Basic Bookkeeping-6

Gross sales are total cash and credit sales made during a period.
1. True
2. False
Gross Profit is calculated by deducting Cost Of Goods Sold from Net Sales.
1. True
2. False
A Single-Step Income Statemnt has a line for Gross Profit.
1. True
2. False
A Balance Sheet does NOT include which of the following ?
1. Assets
2. Liabilities
3. Owner's Equity
4. Expenses
Which of the following is a Temporary Account ?
1. Cash
2. Accounts Receivable
3. Owner's Equity
4. Sales
A type of business that is made up of many owners called shareholders is a ?
1. Partnership
2. Corporation
3. Sole Proprietorship
4. LLC
5. All of the listed answers are correct
The Accrual Method of Accounting recognizes revenue (earnings) in the period that cash is received and expenses in the period that cash payments are made.
1. True
2. False
A business that sells its products to another business is called a Retailer.
1. True
2. False
Profit is the amount that a business's expenses exceeds its revenues.
1. True
2. False
Revenue is also called or referred to as income.
1. True
2. False
Bank Reconciliations are normally performed ?
1. Monthly
2. Yearly
3. Quarterly
4. Weekly
5. Daily
A "book" containing the account balances for a business's assets, liabilities, equity, revenue, expenses, and draw accounts is called ?
1. the General Ledger
2. Trial Balance
3. Subsidiary Ledger
4. Journal
5. Accounting Worksheet
An example of an account that would normally have a subsidiary ledger account associated with it is ?
1. Cash
2. Professional Fees
3. None of the listed answers is correct
4. Accounts Receivable
The assets of a business are subject to two claims-those of the creditors and those of the owners.
1. True
2. False
Another term sometimes used to refer to the assets of a business is property.
1. True
2. False
All accounts that normally have a debit balance are increased with a credit and decreased with a debit.
1. True
2. False
Accounts that normally have a debit balance are ?
1. Revenue
2. Assets
3. Expenses
4. Liabilities
5. Draws
6. Owner's Equity
All accounts that normally have a credit balance are increased with a credit and decreased with a debit.
1. True
2. False
Which of the following accounts is NOT an account that normally has a credit balance ?
1. Revenue
2. Owner's Equity
3. Liability
4. Asset
All accounts have a normal balance which is either a debit or credit.
1. True
2. False
The left side (column) of an account is the credit side and the right side (column) of an account is the debit side.
1. True
2. False
The Balance Sheet is a formal financial statement that summarizes revenues and expenses for a specific period of time.
1. True
2. False
Which of the following is not normally included in the Chart Of Accounts ?
1. Account's Name
2. Account's Description
3. Account's Number
4. Account's Balance
A Chart Of Accounts is normally grouped by Balance Sheet Accounts and Income Statement Accounts.
1. True
2. False
Owners withdrawals by a sole proprietorship are reported in the Income Statement.
1. True
2. False

Basic Bookkeeping-6

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