WorksheetsAccount tiles
Total questions: 10
Worksheet time: 3mins
The account title "Accounts Payable" is correctly classified as a(n):
Asset
Liability
Owner's Equity
Revenue
Which of the following accounts is a primary differentiator on the income statement of a merchandising business compared to a service business?
Service Revenue
Salaries Expense
Cost of Goods Sold
Accounts Receivable
A law firm provides legal advice to a client on credit. What is the appropriate account title to recognize the revenue earned?
Sales Revenue
Unearned Revenue
Legal Fees Earned
Cash
What is the normal balance of the "Sales Returns and Allowances" account and what type of account is it?
Debit, Contra-Asset
Credit, Revenue
Debit, Contra-Revenue
Credit, Expense
A company that uses a periodic inventory system to track its goods for sale would record the acquisition of merchandise in an account titled:
Merchandise Inventory
Cost of Goods Sold
Purchases
Supplies
When the owner of a sole proprietorship takes cash out of the business for personal use, the transaction is recorded in which account?
Salaries Expense
Owner's Capital
Retained Earnings
Owner's Withdrawals
A retail store sold a t-shirt for P25. The t-shirt had originally cost the store P10. The P10 cost is recorded as:
A decrease in Sales Revenue
An operating expense called Merchandise Expense
A decrease in the Merchandise Inventory asset
An expense called Cost of Goods Sold
A merchandising company has the following account balances: Sales Revenue of P150,000; Sales Returns and Allowances of P5,000; and Sales Discounts of P2,000. What is the company's Net Sales?
P157,000
P150,000
P143,000
P145,000
The "Merchandise Inventory" account represents the cost of goods a company has on hand to sell to customers. It is classified as a:
Current Asset
Long-Term Asset
Expense
Owner's Equity
A technology consulting firm, which provides expert advice and project management, would most likely have all of the following accounts EXCEPT:
Service Revenue
Salaries Expense
Sales Discounts
Unearned Revenue
