Answers:
• They will get destroyed
• They will keep on running
• Their execution will be halted temporarily
• None of the above
5. An online shop employs a stateless session bean (named 'Eshop') to process the requests. 'Eshop' uses a declarative transaction management system. The following code is from the xml deployment descriptor file of the bean:

1.        <ejb-jar>
2.        <enterprise-beans>
3.         <session>
4.                <ejb-name>Eshop</ejb-name>
5.                <home>com.solution.EshopHome</home>
6.                <remote>com.solution.Eshop</remote>
7.                <local-home>com.solution.EshopLocalHome</local-home>
8.                <local>com.solution.EshopLocal</local>
9.                <ejb-class>com.solution.EshopBean</ejb-class>
10.
11.
12.         </session>
13.        </enterprise-beans>
14.        </ejb-jar>

The session and transaction attributes are to be coded in the lines numbered 10 and 11. Which of the following options should be used to make the bean work as expected?
Answers:
• <session>Stateless</session> <transaction>Container</transaction>
• <session>Stateful</session> <transaction>Bean</transaction>
• <session-type>Stateless</session-type> <transaction-type>Container</transaction-type>
• <session-type>Stateful</session-type> <transaction-type>Bean</transaction-type>
• <session-type>Stateless</session-type> <transaction>Container</transaction>
6. A heavy tool manufacturing company manages its business and production by using enterprise beans. A session bean named 'Status' is used to get the production status for the day. The following code gets the context:

Context initialContext = new InitialContext();

The bean provides a local client view. For the local home interface named 'StatusHome.' What should be the lookup?
Answers:
• StatusHome statusHome = (StatusHome) initialContext.lookup("java:tools/env/ejb/status");
• StatusHome statusHome = Context.lookup("java:tools/env/ejb/status");
• StatusHome statusHome = javax.rmi.PortableRemoteObject.narrow( Context.lookup("java:tools/env/ejb/status"),StatusHome.class);
• StatusHome statusHome = (StatusHome) javax.rmi.PortableRemoteObject.narrow( initialContext.lookup("java:tools/env/ejb/status"),StatusHome.class);

7. Which of the following statements is correct with regard to JavaBeans and Enterprise JavaBeans?
Answers:
• Both can be visible or non-visible at run time
• Both can be deployed as an Active X control
• Both require a Manifest file
• Both have some mechanism to tell the builder-tool/IDE about their functionality
• Both define their deployment descriptors
8. One of the methods of your entity bean retrieves the names of all the patients admitted in a particular ward of a hospital. Using a connection named 'con', you want to execute the following query:

//secId is the parameter received by the method
String query = "SELECT admissionId, patientFirstName, patientLastName FROM ADMISSION WHERE sectionId=" + secId;

Which of the following options will help you execute the query?
Answers:
• Statement stmt=con.createStatement(); ResultSet rs=stmt.executeQuery(query);
• Statement stmt=new Statement(); ResultSet rs=stmt.executeQuery(query);
• Statement stmt=con.createStatement(); ResultSet rs=stmt.execute(query);
• Statement stmt=con.getStatement(); ResultSet rs=stmt.executeQuery(query);
• Statement stmt=con.getStatement(); ResultSet rs=con.executeQuery(query);
9. The following method signature is found in an implemented entity bean named 'CustomerBean.' 'CustomerPK' is a class representing the primary key.

public CustomerPK ejbFindByPrimaryKey(CustomerPK key)
                throws FinderException

