Basic Bookkeeping-14

Income and Expense Accounts are always associated with a Period Of Time.
1. True
2. False
In Cost Accounting which of the following is NOT a Period Expense ?
1. Sales Commissions
2. Interest Expense
3. Advertising
4. Shop Foreman Wages
What form is required to verify that a job applicant can be legally hired ?
1. W-2
2. I-9
3. W-4
4. 941
Salaried Employees are normally paid based on the number of hours that they work.
1. True
2. False
Accounting is sometimes referred to as the Language Of Business.
1. True
2. False
Which of the following would appear in a business's Balance Sheet ?
1. Vehicle owned by the owner
2. Money in the Owner's Personal Checking Account
3. Building owned and used by the business
4. Money in the Business Checking Account
In accrual accounting, the amount of Revenue is equal to the amount of Cash Receipts.
1. True
2. False
Which of the following Financial Statements discloses the total amount of Fixed Assets ?
1. Income Statement
2. Cash Flow Statement
3. Balance Sheet
4. Statement Of Owner's Capital
The term "Bottom Line" refers to which Financial Statement ?
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Owner's Capital
What Account links the Income Statement to the Balance Sheet ?
1. Cash Account
2. Accounts Receivable Account
3. Fixed Asset Account
4. Owner's Capital Account
The Book Value of Fixed Assets is the same as their Market Value.
1. True
2. False
A business's Cash Flow will improve with a longer Cash Conversion Cycle.
1. True
2. False
Incurring debt (borrowing) is always bad.
1. True
2. False
Assets are properties used in the operation or investment activities of a business.
1. True
2. False
Liabilities are creditors claims to the property (assets) of a business.
1. True
2. False
A Credit is an entry that increases an asset, expense, or draw account.
1. True
2. False
Which of the following is NOT information provided by an Accounts Receivable Subsidiary Ledger ?
1. Amounts Owed by Each Customer
2. Amounts Invoiced to Each Customer
3. Amounts Paid by Each Customer
4. Amounts Owed by Each Supplier
In certain cases, an account that normally has a debit balance may end up having a credit balance.
1. True
2. False
Which of the following accounts is NOT an account that normally has a credit balance.
1. Revenue
2. Owner's Capital
3. Expense
4. Liability
A Balance Sheet is a formal financial statement that summarizes revenues and expenses for a period.
1. True
2. False
The Chart Of Accounts is an organized listing of all the individual accounts used to record business transactions.
1. True
2. False
Posting is the process of transferring balances from Journals to the General Ledger.
1. True
2. False
A Control Account in the General Ledger is supported by details contained in a Subsidiary Ledger.
1. True
2. False

Basic Bookkeeping-14

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