Basic Bookkeeping-4

Amounts owned by a business are called -
1. Assets
2. Liabilities
3. Owner's Equity
4. Revenues
A purchase of an asset using credit will
1. Increase assets and increase liabilities
2. Increase assets and decrease liabilities
3. Decrease assets and decrease liabilities
4. Increase assets and increase owner's equity
The effect of a business earning revenues by providing services is -
1. Increase to an asset account and increase to a revenue account
2. Increase to an asset account and decrease to a revenue account
3. Decrease to an asset account and decrease to a revenue account
4. None of the listed answers is correct
If an expense account increases and an asset account decreases the proper entry is -
1. Debit-Expense Account / Credit-Asset Account
2. Credit-Expense Account / Debit-Asset Account
3. Debit-Expense Account / Debit-Asset Account
4. Credit-Expense Account / Credit-Asset Account
The bank balance will often differ from the book balance due to -
1. All of the listed answers are correct
2. Outstanding Checks
3. Deposits-In-Transit
4. Bank Service Charges
Which of the following is often deducted from an employee's gross earnings ?
1. All of the listed answers are correct
2. Income Tax Withholdings
3. Life and Health Insurance Premiums
4. Social Security and Medicare Taxes
The entry to record purchases made on account is -
1. Debit-Purchases or Inventory Control / Credit-Accounts Payable
2. Credit-Purchases or Inventory Control / Debit-Accounts Payable
3. Debit-Purchases or Inventory Control / Debit-Accounts Payable
4. Credit-Purchases or Inventory Control / Credit-Accounts Payable
The source for preparing an Accounts Receivable Aging Report is -
1. Accounts Receivable Subsidiary Ledger
2. Customer List
3. General Ledger
4. General Journal
A transaction with one debit and two credits is -
1. A Compound Entry
2. A Double Entry
3. A Multiple Entry
4. Not Allowed
The information needed to prepare employee W-2's is found in -
1. Employee's Individual Earnings Record
2. Accounts Receivable Subsidiary Ledger
3. Accounts Payable Subsidiary Ledger
4. General Journal
If the balance of Ending Inventory is mistakenly overstated -
1. Net Income for the period is overstated
2. Net Income for the period is understated
3. No effect on Net Income
4. None of the listed answers is correct
When preparing a bank reconciliation, outstanding checks are handled by -
1. Deducting them from the balance on the bank statement
2. An adjusting entry made to the business's books
3. No action is required
4. None of the listed ansers is correct
A Trial Balance proves that -
1. Debit Balance Accounts Equal Credit Balance Accounts
2. No errors have been made recording entries
3. Balance of Balance Sheet Accounts Equals Balance of Income Statement Accounts
4. All of the listed answers are correct
If Assets = 150,000 and Owner's Equity = 50,000, which of the following statements is true.
1. Liabilities equal 100,000
2. Revenue equals 100,000
3. Expenses equal 50,000
4. None of the listed answers is correct
When an employer deposits federal taxes the deposited amount includes -
1. All of the listed answers are correct
2. Employee's Federal Income Tax Withheld
3. Employer's Share of Social Security and Medicare
4. Employee's Share of Social Security and Medicare
If the owner of a sole proprietorship contributes (invests) additional cash to his/her business the correct entry to record this is -
1. Debit-Cash / Credit-Owner's Capital
2. Debit-Cash / Credit-Revenues
3. Debit-Owner's Capital / Credit-Cash
4. Debit-Owner's Capital / Credit-Cash
The following taxes are reported on an employer's quarterly Form 941 -
1. Federal Income Tax Withheld and Social Security and Medicare Taxes
2. Federal and State Unemployment Taxes
3. Federal Unemployment Taxes
4. All of the listed answers are correct
Which of the following statements is correct -
1. The debit and credit balances of all the accounts are equal
2. The debit and credit balances of the balance sheet accounts are equal
3. The debit and credit balances of the income statement accounts are equal
4. All of the listed answers are correct
The "connecting link" between the balance sheet and income statement is -
1. Net Profit/Loss
2. Owner's Capital
3. Owner's Withdrawals
4. None of the listed answers is correct
If the cost of purchased items is continually increasing, the value of the ending inventory will be the largest using
1. FIFO
2. LIFO
3. Average Cost
4. All the listed methods produce the same amount
Expenses have the effect of -
1. Decreasing Owner's Equity
2. Increasing Owner's Equity
3. Decreasing Liabilities
4. None of the listed answers is correct

Basic Bookkeeping-4

Quiz