By context look up, a client gets the reference to the home object of the above bean, named 'custHome'. It gets the 'CustomerPK' class named 'PK' by a different method. The name of EJBObject is 'Customer', which represents a customer. Which of the following options will you select to invoke the above mentioned method in the client?
Answers:
• Customer = custHome.findByPrimaryKey(PK);
• Customer = custHome.ejbFindByPrimaryKey(PK);
• custHome = custHome.ejbFindByPrimaryKey(PK);
• Customer = findByPrimaryKey(PK);
• PK = custHome.findByPrimaryKey(PK);
10. The EJB specification defines six distinct roles in the application development and deployment life cycle. Which of the following roles is not mentioned in it?
Answers:
• Enterprise Bean Provider
• EJB Developer
• EJB Server Provider
• Application Assembler
• EJB Deployer
• System Administrator
11. The transaction attribute of a bean is set to 'TX_REQUIRES_NEW.' What do you infer about its behavior?
Answers:
• It initiates a new transaction only when the previous one is concluded
• It initiates a new transaction without even waiting for the previous one to conclude
• It sends the request to the EJB container for initiating a new bean
• The bean manages its own transaction
12. Which of the following statements is incorrect with regard to the process of Instance Pooling in EJB?
Answers:
• It increases the overall efficiency of the system
• It facilitates sharing of 'EJB bean instances' among multiple clients
• It is used with stateless session beans
• It is used with entity beans
• None of the above
13. You define an enterprise bean as follows:

Public class CalcSessionBean implements javax.ejb.SessionBean

Which of the following method definitions is not mandatory?
Answers:
• public void ejbCreate() {}
• public void ejbActivate() {}
• public void ejbPassivate() {}
• public void ejbRemove() {}
• public void ejbObject() {}
• public void setSessionContext(SessionContext ctx) {}
14. The principal finder method that must be implemented by every entity bean class is:
Answers:
• ejbFindByPrimaryKey()
• ejbGetByPrimaryKey()
• ejbFindPrimayKey()
• getPrimaryKey()
• getFinder()
15. Which of the following services does an EJB Server/Container provides to EJB?
Answers:
• Life cycle management and Instance pooling
• Activation and Passivation
• Transaction and Security support
• Enforcement of policies and restrictions
• All of the above
16. How do Enterprise Java Beans access the database?
Answers:
• By using Java Database Connectivity
• By using Open Database Connectivity
• Both a and b
• None of the above
17. Which of the following statements is not correct for an Enterprise Java Bean?
Answers:
• Entity beans model business data
• Session beans model business processes
• Message beans send synchronous messages
• None of the above
18. Which of the following transaction modes are supported by Enterprise Java Beans?
Answers:
• TX_NOT_SUPPORTED
• TX_BEAN_MANAGED
• TX_REQUIRED
• TX_MANDATORY
• All of the above
19. Which of the following is not implemented by a stateless session bean?
Answers:
• SessionContext
• SessionSynchronization
• SessionObject
• EJBContext
20. Which of the following statements is not correct with regard to Passivation of beans?
Answers:
• The process is possible in all the enterprise beans
• It is accompanied by some vendor specific methods, which are similar to java serialization
• Both a and b
• None of the above
21. The method ejbCreate() allows session beans to perform initializations. Which of the following methods should be called by the container before ejbCreate()?
Answers:
• newInstance()
• setSessionContext()
• newInstance() and setSessionContext()
• ejbRemove()
22. By interoperating via IIOP, an EJB can directly access:
Answers:
• Existing production systems wrapped in CORBA interface
• Existing production systems wrapped in RMI interface
• Network Technologies
• Messaging Interface
• Language Mapping
23. Which of the following is a name of the design pattern not associated with EJB?
Answers:
• Session Facade
• Entity Command
• Message Facade
• EJB Command
24. An online medical shop uses Container Managed persistent beans for its operations. An OrderBean uses a query to list all the orders where payable amount is more than $800. The XML query tag in the deployment descriptor is as follows:

1. <query>
2.   <query-method>
3.         <method-name>findBigOrders</method-name>
4.        <method-params></method-params>
5.   </query-method>
6.
7. </query>

