Basic Bookkeeping-8

Quiz

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Which of the following accounts is a temporary account ?
1. Sales
2. Accounts Payable
3. Bad Debt Expense
4. Accounts Receivable
5. Prepaid Insurance
Granting very liberal customer payment terms will normally result in improving a business's cash flow.
1. True
2. False
Form W-4 summarizes an employee's earnings and deductions for a year.
1. False
2. True
Prepaid Expenses should appear in the Income Statement as a Current Asset.
1. True
2. False
The account Petty Cash is normally debited when replenishing the Petty Cash Fund.
1. False
2. True
Cash and other assets that can be converted into cash within a year are called current assets.
1. False
2. True
Which of the following is NOT included in a manufacturer's Inventory ?
1. Work-In-Process
2. Plant & Equipment
3. Raw Materials
4. Finished Goods
Current Assets less Current Liabilities is Working Capital.
1. True
2. False
Under the accrual method of accounting, the amount collected from customer's accounts receivable should be recorded as revenue.
1. True
2. False
Sales Tax collected but not yet paid should be reported as a Long Term Liability.
1. False
2. True
The amount of Depreciation calculated for Tax purposes can be different than the amount calculated for Financial Reporting purposes.
1. True
2. False
Land, Buildings, and Equipment are often referred to as Fixed Assets.
1. False
2. True
A business is allowed to hire anyone that they want to without filing any special forms.
1. True
2. False
Petty Cash is sometimes referred to as an Imprest Fund.
1. False
2. True
Unearned Revenues resulting from payments for future services is what type of account ?
1. Asset
2. Revenue
3. Liability
4. Expense
Which of the following increases Owner's Capital ?
1. Owner Investments (Cash or Property) in the business
2. Draws
3. Expenses
4. Revenue
5. None of the listed answers is correct
Owner's Draws reduce the amount of Net Income reported for a Sole Proprietorship.
1. True
2. False
A deposit slip is a document used to summarize cash and checks received that are deposited in the bank.
1. False
2. True
Losses resulting from customers not paying the amount they owe are ?
1. Sales Discounts
2. Bad Debts
3. Sales Returns & Allowances
4. Net Sales
Which of the following accounts are Contra Accounts ?
1. Accumulated Depreciation
2. Notes Payable
3. Cash
4. Allowance for Uncollectible Accounts
5. Bad Debts
6. Accounts Receivable
Entries made at the end of a period to accrue revenue and expenses are called ?
1. correcting entries
2. adjusting entries
3. All of the listed answers are correct
4. closing entries
Direct Deposits are ?
1. Sent to the business PO Box
2. Sent directly to the bank
3. All of the listed answers are correct
4. Sent to the business Street Address
The abbreviation NSF stands for No Such Funds.
1. True
2. False
Which of the following is considered to be good Cash Management practices ?
1. Preparing monthly Bank Reconciliations
2. Making daily Cash Deposits
3. Maintaing an accurate check book
4. Preparing Cash Forecasts
5. All of the listed answers are correct
Checks written that have not cleared the bank are called outstanding checks.
1. False
2. True