QuickBooks Bookkeeping

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Aruna is a partner in her sister Yasmine's company, 'Simply Saffron,' a traditional Indian cuisine restaurant known for its open tandoor kitchen and Vindaloo. Aruna and Yasmine have decided to make sure they are equally invested and share the day-to-day running of the restaurant. They have also decided not to pay themselves by guaranteed payments, but will instead use a different option. Which of the following is the other option available to them as ownership partners? A) They can't pay themselves as business owners unless the business makes profits. B) They can use an owner's draw as needed, but cannot draw more than their initial investment until the end of the year profits are known. C) Pay themselves a salary, that way it's a predictable amount and can be accounted for under employee wages. D) Pay themselves hourly wages instead, making sure they don't have any overtime.

Debit

Assets have a normal _________ balance. Debit Credit

At the end of a fiscal year, Winston's Seafood had draws totaling $8,000. What is the first step in closing the draw account for this fiscal period? A) Crediting $8,000 to the Owner Withdrawals account. B) Crediting $8,000 the Owner Capital account. C) Deducting $8000 from the Owner Equity account.

Yes

Aubergine's Antiques took out a capital lease for a moving van to transport heavier antiques. Will they be able to depreciate this equipment? Yes No

An Accrual

Becky provided a service to a customer, and they have yet to pay. Which type of journal entry would need to be made? A Tax Adjustment A Missing Transaction An Accrual A Deferral

Big Boss Building Company purchased some construction equipment to keep up with demand. The new bookkeeper booked this as an expense. Is this correct? Yes No

Bill is so excited about opening up his BBQ joint, "Sop 'n Mop Rib Shack". He only has a few things left to do before opening day. One task is to sign the lease for his 3 BBQ Smokers that just arrived. He is leasing them from the best BBQ Smoker supplier in town, Smokey's Pit Boss. The lease is a capital lease with a term of 6 years with 10% interest. Since Bill's lease is a capital Lease, all of the following are true except: A) All risks and benefits are transferred to Bill. B) Bill can claim the smokers as an asset, as well as account for depreciation of this asset on his balance sheet. C) The smokers are considered a liability under accounts payable, since Bill is paying for them over time. D) Bill is responsible for the insurance, maintenance, and taxes of the smokers.

Bill is so excited about opening up his BBQ joint, "Sop 'n Mop Rib Shack". He only has a few things left to do before opening day. One task is to sign the lease for his 3 BBQ Smokers that just arrived. He is leasing them from the best BBQ Smoker supplier in town, Smokey's Pit Boss. The lease is a capital lease with a term of 6 years with 10% interest. Since Bill's lease is a capital lease, this means at the end of the 6 years he _______________________. A) Has to sign another lease with new terms, accounting for the depreciation of the smokers, in order to continue using the equipment. B) Is able to upgrade the smoker's, since they are now of little value, and continue with a new lease on new equipment. C) Own the equipment himself. D) Has to negotiate a buy-out for the remaining balance owed to own the smokers.

Periodic

Body and Swole check their inventory at the end of every month as part of their management system. This kind of management system is called: Perpetual Periodic Proactive Episodic

5,000

Body and Swole purchased $25,000 worth of equipment to open its doors. The expected life of their equipment is 5 years. What would they report as their equipment's annual depreciation at the end of the year? (Format your answer as $x,xxx)

Entity Assumption

Caren Cosmos is the world's most popular soft rock folk singer. She sold t-shirts online last year and made $7,000. The money from these sales went directly into her personal banking account which she used for her personal needs. Which key accounting assumption did Caren ignore? Periodicity Assumption Entity Assumption Going Concern Assumption Accrual Basis Assumption

Cecilia Tubular sells 1980s themed enamel pins. She has a huge inventory she purchased in 1984 at $0.10 each. They are now worth $1 each. According to the Monetary Unit Assumption, you: A) Split the difference and record the value at $0.45 each B) Keep the value of the pins at $0.10 each. C) Update her financials to show the increased value of the pins to $1 each

Dale wants to take out a mortgage to purchase a commercial space to expand his business: "Tailor Swift - Quick Alterations and Embroidery Services". He has found a property, prepared his business proposal, and is going to meet with the bank. He has been working out of his home for years and already has a good client base, lots of equipment, and inventory valued at $50,000 to get his business off the ground in a formal space. If granted a $100,000 mortgage, how would the accounting equation look to keep his books balanced? A) $100k increase in liabilities + $0 no change in equity = $100k increase in assets B) $100k decrease in liabilities + $50k increase in equity = $50K in assets C) $100k no change in assets + $50k in equity = $150k increase in liabilities D) $100k decrease in liabilities - $0 no change in equity = $100k increase in assets

Deferred Revenues is an account that is found in: A) Noncurrent Liabilities B) Current Liabilities C) Current Assets D) Noncurrent Assets

For Simply Saffron, food sales are subject to one sales tax rate, alcohol a different sales tax rate, and their branded merchandise a third sales tax rate. In addition to confirming rates and categories with their accountant, which QuickBooks Online tool can they use to accurately track their sales tax liability? A) Chart of Accounts B) Sales Tax Center C) Payroll Tax Center D) Sales Tax Invoice

For a capital lease, you must include the following journal entries except: A) One entry to record the monthly payment B) One entry to record the initial payment C) One entry to record the interest alone D) One entry to record the lease

Business Bank Account

Francis enters a $100 check received from a customer into QuickBooks online. If she views the Transaction Journal, which account would show as being debited $100? Revenue Expenses Business bank account Accounts receivable

17,049.15

Gavin is the owner of 'Single Track', a mountain and dirt biking park. He has decided to try and get more riders in the winter snow season and has purchased 10 fat-tire bikes. He paid $14,345 for the bikes themselves, 7% sales tax, $1,200 delivery fee, and $500 delivery insurance coverage. When setting up his fixed asset account for these new rental bikes, what is Gavin's original cost? (Format your answer as $xx,xxx.xx)

Gene's Gummy Shoppe purchased supplies from a vendor on credit and will pay the invoice at a later date when it is due. What is the effect on the accounting equation? A) Assets would decrease. Liabilities would increase. Equity would increase. B) Assets would increase. Liabilities would decrease. There would be no effect on Equity. C) Assets would increase. Liabilities would decrease. Equity would decrease. D) Assets would increase. Liabilities would increase. There is no effect on Equity.

Greenwald's Groceries took a loan for $20,000 to cover a new deli slicer. The effect of this transaction on the accounting equation will be: A) Assets and Liabilities increase by $20,000 B) Assets and liabilities decrease by $20,000 C) Assets and Equity increase D) Assets and liabilities decrease depending on how much the current assets are

Gross Profit Margin shows the percentage of revenue that: A) How much profit a company makes on a dollar after paying for expenses and overhead B) Exceeds the cost of goods sold (COGS) C) The percentage of profit a company produces from its total revenue

Harry's Handsome Cuts, a barber, hired Candy's Consultants, a consulting firm, to do consulting work. Candy's Consultants has billed Harry's Handsome Cuts $5,000, which will be due in August. What is the effect on the accounting equation? A) Assets would decrease. Liabilities would increase. Equity will increase. B) No change to Assets, Liabilities would increase, Equity would decrease. C) No change to Assets, Liabilities would decrease, Equity would increase. D) Assets would increase, no change to Liabilities, Equity would decrease.

How is the accounting equation useful for detecting entry or calculation errors? A) It always reveals missing journal entries. B) It always reveals if a payment is applied to the wrong invoice. C) It never allows debits to be recorded as assets. D) An unbalanced equation can tip you off that an error exists somewhere.