If the name of the table is 'Order' and total amount payable is in the column named 'amount,' which of the following queries can be placed in line 6?
Answers:
• <ejb-sql>SELECT * FROM Order o WHERE o.amount > 800</ejb-sql>
• <ejb-sql>SELECT OBJECT(o) FROM Order o WHERE o.amount > 800</ejb-sql>
• <ql>SELECT OBJECT(o) FROM Order o WHERE o.amount > 800 </ql>
• <ejb-ql><![CDATA[SELECT OBJECT(o) FROM Order o WHERE o.amount>800 ]]></ejb-ql>
• <ejb-ql>SELECT OBJECT(o) FROM Order o WHERE o.amount > 800 </ejb-ql>
25. The interface that must be implemented by a stateless session bean is javax.ejb.SessionBean.
Answers:
• True
• False
26. Which of the following statements is correct with regard to entity, session, and message-driven beans?
Answers:
• All of them allow sending messages
• All of them must define a remote and home interface
• Both a and b
• None of the above
27. To disable the Passivaton process, set the EJBPassivationTimeout() variable to zero.
Answers:
• True
• False
28. Which of the following statements is correct with regard to 'poison' message?
Answers:
• A JMS destination sends this message to the consumer only once
• It is not acknowledged by the consumer
• JMS destination gets the acknowledgement only once
• The process of sending a 'poison' message is possible with all the enterprise beans
29. The methods declared in Session Bean interface are known as Callback (methods).
Answers:
• True
• False
30. What are the three classes that a Session EJB class must provide?
Answers:
• Home Interface, EJB Remote Interface, and Session context
• EJB class, Home Interface, and EJB Remote Interface
• EJB class, Session context, and EJB Remote Interface
• EJB class, EJB Remote Interface, and Session Synchronization Interface
31. Which of the following statements are correct with regard to EJB QL?
Answers:
• The EJB QL defines finder methods for entity beans with container managed persistence
• EJB QL is introduced in EJB 2.0
• EJB QL is provided for navigation across a network of enterprise beans
• EJB QL is a language that can be compiled
• All of the above
32. SessionSynchronization Interface must be implemented to reset the instance variables.
Answers:
• True
• False
33. Which of the following is a language in which IDL compiler of CORBA generates proxies and skeletons?
Answers:
• Mapping proxies
• Language map
• Language mapping
• Proxy language maps
34. You don't have any database recovery/backup system in place. Which of the following statements is true with regard to committed and uncommitted data of your entity bean?
Answers:
• Committed data cannot survive a server crash
• Neither committed nor uncommitted data survives a server crash
• Both committed and uncommitted data survive a server or database crash
• Both committed and uncommitted data survive a server crash if clustering is used
35. The PrimaryKey class is used to provide each entity bean with a ____________:
Answers:
• Serial identity
• Unique, serializable identity
• Unique identity only
• Not null identity
• Serializable identity only
36. Which of the following services does EJB container provide to a bean?
Answers:
• Support for security
• Support for managing multiple instances
• Support for persistence
• Support for transactions
• All of the above
37. Which of the following statements is correct with regard to the method ejbSelect()?
Answers:
• It is similar to finder method of entity beans
• It is available to the client for querying
• It cannot be used to extract data from other entity beans
• It cannot return entity bean/beans
• It can return values that are defined as CMP-TYPE
38. You are working with EJB2.0. You have to retrieve a previously saved handle to an EJBObject named 'bookEJBObject.' In order to restart the processing for that particular request, you need to get the remote interface. The following code has been written for the same:

1. ObjectInputStream stream =
2.                new ObjectInputStream(new FileInputStream(fileName));
3.
4. Handle bookHandle = (Handle) stream.readObject();
5.
6. BookRemoteInterface bookEjbObject = (BookRemoteInterface) XX() ;

Which of the following should substitute Method XX() of line 6?
Answers:
• javax.rmi.PortableRemoteObject(bookHandle.getEJBObject(), BookRemoteInterface);
• javax.rmi.PortableRemoteObject(EJBObject, BookRemoteInterface);
• javax.rmi.PortableRemoteObject.narraow(bookHandle.getEJBObject(), BookRemoteInterface.class);
• javax.rmi.PortableRemoteObject.narraow(bookHandle, BookRemoteInterface);
• bookHandle.getEJBObject()
39. We are saving a handle to an EJBObject named 'bookEJBObject' for an online book shop:

