Basic Bookkeeping-15

The current ratio is current assets divided by current liabilities.
1. True
2. False
The balance sheet is also known as the statement of financial position.
1. True
2. False
The account Notes Payable would appear on the income statement.
1. True
2. False
The capital account is an owner's equity account.
1. True
2. False
Employers in many states are required to withhold state, city, or county income tax from employee earnings.
1. True
2. False
Purchases on account are recorded in the Cash Payments Journal.
1. True
2. False
A business document ordering a bank to pay cash from a bank account is a ?
1. Check
2. Deposit Slip
3. Bank Slip
4. None of the listed answers is correct
An account in a general ledger that summarizes all accounts in a subsidiary ledger is called ?
1. Control Account
2. Detail Account
3. Capital Account
4. Contra Account
Ownership in a corporation is represented by shares of stock.
1. True
2. False
A general ledger sorts and summarizes all information affecting ?
1. Income Statement Accounts
2. Balance Sheet Accounts
3. Owner's Equity Accounts
4. Balance Sheet & Income Statement Accounts
In a manual bookkeeping system, Journal entries are normally posted to the General Ledger ?
1. Monthly
2. Daily
3. Weekly
4. When directed by management
Keeping the reports and financial records of a business separate from the personal records of the owners is an example of what accounting rule ?
1. Going Concern
2. Business Entity
3. Historical Cost
4. Adequate Disclosure
Temporary accounts begin each new period with a ?
1. Debit Balance
2. Credit Balance
3. Zero Balance
4. None of the listed answers is correct
The main categories of an income statement are ?
1. Revenue and Expenses
2. Assets and Liabilties
3. Assets and Equity
4. Cash and Equity
A purchase invoice is a source document for entering sales transactions.
1. True
2. False
An income statement reports information about the elements of the basic accounting equation.
1. True
2. False
Only asset and equity accounts are used to prepare the income statement.
1. True
2. False
The right side of a balance sheet presents liabilities and assets.
The right side of a balance sheet presents liabilities and assets.

The right side of a balance sheet presents liabilities and assets.

The right side of a balance sheet presents liabilities and assets.
The right side of the basic accounting equation presents liabilities and assets.
1. True
2. False
What type of account is used to record when the owner of a sole proprietorship takes money out of a company ?
1. Drawing
2. Revenue
3. Expense
4. Asset
What is the effect on assets if owner's equity increases by 100,000 and liabilities decrease by 100,000 ?
1. Asset increase 100,000
2. Assets decrease 100,000
3. No effect
4. Need more information to determine
Which of the following is not an external user of financial information ?
1. Managers
2. IRS
3. Creditors
4. None of the listed answers is an external user
Which accounting principle or rule requires the recording of expenses as incurred in the same period as the related revenue.
1. Matching
2. Conservatism
3. Going Concern
4. Business Entity
A Sole Proprietorship has unlimited liabilities for the owner.
1. True
2. False
Which financial statement includes the accounts payable account ?
1. Income Statement
2. Balance Sheet
3. Owner's Equity Statement
4. Cash Flow Statement
Which amount is not part of the calculation of ending owner’s capital in the statement of owner’s equity ?
1. Owner Investments
2. Net Income or Loss
3. Withdrawals
4. Cash

Basic Bookkeeping-15

Quiz