Accounting Basic Quizzes

Deferred revenues likely involve cash amounts that have __________ been received.

Already

Accrued expenses are likely to pertain to transactions that have __________ been paid.

Not Yet

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

Balance Sheet

Which term is associated with "left" or "left-side"?

Debit

The bookkeeping or accounting equation is Assets = Liabilities + Owner's __________.

Equity

Under the accrual basis of accounting, expenses are reported in the accounting period when the

Expense Matches The Revenues Or Is Used Up

The basic accounting equation is Assets = Liabilities + __________.

Owner's Equity or Stockholders' Equity (if a corporation). Net assets (if a nonprofit organization).

When a sale is made on credit, the seller will debit the asset account Accounts __________.

Receivable

Large corporations should report revenues on their income statements when the __________.

Revenues Are Earned

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Service Or Goods Have Been Delivered

A supplier of goods or services is known as a __________.

Vendor

The company repays the bank that had lent money to the company. assets, liabilities, owners equity

a - decrease l - decrease oe - no effect

The owner withdraws cash from the business for personal use. assets, liabilities, owners equity

a - decrease l - no effect oe - decrease

The company purchases a significant amount of supplies on credit. assets, liabilities, owners equity

a - increase l - increase oe - no effect

The company purchases land by paying half in cash and signing a note payable for the other half. assets, liabilities, owners equity

a - increase l - increase oe - no effect

The company receives cash from a bank loan. assets, liabilities, owners equity

a - increase l - increase oe - no effect

The owner contributes his/her personal truck to the business. assets, liabilities, owners equity

a - increase l - no effect oe - increase

The owner invests personal cash in the business. assets, liabilities, owners equity

a - increase l - no effect oe - increase

When a check is written, a cash account should be __________.

credited

Cash and Accounts Receivable are two examples of accounts that are reported on the classified balance sheet under the heading __________ assets.

current

Liabilities often have the word __________ in their account title.

payable

Revenue accounts will normally have __________ balances.

Credit

__________-entry bookkeeping means that every transaction will affect two or more accounts.

Double

The book of original entry is the definition of a __________.

Journal

Unearned Revenues is what type of account?

Liability

Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June. In June, Company X receives the $5,000. What is the effect on the accounting equation and which accounts are affected at Company X? assets, liabilities, owner's equity

a - increase l - no effect oe -

Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June. In May, Company X records the transaction by a debit to Accounts Receivable for $5,000 and a credit to Service Revenues for $5,000. What is the effect of this entry upon the accounting equation for Company X? assets, liabilities, owner's equity

a - increase l - no effect oe - increase

The company purchases equipment with its cash. assets, liabilities, owners equity

a - increase l - no effect oe - no effect

The two main methods of bookkeeping and accounting are 1) the cash method, and 2) the __________ method.

accrual

The listing of accounts that are available for posting transactions is the __________ of accounts.

chart

The listing of all of the accounts available for use in a company's accounting system is known as the __________.

chart of accounts

The separation of duties is part of the internal __________ for safeguarding assets.

controls

Assets are usually reported on the balance sheet at which amount?

cost

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

cost

Entries to revenues accounts such as Service Revenues are usually

credit

Liability accounts will normally have __________ balances.

credit

What will usually cause the liability account Accounts Payable to increase?

credit

When a company pays a bill, the account Cash will be

credit

Which term is associated with "right" or "right-side"?

credit

A __________ amount will appear on the left side of a T-account.

debit

Entries to expenses such as Rent Expense are usually

debit

What will usually cause an asset account to increase?

debit

When cash is received, the account Cash will be

debit

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

income statement

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

liabilities

Asset, __________, and stockholders' equity accounts are known as balance sheet accounts.

liability

Revenues minus expenses equals __________.

net income

The difference between the balance in a company's cash account and its bank statement is documented in the __________ of the bank statement.

reconciliation

A __________ entry typically removes an accrual-type adjusting entry that had been recorded in the preceding accounting period.

reversing

Assets minus liabilities equals __________.

stockholders' equity or owner's equity (net assets if a nonprofit)

A listing of the balances in the accounts in order to determine whether debits are equal to credits is a __________ balance.

trial

Accounting entries involve a minimum of how many accounts?

two