1. javax.ejb.Handle bookHandle = _____________;
2.
3. ObjectOutputStream stream =
4.                 new ObjectOutputStream(new FileOutputStream(fileName));
5.
6. stream.writeObject(bookHandle);
7. stream.close();

Which of the following methods should be filled in the blank?
Answers:
• (Handle) bookEJBObject()
• bookEJBObject.getHandle()
• bookEJBObject.getEJBHandle()
• newHandleInstance()
40. Both RMI and CORBA define messaging protocols called:
Answers:
• OMP
• JRMP
• IIOP
• JRMP and IIOP
• OMP, JRMP, and IIOP
41. What is the restriction that EJB specification imposes on CMP fields?
Answers:
• They must be public
• They must not be transient
• They must be non-static
• They must be final
• All of the above
42. Database connection pooling is beneficial because:
Answers:
• It avoids the overhead of establishing a new database connection
• Maintaining an open database connection consumes resources on the database
• Both a and b
• ODBC is not required for establishing a connection
43. Which of the following must be implemented by a JMS message-driven bean?
Answers:
• MessageDrivenBean and MessageDrivenContext interfaces
• MessageListener and MessageDrivenBean interfaces
• MessageProducer and MessageDrivenBean interfaces
• ObjectMessage and MessageDrivenBean interfaces
44. Which of the following methods should be invoked by the container to get a bean back to its working state?
Answers:
• EJBPassivate()
• EJBActivate()
• EJBRemove()
• EJBOpen()
• EJBActivation()
45. Which of the following statements is not correct with regard to relationships in EJB?
Answers:
• The tag <relationships> is used by CMP to enclose the relations
• These can be managed by CMP or BMP
• The relationship can be declared in the deployment descriptor
• Directional relationship is always multidirectional

oDesk Bookkeeping Test Answers

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Question:-
1-The theoretically correct method of allocating under or over applied overhead is to:
a. allocate the amount to cost of goods sold
b. allocate the amount to finished goods
c. allocate the amount to work in process and finished goods
d. allocate the amount among work in process, finished goods, and cost of goods sold

Question:-
2-The amount of cash reported in the financial statements is the closing balance of cash reported in the ___________.
a. check register before Bank Reconciliation
b. Bank Reconciliation
c. bank statement before Bank Reconciliation
d. None of the above

Question:-
3-Lindy & Co. use an allowance method to account for bad debts. They estimate that 5% of the outstanding accounts receivable will be uncollectible. At the end of the year, they have outstanding accounts receivable of $750,000, and a debit balance in the Allowance for Uncollectible Accounts of $9,000. They should record an uncollectible accounts expense of:
a. $28,500
b. $37,500
c. $46,500
d. $55,500

Question:-
4-Which of the following statements concerning job cost sheets is incorrect?
a. A job cost sheet would show the direct materials used on that specific job
b. A job cost sheet would reveal the selling costs associated with a particular job
c. The total costs recorded on a job cost sheet should also be reflected in the Work in Process account in the general ledger
d. The amount of overhead on a job cost sheet is the applied factory overhead rather than the actual factory overhead

Question:-
5-If a bank account does not reconcile, what’s the best thing to do?
a. Book the difference as an adjustment regardless of the magnitude
b. Let it remain unreconciled and hope it will clear up in the following month
c. Start from scratch to see if the discrepancy can be found


Question:-
Refer to the given image:

Question:-
6-On March 1, Zekew & Co. purchased $1,000 worth of merchandise, terms 1%10 net 30 days. They use the net method of recording purchases. Payment of the accounts payable was made on March 4. Which of the following journal entries would be appropriate for the March 4 transaction?
a. 1
b. 2
c. 3
d. 4

Question:-
7-With the job order cost system, a credit balance in the Factory Overhead account at the end of an accounting period would indicate:
a. that an error in the job cost system has occurred
b. that the company lost money during the period
c. the presence of under-applied overhead
d. the presence of over-applied overhead
Question:-
Refer to the given image:


