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WorksheetsMIDTERM REVIEW - FABM 1
Total questions: 15
Worksheet time: 8mins
An amount recorded on the right side of a T account is a debit
TRUE
FALSE
Each liability account has a normal debit balance.
TRUE
FALSE
Asset accounts decrease on the credit side.
TRUE
FALSE
Each transaction changes the balances in at least two accounts
TRUE
FALSE
When cash is paid for supplies, the Supplies account is increased by a credit.
TRUE
FALSE
A drawing account is increased by debits and decreased by credits.
TRUE
FALSE
Increases in expense accounts are recorded as debits because they decrease the owner's capital account.
TRUE
FALSE
Inventory is recorded at the lower cost or net realizable value rather than the expected selling price. This ensures profit on the sale of inventory is only realized when the actual sale takes place.
Going Concern
Materiality Concept
Prudence Concept
History Cost
Financial statements contain all information necessary to understand a business's financial condition
Full Disclosure
Going Concern
Periodicity
Objectivity
GAAP stands for:
Generally Accepted Auditing Procedures
Generally Accepted Accounting Procedures
Generally Accepted Accounting Principles
Generally Auditing Accounting Principles
It includes the money and any medium of exchange acceptable by the bank for deposit such as bills, coins, funds for current purposes, checks, cash in the bank, etc.
Cash
Notes payable
Accounts Receivable
Utilities Expense
It is due to the customer evidenced by a written promise to pay a definite sum of money for a specified period of time.
Accounts Receivable
Accounts Payable
Notes Receivable
Notes Payable
These are economic obligations, debts or payables of the business.
Assets
Owner's Equity
Liabilities
Expense
These are the costs of promoting the business such as those incurred in newspaper publications, television and radio broadcasts, billboards, flyers, etc.
Delivery Expense
Insurance Expense
Advertising Expense
Rent Expense
It refers to the costs of materials used by the business.
Suppliers Expense
Training and Development
Salaries Expense
Utilities Expense