Long-term assets

How would you categorize $3,500 worth of computer equipment that the business will use as part of its operations? Current assets Long-term assets Equity

If All Pumped Up Bounce House Rentals total liabilities decreased by $75,000, and the owner's equity increased by $15,000 over a certain period of time. The total assets must change by what amount and direction during the same period? A) $60,000 decrease B) $60,000 increase C) $75,000 decrease D) $90,000 increase

If Amy's Aroma's operating expenses in 2020 were $45,000, and in 2019 they were $37,000, what would the percent change be? A) 0.21% B) 112% C) -21% D) 21%

If I use the balance sheet approach for reconciling the books each month, all of the following accounts would be reconciled except: A) Accounts Payable B) Bank Statement C) Cash D) Inventory

Liability

If Lou opened a line of credit at the tractor supply store and used it to purchase $600 in inventory, how would you categorize the $600 borrowed from the store? Equity Liability Asset

If Lou's purchase increased liabilities by $600, what would also need to happen for the accounting equation to be in balance? A) Add $600 to assets B) Subtract $600 from assets C) Add $600 to equity

If PP&E is miscalculated or entered incorrectly, it mostly impacts: A) Potential investor perception B) Balance sheet C) Analysis of fixed asset spending D) All of the above

If a business is using the Consistency Principle they will: A) Ignore an accounting standard if the impact has such a small effect on financial statements that it would not be misleading. B) Adopt a specific accounting method and will enter all similar items in the exact same way in the future. C) Treat the business as a separate entity, so the activities of a business must be kept separate from any other financial activities of its business owners.

161,500

"Leaps and Bounds" is a seller and installer of funky playground equipment. At the beginning of 2019, they had a total of $105,000 of inventory (mostly tire swings, jungle gyms, and suspension bridges). During the year they purchased $60,000 worth of additional inventory (towers and zip lines). At the end of the year, they had a $3,500 inventory balance. What was their cost of goods sold?

If a company decides to split a loan or note payable on their balance sheet, which of the following would go as a line item in current liabilities? A) The total amount due on the long-term obligation in the next month. B) The total amount due on the long-term obligation in the next 6 months. C) The total amount due on the long term obligation in the next 8 months. D) The total amount due on the long term obligation in the next 12 months.

If a company has $30,000 debt and $60,000 equity, what is its debt to equity ratio? 2.0 0.2 0.5 5.0

Promissory Note

If a vendor has not paid a business for services or goods rendered, and the two parties come to an agreement regarding terms to recover the unpaid balance (including time frame and interest). That agreement is called a ___________________. Promissory Note Notes Receivable Notes Payable Contra-Account

If an asset has a salvage value of $300, that means: A) It could be sold for $300 at the end of its useful life. B) Its book value is $300. C) It was purchased for $300. D) Its accumulated depreciation is $300.

B, C

If an employee was classified as exempt under FLSA (Fair Labor Standards Act), what would be different about this time card? Select all that apply. A) They would have been paid overtime on Sunday, because they worked the weekend. B) They would not have any overtime pay. C) They would be paid a flat weekly rate.

If an inventory error overstates the beginning inventory, which of the following is true? A) The cost of goods sold will be understated and the net income will be overstated. B) The cost of goods sold will be overstated and the net income will be overstated. C) The cost of goods sold will be understated and the net income will be understated. D) The cost of goods sold will be overstated and the net income will be understated.

If operating expenses in 2020 (recent year) were $55,000 and in 2019 (older year) they were $36,000, what would the percent change be? Hint: remember the formula: (($recent year - $older year) / $older year) x 100 = 𝚫% (enter your answer as a whole number without punctuation)

If you collect cash for a $500 sale, what accounts increase by $500? A) Assets and equity B) Equity and liabilities C) Liabilities and expenses D) Expenses and equity

If you wanted to view how much a company owes and if payments are overdue, which report group would you run? A) Company and Financial B) Jobs, Time, and Mileage C) Vendors and Payables D) Customers and Receivables

A, B, D

If your account balances don't match at the end of the month, which of the following steps should you take to find the error? Select all that apply. A) Go line by line comparing ledger entries with the external account statement B) Check the balance difference and cross-reference for missing transactions of that amount C)Don't worry about it. Books have a way of balancing out over time D)Check for transposition errors (number amounts being flip flopped)

Lessee

In a lease agreement, the party that is paying rent is referred to as the: Lessor Lessee Renter

Promissory Note

In bookkeeping, a signed agreement between two parties, used to document money owed, interest, and payment timeframe is known as what? Promissory Note Bad Debt Notes Receivable General Ledger

Current

In prepaid expense accounting, these expenses are ________ assets. Current Non-current

In the case of a company's deferred revenues, which occurs first? A) Receiving The Money From The Customer B) Earning the revenues

It depends

In the same state, shoes, bananas, and a haircut would all be subject to the same sales tax rate. It depends False True

Other accrued liabilities

Inventory errors will affect all of the following except: The following month's books Income Statement Other accrued liabilities Balance Sheet

If a customer or vendor buys something on credit, but hasn't made a payment in over 30 days, which receivable account should be used? A) "Doubtful" Receivable B) Accounts Receivable C) Accounts Uncollectible D) "Aging" Receivable

Periodic System

In order to better keep track of their inventory levels, "Leaps and Bounds" has also just switched from an inventory monitoring system that updates every quarter, to one that updates every week. This kind of system is called ________? Perpetual System Pervasive System Proposed System Periodic System

Jason's Medicinal Juniper Farm recently leased a stump drilling machine for 12 months on an operating lease. Will he be able to account for disposition of this equipment at the end of the lease? Yes No

equity

A Balance Sheet has four parts: a heading, assets, liabilities, and ______. gross profit total owner/company name equity

August

A client owns a small vinyl sign printing company called Printing Pros. They completed a print job for a customer on August 10, but the customer did not pay for the service until October 15. In which month should the revenue be recognized for this big print job? September October End of the year. August

A company is considered a Going Concern when it: A) Is providing proof of expenditures for financial statements. B) Is stable, able to operate and able to meet its financial obligations. C) Is losing money and access to credit.

A company's obligations that will come due within one year are known as what? A) Liabilities B) Current Liabilities C) Non-current Liabilities D) Notes Payable

A company's obligations that won't come due within one year are known as ________. A) Liabilities B) Current Liabilities C) Non-current Liabilities D) Notes Payable

Intangible Asset

A copyright is an example of what type of asset? Tangible asset Long term asset Intangible asset Current asset

A customer purchases a pair of leopard spot fuzzy dice for $30 and the purchase is subject to 8% tax. What's the total amount Crankshaft Customs should collect from the customer? A) $30.80 B) $38.00 C) $32.40 D) $32.08

A capital lease

A kind of lease in which ownership of the asset is intended at the end of the lease is called: An operating lease A capital lease A transfer lease An equipment lease

Operating Lease

A lease in which the transfer of ownership is not intended at the end of the lease life is called _________. Equipment Lease Operating Lease Capital Lease Transfer Lease

lien

A legal claim on an asset used as collateral in satisfying a debt is called a: Collateral Asset Held Asset Lien Secured Asset

A line item on the Statement of Cash Flows shows a loan amount of -$2,000. What does this mean? A) The company is paying off a loan for the amount of $2,000. B) The company is receiving a loan for the amount of $2,000.

A line item on the Statement of Cash Flows shows a loan amount of -$4,000. What does this mean? A) The company is receiving a loan amount of $4,000 B) The company is paying off a loan amount of $4,000

A loan in which the borrower has pledged some asset as collateral is known as a(n): A) Mortgage Loan B) Secured Loan C) Unsecured Loan D) Working Capital Loan

Working Capital Loan

A loan used to finance a company's daily operations is called a(n): Working Capital Loan Commercial Line of Credit Unsecured Loan Secured Loan

Accounts payable

A sales manager purchases office supplies with the company credit card. This transaction impacts the accounts payable and the office supplies accounts. In your journal entry, which account do you credit? Accounts payable Office supplies account

A salesperson makes a 5% commission on every sale they make in the month of January, but their commission isn't paid until February. This means that if they sell $100 worth of products in January, the company will pay them $5 in February. When will the commission be recorded on the books? A) January B) February

According to the Cash-Basis accounting method, when would a business recognize its expenses? A) When the expense is paid out B) When the expense is incurred C) When the business actually receives the bill in the mail

According to the Revenue Recognition Principle, when should a business recognize its revenue? A) When payment is received from a customer. B) When it is earned. C) Whenever the reporting period ends.

