Basic Bookkeeping-22

When a transaction affects only one side of the accounting equation -
1. one account increases and the other decreases.
2. both accounts increase.
3. both accounts decrease.
4. no affect on the accounts.
The recording of a debit and credit for all transactions is referred to as -
1. double entry
2. single entry
3. dual entry
4. equal entry
Verifying that cash agrees with the accounting records is a accomplished by -
1. preparing a bank reconciliation
2. preparing a cash budget
3. preparing a cash projection
4. calling the bank
A document ordering a bank to pay cash from a bank account is called -
1. a check
2. a deposit slip
3. a bank transmittal
4. a bank loan
A check that is stamped on the back "For Deposit Only" can be cashed by
1. no one - it must be deposited
2. anyone who has posession of the check
3. the maker of the check
4. the payee of the check
When cash or checks are taken to the bank -
1. a deposit slip is prepared
2. a check is written
3. a notation is made
4. none of the listed answers are correct
Using the same methods and procedures for preparing financial statements in all periods is an example of the -
1. consistency rule
2. conservatism rule
3. going concern rule
4. accounting cycle rule
Preparing adjusting entries for revenues and expenses is an example of applying -
1. the matching concept
2. the double entry concept
3. the entity concept
4. the conservatism concept
Providing footnotes and additional information about a business's financial statements is based on what is called
1. adequate disclosure
2. objective evidence
3. management summary
4. owner's reporting
An income statement reports -
1. progress over a specific period of time
2. progress as of a specific date
3. condition as of a specific date
4. condition over a specific period of time
The information used to prepare the formal financial statements is normally obtained from -
1. adjusted trial balance
2. general journal
3. cash summary
4. budget forecast
Accounts used to summarize information prior to transferring the balances to capital accounts are called -
1. nominal accounts
2. permanent accounts
3. summary accounts
4. transfer accounts
After closing entries are posted, the only accounts that have a balance are -
1. permanent accounts
2. asset accounts
3. liability accounts
4. equity accounts
What accounting concept is applied when expenses are reported in the same period that they help produce revenue ?
1. Matching Concept
2. Conservatism Concept
3. Going Concern Concept
4. Period Concept
A journal use to record one specific type of transaction is called -
1. a special journal
2. a subsidiary journal
3. a daily journal
4. a ledger journal
A document describing the goods or services sold, the quantity, and price is -
1. a sales invoice
2. a purchase invoice
3. a bill of lading
4. a sales memo
An agreement between a buyer and seller about payment for the product or service is called -
1. the terms of sale
2. a purchase order
3. a sales invoice
4. a futures contract
A business that buys and resells merchandise to only businesses that sell to the public is called a -
1. wholesaler
2. retailer
3. mass merchant
4. manufacturer
The amount of sales tax collected on behalf of a govermental unit is -
1. a liability
2. an asset
3. revenue
4. an expense
The source document used to record a purchase on account transaction is -
1. purchase invoice
2. sales invoice
3. bill of lading
4. check

Basic Bookkeeping-22

Quiz