Basic Bookkeeping-14

Quiz

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Which of the following account types, which would be increased by a debit ?
1. Assets and equity
2. Equity and revenues
3. Draws and Expenses
4. Assets and Expenses
In what order are current assets listed on a balance sheet ?
1. Liquidity
2. Dollar Amount-highest to lowest
3. Purchase Date
4. None of the listed answers is correct
Current liabilities are amountss expected to be collected within the next year.
1. True
2. False
Assets are reported on the balance sheet at fair market value.
1. False
2. True
Which of the following describes the effect on the balance sheet when cash is received from the collection of an account receivable?
1. Total Assets increase
2. Current Assets increase
3. Current Assets do not change
4. Accounts Receivable increase
Transactions are recorded in the General Ledger prior to recording the entry in the Journals.
1. False
2. True
The continuity assumption states that a business will continue to operate into the foreseeable future.
1. False
2. True
An asset account normally has a debit balance and is increased by crediting the account.
1. True
2. False
Assets are reported on the balance sheet in alphabetical order.
1. False
2. True
The current assets section of a balance sheet includes both inventory and equipment.
1. False
2. True
Shareholders are the owners of a corporation and have little or no risk to their personal assets.
1. True
2. False
The primary objective of financial reporting is to provide useful information to decision makers.
1. False
2. True
Bookkeeping is the clerical part of the accounting process.
1. False
2. True
Which of the accounts listed below normally have a debit balance ?
1. Prepaid insurance expense
2. Accounts receivable
3. Equipment
4. Unearned revenue
5. Accounts payable
Which of the following is included within current assets section of a classified balance sheet ?
1. Vehicles
2. Cash
3. . Land.
4. Patents
5. Accounts Receivable
6. Inventory
A transaction is an exchange of assets or services for assets, services, or promises to pay between a business and one or more external parties to that business.
1. False
2. True
Profit is determined by subtracting sales from the total expenses of the business.
1. False
2. True
Purchasing equipment for cash results in an increase in total assets.
1. False
2. True
The income statement shows the assets and liabilities of a business?
1. True
2. False
A trial balance is a list of all accounts with their balances that provides a check on the equality of the debits and credits .
1. True
2. False
A trial balance is a listing of account balances that are found in the general ledger.
1. True
2. False
The normal balance for an asset account is a credit and the normal balance for a liability account is a debit.
1. True
2. False
The accounting equation does not always have to be in balance after the recording of each transaction.
1. True
2. False
The current assets section of a balance sheet includes both inventory and intangible assets.
1. True
2. False
The accounting cycle begins with ?
1. Posting to ledger accounts
2. Preparing adjusting entries
3. Analyzing a business transaction
4. Preparing a trial balance