An asset

Accountants consider prepaid rent ______________ on your financial statements. A liability An asset

Adé just purchased $75 worth of new staplers for her Honey Helpers Bees business. She wants to book this as a noncurrent asset. Is that the correct way to book it? Yes No

All of the following are examples of employee deductions when calculating net pay except: A) FICA B) Health Insurance C) FUTA D) Garnishments

All of the following factors can impact sales tax liability except: A) If you have e-commerce sales B) Where your business is located C) The type of software you use to track your tax D) The type of product or service you are selling

Error

An account with a balance other than what is expected or normal may indicate a(n) __________. Error Embezzlement Deferred Revenue Deferred Tax

Accrual Accounting

An accounting method in which revenues are reported when they are earned and expenses are reported when they are incurred is called: Cash-Basis Accounting Accrual Accounting Hybrid Accounting

An employee earns a bonus of $10,000 in 2019 based on their performance in the workplace. The bonus isn't paid out to them until 2020. When will the bonus be recorded on the income statement? A) 2019 B) 2020

Jose is expanding his painting business and wants to hire additional contractors to help out. He knows these employees are not actually considered employees but are non-employees. As non-employees, Jose knows the following are true except: A) He will expect an invoice from his contractors for hours worked and pay owed B) He will not have to pay overtime as time and a half, but will pay the regular rate regardless of hours C) He will use a form W-9 for hiring instead of a W4. D) He will have to withhold FICA taxes and submit those with regular employee withholdings

Intangible

Katie runs an ice cream shop called "Cream and Cone," and has made her mark by selling flavored sugar cones to enhance her customers' enjoyment of all the unique flavors of ice cream. She notices that her Maple-Bacon sugar cone is a hot item, especially when paired with a scoop of Bourbon-Butter Pecan. She has decided to trademark this signature cone and use it as her brand's star item. She's calling it her 'Maple-Bacon Bourbon Blast'. Her new trademark is considered what kind of asset? Current Non-current Intangible Tangible

Land improvements would be found on which of the following documents? A) Shareholder's Equity B) Balance Sheet C) Income Statement D) Statement of Cash Flows

7,142.86

Larry Smith purchased equipment for $50,000 on January 1, 2020. Its useful life will be 7 years. What will his yearly Depreciation Expense be assuming straight-line depreciation? (Format your answer as $x,xxx.xx)

Credit

Liabilities have a normal ________________ balance. Debit Credit

Long-term Debt Securities issued by the company are called: A) Guaranteed Payments B) Bonds Payable C) Owner's Draw D) Common Stock

Long-term debt securities issued by the company are called: A) Deferred Revenue B) Notes Payable C) Common Stock D) Bonds Payable

Moe's Fro Yo makes a payment on a long-term note. What is the effect on the accounting equation? A) Assets would decrease. Liabilities would decrease. There would be no effect on Equity. B) Assets would increase. Liabilities would decrease. There would be no effect on Equity. C) No effect on Assets. Liabilities would increase. The Equity would decrease. D) There would be no effect on Assets. Liabilities would increase, and equity would increase.

Net profit margin shows the percentage of: A) Profit a company makes on a dollar after paying for expenses and overhead B) Revenue that exceeds the cost of goods sold (COGS) C) Profit a company produces from its total revenue

Asset

Notes Receivable is money that is owed to that company and is therefore classified as ______? Liability Equity Asset

Now, Seymore has used and paid off the $2,000 line of credit he owed to "Akon Aquatics Custom Tank Supplies". This journal entry should: A) Debit financial inputs for $1,500 and credit share equity for $2,000. B) Debit accounts payable for $2,000 and credit cash for $2,000. C) Debit notes and loans payable for $2,000 and credit investments for $2,000.

2,000

On January 1, 2020, Marcy acquired a small bass boat for $10,000 to use as a business expansion for her fishing shop, "Bass and Brim". Her goal is to offer charters for tourists and new anglers. The boat's useful life is expected to be 10 years, and the salvage value is expected to be $0. After 4 years of use, it was determined that the boat would be useful for only three more years, meaning that the total useful life of the boat will be 7 years instead of 10. Marcy uses the straight-line method of depreciation. Based on this information what amount should Marcy list as the Depreciation Expense for 2025? (Format your answer as $x,xxx)

Liabilities

On a balance sheet, which of the following is not affected by an inventory error? Assets Liabilities Equity

Long-term Liability

On the balance sheet, a note payable will appear as a(n): Long-term Liability Equity Current Liability Asset

On the balance sheet, if your client splits their loan into long-term liabilities and current liabilities, which of the following would be the value that would be placed in the current liability section? A) The total amount due on the loan over the next twelve months B) The total amount due on the loan over the next month C) The total amount due to interest over the next twelve months D) The total amount due on the loan over the next six months

Owner's equity is calculated by: A) Adding up all of the business liabilities and deducting all of its assets. B) Adding up all of the business assets and deducting all of its liabilities. C) Subtracting all of the business assets from its liabilities.

Non-current Assets

PP&E are considered which of the following: Non-current Assets Current Assets Inventory Liabilities

5,250

Please use FIFO inventory method. Emily is the owner and operator of "Wine Not", a wine shop for those who like to try wines from lesser-known vintners. She has grown in popularity with her weekly "Wine-down Wednesdays" tastings and inventory is a consistent worry for her. As Emily's bookkeeper, you have to ensure that her inventory levels are accurately accounted for at the beginning and end of each month. In March, she ended with a total of 350 bottles with a cost of $15.00 each. In April, she ordered a total of 150 bottles with a cost of $17.00 each. During the month of April, she sold a total of 225 bottles. What is the opening inventory value for April?

2,550

4,425

3,375

7,800

April

Printing Pros had another big job to do in April and needed to hire additional help to make their deadline. The new employee received their first paycheck at the beginning of May. When should Printing Pros recognize the expense of paying their employee? April May

Question 2 Your company had a beginning cash balance of $10,000 in October. You sold $5,500 in services for cash and $4,000 to be invoiced. What is your company's cash balance at the end of October? A) $15,500 B) $19,500 C) $14.000

Question 6 Which of the following statements would best describe the Matching Principle? A) Expenses should be recognized when they are paid, regardless of when revenue is generated. B) The manufacturing cost, or cost of goods sold, is recognized once the manufacturing process is complete. C) Expenses like manufacturing costs or depreciation should be recognized in the same period as the revenue it helped generate.

The Periodicity Assumption

Question 7 Which accounting assumption allows bookkeepers to break a company's financial life into smaller chunks of time? Accrual Basis Assumption Going Concern Assumption Entity Assumption The Periodicity Assumption

credit, debit

Rent for Eternal Summer is $1,200/month, but if it is prepaid, rent is only $12,000 for the year. What happens on Feb 1? 1/12 ($1,000) of the $12,000 Prepaid rent has been "used up" or realized as an expense during January. So we need to _____ Prepaid rent (asset account) and _____ Rental expense (expense account)

Rent for Eternal Summer is $1,200/month, but if it is prepaid, rent is only $12,000 for the year. Eternal Summer pays $12,000 on January 1. If we create a Balance Sheet for Eternal Summer on April 30, which of these would appear on the statement? A) Rental Expense $1,000 B) Prepaid Rent $8,000

Rent for Eternal Summer is $1,200/month, but if it is prepaid, rent is only $12,000 for the year. Eternal Summer pays $12,000 on January 1. If we run a Profit & Loss (or Income Statement) for Eternal Summer at the end of April, which of these would appear on the statement? A) Rental Expense $1,000. B) Prepaid rent $8,000.

Rent for Eternal Summer is $1,200/month, but if it is prepaid, rent is only $12,000 for the year. If Eternal Summer pays $12,000 on January 1, how would you book this transaction? A) Debit Cash for $12,000 and Credit Prepaid rent for $12,000. B) Debit Prepaid rent for $12,000 and Credit Cash rent for $12,000.

