Basic Bookkeeping-13

The Income Statement is prepared first because the Net Income amount is a line item on the Balance Sheet.
1. True
2. False
The cost of a long-term asset, such as equipment, is transferred to expense as it is used during its life.
1. True
2. False
The financial statement or statements that pertain to a stated period of time ?
1. Balance Sheet
2. Income Statement
3. Owner's Equity Statement
4. Cash Flow Statement
What account does not appear in the income statement ?
1. Accumulated depreciation
2. Depreciation expense
3. Sales revenue
4. Interest expense
The capital account is an owner's equity account.
1. True
2. False
When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.
1. True
2. False
The right side of a balance sheet presents liabilities and assets.
1. True
2. False
A balance sheet is a formal representation of the basic accounting equation.
1. True
2. False
The inventory of supplies at the end of a fiscal period should be determined by actually counting the amount of supplies on hand.
1. True
2. False
A sales invoice is the source document for journalizing a sales on account transaction.
1. True
2. False
When a business earns revenue, Sales is ?
1. Increased by a debit
2. Increased by a credit
3. Decreased by a debit
4. Decreased by a credit
Debit balance accounts should always equal Credit balance accounts.
1. True
2. False
A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is called ?
1. An accounts payable subsidiary ledger
2. An accounts receivable subsidiary ledger
3. The general ledger
4. The sales journal ledger
Financial statements are the major means of communicating accounting information to interested parties.
1. True
2. False
The normal balance of any account is the ?
1. Increase Side
2. Decrease Side
3. Left Side
4. Right Side
The cash basis of accounting is not in accordance with generally accepted accounting principles.
1. True
2. False
The more inventory a company has on hand, the greater the company's profit.
1. True
2. False
According to the accrual method of accounting revenue is recognized ?
1. When service has been completed or goods delivered
2. When a sales order is issued
3. When cash is received
4. At the end of the accounting month
Resources thar a company owns that are expected to be used to help generate revenue in the future are ?
1. Assets
2. Liabilities
3. Equity
4. Revenues
5. Expenses
Asset minus liabilities is equal to ?
1. Equity
2. Revenue
3. Liabilities
4. Expenses
5. Net Income
A balance sheet reports ?
1. Assets, liabilities, and equity as of a point in time
2. Revenue, expenses, and net income for a period of time
3. Changes in equity for a period of time
4. Changes in cash for a period of time
All the following are basic financial statement except ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Owner's Equity Statement
5. Asset Changes Statement
Owner investment are shown in which financial statement ?
1. Owner's Equity Statement
2. Cash Flow Statement
3. Income Statement
4. Balance Sheet
Which financial statement shows total changes in cash over a period of time ?
1. Cash Flow Statement
2. Balance Sheet
3. Income Statement
4. Owner's Equity Statement
5. Statement of Net Changes
What are liabilities if assets are 400,000 and equity is 200,000 ?
1. 600,000
2. 200,000
3. None of the listed answers is correct
4. -200,000

Basic Bookkeeping-13

Quiz