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WorksheetsAccounting Principles Quiz
Total questions: 74
Worksheet time: 37mins
To decrease the account balance of a liability account, you would.....
debit the account
credit the account
increase the account balance
close the account
To decrease the account balance of the owner's capital account, you would.....
credit the account
debit the account
increase the account balance
close the account
To decrease the account balance of an expense account, you would.....
credit the account
debit the account
increase the account balance
close the account
To increase the account balance of an owner's capital account, you would.....
close the account
debit the account
withdraw from the account
credit the account
To increase the account balance of a sales account, you would.....
withdraw from the account
debit the account
credit the account
close the account
To decrease the account balance of a sales account, you would.....
debit the account
credit the account
increase the account balance
close the account
To increase the account balance of an asset account, you would.....
close the account
credit the account
debit the account
transfer the account
To increase the account balance of a liability account, you would.....
close the account
debit the account
withdraw from the account
credit the account
To decrease the account balance of an asset account, you would.....
credit the account
debit the account
increase the account balance
close the account
What is the normal balance of the Accounts Payable account?
Expenses
Debit
Assets
Credit
What is the normal balance of the Accounts Receivable account?
zero balance
credit
debit
negative balance
What is the normal balance of the cash account?
credit
debit
zero
negative
What is the normal balance of an Expense account?
zero
credit
debit
none
What is the normal balance of the Owners Capital account?
credit
debit
zero
negative
What is the normal balance of the Owners Drawing account?
variable
credit
zero balance
debit
What is the normal balance of the Prepaid Insurance account?
zero balance
credit
debit
negative balance
What is the normal balance of the Sales account?
revenue
credit
debit
liability
What is the normal balance of the Supplies account?
asset
credit
debit
negative balance
Accounts Payable is classified as an
asset
liability
equity
revenue
Accounts Receivable is classified as an ________.
revenue
liability
expense
asset
Cash is classified as an ________.
asset
liability
expense
revenue
Expenses is classified as an ________.
asset
liability
owners equity
revenue
Owners Capital is classified as an ________.
liability
owners equity
asset
revenue
Owners Drawing is classified as an ________.
revenue
liability
asset
owners equity
Prepaid Insurance is classified as an ________.
expense
liability
asset
revenue
Sales is classified as an ________.
owners equity
liability
asset
expense
Supplies is classified as an ________.
revenue
liability
expense
asset
Mr. Delgado bought supplies on account for $500 from Office Max. What is the debit entry?
Supplies
Accounts Payable
Cash
Office Equipment
Mr. Delgado bought supplies on account for $500 from Office Max. What is the credit entry?
Cash, Office Max
Accounts Payable, Office Max
Supplies Expense, Office Max
Accounts Receivable, Office Max
Delgado sold services on account to Valley Landscaping for $500.00. What is the debit entry?
Service Revenue, Cash
Cash, Accounts Receivable
Accounts Receivable, Valley Landscaping
Accounts Payable, Valley Landscaping
Delgado sold services on account to Valley Landscaping for $500.00. What is the credit entry?
Cash
Accounts Receivable
Sales
Inventory
Received cash on account from Scott Company. What is the debit entry?
Accounts Receivable
Cash
Revenue
Accounts Payable
Received cash on account from Scott Company. What is the credit entry?
Sales Revenue
Cash
Accounts Receivable, Scott Co.
Inventory
Paid cash for supplies from Office Max, $1,000. What is the debit entry?
Office Equipment
Cash
Accounts Payable
Supplies
Paid cash for supplies from Office Max, $1,000. What is the credit entry?
Supplies
Cash
Accounts Payable
Office Max
Delgado sold services on account to ABC Company for $1,000.00. What is the journal entry?
Debit Accounts Payable $1,000; Credit Service Revenue $1,000
Debit Cash $1,000; Credit Service Revenue $1,000
Debit Service Revenue $1,000; Credit Accounts Receivable $1,000
Debit Accounts Receivable $1,000; Credit Service Revenue $1,000
Received cash from sales, $685.00. What is the journal entry?
Debit Sales $685.00; Credit Cash $685.00
Debit Cash $685.00; Credit Sales $685.00
Debit Cash $685.00; Credit Accounts Receivable $685.00
Debit Accounts Receivable $685.00; Credit Cash $685.00
Accounts Payable appears on which financial statement?
