NOCTI Basic Accounting Quiz

Susan opened a business and invested $5,000 in cash and a computer worth $2,500. These investments will increase

• assets by $5,000

• assets by $7,500

• liabilities by $5,000

• liabilities by $7,500

The appropriate entry for receiving money from a customer is to

• decrease Revenue

• decrease Sales

• increase Cash

• increase Accounts Payable

The journal entry to record cash investment by the owner is to debit Cash and credit

• Accounts Receivable

• Drawing

• Capital

• Expense

Jason invested $15,000 cash to start his business. How does this transaction impact the basic accounting equation?

• there is no impact to the accounting equation

• increase owner’s equity by $15,000

• increase liabilities by $15,000

• increase Accounts Payable by $15,000

Journalizing is a process in which

• source documents are analyzed for debit and credit entries

• debits and credits are copied from a journal to a ledger

• a receivable is sold at a discounted value for cash

• account balances are carried to a trial balance

Debbie has a balance of $8,600 in Accounts Receivable before receiving a check for $3,455 from a customer she had worked for last month. What is the balance in Accounts Receivable after she records the receipt of this check?

A.B.C.D.

• $3,455

• $5,145

• $8,600

• $12,055

The controlling account summarizes all of the accounts from a _____ account.

A.B.C.D.

• subsidiary

• special

• general

• contra

An employee earns a commission of 7 percent of total sales. This week, the employee’s total sales are $2,345. What was the commission earned for the week?

A.B.C.D.

• $164.15

• $174.50

• $2,180.85

• $2,509.15

An employee works 38 hours per week, is paid $8.50 per hour, and is paid every 2 weeks. What is the gross pay the employee will receive each pay period?

• $323.00

• $482.00

• $646.00

• $725.00

Regular hours times regular rate is the calculation for ____ earnings.

• overtime

• net

• regular

• annual