Basic Bookkeeping-5

The Heading of a Balance Sheet will specify -
1. Point In Time
2. Period of Time
3. No Time Frame
4. None of the listed answers is correct
Which of the following will appear in a Balance Sheet ?
1. Assets
2. Revenue
3. Expenses
4. None of the listed answers
Which of the following is a Liability Account ?
1. Accounts Payable
2. Accounts Receivable
3. Notes Receivable
4. Owner's Equity (Capital)
Which of the following is not a Current Asset ?
1. Equipment
2. Merchandise Inventory
3. Cash
4. Accounts Receivable
Tool used to prove that debit balance accounts equal credit balance accounts is -
1. Trial Balance
2. Chart Of Accounts
3. T-Accounts
4. None of the listed answers is correct
A financial transaction is first recorded in a record called -
1. Journal
2. General Ledger
3. Financial Statements
4. Sub-Ledger
Summarized balances of all the accounts are contained in a record called -
1. General Ledger
2. Journal
3. Chart Of Accounts
4. None of the listed answers is correct
The subcategory Gross Profit will appear in what type of Income Statement ?
1. Multiple Step
2. Single Step
3. Stepped Balances
4. All of the listed answers are correct
Net Sales less the Cost Of Goods Sold is called -
1. Gross Profit
2. Net Income
3. Net Profit
4. Net Revenue
Accounting entries made using the double entry system affect a minimum of -
1. Two Accounts
2. One Account
3. There is No Minimum
4. As Many As It Takes
The process of recording and classifying business transactions is called -
1. Bookkeeping
2. Accounting
3. Transaction Analysis
4. Transaction Reporting
The reason a business needs to maintain good records is -
1. All of the listed answers are correct
2. Prepare & file required Governmental Reports
3. Provide information to Creditors and Owners
4. Aid in operating an efficient and effective business
Owner's Withdrawals from a sole proprietorship are classified as -
1. Draws
2. Revenue
3. Expenses
4. Assets
The term double entry means -
1. Each transaction is recorded in at least two accounts
2. Each transaction is recorded twice
3. Only two entries are recorded for a transaction
4. Only one entry is recorded for a transaction
An example of a Revenue Account is -
1. Sales
2. Cash
3. Accounts Receivable
4. Owner's Draws
An example of a Current Asset is -
1. Cash
2. Owner's Equity (Capital)
3. Long Term Investments
4. Property & Equipment
An increase in assets resulting from the sale of goods or services is called -
1. Revenue
2. Expense
3. Cost Of Goods Sold
4. Profit
Which of the following is true about a General Ledger Account ?
1. All of the listed answers are correct
2. Has a Debit & Credit Side
3. Has a Normal Balance that is either a Debit or Credit Balance
4. Is Classified as an asset, liability, capital, revenue, expense, or draw account
A debit to an account -
1. Increases or Decreases an account's balance depending on the type of account
2. Always decreases an account's balance
3. Always increases an account's balance
4. None of the listed answers is correct
Which of the following statements is correct ?
1. Credits increase the balance of a revenue account
2. Credits decrease the balance of a revenue account
3. Credits decrease the balance of a liability account
4. Credits increase the balance of an asset account

Basic Bookkeeping-5

Quiz