Basic Bookkeeping-13

Quiz

Which of the following Equations are NOT correct ?
1. Assets-Liabilities=Owner's Equity
2. Assets-Liabilities=Net Worth
3. Liabilities-Capital=Assets
4. Owner's Equity=Assets+Liabilities
5. Assets=Liabilities+Owner's Equity
Which of the following statements is correct ?
1. Record an increase to an Asset with a debit
2. Record a decrease to Capital with a credit
3. Record an increase to a Liability with a credit
4. Record a decrease to a Liability with a credit
5. Record an increase to Revenue with a debit
The purchase of Equipment is posted to an Equipment Expense Account.
1. True
2. False
When an Asset increases because a Liability increases, the Asset is credited and the Liability is debited.
1. True
2. False
Goodwill is classified as ?
1. Property, Plant, &Equipment
2. An Intangible Asset
3. Current Liability
4. Current Asset
5. Owner's Equity
Which of the following increases Owner's Equity ?
1. Owner invests money in his business
2. Business has a profit
3. Business incurs an expense
4. Business borrows money from the bank
5. Business purchases an asset
The Current Ratio is calculated by subtracting Curent Liabilities from Current Assets.
1. True
2. False
The money used to start a business is known as ?
1. Income
2. Capital
3. Profit
4. Draws
When goods or services are paid for at the time of the sale, it's called a cash transaction.
1. True
2. False
Recording in the left hand side of an account is known as crediting the account.
1. True
2. False
Sales Returns are added to Sales in computing Net Sales.
1. True
2. False
Which of the following would NOT be paid from a Petty Cash Fund ?
1. Postage
2. Salaries & Wages
3. Cleaning Supplies
4. Office Supplies
The account Unearned Revenues is reported in ?
1. Income Statement
2. Balance Sheet and Income Statement
3. Balance Sheet as a Liability
4. Balance Sheet as an Asset
The accounts known as Nominal Accounts are ?
1. temporary accounts
2. permanent accounts
3. have balances in the account after closing the books
4. none of the listed answers is correct
Bad Debt Expenses appear appear in the Balance Sheet and the Allowance for Uncollectable Accounts appears in Income Statement.
1. True
2. False
Which of the following is NOT a source of Cash ?
1. Purchase Of Goods (Merchandise) for Cash
2. Cash Sale
3. Payment Received on a Customer's Account
4. Loan from a Bank
When usage rather than time is the key factor, the Straight Line Method Of Depreciation is the preferred method to use.
1. True
2. False
Valuing Inventory using Lower Of Cost or Market is an application of what Accounting Rule ?
1. Matching
2. Materiality
3. Conservatism
4. Double Entry
A common reason for the opportunity to commit fraud is that too much authority is given to one employee.
1. True
2. False
An Exempt Employee is an employee who is exempt from the Fair Labor Standards Act.
1. True
2. False
Which of the following does NOT affect the Net Income of a business using the Accrual Method Of Accounting ?
1. Cash Sale to a customer
2. Charge Sale to a customer
3. Sales Return from a customer
4. Cash collected from a Sale On Account
Which of the following statements contain the term Gross Profit ?
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Owner's Capital
Which of the following asset accounts is the least liquid ?
1. Cash
2. Inventory
3. Equipment
4. Accounts Receivable
Total Variable Costs stay the same no matter how many units are produced.
1. True
2. False
If an incorrect amount such as $900 is recorded as $90 in the correct accounts, the Trial Balance will not balance.
1. True
2. False