1
A balance sheet reports financial information for a...
A) Month
B) Year
C) Specific date
D) Quarter
C) Specific date
A debit of $150 is posted as a credit.
A – Debit > Credit
B – Credit > Debit
C – Debit = Credit but not correct
B – Credit > Debit
The basic accounting equation is:
A) Assets + Liabilities = Owner's Equity
B) Assets = Liabilities + Owner's Equity
C) Revenue - Expenses = Net Income
D) Debits = Credits
B) Assets = Liabilities + Owner's Equity
If total assets are $100,000 and total liabilities are $40,000, owner's equity must be:
A) $40,000
B) $60,000
C) $100,000
D) $140,000
B) $60,000
Which of the following is the CORRECT order of assets on a classified balance sheet?
A) Alphabetical
B) Size (Largest to Smallest)
C) Liquidity
D) Date of Purchase
C) Liquidity
An entire general journal entry for $325 is not posted.
A – Debit > Credit
B – Credit > Debit
C – Debit = Credit but not correct
C – Debit = Credit but not correct
Which column in a standard ledger account form shows the running balance after each transaction?
A) Debit
B) Credit
C)Post Ref.
D) Balance
D) Balance
Accounts like Cash, Accounts Payable, and Sales Revenue are kept in the ledger and are known as:
A) Temporary Accounts
B) Permanent Accounts
C) Nominal Accounts
D) Closed Accounts
B) Permanent Accounts
The heading of a balance sheet must include all of the following EXCEPT:
A) Name of the Business
B) Title of the Statement
C) Period of Time Covered
D) Specific Date
C) Period of Time Covered
Purchasing a computer for cash immediately affects:
A) Assets and Liabilities
B) Assets and Owner's Equity
C) Liabilities and Owner's Equity
D) Assets only (one increases, one decreases)
D) Assets only (one increases, one decreases)
The entire group of accounts for a business is called the:
A) Journal
B) General Ledger
C) Chart of Accounts
D) Financial Statements
B) General Ledger
Entire journal entry posted at $400 instead of $100
A – Debit > Credit
B – Credit > Debit
C – Debit = Credit but not correct
C – Debit = Credit but not correct
Office Furniture, Delivery Trucks, and Store Equipment are all classified as:
A) Property, Plant & Equipment
B) Long-Term Investments
C) Current Assets
D) Intangible Assets
A) Property, Plant & Equipment
The process of transferring information from a journal to the ledger is called:
A) Journalizing
B) Adjusting
C) Posting
D) Balancing
C) Posting
The first step in the accounting cycle is to:
A) Post to the ledger
B) Analyze transactions
C) Prepare a trial balance
D) Record journal entries
B) Analyze transactions