Question:-
8-The proper journal entry to record Ransom & Co.’s billing of clients for $500 of services rendered is:
a. 1
b. 2
c. 3
d. 4

Question:-
The entry to record the payment of dividends is:
a. debit Cash, credit Dividend Expense
 b. debit Dividend Expense, credit Cash
c. debit Dividends, credit Dividend Payable
d. debit Dividend Payable, credit Cash

Question:-
9-A multiple-step income statement is thought to be more beneficial to financial users because of the revelation of important relationships. Which of the following is not separately identified in a multiple-step income statement?
a. Gross profit
b. Net income
c. Income taxes
d. Total costs and expenses

Question:-
10-A check issued by you, but not yet passed through the banking system, is:
a. an outstanding check
b. a credit transfer
c. a dishonored check
d. a standing order

Question:-
11-‘2/10, net 30’ is an example of:
a. Terms
b. Methods
c. Systems
d. None of the above

Question:-
12-An increase in a firm’s receivable turnover ratio means that:
a. it is collecting credit sales more quickly than before
b. cash sales have decreased
c. it has initiated more liberal credit terms
d. it’s inventories have increased

Question:-
14-Which of the following statements is true?
a. Cash discounts are used to reduce the invoice price below the stated list price
b. The expression 2/30,n/60.means that a 2% cash discount is available if the invoice is paid within 30 to 60 days
c. Cash discounts may not be used in conjunction with trade discounts
d. Cash discounts normally apply to the invoice price of the merchandise, excluding freight charges

Question:-
15-Which of the following inventory methods will always produce the same results under both a periodic and a perpetual system?
a. FIFO
b. LIFO
c. Average
d. All of these

Question:-
16-The Factory Overhead account in a job costing system is credited for the
a. excess of applied overhead over actual overhead
b. actual overhead
c. applied overhead
d. indirect materials and indirect labor

Question:-
17-Failure to record the receipt of a utility bill for services already received will result in ___________.
a. an overstatement of assets
b. an overstatement of liabilities
c. an overstatement of equity
d. an understatement of assets

Question:-
18-Of the following manufacturing operations, which is best suited to the utilization of a job order system?
a. Helicopter manufacturing
b. Soft drink bottling operation
c. Crude oil refining
d. Plastic molding operation

Question:-
19-Lundstrom & Co. began making sales on credit during 20X1. The Co. used the direct write-off method for uncollectible accounts. A material amount of uncollectible
accounts resulting from the sales made during 20X1 were written off during 20X2. What was the effect of this write-off on the net income for 20X1 and 20X2?
20X1 20X2
a. Overstate Overstate
b. Overstate Understate
c. Understate Overstate
d. Understate Understate

Question:-
20-Why would a company choose to invoice customers weekly rather than monthly?
a. It keeps the accounting staff busy
b. It increases cash flow
c. Customers expect it
d. It is required by law

Question:-
21-If you want to make sure that your money should remain safe when checks sent are lost in the post, you should:
a. cross your checks ‘Account Payee only, Not Negotiable’
b. not use the postal service in future
c. always pay by cash
d. always take the money in person

Question:-
22-How does a company ensure that their physical inventory matches what is there in the account books?
a. It assumes it to be correct if it has been received properly in the system
b. It holds the warehouse manager accountable
c. It counts every item daily
d. It uses some form of physical inventory count – either annual or cyclical

Question:-
23-Using the following information, determine the adjusted bank balance: bank statement balance $5,000, bank service charges $15, NSF check $500, checks outstanding $1,000, deposits in transit $2,000.
a. $6,000
b. $5,000
c. $5,485
d. None of the above

Question:-
24-The basic sequence in the accounting process can best be described as:
a. Transaction, journal entry, source document, ledger account, trial balance
b. Source document, transaction, ledger account, journal entry, trial balance
c. Transaction, source document, journal entry, trial balance, ledger account
d. Transaction, source document, journal entry, ledger account, trial balance

