Basic Bookkeeping-20

Long term assets that have no physical existence but are rights that have value are known as ?
1. Fixed Assets
2. Current Assets
3. Intangible Assets
4. Property & Equipment Assets
Assets that can be converted into cash within a short period (i.e. 1 year or less) are own as ?
1. Current Assets
2. Fixed assets
3. Intangible assets
4. Investments
Amounts owed which are to be repaid within a short period (year or less) are known as
?
1. Current Liabilities
2. Contingent liabilities
3. Owner's Equity
4. All of the answers
The following is (are) the type(s) of Special Journal(s).
1. All of the listed answers are correct
2. Sales Journal
3. Cash Receipts Journal
4. Cash Payments Journal
5. Purchase Journal
The process of transferring balances from the Journals to the Ledger is called ?
1. Posting
2. Bookkeeping
3. Accounting
4. Transferring
Which of the following is a statement showing the financial condition of a business at a point in time ?
1. Balance Sheet
2. Income Statement
3. Owner's Equity Statemnt
4. Cash Statement
A Balance sheet contains ?
1. Assets
2. Liabilities
3. Owner's Equity
4. Revenue
5. Expenses
In accounting, an economic event is referred to as a ?
1. Transaction
2. Exchange
3. Cash Payment
4. Cash Receiot
Bookkeeping mainly consists of which part of the accounting process ?
1. Recording Transactions
2. Preparing Financial Statements
3. Auditing the Financial Reports
4. Preparing Budgets
What is equity?
1. Owner's Claims to Cash
2. Owner's Claims to Assets
3. Owner's Claims to Liabilities
4. All of the listed answers are correct
A Net loss occurs when ?
1. Expenses are greater than revenues
2. Expenses are equal to revenues
3. Expenses are less than revenues
4. Cash is less than revenues
Amounts that a business must pay to suppliers in the future are known as ?
1. Accounts Payable
2. Accounts Receivable
3. Expenses
4. Revenues
5. Capital
The Income Statement is normally the first financial statement prepared
.
1. True
2. False
Debits are used to record ?
1. Increases in Assets
2. Increases in Liabilities
3. Increases in Capital
4. Increases in Revenues
When cash is paid to the owner for personal use, assets decrease and owner's equity decreases.
1. True
2. False
The right side of a balance sheet lists liabilities and assets.
1. True
2. False
Only revenue accounts and expense accounts are used in preparing the income statement.
1. True
2. False
An Income Statement is a formal representation of the accounting equation.
1. True
2. False
The amount on each line of a purchases journal is posted as a debit to the named vendor account in the accounts payable subsidiary ledger.
1. True
2. False
Keeping the reports and financial records of a business separate from the personal records of the owners is an application of the accounting business entity concept.
1. True
2. False
The sections of an income statement are the heading, assets, liabilities, and owner's equity.
1. True
2. False
A sale for which cash will be received at a later date is called a cash sale.
1. True
2. False
Ownership in a corporation is represented by shares of stock.
1. True
2. False
Estimating uncollectible accounts expense at the end of a period is an application of the matching accounting concept.
1. True
2. False
A single step income statement computes gross profit.
1. True
2. False

Basic Bookkeeping-20

Quiz