Basic Bookkeeping-23

Recording revenue at the time the goods or services are sold is an application of -
1. the revenue realization concept
2. the double entry concept
3. the matching concept
4. the business entity concept
The total amount due from all customers is summarized in the general ledger in an account named -
1. accounts receivable
2. acounts payable
3. customer accounts
4. sales
A debit memo initiated by a supplier -
1. initiates a credit memo from the seller
2. initiates a debit memo from the seller
3. initiates no action by the seller
The total pay for a period before deductions are taken is called -
1. all of the listed answers are correct
2. gross pay
3. total earnings
4. gross earnings
All employees report their withholding allowances using form -
1. W-4
2. W-2
3. 1040WA
4. 1120WA
Until paid, payroll taxes owed are clasified as -
1. a liability
2. an asset
3. capital
4. an expense
Social Security and Medicare taxes, not considering any maximums, are calculated by -
1. multiplying gross earnings by the tax rates
2. multiplying net earnings by the tax rates
3. using a withholding income tax table
4. none of the listed answers is correct
In calculating depreciation expense which factor(s) are considered ?
1. All of the listed factors are considered
2. Original Cost
3. Useful Life
4. Salvage Value
The portion of an insurance policy that has expired or been used up during a period is classified as -
1. an expense
2. revenue
3. a prepaid asset
4. a liability
If total revenues exceed ________, a net profit is reported on an income statement.
1. total expenses
2. gross profit
3. sales
4. cost of goods sold
A subsidiary ledger used in conjunction with the sales journal is the -
1. accounts receivable subsidiary ledger
2. accounts payable subsidiary ledger
3. cash receipts subsidiary ledger
4. cash payments subsidiary ledger
The drawing account is-
1. neither an expense or revenue account
2. an expense account
3. a revenue account
4. none of the listed answers are correct
Which of the following accounts should be debited when a customer returns a defective product sold ?
1. sales returns and allowances
2. sales
3. purchases
4. purchase returns and allowances
Which of the following expense(s) might require an accrual entry at the end of an accounting period ?
1. all of the listed answers are correct
2. salaries and wages
3. utilities expense
4. income taxes
A business event that affects assets, liabilities, capital, revenue, or expenses is called -
1. a transaction
2. a contract
3. an agreement
4. a memorandum
A sales invoice for a seller is recorded as a ________ by the customer.
1. purchase invoice
2. sales invoice
3. debit memo
4. credit memo
The Income Summary account is unique because it does not have a normal balance side.
1. True
2. False
The balances of the owner's drawing account(s) are closed by transferring the balances to the Income Summary account.
1. True
2. False
Proof of an ownership interest in a corporation is normally provided by -
1. a stock certificate
2. the articles of incorporation
3. a cancelled check
4. attending stockholder's meetings

Basic Bookkeeping-23

Quiz