Rent for Eternal Summer is $1,200/month, but if it is prepaid, rent is only $12,000 for the year. If Eternal Summer pays $12,000 on January 1, what would the balance in the Prepaid rent account be on May 1? A) $11,000 B) $10,000 C) $9,000 D) $8,000

Posting to the ledger

Reorganizing journal entries and grouping them by account is known as: File maintenance Balancing the journal Posting to the ledger

Equipment

Roger owns a food delivery service that uses couriers on electric skateboards to deliver locally in the business district. His skateboards which are valued at $2,700 are considered which of the following? Equipment Bad Debt Long-term asset Current asset

Sal takes out a vendor line of credit of $3,000 for some upgrades to his store. He will then debit his line of credit under ______ for $3,000 and credit his ______ for the same amount. A) Accounts Receivable; Equity B) Accounts Payable; Cash Account C) Cash Account; Accounts Receivable D) Cash Account; Accounts Payable

Sales Tax and Payroll Tax are both considered _______________ and found on the ______________. A) Assets, Income Statement B) Investments, Balance Sheet C) Deferred Revenue, Statement of Cash flows D) Liabilities, Balance Sheet

4,437.50

Sanjay has a food truck, "Pakora", that specializes in his culture's cuisine. He is leasing the truck through a capital lease. His original cost was $35,500 and the expected useful life of this vehicle is 8 years. What is Sanjay's annual depreciation on his food truck? (Format your answer as $x,xxx.xx)

31,062.50

Sanjay has a food truck, "Pakora", that specializes in his culture's cuisine. He is leasing the truck through a capital lease. His original cost was $35,500 and the expected useful life of this vehicle is 8 years. Calculate his annual depreciation. What would the book value be of Sanjay's food truck after 1 year? (Format your answer as $xx,xxx.xx)

.79

Sarah is the owner of "Pish-Posh," a bath shoppe with specialty candles, soaps, and bath bombs. She has decided to utilize the average costing method to calculate her raw inventory value. Looking at the ingredient list below and using the average costing formula, what would be the average cost per ounce to make her bath bombs? 4 oz cornstarch $1.05 4 oz citric acid $2.35 4 oz Epsom salt $2.15 8 oz baking soda $1.85 1 oz Mica powder $3.25 1 oz essential oil $4.45 1 oz coconut oil $3.15

340.80

1,844.58

1,503.78

School's back in session and Stan at 'The Bizzy Bee' has sold 85 of his Fidget Bands this week alone, and at the end of September, he had sold 142 total. He purchased 500 of them in August at $1,200 including shipping, and he is selling them for $12.99 each. What is the gross profit on Stan's income statement for the sale of those 142 Fidget Bands? Remember Revenue - COGS = Gross Profit

1,200

School's back in session and Stan at 'The Bizzy Bee' has sold 85 of his Fidget Bands this week alone, and at the end of September, he had sold 142 total. He purchased 500 of them in August at $1,200 including shipping, and he is selling them for $12.99 each. What is the purchase cost (or inventory value cost) for those 500 units before any sales? (Format your answer as $x,xxx)

School's back in session and Stan at 'The Bizzy Bee' has sold 85 of his Fidget Bands this week alone, and at the end of September, he had sold 142 total. He purchased 500 of them in August at $1,200 including shipping, and he is selling them for $12.99 each. Where would Stan record the 85 Fidget Bands he sold this week? A) As a credit on his journal under the cost of goods sold expense account. B) As a credit on his journal under the cost of goods sold income account. C) There is not enough information to answer this question. D) He needs to record the total sale on both the income statement and balance sheet as revenue.

B, C, D

Select all of the current assets: A) Massage table B) Cash C) Accounts Receivable D) Bottles of Everlasting Summer massage oil for resale

A, D

Select all of the non-current assets: A) Product patent B) Office space rental C) Cost of Goods Sold D) Two acres of land owned for a future office site

Seymore Fish of "Seymore's Sea Store" purchased the glass and special paneling needed to rebuild his fish tanks for $2,000 from "Akon Aquatics Custom Tank Supplies". Should he: A) Record the purchase after the full amount of the line of credit from Akon B) Record the purchases as soon as the bill arrives, even though the payments have not yet been made to Akon Aquatics Custom Tank Supplies. C) Record the purchases after the bill arrives and payment to Akon Aquatics

Seymore Fish takes out vendor credit of $5500 with "Akon Aquatics Custom Tank Supplies" to replace his custom-made fish tanks for "Seymore's Sea Store" where he sells pet fish and small sea creatures. Seymore would credit his line of credit under _______ for $5,500 and debit his _____ for $_______? A) Long-term debt - Liabilities; $5,500 B) Accounts payable - Cash; $5,500 C) Current assets - Cash and cash equivalents; $4,000

Short-term Investments is an account that is found in: A) Current Assets B) Noncurrent Liabilities C) Current Liabilities D) Noncurrent Assets

An asset account

Short-term Investments would be an example of what kind of account? An asset account. A liability account

Sophia does a guest lecture on small business marketing at the Conference of Marketing to Scale. She invoiced the organizers for $200 and their check just arrived in the mail. To record the payment, which path would you select in QuickBooks Online? A) New > Receive payments B) New > Pay bills C) New > Sales receipt D) New > Invoice

A, B, C

Suppose one of your bookkeeping clients has stated they prefer to have a conversation around their financial statements, not simply receive an email. What communication channels might you use? (select all that apply) A) Web-conference B) Phone calls C) Text message D) Face-to-face meetings

Suzanne owns a clothing store in a small beach town called 'Sunny Side Threads'. She wants to expand her brand's influence by using a van she can hang clothes and accessories in for traveling to events along the coast during summer. If Suzanne were to purchase a $45,000 van with a bank loan, paying $12,000 down, at 6.99% over 72 months, where would the loan itself go on the balance sheet? A) Liabilities, under short-term B) Assets, under PP&E C) Liabilities, under long-term D) Equity, under investments

Current Liabilities

Suzanne owns a clothing store in a small beach town right along the boardwalk called 'Sunny Side Threads'. She wants to expand her brand's influence by using a van she can hang clothes and accessories in for traveling to events along the coast during summer. If Suzanne were to purchase a $45,000 van with a bank loan, paying $12,000 down, at 6.99% over 72 months, where would Suzanne's payments due in the current year (or the next 12 months) be recorded on the balance sheet? Long-term Liabilities Long-term Assets Current Liabilities Current Assets

Promissory Note

Suzie Santo owns "Chiquita Chihuahua", a boutique pet supplies store with customized canine offerings. She has a vendor, "Paws Free", that supplies her with high-end carrying cases for small dogs. Suzie ordered $8000 worth of cases for the upcoming travel season on credit, but didn't plan on a pandemic shutting down all travel and not to mention her business for 6 months. She contacts Ricky at "Paws Free'' to work out an arrangement to settle her account. What type of document is used for this type of agreement? Promissory note Notes Receivable Notes Payable Trial Balance

Suzie agrees to pay Ricky the $8,000 in 2 months, at 15% interest. Which of the following is the most accurate way Ricky and Suzie should record this event on each of their balance sheets? A) Ricky will add $8,000 as a Notes Payable and Suzie will add $8,000 as a Notes Receivable. B) Ricky will record the balance as a Notes Receivable and Suzie will list the $8,000 as a Notes Payable. C) Ricky will add $9,200 as a Cash deposit, and Suzie will record $9,200 as a Notes Payable. D) Ricky will record $9,200 as a Notes Receivable, Suzie will record $9,200 as a Notes Payable.

Asset

Suzie agrees to pay Ricky the $8,000 in 2 months, at 15% interest. Would Ricky's notation on the balance sheet fall under the asset or liabilities column? Liability Asset

Liability

Suzie agrees to pay Ricky the $8,000 in 2 months, at 15% interest. Would Suzie record this transaction as an asset or a liability on her balance sheet? Liability Asset

4,049.32

Suzie is ready to make her second and final payment of $4,000 plus interest to Ricky. Using the formula Principal X Interest X 30/365, what would Suzie's total second and final payment be?

