NOCTI Basic Accounting Quiz

A petty cash fund is always replenished ____.

• at the end of the month

• at the beginning of the month

• every week

• only when it runs out

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

• increase owner’s equity by $15,000

• decrease liabilities by $15,000

• increase assets by $15,000 and decrease liabilities by $15,000

• increase expenses by $15,000

An endorsed check must have an authorized ______ on the back of the check.

• signature

• stamp

• initials

• date

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

• regular

• overtime

• bonus

• commission

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?

• $164.15

• $150.00

• $175.00

• $200.00

A purchase of a computer with cash

• is a shift in assets

• is a decrease in liabilities

• is an increase in expenses

• is a reduction in equity

If a journal debit entry of $150.00 is incorrectly posted as a credit, the trial balance will be out of balance by

• $150.00

• $200.00

• $300.00

• $400.00

Which column on the Income Statement represents the total amount of revenues on a worksheet?

• debit column

• credit column

• assets

• liabilities

A company had $3,000 in credit card sales during the day. The company is charged a 3 percent discount rate on credit card deposits. The entry to record the credit card sales is

• debit Cash $2,910; debit Credit Card Expense $90; credit Sales $3,000

• debit Cash $3,000; credit Sales $3,000

• debit Cash $2,970; debit Credit Card Expense $30; credit Sales $3,000

• debit Cash $2,850; debit Credit Card Expense $150; credit Sales $3,000

Journalizing is a process in which

• source documents are analyzed for debit and credit entries

• financial statements are prepared for external reporting

• transactions are recorded in the general ledger

• budgets are created for financial planning