EOC Practice I

Practice

100

What is the accounting concept called where you record and report a business's financial information separately from the owner's financial information?

Business Entity

200

What is the amount that remains after the value of all liabilities is subtracted from the value of all the assets called? (A - L = ?)

Owner's Equity

300

How is the accounting equation most often stated? (hint: ALOE)

Assets = Liabilities + Owner's Equity (hint: ALOE)

400

What is the account that is used to summarize the owner's equity in a business called?

Capital

500

What account categories increase and/or decrease when a business pays cash for supplies? (hint: what is debited and what is credited?)

Assets increase and Assets decrease (Supplies is debited, Cash is credited)

More Practice

100

What happens when cash is decreased and supplies are increased by an equal amount? A. there is an increase in liabilities B. there is an increase in owner's equity C. there is a decrease in liabilities D. liabilities and capital are not changed

D. Liabilities and Capital are not changed

200

A decrease in owner's equity resulting from the operation of a business is ______? A. a withdrawal B. an expense C. revenue D. none of the above

B. an expense

300

When a business pays for insurance, Prepaid Insurance is ____? A. increased by a debit B. increased by a credit C. decreased by a debit D. decreased by a credit

A. increased by a debit

400

What happens when a business receives revenue? Sales is ____? A. increased by a debit B. increased by a credit C. decreased by a debit D. decreased by a credit

B. increase by a credit

500

The amount paid for rent is recorded as a debit to what account? A. Miscellaneous Expense B. Rent Expense C. Supplies D. Cash

B. Rent Expense

Study

100

If cash is paid for rent, Rent Expense is _______? A. increased by a debit B. increased by a credit C. decreased by a debit D. decreased by a credit

A. increased by a debit

200

The value of all things that are owned by a business (assets) are recorded on the accounting equation's __________? A. left side B. right side C. credit side D. none of the above

A. left side (A = L + OE)

300

The value of all equities or claims against the assets (Liabilities and Owner's Equity) are on the Accounting Equation's ______? A. left side B. right side C. debit side D. none of the above

B. right side (A = L + OE)

400

The normal balance side for any revenue account is _______? A. the debit side B. the credit side C. the left side D. none of the above

B. the credit side

500

Preparing source documents for each transaction is an application of the accounting concept______? A. Business Entity B. Unit of Measurement C. Objective Evidence D. Going Concern

C. Objective Evidence

You Know This!

100

A business form that orders a bank to pay cash from a bank account is called what? A. check B. memorandum C. receipt D. all of the above

A. check

200

The account that is debited when cash is paid for supplies is ______ ? A. Supplies B. Cash C. Supplies Expense D. None of the above

A. Supplies

300

When cash is paid for insurance, __________ ? A. the Prepaid Insurance account is credited B. the Prepaid Insurance account is debited C. the balance of the Prepaid Insurance account is increased D. none of the above

C. the balance of the Prepaid Insurance account is increased

400

The first digit (1) in the account number 120 means that the account is in the ________ division of the general ledger. A. expense B. revenue C. liability D. asset

D. asset

500

When accounts are arranged in a general ledger, account numbers are assigned, and the Chart of Accounts is kept up to date, the accounting personnel are ______ ? A. posting B. doing file maintenance C. journalizing D. none of the above

B. doing file maintenance

Pass It!

100

The last step in the posting procedure is writing _______ ? A. the entry date in the Date column of the account B. the journal page number in the Post. Ref. column of the account C. the entry amount in the Debit or Credit column of the account D. record the ledger account number in the Post. Ref. column of the journal

D. record the ledger account number in the Post. Ref. column of the journal

200

A business form that orders a bank to pay cash from a bank account is a _________ ? A. signature card B. deposit slip C. check D. none of the above

C. check

300

If a check is endorsed on the back with the words "For Deposit Only," the check can be cashed by ______. A. anyone who has the check B. the person whose name follows "Pay to the Order of" C. only the person who signed the check D. no one - it must be deposited

D. no one - it must be deposited

400

The source document for journalizing an electronic funds transfer is a _________. A. check B. receipt C. memorandum D. none of the above

C. memorandum

500

The entry to establish a $200.00 petty cash fund is _______. A. debit Cash for $200.00; credit Petty Cash for $200.00 B. debit Miscellaneous Expense for $200.00, credit Cash for $200.00 C. debit Petty Cash for $200.00, credit Cash for $200.00 D. debit Petty Cash for $200.00, credit Miscellaneous Expense for $200.00

C. debit Petty Cash for $200.00, credit Cash for $200.00