Basic Bookkeeping-12

Quiz

What does a “Credit” do?
1. Increase assets and revenues
2. Increase revenues and liabilities
3. Decrease expenses and liabilities
4. Decrease revenues and assets
What financial statement identifies the financial position of a company ?
1. Balance Sheet
2. Income Statement
3. Owner's Equity Statement
4. Cash Flow Statement
Net Income results when ?
1. Revenues exceed Expenses
2. Expenses exceed Revenues
3. Assets exceed Liabilities
4. Owner's Equity exceeds Liabilities
A business should record their assets at ?
1. Cost
2. Fair Market Value
3. None of the listed answers
4. Cost or Market whichever is Greater
What type of account is included in an Income Statement ?
1. Revenue
2. Asset
3. Owner's Equity
4. Liability
Which of the following is an example of an Intangible Asset ?
1. Land
2. Patent
3. Inventory
4. Building
Which of the following is a correct representation of the Accounting Equation ?
1. Assets=Liabilities + Owner's Equity
2. Owner's Equity=Assets-Liabilities
3. Liabilities=Assets-Owner's Equity
4. All of the answers are correct
The left side of an Account is the ?
1. Debit Side
2. Normal Balance Side
3. Credit Side
4. None of the answers are correct
Which of the following are the internal users of accounting information in a business ?
1. Owners
2. Managers
3. Government Agencies
4. Creditors
What does a “Credit” do ?
1. Increases assets and revenues
2. Increases revenues and liabilities
3. Decreases expenses and liabilities
4. Decreases revenues and assets
Which of the following statements identifies the profitability of a company ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Owner's Equity Statement
5. None of the listed answers is correct
Which of the following accounts normally have a Debit Balance ?
1. Assets
2. Expenses
3. Draws
4. Revenue
5. Liabilities
6. Owner's Equity
Which of the following is a revenue account ?
1. Land
2. Salary
3. Sales
4. Purchases
Which of the following is the correct Expanded Accounting Equation ?
1. Assets = Liabilities + Owner’s Equity – Revenues – Expenses + Owner’s Drawings
2. Assets = Liabilities + Owner’s Equity – Revenues + Expenses – Owner’s Drawings
3. Assets = Liabilities + Owner’s Equity + Revenues – Expenses – Owner’s Drawings
4. Assets = Liabilities + Owner’s Equity + Revenues – Expenses + Owner’s Drawings
Net Sales - Cost Of Goods Sold equals ?
1. Gross Profit
2. Net Income
3. Operating Income
4. None of the listed answers is correct
Which of the following is a depreciable asset ?
1. Land
2. Buildings
3. Patents
4. Accounts Receivable
Unearned Revenue is a ?
1. Revenue Account
2. Liability Account
3. Asset Account
4. Expense Account
Which of the following is the most liquid asset of a company ?
1. Cash
2. Prepaid Expense
3. Accounts Receivable
4. Inventory
Normally, which of these accounts have a credit balance ?
1. Income, Capital, Liability
2. Income, Capital, Asset
3. Liability, Capital, Expense
4. Asset, Drawing, Expense
Which of the following Financial Statements is prepared first ?
1. Income Statement
2. Balance Sheet
3. Owner's Capital Statement
4. Cash Flow Statement
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as ?
1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments
The process of transferring all transactions from the Journal to Ledger is called ?
1. Posting
2. Transferring
3. Processing
4. None of the listed answers is correct
The Balance sheet is a statement of ?
1. Assets
2. Liabilities
3. Capital
4. All of the above
Bookkeeping mainly consists of what ?
1. Analyzing
2. Preparing financial statements
3. Recording financial information
4. Auditing
What is the first step of the accounting cycle ?
1. Identifying an economic event or transaction
2. Recording an entry in a Journal
3. Posting entries to the Ledger accounts
4. None of the listed answers is correct