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Accounting Unit 4 Part 1

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

A chart of accounts is limited to 50 accounts.

a)

True

b)

False

2.

The normal balance for asset account is a ________.

a)

credit

b)

debit

3.

The normal balance for the owner’s capital account is a ____________.

a)

credit

b)

debit

4.

The difference between the debit and credit amounts in an account is the account balance.

a)

True

b)

False

5.

The normal balance for Accounts Payable is a _____________.

a)

credit

b)

debit

6.

The normal balance of an account is always on the ___________.

a)

side of the current account balance

b)

side used to record increases

c)

credit side of the account

d)

debit side of the account

7.

The ______ is an “official” list of all the accounts used by a business to record its transactions.

a)

chart of accounts

b)

double entry accounting

c)

normal balance

d)

T chart

8.

An account’s ________ is always on the increase side of an account is a(n)____.

a)

chart of accounts

b)

double entry accounting

c)

normal balance

d)

T Account

9.

The first digit in the account number 520 means that the account is in the

a)

expense division

b)

asset division

c)

liability division

d)

owner's equity division

10.

When account are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are

a)

journalizing

b)

doing file maintenance

11.

Not all businesses use the same chart of accounts.

a)

True

b)

False

12.
The name given to an account
a)
account title
b)
capital
c)
expense
d)
revenue
13.
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:
a)
Balance Sheet
b)
Income Statement
c)
Statement of Cash Flows
d)
None of These
14.
The listing of all of the accounts available for use in a company's accounting system is known as the __________.
a)
Chart of Accounts
b)
Journal
c)
Ledger
d)
Credit Ledger
15.

A business groups its accounts in a ledger.

a)

True

b)

False