Basic Bookkeeping-8

Quiz

Which of the following is considered to be good Cash Management practices ?
1. Maintaing an accurate check book
2. Making daily Cash Deposits
3. Preparing monthly Bank Reconciliations
4. Preparing Cash Forecasts
5. All of the listed answers are correct
Granting very liberal customer payment terms will normally result in improving a business's cash flow.
1. True
2. False
A deposit slip is a document used to summarize cash and checks received that are deposited in the bank.
1. True
2. False
The abbreviation NSF stands for No Such Funds.
1. True
2. False
Direct Deposits are ?
1. Sent directly to the bank
2. Sent to the business PO Box
3. Sent to the business Street Address
4. All of the listed answers are correct
Petty Cash is sometimes referred to as an Imprest Fund.
1. True
2. False
A business is allowed to hire anyone that they want to without filing any special forms.
1. True
2. False
Form W-4 summarizes an employee's earnings and deductions for a year.
1. True
2. False
Which of the following increases Owner's Capital ?
1. Revenue
2. Owner Investments (Cash or Property) in the business
3. Expenses
4. Draws
5. None of the listed answers is correct
Unearned Revenues resulting from payments for future services is what type of account ?
1. Liability
2. Revenue
3. Asset
4. Expense
Which of the following is NOT included in a manufacturer's Inventory ?
1. Plant & Equipment
2. Raw Materials
3. Work-In-Process
4. Finished Goods
Losses resulting from customers not paying the amount they owe are ?
1. Bad Debts
2. Sales Returns & Allowances
3. Sales Discounts
4. Net Sales
Entries made at the end of a period to accrue revenue and expenses are called ?
1. adjusting entries
2. closing entries
3. correcting entries
4. All of the listed answers are correct
Under the accrual method of accounting, the amount collected from customer's accounts receivable should be recorded as revenue.
1. True
2. False
Land, Buildings, and Equipment are often referred to as Fixed Assets.
1. True
2. False
Checks written that have not cleared the bank are called outstanding checks.
1. True
2. False
The amount of Depreciation calculated for Tax purposes can be different than the amount calculated for Financial Reporting purposes.
1. True
2. False
Cash and other assets that can be converted into cash within a year are called current assets.
1. True
2. False
Prepaid Expenses should appear in the Income Statement as a Current Asset.
1. True
2. False
The account Petty Cash is normally debited when replenishing the Petty Cash Fund.
1. True
2. False
Current Assets less Current Liabilities is Working Capital.
1. True
2. False
Which of the following accounts is a temporary account ?
1. Prepaid Insurance
2. Sales
3. Accounts Receivable
4. Bad Debt Expense
5. Accounts Payable
Which of the following accounts are Contra Accounts ?
1. Allowance for Uncollectible Accounts
2. Bad Debts
3. Accumulated Depreciation
4. Notes Payable
5. Accounts Receivable
6. Cash
Sales Tax collected but not yet paid should be reported as a Long Term Liability.
1. True
2. False
Owner's Draws reduce the amount of Net Income reported for a Sole Proprietorship.
1. True
2. False