Basic Bookkeeping-20

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

Basic Bookkeeping-20

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