Accounting Quiz

What is the primary rule in bookkeeping?

• Assets are things of value owned by a business

• Owner's equity refers to the interest of the owner in the assets of a business

• Credit is on the right side of an account journal

• Debit is on the left side of an account journal

What is the purpose of a balance sheet?

• To report the amount of merchandise sold and valued at selling price

• To show the financial position of the business with assets, liabilities, and owner's equity

• To compute the expense balance from cash payment and balance sheet data

• To summarize revenue items and expenses

What is recorded on the left side of an account journal?

• Sales

• Debit

• Profit

• Credit

What does the income statement summarize?

• Depreciation

• Expenses

• Revenue items

• Net profit

What are current assets in a business?

• The interest of the owner in the assets of a business

• Assets that do not come within the definitions of current or fixed assets

• Assets that in normal operation are expected to be converted into cash

• Assets that are required for long term use

What is the amount of merchandise sold and valued at selling price?

• Purchase

• Sales

• Receivables

• Proprietorship

What is the expense balance computed from in the income statement?

• Revenue Items

• Depreciation

• Expense Items

• Appreciation

What is the language of business?

• Posting

• Bookkeeping

• Accounting

• Transactions

What is the report that summarizes the revenue, items, expenses, and profit/loss for a period?

• Income statement

• Depreciation

• Expenses

• Balance sheet

What is the amount to be collected or received from a debtor in the future?

• Expenses

• Net profit

• Gross profit

• Receivables