Basic Bookkeeping-7

Quiz

Payroll Withholdings are classified on the Balance Sheet as Long Term Liabilities.
1. True
2. False
Retained Earnings is a part of Stockholder's Equity.
1. True
2. False
Using the Periodic Inventory System, the cost of merchandise purchased is debited to the Inventory Account.
1. True
2. False
The cost of Land on which a business's store was built should be depreciated.
1. True
2. False
Checks received from customers but not yet deposited in the bank should be considered a part of a business's Cash Balance.
1. True
2. False
A Balance Sheet is also known as a Statement Of Financial Position.
1. True
2. False
An entry to record Depreciation Expense is recorded in what Journal ?
1. Sales Journal
2. Purchases Journal
3. General Journal
4. Cash Payments Journal
5. Cash Receipts Journal
6. Equipment Journal
Prepaid Expenses should be classified in a Balance Sheet as ?
1. Fixed Assets
2. Intangible Assets
3. Current Liabilities
4. Current Assets
5. Owner's Equity
A special account used to offset the balance of another account is called a contra account.
1. True
2. False
Which of the following payroll deductions is NOT matched by the employer ?
1. Social Security
2. Medicare
3. Income Tax
Which Financial Statemnt does not cover a Period Of Time ?
1. Income Statement
2. Balance Sheet
3. Statement of Cash Flows
4. Statement of Cash Flows
In a manufacturing company, inventory that is completed and ready for sale is called ?
1. Finished Goods
2. Work In Process
3. Raw Materials
4. Store Supplies
Which of the following should NOT be classified in the Balance Sheet as Property, Plant, and Equipment ?
1. Automobile held for resale
2. Land
3. Building used as an office
4. Land Improvements
Which of the following most likely resulted from a recording error ?
1. A Credit Balance in an Expense Account
2. A Debit Balance in a Dividend Account
3. A Credit Balance in a Revenue Account
4. A Credit Balance in a Liability Account
The Normal Balance of any Account is ?
1. Side which increases the account
2. Left Side
3. Right Side
4. Side which decreases the account
In a Classified Balance Sheet, Current Assets are normally listed ?
1. In the order that they are expected to be converted into cash (collected)
2. Alphabetically
3. By Account Number
4. Largest dollar amount first
After transactions have been recorded in the proper Journals, they are transferred (posted) to ?
1. General Ledger
2. Work Sheet
3. Trial Balance
4. General Journal
5. Financial Statements
Which of the following statements is NOT true ?
1. Expenses increase Profits
2. Expenses normally have debit balances
3. Expenses decrease Owner's Equity
4. None of the listed answers is correct
A credit is not the normal balance for which account listed below ?
1. Dividend Account
2. Revenue Account
3. Liability Account
4. Owner's Capital Account
Which accounts listed below are not a subcategory of Owner's Equity ?
1. Assets
2. Liabilities
3. Revenues
4. Expenses
5. Dividends/Draws
What is it called when you divide one number by another ?
1. Ratio
2. Equation
3. Comparison
4. All of the listed answers are correct
An account that normally requires an Adjusting Entry is Prepaid Insurance ?
1. True
2. False
A business making a profit will never have any Cash Flow problems.
1. True
2. False
A Cash Flow Forecast is simply an estimate of the cash coming in and going out during a period of time.
1. True
2. False