Basic Bookkeeping-3

The main objective of bookkeeping is to -
1. Properly record and classify transactions
2. Perform Special Management Analyses
3. Making sure that the books balance
4. All of the listed answers are correct
The benefits resulting from using Double Entry Bookkeeping are:
1. All of the listed answers are correct
2. Serves as a self checking mechanism
3. Balance Sheet Accounts are available
4. None of the listed answers are correct
What type of an account is Accounts Payable or amounts owed to creditors ?
1. Liability
2. Asset
3. Revenue
4. Owner's Equity (Capital)
The process of transferring the balances of the revenue , expense, and draw accounts to the owner's equity (capital) account is called -
1. Closing the books
2. Clearing the balances
3. Balance transfers
4. None of the listed answers
Profit or Loss is determined by -
1. Subtracting Expenses from Revenues
2. Subtracting Assets from Owner's Equity (Capital)
3. Subtracting Liabilities from Assets
4. None of the listed answers is correct
An Asset is -
1. All the "good stuff" (property) that a business owns
2. None of the listed answers is correct
3. Owner's claims to the "good stuff" (property) that a business owns
4. Creditor's claims to the "good stuff" (property) that a business owns
A Single Entry Bookkeeping System is mainly concerned with -
1. Determining a business's Profit or Loss
2. Determining the correct amounts for the Balance Sheet
3. Determining the balance of the Owner's Equity (Capital) account
4. Determining that the books balance
A Sale made to a customer with credit terms is recorded by -
1. Debiting - Accounts Receivable and Crediting - Sales
2. Debiting - Purchases and Crediting - Accounts Payable
3. Debiting - Cash and Crediting - Sales
4. None of the listed answers is correct
The accrual basis of accounting records a transaction when -
1. It actually occurs
2. Directed to by management
3. Cash is receieved or spent
4. All of the listed answers are correct
Which of the following is not an example of an Asset ?
1. Loan from Bank
2. Accounts Receivable
3. Cash In Bank
4. Equipment
A Chart of Accounts is a coded listing of all the accounts contained in -
1. General Ledger
2. General Journal
3. Balance Sheet
4. Income Statement
The Matching Principle or Concept -
1. Matches expenses incurred with the revenues earned during a period
2. All of the listed answers are correct
3. Records Revenue when cash is received and Expenses when cash is spent
4. Records Revenue and Expenses when directed to by management
Which of the following is not normally considered a Formal Financial Statement ?
1. Budget
2. Balance Sheet
3. Income Statement
4. None of the listed answers is correct
The Basic Accounting equation can be stated as -
1. All of the listed answers are correct
2. Assets - Owner's Equity = Liabilities
3. Assets = Liabilities + Owner's Equity
4. Assets - Liabilities = Owner's Equity
If expenses and cost exceed revenue for a period the result is called -
1. Loss for the period
2. Profit for the period
3. Period Difference
4. None of the listed answers is correct
The General Journal is normally used to record -
1. Record unusual and adjusting entries
2. Record cash receipts
3. Record cash payments
4. Record sales
Owner's Equity (Capital) increases as a result of -
1. Revenues
2. Expenses
3. Draws
4. All of the listed answers are correct
Which of the following types of accounts normally has a Debit Balance ?
1. Asset
2. Liabilty
3. Owner's Equity (Capital)
4. Revenue
Which of the following types of account normally has a Credit Balance ?
1. Revenue
2. Asset
3. Expense
4. All of the listed answers are correct

Basic Bookkeeping-3

Quiz