Question:-
25-Which of these items would be accounted for as an expense?
a. Repayment of a bank loan
b. Dividends to stockholders
c. Purchase of land
d. Payment of the current period’s rent

Question:-
Refer to the given image:

26-Hefty & Co. wants to know the effect of different inventory methods on financial statements. Given below is the information about the opening inventory and purchases for the current year.
Sales during the year were 2,700 units at $5.00. If they used the first-in, first-out method, the closing inventory would be:
a. $2,780
b. $3,960
c. $9,700
d. $10,880

Question:-
27-The correct journal entry to reconcile an NSF check returned by the bank is:
a. Debit Accounts Receivable, Credit NSF
b. Debit Cash, Credit Accounts Receivable
c. Debit NSF Expense, Credit Cash
d. Debit Accounts Receivable, Credit Cash

Question:-
28-The sales account and the purchase account should include:
a. only cash sales and purchases of merchandise
b. only credit sales and credit purchases of merchandise
c. both cash and credit sales and credit purchases of merchandise
d. not only merchandise transactions, but also purchases and other assets used in the business
Question:-
Refer to the given image:

Question:-
29-Hefty Co. wants to know the effect of different inventory methods on financial statements. Given below is information about beginning inventory and purchases for the current year.
Sales during the year were 2,700 units at $5.00. If Hefty used the periodic LIFO method, cost of goods sold would be:
a. $2,780
b. $3,960
c. $9,700
d. $10,880

Question:-
30-Using the following information, determine the adjusted book balance: cash account balance on the books $27,000, bank service charges $200, NSF check $2,000, checks outstanding $3,000, deposits in transit $1,000.
a. $24,800
b. $25,800
c. $25,000
d. None of the above

Question:-
31-Which of the following statements concerning job costing systems is incorrect?
a. Cost drivers are those items which cause actual overhead to exceed applied overhead
b. Job costing systems are appropriate to both manufacturing and service businesses
c. Traditionally, direct labor has been a very popular overhead application base
d. In a service business, indirect costs of providing a service are treated as overhead and applied in a manner similar to that for factory overhead

Question:-
32-Home Depot. Inc. had net purchases of $50,000, closing inventory of $25,000, net sales of $100,000, and gross profit of $32,000. How much was their opening inventory?
a. $7,000
b. $43,000
c. $93,000
d. $143,000

Question:-
33-In which section of the balance sheet should inventory accounts be classified?
a. Current assets
b. Investments
c. Property, plant, and equipment
d. Intangible assets

Question:-
34-Under normal circumstances, the Work in Process account used in a job costing system:
a. will include charges for direct labor, direct materials, and applied overhead
b. will include only charges for direct materials and applied overhead. The labor is charged to expense as incurred
c. will include charges for direct labor, direct materials, and actual overhead
d. will include only charges for direct labor and direct materials

Question:-
35-Johnson Manufacturing Ltd. use the job order cost system. Overhead is applied at the rate of $20 per direct labor hour. Job #777 includes $2,000 of direct labor cost and 150 direct labor hours. $1,500 of indirect labor cost was actually incurred. The proper journal entry to record the wage related cost is:
a. Debit Work in Process, $3,500; credit Wages Payable, $3,500
b. Debit Wage Expense, $3,500; credit Wages Payable, $3,500
c. Debit Work in Process, $2,000; debit Factory Overhead, $1,500; credit Wages Payable, $3,500
d. Debit Work in Process, $3,500; credit Factory Overhead, $1,500; credit Wage Expense, $2,000

Question:-
36-The following statements are true regarding the Cash short and Over account except
a. “Cash Short and Over also acts as an internal control device.”
b. “There is rarely a difference between actual cash receipts and that day’s record of cash receipts.”
c. “A large balance signals the accountant to investigate.”
d. “Honest errors can result in an entry to this account.”

