Basic Bookkeeping-4

Which of the following statements is true ?
1. Both of the statements are true.
2. Neither of the statements is true.
3. Revenue and expense accounts are nominal accounts.
4. Revenue and expense accounts are closed to the income summary account.
An owner's drawing account is a type of expense account.
1. True
2. False
A drawing account does not affect the net income for a period.
1. True
2. False
Which accounting record provides a chronological listing of transactions ?
1. Journal
2. General Ledger
3. Subsidiary Ledger
4. All of the records listed.
Which of the following statements is false.
1. A trial balance proves that all transactions are recorded correctly.
2. A trial balance ensures that total debits equal total credits.
3. A trial balance is often used as an aid for preparing financial statements.
4. None of the statements are false - they're all true.
Which of the following assets is not depreciated ?
1. Land
2. Delivery Vehicles
3. Office Equipment
4. All of the listed assets are depreciated.
The true amount of cash in the bank is determined by -
1. Add deposits in transit to and subtract outstanding checks from the bank balance.
2. Subtracting outstanding checks from the bank statement balance.
3. Adding deposits in transit to the bank statement balance.
4. The balance on the bank statement requires no adjusting.
A sale made on account to a customer is recorded by debiting what account ?
1. Accounts Receivable
2. Cash
3. Accounts Payable
4. Owner's Capital
Which of the following account(s) also normally have a sub-ledger.
1. All the listed accounts normally have a sub-ledger.
2. Accounts Payable
3. Accounts Receivable
4. Equipment
What is the key(s) to a successful business.
1. All of the answers are keys to a successful business.
2. Consistently earning profits.
3. Good cash flow.
4. Good management.
A journal(s) used to record cash transactions is -
1. Both of the listed choices
2. Cash Receipts
3. Cash Disbursements
4. Neither of the listed choices
A major source of cash for a business is -
1. Sales
2. Expenses
3. Owner Draws
4. All of the listed answers
A ________ ________ journal is a special journal normally used to record all cash received.
1. Cash Receipts
2. Cash Disbursements
3. All Cash
4. Cash Recap
Sales Returns and Allowances are treated as an offset (reduction) to revenue and are not considered an expense.
1. True
2. False
The Purchase Returns and Allowances account normally has a -
1. Credit Balance
2. Debit Balance
The Purchases Discount account normally has a -
1. Credit Balance
2. Debit Balance
All businesses include the same columns and use the same special journals for recording their business transactions.
1. True
2. False
The method of recording bad debt expense that conforms to the matching principle is the -
1. Allowance Method
2. Direct Write-Off Method
3. Bad Debt Contingency Provision Method
4. None of the listed answers is correct
The inventory system that maintains a day-to-day record of the inventory on hand is called a -
1. Perpetual Inventory System
2. Periodic Inventory System
3. Retail Inventory System
4. Updated Inventory System
A worksheet normally called a __________ ________ is used to anticipate and budget for cash inflows and outflows.
1. Cash Projection
2. Cash In-Out
3. Cash Worksheet
4. Cash Needs

Basic Bookkeeping-4

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