ACCOUNTING ENTRANCE EXAM - Accounting Basics

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

Assets

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the A. Balance Sheet B. Income Statement C. Statement Of Cash Flows

Balance Sheet

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

Chart of Accounts

Assets are usually reported on the balance sheet at which amount? A. Cost B. Current Market Value C. Expected Selling Price

Cost

What will usually cause the liability account Accounts Payable to increase? A. Debit B. Credit

Credit

Which term is associated with "right" or "right-side"? A. Debit B. Credit

Credit

When a company pays a bill, the account Cash will be A. Debited B. Credited

Credited

Entries to revenues accounts such as Service Revenues are usually A. Debits B. Credits

Credits

What will usually cause an asset account to increase? A. Debit B. Credit

Debit

Which term is associated with "left" or "left-side"? A.Debit B. Credit

Debit

When cash is received, the account Cash will be A. Debited B. Credited

Debited

Entries to expenses such as Rent Expense are usually A. Debits B. Credits

Debits

Under the accrual basis of accounting, expenses are reported in the accounting period when the A. Cash Is Paid B. Expense Matches The Revenues Or Is Used Up

Expense Matches The Revenues Or Is Used Up

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

Income Statement

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

Liabilities

Unearned Revenues is what type of account? A. Asset B. Liability C. Stockholders' (Owner's) Equity

Liability

Revenues minus expenses equals __________.

Net Income

Liabilities often have the word __________ in their account title.

Payable

Under the accrual basis of accounting, revenues are reported in the accounting period when the A. Cash Is Received B. Service Or Goods Have Been Delivered

Service Or Goods Have Been Delivered

Assets minus liabilities equals __________.

Stockholders Equity

Accounting entries involve a minimum of how many accounts? A. One B. Two C. Three

Two