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WorksheetsWhat Do You Remember...#3
Total questions: 25
Worksheet time: 13mins
CPA stands for
Certified Professional Accountant
Chartered Professional Accountant
Chartered Personal Accountant
Certified Public Accountant
The basic accounting equation is:
Assets + Owner's Equity = Liabilities
Assets + Liabilities = Owner's Equity
Assets = Liabilities + Owner's Equity
All of these are correct
In what order are liabilities listed on the income statement?
In order of liquidity
In order of when they need to be paid
In order from highest to lowest
Liabilities aren't on the income statement
What is the normal balance of the Supplies account?
Debit
Credit
What is the normal balance of the Purchases account?
Debit
Credit
What is the normal balance of the Merchandise Inventory account?
Debit
Credit
What is the normal balance of the Accumulated Depreciation - Equipment account?
Debit
Credit
What is the normal balance of the Depreciation Expense account?
Debit
Credit
What is the normal balance of the HST Recoverable account?
Debit
Credit
For every transaction, there is always one DR amount and one CR amount, and both must be equal.
True
False
An extraordinary balance is opposite to what would be normal.
True
False
A balanced accounting entry is a correct accounting entry.
True
False
The Revenue Recognition principle states that revenue must be recorded at the time that payment is received.
True
False
Time period concept: a business will continue to operate unless it is known otherwise.
True
False
Every merchandising company must use a Purchases Returns & Allowances account.
True
False
A double underline indicates a final total.
True
False
An asset can never have a credit balance.
True
False
A truck that cost $10,000 and for which $6,000 is owed is recorded on the Balance Sheet at $4,400.
True
False
Failure to record an accrued expense will cause Owner's Equity to be overstated.
True
False
What is the purpose of closing entries?
To terminate the business as an operating entity
To reset all assets, liabilities, and owner's equity accounts to zero
To prepare correct financial statements
To transfer net income/loss and owner's equity accounts to Capital
The balance of the HST Recoverable account is $2278 and HST Payable is $4278. What is the type and amount of the remittance?
Cheque to government; $4278
Cheque to government; $2000
Refund from government; $2000
Refund from government; $2278
What is the best meaning of Chart of Accounts?
A list of the ledger accounts and numbers, in ledger order
A list of errors in the records for the period
A chart demonstrating the net income or net loss
All of the accounts of a business, with their current balances, in ledger order
The posting reference in the journal tells:
The journal reference page
Whether it is a DR or CR entry
The explanation of the transaction
The account number the amount was posted to
Adjusting entries are necessary in order to:
Bring liability accounts to their fair balances
Bring asset accounts to their fair balances
Measure the period's income properly
All of the above
Which of the following is a temporary account?
Capital
HST Payable
Supplies Expense
Both Capital and Supplies Expense are temporary
