Basic Bookkeeping-1

Which of the following statements contains the amount of fixed assets ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Statement Of Equity (Capital)
Which of the following statements contains what is often referred to as "the bottom line" ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Dividend Statement
Which of the following equations are correct ?
1. Capital=Assets-Liabilities
2. Assets + Capital=Liabilities
3. Liabilities=Assets-Capital
4. Assets+Liabilities=Capital
A business's Trial Balance ________________
1. Shows its Financial Position
2. Shows its Net Income/Loss
3. Lists all the Account Balances
The debit and credit balances of a Trial Balance should always agree.
1. True
2. False
Which of the following is prepared to determine a business's profit/loss for a period ?
1. Balance Sheet
2. Income Statement
3. Statement Of Cash Flows
4. Trial Balance
5. Capital Statemt
The term Gross Profit appears in what statement ?
1. Balance Sheet
2. Income Statement
3. Trial Balance
4. Statement Of Cash Flows
5. Capital Statement
Which of the following is recorded in the Purchases Journal ?
1. Customer Invoices On Account
2. Supplier Invoices On Account
3. Cash Payments To Suppliers
4. Cash Collections from customers
Which of the following is recorded in the Sales Journal ?
1. Supplier Invoices On Account
2. Customer Invoices On Account
3. Payments received from Customers
4. Payments made to suppliers
5. None of the answers is correct
The calculation of Gross Profit is __________________.
1. Sales less Purchases
2. Sales less Cost Of Goods Sold
3. Sales less Total Expenses
4. Sales less Selling Expenses
Which of the following increases Owner's Capital ?
1. Net Loss
2. Net Income
3. Drawings
4. Expenses
Which of the following is not a Current Asset ?
1. Cash
2. Inventory
3. Goodwill
4. Accounts Receivable
All of the following are Real or Permanent Accounts except ?
1. Drawngs
2. Cash
3. Equipment
4. Accounts Receivable
The balance of the Drawings Account is closed to ?
1. Capital Account
2. Cash Account
3. Profit and Loss Account
4. Equipment Account
Which of the following is a Nominal or Temporary Account ?
1. Accounts Receivable
2. Accounts Payable
3. Rent Expense
4. Cash
Working Capital is ________________.
1. Current Assets
2. Currents Assets less Current Liabilities
3. Cash plus Accounts Receivable
4. Total Assets less Total Liabilities
Which of the following is the most liquid asset ?
1. Inventory
2. Cash
3. Equipment
4. Accounts Receivable
5. Buildings
How does the Income Statement link to the Balance Sheet ?
1. thru the Cash Accounts
2. thru the Retained Earnings Accounts
3. thru the Fixed Asset Account
4. thru the Liability Accounts
Accumulated Depreciation is subtracted from Total Fixed Assets to result in Net Fixed Assets in the Balance Sheet.
1. True
2. False
Using the Accrual Method of Accounting causes Cash to always equal profits.
1. True
2. False
EBIT means ____________________.
1. Earnings before interest and taxes
2. Earnings before income taxes
3. Earnings before income and taxes
The Accrual Method of Accounting records expenses that we owe but have not yet been paid.
1. True
2. False
Which of the following statements is made up of three sections - operating, investing, and financing ?
1. the Cash Flow Statement
2. the Statement of Equity
3. the Balance Sheet
4. the Income Statement
An accounting record that contains the balances of all the accounts is called the General Ledger.
1. True
2. False
Expenses are debited because they decrease Owner's Equity.
1. True
2. False

Basic Bookkeeping-1

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