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REVIEW questions

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

A schedule that contains all accounts needed to prepare financial statements

a)

General Journal

b)

General Ledger

c)

All Sales Invoices

d)

Source Documents

2.

Transferring information from a journal entry to a ledger account (p. 98)

a)

journaling

b)

posting

c)

file maintenance

d)

correcting entry

3.

What is a General Ledger?

a)

A ledger that contains all accounts needed to prepare financial statements.

b)

Bookkeeping

c)

The number that is assigned to an account

d)

A group of accounts

4.

What is Posting?

a)

A journal entry was made to correct an error in the ledger

b)

Transferring information from a journal entry to a ledger account.

c)

Not a process in Accounting

d)

Either is Correct

5.

How do you prove cash?

a)

Analyzing into debit and credit parts

b)

A journal entry made to correct an error in the ledger.

c)

Determining that the amount of cash agrees with the balance of the cash account in the Cash general ledger account.

d)

Transferring information from a journal entry to a ledger account.

6.

What is the definition of an Account Number?

a)

Writing an account title and number on the heading of an account.

b)

Transferring information from a journal entry to a ledger account.

c)

Determining that the amount of cash agrees with the accounting records.

d)

The number assigned to an account.

7.
What is the normal balance for the Cash account?
a)
Debit
b)
Credit
8.
What is the normal balance for the Accounts Payable account?
a)
Debit
b)
Credit
9.

What is the normal balance for the owners equity account?

a)
Debit
b)
Credit
10.

What is the normal balance for the Supplies account?

a)
Debit
b)
Credit
11.
What is the normal balance for the Expenses accounts?
a)
Debit
b)
Credit
12.
What is the normal balance for the Prepaid Insurance account?
a)
Debit
b)
Credit
13.

What is the normal balance for the drawing account?

a)
Debit
b)
Credit
14.
What is the normal balance for Asset accounts?
a)
Debit
b)
Credit
15.
Where do we record accounting transactions first?
a)
T-accounts
b)
General Journal
c)
Ledger
d)
Trial Balance
16.
What is a list of all accounts and their account numbers?
a)
General Journal
b)
General Ledger
c)
Chart of Accounts
d)
Trial Balance
17.
What is a list of all accounts and their balances?
a)
General Journal
b)
T-accounts
c)
Chart of Accounts
d)
Trial Balance
18.

When numbering the categories on a Chart of Accounts, what do we use for revenue?

a)

100

b)

200

c)

300

d)

400

e)

500

19.

When numbering the categories on a Chart of Accounts, what do we use for Owner's Equity?

a)

100

b)

200

c)

300

d)

400

e)

500

20.

When numbering the categories on a Chart of Accounts, what do we use for Expenses

a)

100

b)

200

c)

300

d)

400

e)

500

21.

When numbering the categories on a Chart of Accounts, what do we use for Liabilities

a)

100

b)

200

c)

300

d)

400

e)

500

22.

Which asset account should be listed first because it is the most frequently used account?

a)

Cash

b)

Accounts Reeceivable

c)

Supplies

d)

Prepaid Insurance

23.

Which of the following accounts should be listed first in the Expenses section?

a)

Miscellaneous Expense

b)

Rent Expense

c)

Advertising Expense

d)

Utilities Expense

24.

If you need to add a new account to an existing chart of accounts between account numbers 510 and 520 you should use....

a)

511

b)

515

c)

519

d)

525

25.

When all closing entries have been posted, a net income will be shown on the:

a)

credit side of the Drawings account

b)

debit side of the Capital account

c)

credit side of the Capital account

d)

debit side of the Drawings account

26.
The owner withdraws business assets for personal use.
a)
Assets (I)
b)
Liabilities (D)
c)
Equity (D) 
27.

The owner invests personal CASH in business.

a)
Asset (I)
b)
Liabilties (I)
c)
Equity (NE)
28.
The company purchases supplies on credit
a)
Assets (I)
b)
Liabilities (NE)
c)
Equity (I)
29.

The sales account is closed into...

a)

Capital

b)

Expenses

c)

Income Summary

d)

Revenue

30.

The advertising expense account is closed into...

a)

Capital

b)

Expenses

c)

Income Summary

d)

Revenue

31.

The income summary account is closed into...

a)

Capital

b)

Expenses

c)

Income Summary

d)

Revenue

32.

The drawing account is closed into...

a)

Capital

b)

Expenses

c)

Income Summary

d)

Revenue

33.

Which account is a permanent account?

a)

Mr. Robinson, Drawing

b)

Sales

c)

Supplies

d)

Utilities Expense

34.

Which of these would show on the post-closing trial balance? (select all that apply)

a)

Cash

b)

Prepaid Insurance

c)

Sales

d)

Supplies Expense

35.

Which of these is the FIRST step in the accounting cycle?

a)

Adjusting entries

b)

Analyze source documents

c)

Journalize

d)

Post

36.

Which of these is the LAST step in the accounting cycle?

a)

Adjusting entries

b)

Closing entries

c)

Financial statements

d)

Post-closing trial balance

37.

Journal records the transactions of the form in a.....

a)

Periodical manner

b)

Chronological order

c)

Summarised manner

d)

Systematic order

38.

After transaction information has been recorded in the journal, it is transferred to the

a)

trial balance.

b)

income statement.

c)

book of original entry.

d)

ledger.

39.

The purchase journal is

a)

used only to record credit purchases

b)

used only to record cash purchases

c)

used to record all purchases

d)

all of the above

40.

A trial balance is a listing of

a)

transactions in a journal.

b)

the chart of accounts.

c)

general ledger accounts and balances.

d)

the totals from the journal pages.