Basic Bookkeeping-1

Which of the following types of accounts is not included in a Balance Sheet ?
1. Revenue
2. Owner's Equity (Capital)
3. Assets
4. Liabilities
Owner's Equity (Capital) increases as a result of -
1. Revenue
2. Expenses
3. Draws
4. All of the listed answers are correct
A debit decreases an asset account while a credit increases an asset account.
1. True
2. False
The Cash Basis of Accounting records income in the period earned and expenses in the period incurred.
1. True
2. False
To record a cash sale the proper entry is -
1. Debit - Cash and Credit - Sales
2. Debit - Sales and Credit - Cash
3. Debit - Expense and Credit - Sales
4. Debit - Accounts Receivable and Credit - Sales
The initial record used to first enter business transactions into the accounting records is called -
1. Journals
2. Trial Balance
3. General Ledger
4. Balance Sheet
The tool that is used to help prepare the formal Financial Statements is called -
1. Trial Balance
2. Income Statement
3. T-Account
4. Balance Sheet
The entry to record the purchases of goods where the supplier grants the purchaser credit terms -
1. Debit - Purchases and Credit - Accounts Payable
2. Credit - Purchases and Debit - Accounts Payable
3. Debit - Purchases and Credit - Notes Payable
4. Debit - Purchases and Credit - Cash
Which of the following types of accounts is not included in an Income Statement ?
1. Assets
2. Revenue
3. Expense
4. Cost Of Goods Sold
A Debit increases an expense account while a credit decreases an expense account.
1. True
2. False
A type of business organization that has only one owner is called a -
1. Sole Proprietorship
2. Single Entity
3. Partnership
4. Corporation
A Debit posted to any type of account always increases the account's balance.
1. True
2. False
Debits are posted to the Left Side (Column) of an account while Credits are posted to the Right Side (Column) of an account.
1. True
2. False
A Debit to a liability account increases the account's balance.
1. True
2. False
A Balance Sheet is simply a financial picture of a business at a specific point in time.
1. True
2. False
A Debit to an asset or an expense account increases the account's balance.
1. True
2. False
Revenue, Expense, and Draw Accounts are known as temporary or nominal accounts because their balances are set to zero and closed.
1. True
2. False
The account Cash is an example of what type of account ?
1. Asset
2. Expense
3. Liability
4. Revenue
The account Accounts Payable is an example of what type of account ?
1. Liability
2. Asset
3. Revenue
4. Expense
After the books are "closed", the balances of the revenue, expense, and draw accounts are zero.
1. True
2. False
A Debit decreases the balance of a liability account account while a Credit increases the balance.
1. True
2. False
A Debit to a revenue account decreases the account's balance while a Credit increases the accoun'ts balance.
1. True
2. False
Which of the following is not a type of expense ?
1. Sales
2. Utilities
3. Building Rental
4. Professional Fees
The owner's claim to the property (assets) of a business is reflected in the balance of what type of account ?
1. Capital Account
2. Revenue Account
3. Asset Account
4. Expense Account
A relatively new type of business structure that combines the benefits of a partnership and corporation is called a -
1. Limited Liability Company (LLC)
2. Hybrid Organization
3. Unlimited Liability Corporation
4. None of the listed answers is correct

Basic Bookkeeping-1

Quiz