Basic Bookkeeping-10

Property owned by a business such as cash, accounts recivable, and inventory -
1. Assets
2. Liabilities
3. Owner's Equity
4. Revenue
Using the accrual method, a business records income when -
1. Services or goods are sold
2. Cash is received
3. Directed to my management
4. None of the listed answers is correct
Assets are usually reported on a Balance Sheet at -
1. Cost
2. Fair Market Value
3. Estimated Selling Price
4. Net Realizable Value
Amounts owed to others is reported on the Balance Sheet and called -
1. Liabilities
2. Assets
3. Common Stock
4. Equity
The term used for an entry made on the left side of an account -
1. Debit
2. Credit
3. Increase
4. Decrease
A listing of the accounts used by a business to record its financial transactions is -
1. Chart Of Accounts
2. Trial Balance
3. General Ledger
4. Account Listing
The journal used to record depreciation is -
1. General Journal
2. Purchase Journal
3. Cash Disbursement Journal
4. None of the listed answers is correct
The inventory system that updates the inventory for each purchase and sale is -
1. Perpetual System
2. Periodic System
3. LIFO System
4. FIFO System
Inventory method that matches the most recent costs with sales is -
1. LIFO
2. FIFO
3. Average
4. None of the listed answers is correct
Inventory is reported on the Balance Sheet as -
1. Current Asset
2. Fixed Asset
3. Investment
4. None of the listed answers is correct
The accounting rule used to justify the use of the Lower of Cost or Market Rule -
1. Conservatism
2. Going Concern
3. Revenue Realization
4. Accrual Method
Which accounting rule states that expenses should be related to revenue earned ?
1. Matching
2. Cost
3. Going Concern
4. Materiality
Which of the following is not a Current Asset ?
1. Land
2. Cash
3. Accounts Receivable
4. Inventory
Which of the following accounts requires a debit to increase its balance ?
1. Asset
2. Liability
3. Revenue
4. Owner's Equity
Which of the following accounts requires a credit to increase its balance ?
1. Revenue
2. Asset
3. Expense
4. None of the listed answers is correct
The main purpose of a bank reconciliation is to -
1. Compare the business's cash records with the bank's cash records
2. Check the accuracy of the business's cash records
3. Check the accuracy of the bank's cash records
4. All of the listed answers are correct
Which of the following accounts normally has a credit balance ?
1. Sales
2. Telephone Expense
3. Petty Cash
4. Office Salaries
Many of the estimates in a Cash Forecast depend on the -
1. Sales Estimate
2. Purchases Estimate
3. Payroll Estimate
4. Equipment Estimate
The form used to determine how much income tax to withhold from wages is -
1. W-4
2. W-2
3. I-4
4. I-2
The Accounting Equation may be stated as -
1. All of the listed answers are correct
2. Assets = Liabilities + Owner's Equity
3. Property = Property Rights
4. Assets - Liabilities = Owner's Equity

Basic Bookkeeping-10

Quiz