WorksheetsWhat Do You Remember...#2
Total questions: 25
Worksheet time: 13mins
Anything of value that a business owns is called a(n):
Revenue
Capital
Liability
Asset
Debits are used to record:
Increases in revenue
Increases in assets
Increases in capital
Increases in liabilities
Which financial statement should be prepared first?
Income statement
Balance sheet
Statement of cash flows
Statement of owner's equity
Which of the following typically have CR balances?
Accounts payable and equipment
Accounts receivable and sales
Fees earned and capital
Salaries expense and sales
Which of the following is closed every year?
Capital
Supplies
Accounts Payable
Utilities Expense
An example of a current asset would be:
Accounts receivable
Merchandise inventory
Supplies
All of the above
Which of the following appears on the debit side of a trial balance?
Sales
Drawings
Accounts Payable
Interest Earned
Which of the following would increase both assets and liabilities?
Received cash through investment by owner
Borrowed money to purchase equipment
Received payment from a customer
Received a phone bill in the mail
Which error would be detected with the preparation of the trial balance?
Double-posting of a transaction
A transposition error to one account
An incorrect DR to Cash instead of to Accounts Receivable
All of these would create errors in the trial balance
Sales invoices are for:
Recording a cash sale
Recording a payment to a supplier
Recording a sale on account
Recording a purchase of assets
The classification and normal balance of an Accumulated Depreciation account is:
Contra asset, credit
Liability, debit
Liability, credit
Contra asset, debit
When following accrual accounting, revenue is recorded:
When cash is received
When the deposit is paid
When the service is performed
When the bill is sent to the customer
If the adjusting entry for depreciation is missed, the result will be:
Assets understated, net income understated
Assets overstated, net income overstated
Assets understated, net income overstated
Assets overstated, net income understated
Which best defines the Matching Principle?
Match the invoice number to the transaction
Match expenses to the revenue they helped earn
Match customer payments to the period the work was done
Match the time periods of sales and purchase invoices
What is the purpose of the Business Entity Principle?
To define what the business does
To separate revenues and expenses
To separate personal and business financial data
To encourage owners to create separate capital accounts
What is the purpose of accounting?
To ensure financial data is accurate
To help the government calculate taxes
To discover how much money was made in a period
To provide users with information to make decisions
What accounting principle supports the creation of source documents?
Business Entity Principle
Cost Principle
Principle of Objectivity
Fair Value Principle
What is not added to get the Cost of Goods Available for Sale for a company?
Ending inventory
Freight In
Purchases
Beginning inventory
The Income Summary account is only used during the closing process.
True
False
Discounts Earned is a contra account related to sales.
True
False
Which of the following is not a contra account?
Accumulated Depreciation
HST Recoverable
Purchase Returns
Depreciation Expense
When an item subject to HST is sold by a business:
The business will debit HST Payable
The seller includes the HST in the price and credits Revenue
The seller will credit HST Payable
The purchaser will credit HST Recoverable
Which of the statements about the journal is incorrect?
It presents the financial position of a business
It provides a chronological record of transactions
It can be used as a reference to verify the ledger
It is the book of original entry
When completing the worksheet, value of Beginning Inventory should be placed in the ____ column.
Income Statement DR
Income Statement CR
Balance Sheet DR
Balance Sheet CR
Unearned Revenue should appear in a classified balance sheet as a(n):
Contra asset account
Current asset
Owner's equity account
Current liability
