Basic Bookkeeping-11

Quick assets include cash, accounts receivable, and short-term investments.
1. True
2. False
A corporation is the easiest form of business to start.
1. True
2. False
The personal assets of the owner will NOT appear on the company's Balance Sheet because of which rule ?
1. Historical Cost
2. Monetary Unit
3. Economic Entity
4. Full Disclosure
5. Conservatism
Which account is NOT included in the Income Statement ?
1. Accumulated Depreciation
2. Depreciation Expense
3. Sales Revenue
4. Advertising Expense
5. Interest Expense
On which Financial Statement would the description "For The Period Ending" NOT appear ?
1. Balance Sheet
2. Income Statement
3. Statement Of Owner's Equity
4. Statement Of Cash Flows
What does the Income Statement report ?
1. profitability
2. liquidity
3. solvency
4. all of the listed answers are correct
Which of the following type of organization is a "flow thru" type of organization in regards to income taxes ?
1. Partnership
2. LLC
3. Corporation
4. Sub-S Corporation
The accounts known as Real Accounts are ?
1. Permanent Accounts
2. Temporary Accounts
3. Reported in the Income Statement
4. Begin with a zero balance after the books are closed
Failure to record Accrued Wages will NOT affect the balance of Total Assets.
1. True
2. False
What Accounting Rule requires depreciation expense to be recorded ?
1. Matching Rule
2. Historical Cost Rule
3. Conservatism Rule
4. Entity Rule
Real Accounts are also referred to as Permanent Accounts.
1. True
2. False
If Ending Inventory is understated, then Net Income is understated.
1. True
2. False
If Beginning Inventory is overstated, then Net Income is understated.
1. True
2. False
A service company that does not sell any products Income Statement does NOT contain which of the following
1. Revenues
2. Expenses
3. Net Profit/Loss
4. Cost Of Goods Sold
The Cost Of inventory is deducted in the Income Statement when ?
1. Purchased
2. Paid For
3. Sold
4. None of the answers are correct
Which of the following liabilities is an example of a liability that is most likely estimated ?
1. FICA Taxes Payable
2. Accounts Payable
3. Employee Income Tax Withheld
4. Vacation Wages Payable
All of the following are Short Term Liquid Assets except ?
1. Cash
2. Inventory
3. Accounts Receivable
4. Certificates of Deposit
If Current Liabilities are understated in the Balance Sheet, what other category in the Financial Statements is misstated ?
1. Revenues
2. Total Assets
3. Current Assets
4. Expenses
Withdrawal of money from a sole proprietorship by the owner is not an expense but a reduction of capital.
1. True
2. False
A document issued conveying ownership in a corporation is called a stock certificate.
1. True
2. False
Beginning Inventory plus Purchases equals Sales.
1. True
2. False
The most liquid asset and subject to theft and fraud is cash.
1. True
2. False
All disbursements (payments) except petty cash payments should be made by check.
1. True
2. False
Which of the following is an Asset ?
1. Overdrawn Bank Balance
2. Amount Owed to a Supplier
3. Machinery Owned
4. None of the listed answers is correct
Which Form will have information about an employee's number of payroll exemptions ?
1. W-2
2. 940
3. 941
4. W-4

Basic Bookkeeping-11

Quiz