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Payables Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

In the general ledger account, Accounts Payable is a ______.

a)

Fixed Asset

b)

Current Asset

c)

Current Liability

d)

Capital

2.

The balance in Accounts Payable is decreased with a _____ entry.

a)

Debit

b)

Credit

3.

The expenses that have been incurred but not yet entered as accounts payable should be part of _____ entry.

a)

Adjustment

b)

Accrual

c)

Reversal

d)

Prepayment

4.

Under the accrual method of accounting, the interest expense that is reported on the income statement is the amount of interest that was _____.

a)

incurred

b)

paid

c)

unpaid

d)

prepaid

5.

When a company receives goods or services on credit, the amount is recorded in Accounts Payable as a _____.

a)

debit

b)

credit

6.

The amount of prepaid insurance that has not expired as of the end of an accounting period should be reported as _____.

a)

an asset

b)

an expense

c)

a liability

7.

What is debit and credit from the banks point of view?

a)

Credit what goes in

Debit what goes out

b)

Credit what goes out

Debit what goes in

8.

Which of the following is an acceptable petty cash practise?

a)

Cashing a post-dated cheque for the company's treasurer

b)

Accepting an IOU from the company's controller

c)

Advancing funds to the company's executive vice president for a golfing outing

d)

Reimbursing the credit manager RM150 for petrol when he presented a receipt authorised by his boss

9.

Which of the following entries would be posted as a debit?

a)

Decrease to an expense account

b)

Increase to a revenue account

c)

Increase to an expense account

d)

Decrease to an asset account

10.

All of the following accounts are liability accounts EXCEPT:

a)

Salary payable

b)

Accrual

c)

Prepaid insurance

d)

Provision for taxation