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WorksheetsWhat Do You Remember... #1
Total questions: 25
Worksheet time: 13mins
A person who owes your company money is called a:
liability
debtor
creditor
I.O.U.
The "book of original entry" is the:
general ledger
trial balance
general journal
chart of accounts
The normal balance of a liability account is a:
debit
credit
positive
negative
A contra account for sales is:
Sales Returns & Allowances
Discounts Earned
Accumulated Depreciation
HST Recoverable
An account that does not get closed at the end of a fiscal year is called a _______ account.
Forever
Asset
Liability
Real
What accounts are impacted when making adjustments for supplies used at the end of the year?
Supplies & Accumulated Depreciation - Supplies
Supplies Expense & Accounts Receivable
Supplies & Supplies Expense
Supplies Expense & Accounts Payable
On a classified balance sheet, a truck is an example of what kind of asset?
Fixed
Capital
Long-Term
All of the above
On a balance sheet, current assets are listed in order of:
nominal value
alphabetical order
liquidity
how long they will be used for
Merchandise Inventory is an asset in both a service and a merchandising business.
True
False
A person or business to whom money is owed is a creditor.
True
False
With a net loss, the income statement credit column would be higher than the debit column.
True
False
Closing entries are done at the end of every month.
True
False
A current liability must be paid back within the next 6 months.
True
False
Accounting entries for prepaid insurance are called closing entries.
True
False
COGS is taken away from Sales to find Net Income.
True
False
The net book value of an asset is its
purchase cost
purchase cost less depreciation expense
purchase cost plus accumulated depreciation
purchase cost less accumulated depreciation
The terms net 30 mean:
balance is due within 30 days
a 30% discount is available for early payment
balance must be paid after 30 days
30% will be added to the cost if it is not paid immediately
An account that is closed at the end of each accounting period is called a:
nominal account
real account
asset account
permanent account
A balance sheet can be prepared from information in the ledger.
True
False
The Drawings account is a permanent account
True
False
The GAAP that requires assets be recorded at their original purchase price:
Cost Principle
Purchase Principle
Matching Principle
Principle of Materiality
If current assets are $15,000 and current liabilities are $10,000, owner's equity is:
$25,000
$10,000
$5,000
-$5,000
Which of the following questions is not answered by an income statement?
How much money was spent on wages?
How much do clients owe the company?
What was our beginning inventory worth?
How much money did the firm earn this period?
December 31 trial balance: Supplies $300.
Physical inventory of supplies: $225.
What adjusting entry is needed?
DR Supplies Expense 75, CR Supplies 75
DR Supplies Expense 300, CR Supplies 300
DR Supplies Expense 225, CR Supplies 225
DR Supplies 225, CR Supplies Expense 225
Recording revenue when it is earned is an example of the:
Time period concept
Matching principle
Conservatism principle
Revenue recognition principle
