Basic Bookkeeping-9

Quiz

Another term for Owner's Equity is Owner's Capital.
1. True
2. False
Liabilities and Owner's Equity are both claims to the business's assets.
1. True
2. False
Sales Commissions are classified as ?
1. Selling Expenses
2. Administrative Expenses
3. G & A Expenses
4. All of the listed answers are correct
A negative Cash Balance will have a credit balance in the General Ledger.
1. True
2. False
A negative Cash Balance is classified as a Liability.
1. True
2. False
A transaction is first recorded in a record called the General Ledger.
1. True
2. False
The Cash Basis Of Accounting is an acceptable accounting method per Generally Accepted Accounting Principles (GAAP).
1. True
2. False
The sum of the assets, expenses, and draw accounts equals the sum of the liability, revenue, and capital accounts.
1. True
2. False
Advance Payments for services not yet performed is ?
1. a Liability
2. an Asset
3. Revenue
4. an Expense
Offering early payment discounts will likely increase the time it takes for customers to pay.
1. True
2. False
Which of the following are classified as fixed costs ?
1. Utilities
2. Raw Materials
3. Depreciation
4. Building Rent
5. Sales Tax
6. Commissions on Sales
A source document used to record merchandise returned by a customer is called a credit memorandum (memo).
1. True
2. False
The Sales Journal records all sales of goods and services on credit; but NOT sales for cash.
1. True
2. False
Accrued Salaries and Wages are ?
1. Salaries and wages earned but not paid
2. Unearned Salaries and Wages
3. Salary and Wages Advances
4. None of the listed answers is correct
Which of the following is NOT a Current Asset ?
1. Patents
2. Cash
3. Inventory
4. Accounts Receivable
An Account Balance is ?
1. The beginning balance of an account plus increases less decreases
2. The total of the credit side
3. The total of the debit side
4. Always increased by debits
5. Always increased by credits
Which of the following accounts appear in a Balance Sheet ?
1. Cash
2. Rent Expense
3. Sales
4. Common Stock
5. Fees Earned
6. Notes Payable
Businesses can take which of the following forms ?
1. Sole Prorietorship
2. Partnership
3. LLC
4. Corporation
External users of accounting information include ?
1. Shareholders
2. Customers
3. Creditors
4. Government Agencies
Which of the following Assets is not Depreciated ?
1. Land
2. Computers
3. Store Fixtures
4. Buildings
5. Equipment
A company's Inventory Balance does NOT include goods on consignment.
1. True
2. False
A closing entry would close out (set to zero) any balance in ?
1. Cash
2. Accounts Receivable
3. Sales
4. Accounts Payable
5. Accumulated Depreciation
The rules for debit and credits for expense accounts are NOT the same as the debit and credit rules for asset accounts.
1. True
2. False
Revenues increase Owner's Equity and the increases in Revenue are recorded with a Debit.
1. True
2. False