Basic Bookkeeping -19

Quiz

For every transaction, debits equal credits.
1. True
2. False
Journal entries are posted to the Trial Balance.
1. True
2. False
A balance sheet presents the profit or loss for a period of time.
1. True
2. False
An income statement is a picture of the financial condition of a business at a point in time.
1. True
2. False
An adjusted trial balance is used as an aid for preparing financial statements.
1. True
2. False
An owner's equity statement begins with with the owner's equity balance at the end of the period.
1. True
2. False
Closing entries result in zero balances for the balance sheet accounts.
1. True
2. False
Balance sheet accounts normally have balances that carry over to future periods.
1. True
2. False
Liabilities - Assets = Owner's Equity.
1. True
2. False
Revenues + Expenses= Net Income
1. True
2. False
Which of the following is not included in a balance sheet ?
1. Gross Profit
2. Sales
3. Assets
4. Liabilities
5. Revenue
6. Expenses
7. Owner's Equity
8. Cost Of Goods Sold
Which of the following is the most important to the daily operations of a business ?
1. Cash
2. Profit
3. Equipment
4. Customer Accounts
The term bottom line refers to ?
1. Net Profit
2. Gross Profit
3. Gross Margin
4. Owner's Equity
A prepaid expense is ?
1. an Expense
2. an Asset
3. a Liability
4. Owner's Equity
Which of the following expenses do not affect the cash balance ?
1. Depreciation
2. Advertising Expense
3. Rent Expense
4. Amortization Expense
Which of the following is the basic accounting equation ?
1. Net Worth = Assets + Profits
2. Gross Profit = Sales - Inventory
3. Assets = Liabilities + Owner's Equity
4. Owner's Equity = Assets - Liabilities
A source document for each transaction is identified in the ledger accounts.
1. True
2. False
The use of special journals eliminates the need for control accounts.
1. True
2. False
A correcting entry is usually recorded in the general journal.
1. True
2. False
A bank statement will list the outstanding checks.
1. True
2. False