Question:-
37-Trade accounts receivable:
a. arise from the sale of a company’s products or services
b. are reported in the non-current asset section of the balance sheet
c. include deposits with utilities
d. generally comprise the minority of the total receivables balance

Question:-
38-Which of the following errors will be disclosed in the preparation of a trial balance?
a. Recording transactions in the wrong account
b. Duplication of a transaction in the accounting records
c. Posting only the debit portion of a particular journal entry
d. Recording wrong amount for a transaction to both the account debited and the account credited

Question:-
39-Which of the following is a liability?
a. Creditors for Goods
b. Machinery
c. Cash at Bank
d. Motor Vehicles
Refer to the given image:

Question:-
40-Lynn Lippincott invested land valued at $5,000 in her business. This transaction would be recorded by:
a. 1
b. 2
c. 3
d. 4

Question:-
41-Gerald’s had opening total stockholders’ equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Their net income was $180,000. No additional investments were made. However, some amount was paid as dividend during the year. What was the amount of the dividend paid?
a. $20,000
b. $60,000
c. $140,000
d. $220,000

Question:-
42-Documents used to control a bank account include the following except
a. a bank statement
b. electronic funds transfer (EFT)
c. prenumbered checks
d. a signature card

Question:-
43-If the supplies account assets), (before adjustment on May 31, indicated a balance of $2,250, and the supplies on hand on May 31 totaled $950, the adjusting entry would be:
 a. Debit supplies, $1,300; credit supplies expense, $1,300
b. Debit supplies, $950; credit supplies expense, $950
c. Debit supplies expense, $950; credit supplies, $950
d. Debit supplies expense, $1,300; credit supplies, $1,300

Question:-
44-The trial balance __________.
a. is a formal financial statement
b. is used to prove that there are no errors in the journal or ledger
c. provides a listing of every account in the chart of accounts
d. provides a listing of the balance of each account in active use

Question:-
45-Which of the following best describes the meaning of ‘Purchases’?
a. Goods paid for
b. Goods bought for resale
c. Items bought
d. Goods bought on credit

Question:-
47-Sorting the accounts Payable into current, 1-30 days past due, 31-60 days past due, and so on, is known as:
 a. Aging Report
b. Pending Report
c. Payable Report
d. Other Report

Question:-
48-Russell Merchandising Ltd. uses the perpetual inventory system. Which of the following statements would be correct?
a. When they record a sale, it should also debit inventory
b. When they record a sale, it should also credit inventory
c. When they record a sale, it should also credit cost of goods sold
d. When they record a sale, it should also debit cost of goods available for sale

Refer to the given image:


Question:-
49-Which of the following would not be included in a balance sheet?
a. Accounts receivable
b. Accounts payable
c. Sales
d. Cash

Question:-
50-How often can a company change its inventory valuation methodology and still be compliant with GAAP?
a. Once per month
b. Any number of times; there are no rules
c. Once per year, but not every year
d. Never; you decide once and only once

Question:-
51-The best inventory method to adopt for a company that sells a product in large quantities, for example nails, would be:
a. FIFO
b. LIFO
c. Average Cost
d. Specific Cost

Question:-
52-Purchasers of merchandise may be dissatisfied with the quality of goods purchased on account, and return the goods to the seller with an indication that payment will not be forthcoming. In such a case, the document prepared by the purchaser is called:
a. a debit memorandum
b. a credit memorandum
c. a receiving report
d. an invoice

Question:-
53-Remington Inc. has provided the following information about its balance sheet:
Cash $ 100
Accounts receivable $ 500
Stockholders’ equity $ 700
Accounts payable $ 200
Bank loans $ 1,000

Question:-
54-Based on the information provided, how much do their liabilities amount to?
a. $200
b. $900
c. $1,200
d. $1,700

Question:-
55-Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in them (Retained Earnings)?
a. Net loss
b. Net income
c. Dividends
d. Investments by stockholders

Question:-
56-The purpose of Accrued Expenses is:
a. to accurately reflect expenses in the periods during which they are incurred
b. to keep account of the vendors who never send invoices
c. to make the financial statements more complicated
d. to reflect the amounts owed to the company

