accounting assessment test questions

Accounting entries involve a minimum of how many accounts?

2 Because of double-entry, every transaction will affect at least two accounts.

The ___________ method (or basis) of accounting reports expenses when they are incurred (as opposed to when they are paid)

Accrual

an Assets book value is its cost minus its ________ depreciation

Accumulated

The amount of prepaid insurance that has not expired as of the end of the accounting period is reported as an__________________

Asset

the financial statement that is described ad a "snapchat" of a company's financial position is the ______________ Sheet

Balance

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

Credit

which term is associated with right or right side?

Credit

Accounts Payable is classified as a/an ___________ in the _____________.

Current liability; Balance Sheet

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

Debit

Entries to expenses such as rent expense are usually

Debits

A credit entry will cause the cash account balance to ________

Decrease

The ___________- entry system means that each transaction will effect a minimum of two accounts and that debits must equal credits

Double

Assets= Liabilities + Stockholders equity is known as the basic accounting___________

Equation

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

Expense Matches The Revenues Or Is Used Up

Black Glory Corp. has sales revenue of $150,000, sales discounts of $12,000, sales returns and allowances of $24,000, and cost of goods sold of $60,000. What would be the net sales revenue of Black Glory Corp.?

Gross Sales Revenue - Sales Discounts - Sales Returns and Allowances $150,000 - $12,000 - $24,000 = $114,000.

Unearned Revenues is reported on the balance sheet as a

Liability

What is meant by accounts receivable?

Money owed to a company by its debtors

under the accrual method, when a company purchases goods from a supplier on credit the company will credit accounts____________

Payable

Property is not reported at its current market value because of the cost______

Principle

Which of the following documents authorizes the purchase transaction?

Purchase order

under the accrual method, the account that is debited at the time of a sale on credit is accounts ________

Receivable

_________ will cause a corporations stockholders equity to increase

Revenues

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

assets

resources owned by the 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

balance sheet

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

balance sheet

Which of the following is an item of working capital?

bonds payable

A listing of the general ledger accounts that does not include the account balance 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 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?

cost

Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount?

cost

assets are equally reported on the balance sheet at which amount

cost

Entries to revenues accounts such as Service Revenues are usually

credit

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

credit

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

credit

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

credited

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

credited

Entries to revenues accounts such as service revenues are usually

credits

What will usually cause an asset account to increase?

debit

what will usually cause an asset account to increase?

debit

which term is associated with left or left side?

debit

When cash is received, the account Cash will be

debited

when cash is received, the account cash will be

debited

Entries to expenses such as Rent Expense are usually

debits

land is an asset that is not

depreciated

Under the accrual method, revenues are reported on the income statement when they are

earned

The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

economic entity

the amount of prepaid insurance that has expired in the accounting period is reported as an

expense

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

expenses matches the revenues or is used up

The general ledger accounts whose balances are closed at the end of the accounting year are the _______ statement accounts.

income

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

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

obligations ( amounts owed) are reported on the balance sheet and are referred to as

liabilities

Unearned Revenues is what type of account?

liability

unearned revenues is what type of account?

liability

Revenues minus expenses equals __________.

net income

revenues minus expenses equals

net income

The statement of cash flows reports amounts according to three activities: ____________________ financing and investing

operating

Liabilities often have the word __________ in their account title.

payable

liabilities often have the word ________ in their account title

payable

To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?

retained earnings

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

service or goods have been delivered

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

service or goods have been delivered

assets minus liabilities equals

stockholders equity or owners equity (net assets if a nonprofit)

Assets minus liabilities equals __________.

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

accounting entries involve a minimum of how many accounts?

two- because of double entry, every transaction will effect at atleast two accounts