Sydney is entering a transaction in QuickBooks. What are the two steps of manual accounting that will happen simultaneously as she does this? A) Entering an expense and entering revenue B) Creating a journal entry and producing a profit and loss statement C) Creating a journal entry and posting to the ledger

Suzie has agreed to pay Ricky back the outstanding balance of $8,000 over the course of 2 months at 15% interest, and have both signed the promissory note. Which of the following is the best example of how Ricky should initially record this in his General Journal? A) Accounts receivable $8,000 Notes receivable $8,000 B) Cash $8,000 Accounts receivable $8,000 C) Notes receivable $8,000 Accounts receivable $8,000 D) Notes receivable $8,000 Accounts receivable $8,000

The Economic Entity Assumption states: A) Business and personal financial activities must be separate for business owners. B) To be financially conservative when recording information that is unclear. C) Companies can only record financial transactions that can be verified.

The Net Income on the Cash Flow Statement should match the bottom line on the _________, and the Cash at end of the period should match Cash on the _________. A) Sales Report, Balance Sheet B) Balance Sheet, Profit and Loss C) Profit and Loss, Statement of Equity D) Income Statement, Balance Sheet

The Principal Balance of any long-term debt due within a year would go under which account on the Balance Sheet? A) Other receivables B) Short Term Loans Payable C) Accounts Receivable D) Current portion of Long-Term Debt

The accounting cycle starts with the: A) Preparation of ledger accounts B) Analysis of business transactions C) Preparation of a trial balance D) Preparation of adjusting entries

The accounting equation can be defined as: A) Revenue - Expenses = Income B) Assets = Liability + Equity C) Assets = Liability / Equity

assets

The accounting equation can be written as _______ = Liabilities + Equity.

The average cost is reached by dividing the total _____ of goods by the total ____ of goods over a specific accounting cycle. A) Cost; Number B) Number; Cost

The cash flow margin ratio demonstrates _________. A) how well a company converts sales to cash B) company solvency C) a company's ability to pay its short-term obligations D) how well a company produces cash from its total revenue

Liabilities

The claims against a company's assets are known as what? Equity Liabilities Notes Payable Accounts Payable

165

The computer system stopped working, and Aruna has to calculate sales tax manually. The food bill is $150, and it's subject to a 10% tax. What's the total amount she should charge the customer? (Use whole numbers and don't use a $ sign)

The end of the year holiday season is upon us and Carter is so excited about the anticipated boom of his business, "Candy Cane Lanes", a holiday-themed pop-up bowling alley. Carter has already hired seasonal help. He has several events already lined up at the end of November leading into their busiest month. He's set up his first pay period to run from Monday, November 23rd - Sunday, Dec. 6th with hourly employees paid bi-weekly by direct deposit. This means, their first paycheck won't be deposited until Wednesday, December 9th. When would Carter record the wage expense for this pay period in his books? A) He would wait until December 9th to record the wages earned. B) On December 6th, when the pay period ends. C) He would have to calculate how much of the wages were earned in November to record at the end of the month and do a similar calculation for December's wages. D) On December 7th, the day after the pay period ends.

The expected balance of a particular account type is known as ___________. A) The expected balance B) The debit balance C) The credit balance D) The normal balance

The following are aspects of the Income Statement except: A) Sales, General, and Administrative (SG&A) B) Long-term Liabilities C) Net Profit D) Gross Revenue

The following are aspects of the income statement except: A) Stakeholders Equity B) Gross Revenue C) Net Profit D) SG&A

Notes payable

The following are current liabilities except: Short-term Loans Payable Deferred Revenue Notes Payable Compensation and Benefits

The following are examples of employee-related items on a paystub, except: A) Deductions B) Gross Pay C) FUTA D) Pay Period

The following are items that should be included in a payroll policy, except: A) When employees will be paid B) How employees will be paid C) What deductions and benefits will impact pay. D) Where payroll will be submitted

Deferred Revenue

The following are non-current liabilities except: Deferred Income taxes Bonds Payable Deferred Revenue Notes Payable

The following are pros of using the Report Review Method for Reconciliation, except: A) It can be a faster process than other methods B) It can highlight problem accounts to focus on C) It can give insight into the business health and trends for certain accounts D) It provides a detailed level review

The following are reasons for running payroll reports, except: A) They help inform decision making and tracking B) You might be asked to update the business owner on the cost of payroll C) You might need to issue a report on a specific employee if there is a dispute on hours paid D) They produce financial statements that are helpful

The following are true about operating leases except: A) They record interest as an expense B) They do not record interest expense C) They reduce the value of the asset year over year D) They record the lease expense as an operating expense

The following are types of common errors except: A) Error of Law B) Error of Commission C) Error of Omission D) Error of Original Entry

The following could be payroll deductions on an employee's paystub, except: A) Garnishment B) SUTA C) FICA D) Health insurance

debit

The general journal is used to record transactions in chronological order. Each transaction requires two entries, a credit and a _____.

The goods held by a business with the intent to sell to customers to earn revenue is defined as: A) Manufacturing inventory B) Merchandising inventory C) Warehouse inventory

The inventory cost flow assumption which supposes that inventory flows through the system from oldest to newest is defined as what assumption? A) First In, First Out (FIFO) B) Last In, First Out (LIFO)

The multi-column chart listing each payment required during the loan period is called a: A) Mortgage Repayment Schedule B) Loan Defrayment Schedule C) Depreciation Schedule D) Loan Amortization Schedule

The original records that prove a specific transaction took place are referred to as: A) Original Documents B) Source Documents C) Source Records D) Original records

Equity

The owner's stake in the company is defined as: Assets Liabilities Equity

Lessor

The party who owns the asset that is being rented or leased is known as ________. Lessee Lease Lessor Capital Lease

amortization

The process of systematically repaying a loan over time is referred to as: Amortization Capitalization Indemnification Depreciation

The reconciliation process can help with the following except: A) Ensure any fraudulent activities are more easily detected B) Ensuring all transactions are accounted for C) Ensuring the business is profitable D) Ensure account balances are accurate

Materiality Principle

This assumption / principle is very subjective and should be used with caution outside of rounding to the nearest dollar when entering financial information. Materiality Principle Monetary Unit Assumption Conservatism Assumption

This ledger shows all transactions impacting the cash account this week. Calculate the balance. Cash Debits Credits 200 100 50 100 A) $150 B) $250 C) $300 D) $450

Accrual

To book Prepaid Expenses, you must be using which type of accounting method? Cash Accrual

To correct inventory errors, a bookkeeper needs to do all of the following except which of the following? (select the best answer) A) Create new financial reports pertaining to the affected periods B) Create a reverse journal entry C) Include a disclaimer explaining why new financial reports are being run D) Correct the errors by erasing the old journal entries and make sure the numbers are correct moving forward

To find the balance of the account types that increase with a debit (asset and expense accounts), bookkeepers will: A) Subtract total credits from total debits (Debits - Credits) B) Subtract total debits from total credits (Credits - Debits)

Left

To post a debit to the advertising expense ledger, we would record $100 on the ___ side. Right Left Depends on the situation

Current Liability

Tosin has a customer who has already paid him to come pressure wash their house next month. Tosin would record this payment as a _______? Current Liability Non-Current Liability

True

True or Fales: It is permissible to use a combination of the Cash-Basis and Accrual methods of accounting as long as it is applied consistently and clearly and reflects the business's income and expenses.

False

True or False. A prepaid expense such as prepaid rent or insurance is initially classified as a liability.

False

True or False. An accumulated depreciation account is considered an account with a natural credit balance, meaning the account increases with debits and decreases with credits. False True

False

True or False. The Direct Write-Off Method adheres to the matching principle because it lets businesses write off debt that is believed to be uncollectible.

False

True or False. The Direct Write-Off method of accounting for "Bad Debt" adheres to the matching principle. True False

True

True or False.: When a company takes out a loan to purchase a vehicle or equipment, the value of the vehicle or equipment should be listed on the balance sheet as an asset.

False

True or False: A capital lease will show up on the profit and loss statement.

True

True or False: A mortgage loan generally requires the real estate to serve as collateral, but commercial loans generally may or may not have an asset associated with the loan to put on the books.

False

True or False: According to the Periodicity Assumption, companies can only review their financial health at the end of their fiscal year?

True

True or False: All accounts can be reconciled.

False

True or False: An Unsecured Loan is a loan in which the borrower has pledged collateral as part of the loan agreement.

True

True or False: An advantage of using the Accrual Method of accounting is that it provides a fuller picture of the state of the business.

