Basic Bookkeeping-11

Which of the following is not a Special Journal ?
1. Accounting Journal
2. Cash Receipts Journal
3. Sales Journal
4. Purchases Journal
The accounting cycle begins by -
1. Analyzing the source document
2. Recording the transaction in the appropriate Journal
3. Preparing a Trial Balance
4. Posting the transaction to the General Ledger
If Assets = 100,000 and Liabilities = 50,000 what is the value of Owner's Equity (Capital) ?
1. 50,000
2. 150,000
3. 25,000
4. 100,000
If Owner's Equity = 150,000 and Assets = 175,000 what is the value of Liabilities ?
1. 25,000
2. 325,000
3. 175,000
4. 150,000
A business that is owned by one individual is called -
1. Sole Proprietorship
2. Limited Liability Company (LLC)
3. Partnership
4. Corporation
A business that is owned by many owners called shareholders is called -
1. Corporation
2. Sole Proprietorship
3. Partnership
4. Limited Liability Company (LLC)
The Income Statement is also referred to as -
1. All of the listed answers are correct
2. An Operating Statement
3. A Profit and Loss Statement
4. A Formal Financial Statement
Which of the following statements is correct ?
1. An expense account's balance is increased by a debit and decreased by a credit
2. A revenue account's balance is increased by a debit and decreased by a credit
3. A liabilty account's balance is increased by a debit and decreased by a credit
4. An asset account's balance is increased by a credit and decreased by a debit
The Special Journal that is normally used to record all cash receipts is -
1. None of the listed answers is correct
2. Sales Journal
3. Cash Payments Journal
4. General Journal
Why use Special Journals ?
1. All of the listed answers are correct
2. Saves time with summary and less frequent postings to the General Ledger
3. Groups and records transactions of a like nature
4. Allows a business to have different individuals responsible for different tasks
The Net Worth of a business is calculated with which of the following formulas ?
1. Net Worth = Assets - Liabilities
2. Net Worth = Assets + Liabilities
3. Net Worth = Liabilities - Assets
4. None of the listed answers is correct
A Control Account is normally used in conjunction with what account ?
1. Accounts Receivable
2. Cash
3. Sales
4. None of the listed answers is correct
An example of a temporary or what is also referred to as a nominal account is -
1. Sales
2. Accounts Receivable
3. Cash
4. Inventory
Which of the following statements is correct ?
1. Debits increase the balance of an Asset Account
2. Debits decrease the balance of an asset Account
3. Credits increase the balance of an Asset Account
4. Credits decrease the balance of a Liability Account
The formula used to calculate the Ending Balance of an account is -
1. Ending Balance = Beginning Balance + Increases - Decreases
2. Ending Balance = Beginning Balance - Increases - Decreases
3. Ending Balance = Increases + Decreases - Beginning Balance
4. Ending Balance = Beginning Balance + Increases + Decreases
The Special Journal that is used to record and summarize salaries and wages paid to employess is -
1. None of the listed answers is correct
2. Purchases Journal
3. General Journal
4. Cash Receipts Journal
The bookkeeping system that insures that the dollar amount of property always equals the dollar amount of property rights is called -
1. Double Entry
2. Single Entry
3. Multiple Entry
4. None of the listed answers is correct
The bookkeeping system that insures that the dollar amount of property always equals the dollar amount of property rights is called -
1. All of the listed answers are correct
2. Assets = Liabilities + Owner's Equity
3. Assets - Liabilities = Owner's Equity
4. None of the listed answers is correct
If Liabilities = 25,000 and Owner's Equity = 100,000 what is the value of Assets ?
1. 125,000
2. 100,000
3. 75,000
4. 25,000
The method of recording revenues when earned and not when cash is received is called -
1. Accrual Method
2. Earnings Method
3. Cash Method
4. None of the listed answers is correct
Which of the following Financial Statements tells us a business's financial position as of a specific date ?
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. None of the listed answers is correct
Which of the following accounts is closed at year end ?
1. Sales
2. Cash
3. Accounts Payable
4. Accounts Receivable
The formula used to calculate Profit or Loss is -
1. Net Profit = Sales - Expenses
2. Net Profit = Assets - Liabilities
3. Net Profit = Equity - Liabilities
4. Net Profit = Equity

Basic Bookkeeping-11

Quiz