decrease assets and increase liabilities.

decrease both assets and liabilities.

increase both assets and liabilities.

increase assets and decrease liabilities.

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

A credit balance in an expense account

A debit balance in the drawing account

A credit balance in a liabilities account

A credit balance in a revenue account

Dawson’s Delivery Service purchased equipment for $2,500. Dawson paid $500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and

credited a liability account for $2,000.

debited the Dawson, Capital account for $2,000.

credited another asset account for $500.

On January 14, Franco Industries purchased supplies of $500 on account. The entry to record the purchase will include

a debit to Supplies and a credit to Accounts Payable.

a debit to Supplies Expense and a credit to Accounts Receivable.

a debit to Supplies and a credit to Cash.

a debit to Accounts Receivable and a credit to Supplies.

The basic accounting equation may be expressed as

Assets – Liabilities = Owner's Equity.

Assets = Liabilities + Owner's Equity.

Owner's equity can be described as

ownership claim on total assets.

creditorship claim on total assets.

benefactor's claim on total assets.

If total liabilities increased by $4,000, then

assets must have increased by $4,000, or owner's equity must have decreased by $4,000.

assets must have decreased by $4,000.

owner's equity must have increased by $4,000.

assets and owner's equity each increased by $2,000.

The revenue recognition principle dictates that revenue should be recognized in the accounting records

in the period that income taxes are paid.

A company spends $10 million dollars for an office building. Over what period should the cost be written off?

Over the useful life of the building

When the $10 million is expended in cash

After $10 million in revenue is earned

Accounts often need to be adjusted because

many transactions affect more than one time period.

there are never enough accounts to record all the transactions.

there are always errors made in recording transactions.

management can't decide what they want to report.

A business buys a machine for $500 (cash) and pays machinery insurance $50 (Cash). Which of the following shos the correct double entry for this transaction?

Debit machinery $500 , credit cash $550, debit insurance expense $50

Debit machinery $550, credit cash $550

Debit cash $550, credit machinery $550

Debit cash $550 , credit machinery $500, credit insurance expense $50

A machine (cost $5,000) is bought on credit. Subsequently, $1,000 of the debt is paid by cheque. Which of the following correctly records the transaction?

Debit machine $5,000, credit payables $5,000. Debit payables $1,000, credit bank $1,000

Debit payables $5,000, credit machine $5,000. Debit bank $1,000, credit payables $1,000

Debit payables $5,000, credit machine $5,000. Debit payables $1,000, credit bank $1,000

Debit machine $5,000, credit payables $5,000. Debit bank $1,000, credit payables $1,000

On July 7, 2017, Reethink Enterprises performed cash services of $1,400. The entry to record this transaction would include

a debit to Service Revenue of $1,400.

a credit to Accounts Receivable of $1,400.

a credit to Accounts Payable of $1,400.

Meenen Company purchases equipment for $1,200 and supplies for $400 from Sanders Co. for $1,600 cash. The entry for this transaction will include a

debit to Equipment $1,200 and a debit to Supplies $400 for Meenen.

debit to Equipment $1,200 and a debit to Supplies Expense $400 for Sanders.

credit to Accounts Payable for Meenen.

On October 3, Nick Carter, a carpenter, received a cash payment for services previously billed to a client. Nick paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

credit to Nick Carter, Capital.

On January 14, Franco Industries purchased supplies of $500 on account. The entry to record the purchase will include

a debit to Supplies and a credit to Accounts Payable.

a debit to Supplies Expense and a credit to Accounts Receivable.

a debit to Supplies and a credit to Cash.

a debit to Accounts Receivable and a credit to Supplies.

It is made when Purchase Order was approved and used to place an order to Supplier/Vendor for items purchased . What QuickBooks functions do you use?

Receive Inventory without Bills

To record the receipt of purchased item (inventory); Selected when purchased items arrived with delivery note, but without bill. What QuickBooks functions do you use?

Receive Inventory without Bills

To be used to pay outstanding bills when Payment Voucher are approved. What QuickBooks functions do you use?

Receive Inventory without Bills

PAP01-Bookkeeping (Final Exam)

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MULTIPLE CHOICE QUESTION

1 min • 1 pt

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

True

False

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses.

True

False

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A balance sheet reports the assets, liabilities, and owner's equity at a specific date.

True

False

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

A statement of cash flow lists information on the cash receipts and payments for a specific period of time.

True

False

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?

Recording

Analysis

Communication

Identification

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A balance sheet shows

assets, liabilities, and owner's equity.

revenues, expenses, and drawings.

expenses, drawings, and owner's equity.

revenues, liabilities, and owner's equity.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The purchase of store equipment for cash reduces the owner's equity by an equal amount.

True

False

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PAP01-Bookkeeping (Final Exam)

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses.

A balance sheet reports the assets, liabilities, and owner's equity at a specific date.

A statement of cash flow lists information on the cash receipts and payments for a specific period of time.

Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?

A balance sheet shows

The purchase of store equipment for cash reduces the owner's equity by an equal amount.

The purchase of office equipment on credit increases total assets and total liabilities.

Credits

Assets normally show

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