True

True or False: An employee's paycheck will be: Gross Wages Earned - Deductions = Net pay. This will be the amount recorded for wages payable.

False

True or False: Any money borrowed or owed by a business, regardless of the payback time frame is considered a long-term obligation.

True

True or False: As long as the items are legible and contain all of the original information, in most cases, a photocopy or digital copy of a source document is deemed acceptable.

True

True or False: Bonds Payable are long-term debt securities issued by a company that promises to pay back the principal at some specified point in the future.

False

True or False: Business owners should use the General Ledger to make business decisions.

False

True or False: Current Liabilities are only amounts we owe to suppliers (of merchandise or services) bought on credit.

True

True or False: Deferred Revenue is considered a Cash Inflow.

True

True or False: Deferred Revenues are not considered revenue until the product or service has been provided, thus they are not reported on the income statement.

False

True or False: Financial reports should be produced before any adjustments have been made.

True

True or False: For tax purposes, an operating lease is NOT considered a rental expense.

False

True or False: Funds in the Sales Tax Payable account can be treated as if they were Sales Revenue.

True

True or False: Generally, a high AP ratio indicates that you satisfy your accounts payable obligations quickly.

True

True or False: Generally, a high AP turnover ratio indicates that you satisfy your accounts payable obligations quickly.

True

True or False: Gift card purchases from "Penelope's Punky Pins" would be considered deferred revenue.

True

True or False: Horizontal Analysis Results can be listed as percentages and dollar amounts as long as one or the other is consistently used.

True

True or False: Horizontal analysis results can be listed as either percentages or dollar amounts.

False

True or False: In order to adhere to the matching principle, depreciation expense is shown on the income statement.

True

True or False: In order to complete a Statement of Equity, you will need the net profit from the Income Statement.

True

True or False: In vertical analysis, the Gross Sales or Revenue is the base amount on a P&L statement.

True

True or False: In vertical analysis, the gross sales or revenue is the base amount on a P&L statement.

True

True or False: In vertical analysis, you compare each line item in the financial statement to a percentage of the base amount.

True

True or False: In vertical analysis, you compare each line item in the financial statement to the base amount as a percentage of that base amount.

True

True or False: Land is considered a noncurrent asset.

True

True or False: Liabilities have a normal credit balance.

False

True or False: Money collected from a customer as sales tax should be booked as revenue.

False

True or False: Net pay is the result of total wages earned minus SUTA (state unemployment tax).

False

True or False: On the Statement of Cash Flows, the Cash at the beginning of the period matches the Net Profit on the P&L for that same period.

True

True or False: On the Statement of Cash Flows, the cash at the end of the period is calculated by adding the net cash increase for that period to the cash at the beginning of the period.

False

True or False: Only a tax accountant can provide tax advice, but as a bookkeeper, you can guide employees when filling out their tax withholding forms.

False

True or False: Payroll reports are for internal use only.

True

True or False: Reconciliation is the process by which a business verifies its books with external account statements or data to ensure they match and reflect accurate business dealings.

True

True or False: Some assets return value after their service life.

False

True or False: The depreciation of a vehicle is not something that can be entered as an adjustment.

True

True or False: The month-end close-out process for certain accounts is considered a type of reconciliation.

True

True or False: The more you pay out to employees in wages and salaries the less cash you'll have on hand in your assets to pay off liabilities.

False

True or False: The unadjusted trial balance should be used to create financial statements.

False

True or False: When a business opens a line of credit with a vendor they are able to use that credit anywhere as long as it's in the United States.

False

True or False: When a customer gives you an advance payment, you will decrease the deferred revenue account. As you deliver goods or services, your deferred revenue account will increase.

True

True or False: With the average costing method, we can find the average cost of making a finished good and it doesn't matter the individual costs of the raw materials.

True

True or False: Journal entries require a good understanding of debits and credits.

False

True or false. A perpetual inventory system is one that updates the inventory account at specified intervals.

True

True or false. Inventory errors will self-correct after two years (assuming no other errors occur).

False

True or false. PP&E and expenses are treated the same when it comes to taxes.

False

True or false: Depreciation expense is recorded on the balance sheet below PP&E.

True

True or false: When adding a fixed asset account in QuickBooks Online, you should check the box to track depreciation.

True

Ture or False: Your business address and services will factor into your tax frequency, tax agency, and tax rate.

False

True or False: A $25,000, five-year note for a trailer that requires a monthly payment of $1,000 should go under the asset section of the balance sheet.

False

True or false. Because of the cost principle, inventory is reported on the balance sheet at its selling price, not at what it cost to purchase the merchandise.

Operating Expense

Under an operating lease, the monthly payments are considered a(n) ____________________. Deferred Revenue Other Accrued Liability Operating Expense Other Asset

Use the balance sheet pictured to answer the following question. Balance Sheet Current assets Amount Cash $2,500 Accounts receivable $400 Inventory $400 Prepaid rent $10,000 Long-term assets Equipment $3,900 Vehicle $25,000 Accumulated depreciation -$2,500 Furniture $2,200 Computers $2,600 Total Assets $44,500 If Eternal Summer purchased $500 worth of Inventory using Cash, what would the total assets be after the transaction? A) $44,000 B) $44,500 C) $45,000

Use the balance sheet pictured to answer the following question. Balance Sheet Current assets Amount Cash $2,500 Accounts receivable $400 Inventory $400 Prepaid rent $10,000 Long-term assets Equipment $3,900 Vehicle $25,000 Accumulated depreciation -$2,500 Furniture $2,200 Computers $2,600 Total Assets $44,500 If Eternal Summer purchased $500 worth of Inventory using their supplier credit line, what would the total assets be after the transaction? A) $44,000 B) $44,500 C) $45,000

Use the balance sheet pictured to answer the following question. Balance Sheet Current assets Amount Cash $2,500 Accounts receivable $400 Inventory $400 Prepaid rent $10,000 Long-term assets Equipment $3,900 Vehicle $25,000 Accumulated depreciation -$2,500 Furniture $2,200 Computers $2,600 Total Assets $44,500 If the accumulated depreciation for Eternal Summer's mobile massage van increases to $3,000, what would the Total Assets balance be after this entry? A) $44,000 B) $44,500 C) $45,000

Using the accounting equation, if assets and liabilities both decrease by $4,000, what is the effect on owner's equity? A) No Effect B) Decreases by $8,000 C) Increases by $8,000

Using the accounting equation, if liabilities increase by $6,000 and equity reduces by $10,000, what is the change in assets? A) Decrease of $4,000 B) Increase of 4,000 C) No change

Using the accounting equation, if owner equity increases by $10,000 and liabilities decrease by $20,000, what do assets change by? A) Increase by $10,000 B) No change C) Decrease by 10,000

A, C, E

What do bookkeepers do when they don't know how to book something? Select all that apply. A) They research online. B) They ask for help from a best friend. C) They ask a fellow bookkeeper or accountant. D) They make their best guess based on the information they have. E) They ask the business owner for more clarification.

What does KPI stand for in accounting? A) Key Performance Indicator B) Key Partner Information C) Key Partner Index

What does the debt to equity ratio evaluate? A) A company's debt as a percentage of total liabilities and owner's equity amount B) What proportion of debt or equity a company is using to finance its assets C) What proportion of equity a company is using to finance its profits

What does the debt to equity ratio evaluate? A) A company's debt as a percentage of total liabilities and owner's equity amount B) What proportion of equity a company is using to finance its profits C) What proportion of debt or equity a company is using to finance its assets

What is a small or medium size business agreeing to when they buy on credit? A) They are agreeing to borrow money from a vendor and use the money to buy the vendor's inventory or service. B) They are agreeing to pay later for goods sold today. C) They are agreeing to a loan they can use anywhere.

2000

What is the change in cash? (Format your answer as $x,xxx) Statement of Cash Flows Cash Flows from Operating Activities Net Income $1,300 Accounts Receivable $400 Net Cash from Operations $1,700 Cash Flows from Financing Activities Equity Contributed $1,000 Net Cash from Financing $1,000 Cash Flows from Investing Activites Equipment Bought $-1,000 Equipment Sold $300 Net Cash from Investing $-700 Change in Cash ?? Hint: Total the net cash from each of the three activities.