Question:-
57-Which of the following is NOT a fundamental of accounting?
a. Materiality
b. Timeliness
c. Matching
d. Magnitude

Question:-
If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing:
a. a credit memorandum
b. a bill
c. a debit memorandum
d. an invoice

Question:-
46-Wilson & Co. owns land which has cost it $100,000. If a “quick sale” of the land were necessary to generate cash, the Co. feels it would receive only $80,000. The Co. continues to report the asset on the balance sheet at $100,000. Under which of the following concepts is it justified?
a. The historical-cost principle.
b. The objectivity principle.
c. Neither of the above.
d. Both “a” and “b”

Question:-
48-What is the primary goal of an Accounts Payable department?
a. To pay invoices immediately to avoid collection calls
b. To short pay invoices, knowing that some clients will not notice
c. To maintain an accurate AP record and pay invoices according to the company policy
d. To tell people who call that their check is in the mail, when it is not, in order to buy time

Question:-
49-By which of the following formulas should interest on a loan be computed?
a. (principal x rate)/time
b. (principal x rate x time)
c. (principal x time)/rate
d. (principal x time)/time

Question:-
50-Of the following account types, which would be increased by a debit?
a. Liabilities and expenses
b. Assets and equity
c. Assets and expenses
d. Equity and revenues

Question:-
51-Which of the following transactions would have no impact on the stockholders’ equity?
a. Purchase of land from the proceeds of a bank loan
b. Dividends to stockholders
c. Net loss
d. Investments of cash by stockholders

Question:-
52-What are the adjustments most common to bank reconciliation?
a. Interest earned and bank fees
b. Bank errors
c. Unidentified transactions
d. Checks cleared but not in the accounting system

Question:-
53-What is the purpose of applying overhead costs to work in process?
a. To meet the legal requirements of the IRS
b. To reduce the Expense line on the profit & loss statement
c. To accurately apply costs to WIP so that the cost of the finished product reflects all the costs incurred to produce it
d. To hide costs from the auditors

Question:-
54-The proper journal entry to record $1,000 of Dividend paid by Myer’s Corporation Ltd. is:
a. 1
b. 2
c. 3
d. 4

Question:-
55-Account books are typically closed on a _________ basis.
a. Weekly
b. Monthly
c. Quarterly
d. Yearly

Question:-
56-The correct journal entry to reconcile the interest earned on a bank balance is:
a. Debit Cash, Credit Interest Revenue
b. Debit Cash, Credit Accounts Payable
c. Debit Cash, Credit Accounts Receivable
d. Debit Accounts Receivable, Credit Cash

Question:-
57-Under normal circumstances, the Work in Process account used in a job costing system:
a. will include charges for direct labor, direct materials, and applied overhead.
b. will include only charges for direct materials and applied overhead. The labor is charged to expense as incurred.
c. will include charges for direct labor, direct materials, and actual overhead.
d. will include only charges for direct labor and direct materials

Question:-
58-A payment of cash for the purchases of services should be recorded in the
Cash payment journal
Purchases journal
Revenue journal
Cash receipt journals

Question:-
59-Accounts payable refer to the current?
Liability of business or an organization
Asset of a business or an organization
Expense of a business or organization
Income of a business or organization

Question:-
60-If a customer is not paying their invoices , the best first step to encourage them to pay is;
Send them to collections immediately
Write them a letter and threaten to cut off their line of credit
Begin charging interest on their open balance
Send a statement with copies of the open invoieces

Question:-
61-Increasing the credit period from 30 to 60 days , in response to a similar action taken by all of our competitors , is likely to result In:
An increase in the average collection period
A decrease in bad debt losses
An increase in sales
Higher profits

Question:-
62- Purchaser of merchandise may be dissatisfied with the quality of goods purchased on account , and return the goods to the seller with an indication that payment will not be forthcoming. In such a case, the document prepared by the purchaser is called.
A debit memorandum
A credit memorandum
A receiving report
An invoice.

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