Basic Bookkeeping-4

Quiz

Which of the following are true ?
1. An increase to an asset may also result in an increase to a liability.
2. An increase to an asset may also result in an increase to owner's equity.
3. A decrease to an asset may also result in an increase to a liabilty.
4. A decrease to an asset may also result in an increase to an expense.
Which of the following are assets ?
1. Cash
2. Accounts Payable
3. Notes Payable
4. Equipment
5. Buildings
Which of the following are Current Assets ?
1. Cash
2. Accounts Receivable
3. Goodwill
4. Equipment
5. Notes Payable
6. Inventory
Which of the following accounts would probably require an adjusting entry at the end of a period ?
1. Prepaid Insurance
2. Unearned Revenue
3. Land
4. Petty Cash
Which of the following are Balance Sheet Accounts ?
1. Cash
2. Cost Of Goods Sold
3. Employee Wages
4. Accounts Receivable
5. Inventory
6. Sales
7. Prepaid Insurance
The balances of real accounts are closed out at the end of a period.
1. True
2. False
Assets plus Liabilities equals Owner's Equity.
1. True
2. False
Buildings used in the operation of a business are depreciable assets.
1. True
2. False
Quarterly amounts withheld from employess for social security, medicare, and income tax along with the employer's matching social security and medicare are reported on which Form ?
1. Form 940
2. Form 941
3. Form W-3
4. Form W-4
The main purpose of a petty cash fund is ?
1. Provide cash to pay for small incidental items
2. Cash employee checks
3. Collect cash from sales
4. All of the answers are correct
Which of the following statements are true ?
1. A debit increases a revenue account
2. A debit increases an asset account
3. A credit increases a liability account
4. A credit increases an expense account
5. A credit increases a revenue account
Which of the following are nominal or temporary accounts ?
1. Cash
2. Revenues
3. Expenses
4. Accounts Receivable
5. Inventory
6. Owner Draws
The only accounts contained in the General Ledger are the Balance Sheet Accounts.
1. True
2. False
Net Worth = Owner's Equity
1. True
2. False
Which of the following are Liability Accounts ?
1. Sales
2. Employee Wages
3. Cash
4. Accounts Receivable
5. Accounts Payable
6. Unearned Revenues
7. Taxes Payable
8. Inventory
9. Equipment
The Income Statement is also known as a Profit/Loss Statement.
1. True
2. False
The Balance Sheet reports the profit/loss for a period of time.
1. True
2. False
Which of the following assets is the most liquid ?
1. Accounts Receivable
2. Inventory
3. Equipment
4. Notes Receivable
5. Cash
Which of the following accounts normally have a Debit Balance ?
1. Cash
2. Accounts Payable
3. Sales
4. Inventory
5. Accounts Receivable
6. Owner's Equity
Which of the following accounts normally have a Credit Balance ?
1. Accounts Payable
2. Owner's Equity
3. Sales
4. Cash
5. Accounts Receivable
6. Inventory
7. Notes Payable
Cost Of Goods Sold appears in which Financial Statement ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Capital Statement
Every Transaction involves at least one debit and one equal offsetting credit.
1. True
2. False