The incomestatement

What is the name of the form or statement that lists the profit or loss for a company during a specific period? The balance sheet The trial balance The income statement The general journal

Liabilities

What the company owes to others is defined as: Assets Liabilities Equity

An asset

What the company owns or controls and expects to gain value from is defined as: An Asset A Liability Equity

8,000

What will the accumulated depreciation of the Float Tank be after 4 years? (Format your answer as $x,xxx) Reminder: Original price: $12,000 $2,000 annual depreciation

When Seymore makes purchases from, but still owes money to "Akon Aquatics Custom Tank Supplies" for the line of credit, he records the $2.000 of purchases in the journal entry by: A) Debiting the supplies purchased under the equity named Seymore's Stash and crediting the investment under store revenue or $2,000 B) Debiting the supplies purchased under the liability named Debt and crediting PP&E under concurrent assets for equipment for $2,000 C) Debiting the supplies purchased under the expense named New Tank Supplies for $2.000 and crediting Accounts payable for $2.000

Monetary Unit Assumption

When a bookkeeper is using the US dollar as currency in accounting and is not considering changes in the value of that currency she is employing the: Going Concern Assumption Monetary Unit Assumption Collaboration Assumption

When a customer gives you an advance payment: A) You decrease your deferred revenue account. As you deliver goods or services, your deferred revenue account will increase. B) You increase your deferred revenue account. As you deliver goods or services, your deferred revenue account will decrease. C) You increase your deferred revenue account. As you deliver goods or services, your deferred revenue account will increase too.

When a customer purchases something by cash or check, before it's deposited into the bank, which account should it be entered into? A) Petty Cash B) Undeposited Funds C) Inventory D) Accounts Receivable

B, C

When considering the service life of an asset, the estimate is based on all of the following considerations: (Select all that apply) A) The total cost of the item relative to other similar items. B) How often the item will be used. C) How long the item will last relative to other similar items. D) How complex the item is (high tech vs low tech).

A, B, C

When creating a journal entry, the following are true. Select all true statements. A) The credit and debit totals must be equal. B) You record debits on the left. C) You record credits on the right.

When creating an invoice in QuickBooks Online, which path would you choose to add a new customer? A) Save and Send > End B) Customer > Add New C) Start > New D) You don't have to add customer information

When entering a promissory note in the journal as a notes receivable, each entry for a payment received includes all of the following except: A) The interest on the original, total principal owed. B) The interest paid on principal owed (the remaining balance). C) A debit to the cash account for the principal and interest paid. D) A credit to the notes receivable account for the principal paid.

When is a high debt to equity ratio be positive for a company's financial health and share price? A) If the earnings growth that the borrowed money generates is HIGHER than the cost of borrowing it B) If the earnings growth that the borrowed money generates is LOWER than the cost of borrowing it C) If the company does not borrow any money

When raw materials are purchased, the entry is a ____ to raw materials and a _____ to accounts payable or cash. A) Credit; Debit B) Debit; Credit

B, D

When raw materials are used to create a final product, that product becomes a finished good. When that good is sold, the journal entry includes _______________ and ______________________. Select all that apply. A) Credit to cost of goods sold, Debit of inventory (finished goods) B) Debit to cost of goods sold, Credit to inventory (finished goods) C) Credit to cash/accounts receivable, Debit to sales income D) Debit to cash/accounts receivable, Credit to sales income

When setting up an account to document a line of credit in QuickBooks, you need to: A) Set up an account for the person responsible for paying the line of credit down B) Set up two separate accounts, one for the principal and an expense account for interest C) Set up an S-Corp to ensure you can accurately enter data in QuickBooks

Conservatism Assumption

When the bookkeeper or accountant has a choice between two acceptable alternatives, they should choose the one that will report less profit, less asset amount, or a greater liability amount. This is based upon which assumption/principle? Vital Asset Assumption Conservatism Assumption Full Disclosure Assumption

journal entry

When using QBO software, depreciation expense must be entered as a: Fixed asset Revenue account Journal entry Check

When would it be acceptable to use Manual Journal entries to hide or disguise certain financial transactions? A) When the owner asks you to. B) Never. C) When you need to balance the assets against the liability and equity.

When you buy raw materials, and record the purchase of those materials, this entry is a ________________ to raw materials inventory, and a ____________________ to cash or accounts payable. A) Equipment, Notes Payable B) Credit, Debit C) Notes Payable, Equipment D) Debit, Credit

Revenue account

When you record a sales receipt or invoice payment for $500, the accounting software will automatically credit the relevant __________ by $500. Revenue account Expense account Liability account None of these

Where are Short-term Investments found on the Balance Sheet? A) Noncurrent Liabilities B) Current Assets C) Noncurrent Assets D) Current Liabilities

Inventory sub-account

Where is the value of a raw material tracked? Inventory sub-account Deferred revenue Equipment Inventory general category

Where would you locate Deferred Revenues on the Balance Sheet? A) Current Liabilities B) Noncurrent Liabilities C) Current Assets D) Noncurrent Assets

Payee

Which Promissory Note component would be entered in section [ 1 ] of the statement below? I, [_1_], agree to pay [_2_] the following amount of [_3_] with interest at [_4_], by [_5_]. Principal Value Maker Payee Stated Interest Time Frame

Principal Value

Which Promissory Note component would be entered in section [ 3 ] of the statement below? I, [_1_], agree to pay [_2_] the following amount of [_3_] with interest at [_4_], by [_5_]. 1 / 1 point Maker Stated Interest Time Frame Principal Value Payee

Time frame

Which Promissory Note component would be entered in section [ 5 ] of the statement below? I, [_1_], agree to pay [_2_] the following amount of [_3_] with interest at [_4_], by [_5_]. Time frame Maker Principal Value Payee Stated Interest

Which account is missing in this journal entry for the $32.40 sale that includes $2.40 in tax? Account Debit Credit Cash $32.40 ? $2.40 Sales Revenue $30.00 A) Accounts Receivable B) Sales Tax Payable C) Sales Tax Receivable D) Inventory

Undeposited funds

Which account keeps a record of payments in QuickBooks until you physically deposit the same payments at your real-life bank? Accounts payable Accounts receivable Petty cash Undeposited funds

Which account should be credited $150 to complete this journal entry when recording a $165 sale that includes $15 sales tax? Cash $165 ??? $150 Sales tax payable $15 A) Revenue B) Accounts payable C) Sales tax receivable D) Expense

Which assets would be considered PP&E? A) Land, buildings, equipment B) Inventory, office supplies, accounts receivables C) Land, buildings, cash D) Salaries, rent, snacks

Which best defines amortization? A) The systematic process of repaying a loan over time B) The systematic process of financing the company's daily operations C) The systematic process of calculating the interest payments D) The systematic process of depreciating assets over time

Which feature of accounting software can provide information about how much sales tax is owed to each tax agency? A) Profit and Loss by Month B) Bill Payments List C) Sales Tax Liability Report D) Customer Summary Report

A, B, D

Which of the following accounts can be reconciled using the report reconciliation method? (select all that apply) A) Payroll B) Long Term Note C) Cash Account D) Accounts Payable

B, D

Which of the following are examples of PP&E? (Select all that apply) A) Cash B) Land C) PP&E. D) A company truck

A, B, C, D

Which of the following are types of source documents that might be needed to perform a vendor account reconciliation? A) Invoices B) Credit Card Statement C) Bank Statement D) Order Receipt

Which of the following best defines a Lien? A) A legal claim on an asset used as collateral in satisfying a debt B) The amount of interest that is applied to a loan, annually C) The structured process of paying both the principal and interest over a period of time D) The number of years that it will take to pay back the loan

Which of the following best defines a credit as it's used in double-entry accounting? A) An increase in liabilities/expenses and a decrease in assets/owner's equity and revenue. B) An increase in assets/owner's equity and income and a decrease in liabilities/expenses. C) A decrease in assets/expenses and an increase in liabilities/owner's equity and revenue. D) An increase in assets/expenses and a decrease in liabilities/owner's equity and revenue.

