Accounting Test Review- Mack

If LER goes down is a Debit or Credit?

• Debit

• Credit

• Neutral

• Asset

Accounts receivable decrease

• debit

• credit

• increase

• write-off

What is the Chart of Accounts?

• A list of all the financial accounts in a business, that includes their account numbers and names.

• A summary of the company's financial performance over a specific period.

• A document that outlines the company's financial policies and procedures.

• A report that details the company's cash flow and liquidity position.

INCOME STATEMENT

• Shows a company’s revenues and expenses. It shows a company’s profits and loss.

• Displays only the revenues of a company.

• Summarizes the cash flow of a company.

• Lists the assets and liabilities of a company.

Utilities is classified as ________ account?

• Asset

• Liability

• Expense

• Revenue

Assets increase on the_________ side of the T-Account and this is a__________.

• Left, Credit

• Right, Debit

• Left, Debit

• Right, Credit

The credited title account does not have to be indented.

• true

• false

• sometimes

• only in specific cases

A increase in the Capital account, an entry would go on the _________ side.

• Left Side (Debit)

• Right Side (Credit)

• Neither Side

• Both Sides

Accounting is...

• The process of recording, analyzing, and reporting a company's financial transactions.

• A method of budgeting and forecasting future expenses.

• The study of economic principles and market behavior.

• A system for managing human resources and payroll.

A form for recording transactions in chronological order is called a what?

• ledger

• journal

• register

• logbook