QB | Basic Financial Accounting 1

QUESTION #1

The terms “Bookkeeping” and “Accounting” are synonymous.

• True

• False

The terms “Bookkeeping” and “Accounting” are synonymous.

CORRECT ANSWER: False

QUESTION #2

Decreases in assets and decreases in revenue accounts should be entered on the left side of a T account.

• True

• False

Decreases in assets and decreases in revenue accounts should be entered on the left side of a T account.

CORRECT ANSWER: False

QUESTION #3

Recording the expiration of a prepaid asset results in the reduction of the asset account and an increase in the related expense account.

• True

• False

Recording the expiration of a prepaid asset results in the reduction of the asset account and an increase in the related expense account.

CORRECT ANSWER: True

QUESTION #4

Which of the following complete descriptions of a transaction is not possible?

• increase liability, decrease equity

• increase asset, increase liability

• decrease asset, decrease liability

• increase asset, decrease equity

Which of the following complete descriptions of a transaction is not possible?

CORRECT ANSWER: increase asset, decrease equity

QUESTION #5

A buyer who acquires merchandise under credit terms of 1/10, n/30 has 10 days after the invoice date to take advantage of the cash discount.

• True

• False

A buyer who acquires merchandise under credit terms of 1/10, n/30 has 10 days after the invoice date to take advantage of the cash discount.

CORRECT ANSWER: True