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Establish and Maintain an Accrual Accounting System

Total questions: 23

Worksheet time: 28mins

Name
Class
Date
1.

A listing of the names of the accounts that a company has

identified and made available for recording transactions in its general ledger.

a)

Asset accounts

b)

Chart of Account

c)

Liability accounts

d)

Contra-accounts

2.

Represent the company's earnings and common

examples include sales, service revenue and interest income.

a)

Asset accounts

b)

Liability accounts

c)

Revenue accounts

d)

Expense accounts

3.

Represent the company's expenditures

a)

Asset accounts

b)

Liability accounts

c)

Revenue accounts

d)

Expense accounts

4.

Are accounts with negative balances that offset other balance sheet accounts.

a)

Asset accounts

b)

Chart of Account

c)

Liability accounts

d)

Contra-accounts

5.

Common examples are utilities, rents, depreciation, interest, and insurance:

a)

Asset accounts

b)

Liability accounts

c)

Revenue accounts

d)

Expense accounts

6.

Examples are accumulated depreciation (offset against fixed

assets), and the allowance for bad debts (offset against accounts receivable).

a)

Asset accounts

b)

Chart of Account

c)

Liability accounts

d)

Contra-accounts

7.

Represent the different types of economic obligations of an

entity

a)

Asset accounts

b)

Chart of Account

c)

Liability accounts

d)

Contra-accounts

8.

Represent the value of assets after deducting the value of all liabilities.

a)

Asset accounts

b)

Equity accounts

c)

Liability accounts

d)

Contra-accounts

9.

A commercial document that itemizes a transaction between a buyer and a seller.

a)

Credit Note

b)

Memorundom

c)

Invoice

d)

Receipt

10.

form of invoices raised by a business and delivered to the customer for payment within an agreed time frame

a)

Sales invoice

b)

Purchase invoice

c)

Liability invoice

d)

Revenue invoice

11.

invoices has been received from a Creditor for goods or services provided to business and agree to pay within time frame.

a)

Sales invoice

b)

Purchase invoice

c)

Liability invoice

d)

Revenue invoice

12.

A business document that issued for Returns of goods or assets bought on account.

a)

Invoice

b)

Cheque

c)

Receipt

d)

Credit Note

13.

A business document that issued for Cash Payments to Accounts Payable.

a)

Invoice

b)

Cheque

c)

Receipt

d)

Credit Note

14.

A business document that issued for Credit Sales of goods.

a)

Invoice

b)

Cheque

c)

Receipt

d)

Credit Note

15.

Hanoof purchase goods on account, the entry will be:

a)

Dr. purchases

Cr. accounts payable

b)

Dr. accounts receivable

Cr. sales

c)

Dr. accounts payable

Cr. purchases return or assets

d)

Dr. sales return or assets

Cr. accounts receivable

16.

Marwa Sold goods on account, the entry will be:

a)

Dr. purchases

Cr. accounts payable

b)

Dr. accounts receivable

Cr. sales

c)

Dr. accounts payable

Cr. purchases return or assets

d)

Dr. sales return or assets

Cr. accounts receivable

17.

Hanoof return the goods that she bought on account, the entry will be:

a)

Dr. purchases

Cr. accounts payable

b)

Dr. accounts receivable

Cr. sales

c)

Dr. accounts payable

Cr. purchases return or assets

d)

Dr. sales return or assets

Cr. accounts receivable

18.

the customer return to Marwa the goods that she sold on account, the entry on Marwa account will be:

a)

Dr. purchases

Cr. accounts payable

b)

Dr. accounts receivable

Cr. sales

c)

Dr. accounts payable

Cr. purchases return or assets

d)

Dr. sales return or assets

Cr. accounts receivable

19.

Accounts receivable that harder to be collected:

a)

Account payable

b)

Uncollectible Accounts

c)

Accumulated depreciation

d)

Sales

20.

When a company expects that some customers will not pay what they promised

a)

Bad Debts

b)

Account Receivable

c)

Account Payable

d)

Accumulated Account

21.

All are Steps in allowance method, Except:

a)

Recording estimated uncollectible

b)

Recovery of uncollectible Accounts

c)

Recording estimated Expense

d)

Recording The write – Off of uncollectable account

22.

A method of collecting past-due accounts:

a)

Direct write-off method

b)

Sending demand letters.

c)

Unlegal action

d)

Recording estimated uncollectible

23.

Method of accounting for uncollectible accounts is:

a)

Allowance method

b)

Accumulated method

c)

Revenue method

d)

Expense method