Basic Bookkeeping-21

Gross Pay is the amount of money actually received by the employee after all deductions are subtracted.
1. True
2. False
Most companies use a time card to keep track of an hourly wage employee's hours.
1. True
2. False
A salary is a fixed amount of money paid to an employee each pay period.
1. True
2. False
A sale on account occurs when a customer buys an item with a promise to pay for it later.
1. True
2. False
A sales tax is imposed by most states and/or other municipalities on the retail sales price of goods and services sold.
1. True
2. False
The accounts payable subsidiary ledger contains accounts for all charge customers.
1. True
2. False
The date an invoice must be paid is called the discount date.
1. True
2. False
When the supplier pays the shipping cost to the buyer's destination or location, the term is called FOB destination.
1. True
2. False
Ownership (title) of goods passes to the buyer when the public carrier accepts the goods from the seller when shipped with the terms FOB Shipping Point.
1. True
2. False
The form that lists the items included in a shipment is called a packing slip.
1. True
2. False
Which of the following statements is false regarding the accrual basis of accounting ?
1. Revenue is recognized when cash is received.
2. The accrual basis is related to the matching concept.
3. The accrual basis is the recommended basis for accounting.
4. None of the listed statements are false.
A sale of $500 is made with terms of 10/10, n30. If the discount is taken what is the amount of the check written ?
1. $450
2. $495
3. $465
4. $475
Sales revenue less cost of goods sold is called -
1. gross profit
2. net income
3. net sales
4. gross sales
The normal balance side of an account is the -
1. side that increases the account's balance
2. side that decreases the account's balance
3. left side of the account
4. right side of the account
Which of the following accounts does not normally have a debit balance ?
1. Purchase Returns & Allowances
2. Equipment
3. Accounts Receivable
4. Depreciation Expense
Which of the following is a contra-account ?
1. All of the listed accounts are contra-accounts
2. Accumulated Depreciation
3. Allowance for Bad Debts
4. Sales Returns & Allowances
Which of the following statements is correct ?
1. A debit may increase or decrease an account's balance.
2. A debit always increases an account's balance.
3. A debit always decreases an account's balance.
4. None of the listed statements are correct.
A debit to an asset account means -
1. all of the answers are possibilities.
2. a credit was made to a revenue account.
3. a credit was made to another asset account.
4. a credit was made to a liability account.
Which of the following account's balance is not closed or transferred to owner's capital ?
1. Cash
2. Sales
3. Wages & Salaries
4. Advertising Expense
Al method of depicting an account used in teaching bookkeeping and accounting is called a T-Account.
1. True
2. False

Basic Bookkeeping-21

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