Basic Bookkeeping-10

A credit to a liability account indicates a(n) -
1. increase in the liability
2. decrease in the liability
3. a credit to another liability
4. none of the listed answers are correct
A debit is not the normal balance for which of the following?
1. revenue
2. asset
3. expense
4. draw
Which of the following statements about revenue is false?
1. Revenues are increased by a debit.
2. Revenues increase owner's equity.
3. Revenues normally have a credit balance.
4. Revenues are considered temporary accounts.
Which of the following statements about expenses is false?
1. Expenses normally have a credit balance.
2. Expenses decrease owner's equity.
3. Expenses are increased with debits.
4. Expenses are listed in the income statement.
Unearned Revenue is classified as -
1. a liability account
2. a contra revenue account
3. an expense account
4. an asset account
The first step in recording a transaction is -
1. to analyze the transaction
2. to determine the proper journal
3. enter the entry in the proper journal
4. post the transaction to the general ledger
An adjusting entry to record accrued expenses affects -
1. expenses and liabilities
2. expenses and revenues
3. expenses and assets
4. expenses and capital
If an adjusting entry for depreciation is not made -
1. all of the listed answers are correct
2. expenses will be understated
3. net income will be overstated
4. assets will be overstated
Which of the following account types is not closed (set to zero) ?
1. balance sheet accounts
2. nominal accounts
3. temporary accounts
4. income statement accounts
The account Sales Discounts is -
1. a contra revenue account
2. a revenue account
3. an expense account
4. a liability account
Which of the following is not a subsidiary ledger ?
1. general ledger
2. accounts receivable ledger
3. accounts payable ledger
4. equipment ledger
Which of the following is not an employer's payroll tax expense ?
1. All of the listed answers are employer payroll taxes
2. Employer Social Security and Medicare Portion
3. Employer State Unemployment
4. Employer Federal Unemployment
A payroll record maintained for each employee that has the employee's gross earnings , deductions, and net pay for each pay period is called -
1. an employee's earnings record
2. an employee's W-4 record
3. a payroll register
4. an employee's W-2 record
Revenue is normally recognized -
1. at the time of the sale
2. when a sales order is received
3. when a sales contract is negotiated
4. when the cash is received
Which section of a corporation's balance sheet is different from a proprietorship's balance sheet?
1. owner's equity
2. current assets
3. property and equipment
4. current liabilities
Current assets are listed in the balance sheet -
1. by liquidity
2. by date acquired
3. alphabetically
4. no specific order
The accounts that normally have debit balances are -
1. assets, expenses, and draws
2. revenue, expenses, and draws
3. liabilities, capital, and draws
4. revenue, expenses, and capital
The posting process -
1. transfers amounts from the journals to the general ledger
2. transfers amounts from the general ledger to the journals
3. transfers amounts from the journals to the chart of accounts
4. none of the listed answers are correct
Which of the following statements about debits and credits is false ?
1. A debit always increases an account's balance.
2. A debit is recorded on the left side (column) of an account.
3. All accounts have a normal balance that is either a debit or a credit balance.
4. An account with a normal balance of a debit may occassionally have a credit balance.
The property owned by a business is also called -
1. assets
2. liabilities
3. capital
4. owner's equity

Basic Bookkeeping-10

Quiz