Balance Sheet
Income Statement
Cash Flow Statement
Statement of Changes in Equity
Cash appears on which financial statement?
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Changes in Equity
What financial statement does rent expense appear?
statement of changes in equity
balance sheet
cash flow statement
income statement
What financial statement does office supplies appear?
cash flow statement
income statement
balance sheet
statement of changes in equity
What financial statement does prepaid insurance appear?
cash flow statement
income statement
balance sheet
statement of changes in equity
What financial statement does revenue appear?
cash flow statement
balance sheet
income statement
statement of changes in equity
What financial statement does office equipment appear?
Statement of Changes in Equity
Income Statement
Cash Flow Statement
Balance Sheet
Cash Withdrawal from owner. The owner's drawing account appear in which statement?
Statement of Owner's Equity
Balance Sheet
Income Statement
Cash Flow Statement
The closing entries will include a _______________ to the Sales account.
adjustment
credit
debit
transfer
The end-of-year balances in the revenue accounts will become the following year's beginning balances.
True
False
The balances in the owner's drawing account is credited to the owner's capital account at the end of each accounting year.
True
False
Prepaid Insurance is a temporary account.
True
False
The term nominal accounts is sometimes used in place of the term temporary accounts.
True
False
The terms real accounts is similar to permanent accounts.
True
False
Temporary accounts are closed at the end of each accounting year.
True
False
Permanent accounts are closed at the end of each accounting year.
True
False
Assets, Liabilities and Owner's Equity are permanent accounts and are never closed.
True
False
You will close the cash account at the end of the accounting cycle.
True
False
A checking account is a report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
True
False
The petty cash fund is a liability with a normal debit balance.
True
False
When you reconcile petty cash and the amount on hand (what is in the envelope) is more than the recorded amount, petty cash is short.
True
False
When you reconcile petty cash and the amount on hand is less than the recorded amount, petty cash is short.
True
False
A bank reconciliation is a process performed by a company to ensure that the company’s records (check register, general ledger account, balance sheet, etc.) are correct and that the bank's records match.
True
False
Do you add outstanding checks when you reconcile the bank statement?
True
False
You add outstanding deposits to the balance of the bank statement when you are doing a reconciliation.
True
False
An outstanding check is one that has been issued but not yet reported on a bank statement.
True
False
When petty cash is replenished, Petty Cash is debited and Cash is credited.
True
False
Voided checks should be recorded in the journal.
True
False
The journal entry to start a petty cash fund for your business would be a debit to the ________ account and credit to the ________.
cash; petty cash
petty cash; cash
accounts payable; cash
petty cash; accounts receivable
Explain why it is important to make sure you reconcile what is recorded on the last check stub in the check book and the bank statement the bank mails to you once a month.
To verify that the bank has not made any errors in your account balance.
To make sure you have enough checks left in your checkbook.
To ensure that there are no discrepancies between your records and the bank's records.
To confirm that all checks have been cashed.
A lost check with a blank endorsement on it can be cashed by ________.
the bank that issued the check.
only the person who wrote the check.
anyone who has the check.
the person to whom the check was originally made out.
An endorsement on the back of a check consisting only of a signature is a(n) ________.
restrictive endorsement
full endorsement
blank endorsement
conditional endorsement
If any kind of error is made in preparing a check, ________.
VOID should be written on the check, VOID should be written on the check stub, a new check should be prepared.
The check should be torn up immediately.
The bank should be notified immediately.
The check should be sent as is.
Each time you prepare cash or checks to be put in the company bank account, you will prepare a...
invoice
withdrawal form
deposit slip
receipt
The entry to establish a $200.00 petty cash fund is...
debit Petty Cash, $200.00; credit Cash, $200.00
debit Cash, $200.00; credit Petty Cash, $200.00
debit Petty Cash, $100.00; credit Cash, $100.00
debit Cash, $100.00; credit Petty Cash, $100.00
When cash is short, the entry to replenish petty cash includes a...
credit to Cash Short and Over.
credit to Petty Cash.
debit to Accounts Receivable.
debit to Cash Short and Over.
A voided check is...
a check that can't be processed
a check that is processed successfully
a check that is lost
a check that is cashed
