FBLA ACCOUNTING 1 TEST

Closing entries result in the transfer of net income or net loss into the

• Income summary account

• Cash account

• Paid in capital

• owners capital account

Writing an account title in the account title column of a journal is not necessary if the journal has

• Special amount columns

• a source doc column

• A cash debit column

• post ref column

When cash is received on account the balance of the

• Sales account increases

• Cash account decreases

• Accounts receivable account decreases

• Sales tax payable accounts decreases

Shaw industries excepted Cody Reese’s credit card in payment of today’s purchase of one adding machine in which journal is the transaction recorded

• General journal

• cash receipts journal

• Purchase journal

• Sales journal

Expenses that are paid in advance and recorded initially as assets are

• Consumed expenses

• Deferrals

• Accruals

• Incurred but not yet paid

Which one of the following accounts is not closed at the end of an accounting period

• Drawing

• Utility expense

• Service revenue

• Unearned revenue

Which one of the following is not an asset account

• Supplies expense

• Prepaid insurance

• equipment

• Cash

Which one of the following is used to record cash received that the business does not own

• Accounts receivable

• income tax refund due

• Prepaid expenses

• Unearned revenue

Which category of account is assigned the highest numbers in the chart of accounts

• Assets

• Expenses

• Revenues

• Liabilities

Sales is classified as

• A revenue account

• A liability account

• an asset count

• An expense account