Which of the following best describes a company with the following attributes? Ownership: One person Capital Contributions: Owner's Equity Taxes: Personal taxes A) Limited Liability Company (LLC) B) Partnership C) S Corp D) Sole Proprietorship

Which of the following best describes a company with the following attributes? Ownership: Two or more partners Capital Contributions: Partner Equity Taxes: Self-employed taxes; Personal taxes A) Partnership B) Limited Liability Company (LLC) C) Sole Proprietorship D) S Corp

Which of the following best describes the Periodicity Assumption? A) Companies can assume that business activity can be broken up into smaller measurements of time. B) Companies can assume that the business activity will operate indefinitely. C) Companies can assume a value for intangible assets.

Which of the following best describes the Report Method of Reconciliation? A) The method of determining if the books are balanced by using the equation Assets = Liabilities + Equity B) The method of determining the equity that an owner or shareholder currently has within the company C) The method of comparing the amount listed on a source document to the actual ending balance listed on the balance sheet D) The method of reviewing existing transactions and source documents to confirm the amount was spent

Which of the following best describes the Transactional Method of Reconciliation? A) The method of reviewing existing transactions and source documents to confirm the amount was spent B) The method of using credits and debits to record transactions C) The method of determining the amount that can be written off for an asset over time D) The method of comparing the amount listed on a source document to the actual ending balance listed on the balance sheet

Which of the following best describes the journal entry for recording employee wages? A) A debit to wage expense and a credit to all employee deductions and cash B) A debit to cash and a credit to all employee deductions and wage expense C) A debit to all employee deductions and a credit to wage expense and cash D) Debit both wage expense and cash and credit all employee deductions

Which of the following best describes the journal entry for recording the employer's expense? A) A debit to all taxes payable and a credit to payroll tax B) A debit to both payroll tax and to all taxes payable C) A debit to payroll tax and a credit to all taxes payable D) A credit to both payroll tax and to all taxes payable

Which of the following best describes the term Owner's Draw? A) Increases in equity from profits or additional capital contributions B) Decreases in equity from owner's withdrawals. C) The opening balance of an owner's capital account D) The closing balance of the owner's capital account

Which of the following is correct? A) Total Assets = Total Liabilities + Total Equity B) Total Liabilities - Total Assets = Total Equity C) Total Assets + Total Liabilities = Total Equity D) Total Equity - Total Liabilities = Total Assets

Which of the following is not a typical task bookkeepers perform for their clients? A) Handle all accounts payable and receivable. B) Complete tax requirements. C) Reconcile bank accounts. D) Prepare financial statements.

Which of the following is not an example of a long-term liability? A) Mortgage Loan B) Vehicle Loan C) Accounts Payable D) Notes Payable

Which of the following is not considered an element of a source document? A) Date of the Transaction B) Reference Number C) Company Logo D) Description of the Transaction

Which of the following is not true of a guaranteed payment to a partner in a partnership business? A) There are no withholdings from the payment. B) They are made regardless of how the business is doing. C) They are considered employee wages. D) They must be reasonably compensated.

Which of the following is the bottom line on the P&L statement? A) Gross Revenue B) Net Revenue C) Net Profit D) Gross Profit

Which of the following is the correct accounting equation to use when determining equity? A) Assets - Liabilities = Equity B) Asset * Liabilities = Equity C) Assets + Liabilities = Equity D) Assets = Liabilities + Equity

Which of the following statements is incorrect? A) The debt-to-equity ratio analyzes the relationship between total liabilities and total equity B) The higher the debt-to-equity ratio, the more debt the company has on its balance sheet C) The higher the debt-to-equity ratio, the more profit the company has recorded D) A high debt-to-equity ratio means the company has a lot of debt in relation to equity

Which of the following statements is incorrect? A) The higher the debt-to-equity ratio, the more profit the company has recorded B) A high debt-to-equity ratio means the company has a lot of debt in relation to the equity C) The higher the debt-to-equity ratio, the more debt the company has on its balance sheet D) The debt-to-equity ratio analyzes the relationship between total liabilities and total equity

Which of the following would be the best and most professional subject line to use when you want to ensure the client reads and responds to a request? A) Action Requested: Please Review and Provide Signature B) READ THIS RIGHT NOW C) Please sign this and return it by end of business next Wednesday, or I will not be able to move forward D) Bookkeeping Update

Revenue

Which of these accounts would have a balance of $0 at the beginning of each new accounting period? Long-term loan payable Revenue Cash Accounts receivable

A, B

Which of these would be considered a current asset? (select all that apply) A) Accounts receivable B) Prepaid expenses C) Accumulated depreciation D) Vehicle

Which of these would be considered an asset? A) Taxes B) The owner's investment in the company. C) A vehicle

Which path would you select in QuickBooks Online to create a sales receipt? A) New > Invoice B) New > Receive payments C) New > Sales receipt D) New > Pay bills

Customer Name

Which piece of information is not mandatory to record a sales receipt? Items sold Payment method Customer name Cost of items purchased

Which ratio would you calculate to view a business's capacity to generate adequate income to repay interest on its debt? A) Debt to Asset Ratio B) Cash Ratio C) Coverage Ratio D) Return on Total Assets Ratio

Which section of the Statement of Cash Flow would you look to find cash flows related to inventory? A) Operating Activities B) Net Cash C) Investing Activities D) Financing Activities

Which section of the Statement of Cash Flows would you look to find cash flows related to Notes Payable? A) Financing Activities B) Operating Activities C) Investing Activities D) Net Cash

Which section of the Statement of Cash Flows would you look to find cash flows related to inventory? A) Investing Activities B) Operating Activities C) Financing Activities

Which section of the Statement of Cash Flows would you look to find cash flows related to notes payable? A) Investing Activities B) Operating Activities C) Financing Activities

Cash Inflow

Which would be considered deferred revenue? Cash Outflow Cash Inflow

Why is deferred revenue considered a liability? A) Because it is technically for goods or services still owed to customers. B) Because it is considered an expense until the payment is collected. C) Because the price of the good or service may fluctuate.

Why is deferred revenue considered a liability? A) Because the price of the good or service may fluctuate B) Because it is technically for goods or services still owed to customers C) Because it is considered an expense until the payment is collected

Inventory account

You purchased inventory from your vendor and paid cash. The accounts affected are the inventory account and the cash account. In your journal entry, which account would you debit? Inventory account Cash account

You record an owner's draw by _____ the Owner's Draw Account and _____ the Cash Account. A) debiting; debiting B) crediting; crediting C) crediting; debiting D) debiting; crediting

The Reliability Assumption

Your client Rosie Fern wants to add the cost of the trellises she built for her herbal gardening business but can't find a receipt or proof that she paid. Which assumption/principle restricts you from recording this information in financial activities? Conservatism Assumption The Reliability Assumption Economic Entity

Your client has just withdrawn $2,000 from their equity in the company. The accounts affected are the cash account and the Owner's Draw account. Which of the following is the correct steps to set up the journal entry for this transaction? A) Debit Owner's Draw $2,000 Credit Cash Account $2,000 B) Credit Cash Account $2,000 Credit Owner's Draw $2,000 C) Debit Cash Account $2,000 Credit Owner's Draw $2,000 D) Debit Owner's Draw $2,000 Debit Cash Account $2,000

Your client secured a short-term loan of $5,000. What would be the correct way to record the initial transaction in the general journal? A) Debit cash $5,000 and debit loans payable $5,000 B) Credit cash $5,000 and credit loans payable $5,000 C) Credit cash $5,000 and debit loans payable $5,000 D) Debit Cash $5,000 and credit Loans Payable $5,000

Your company had a beginning equity balance of $8,000 in November. You sold $6,000 in services for cash and $3,500 to be invoiced. What is your company's equity balance at the end of October? A) $17,500 B) $14,000 C) $11,500

A Sales Receipt

A business owner performs a service and is paid when the job is performed. The owner would then enter this transaction into accounting software as: A Credit Memo A Sales Receipt An Invoice A Bank Deposit

An Invoice

A business owner performs a service but is not paid when the job is performed. Using their accounting software, the owner would enter the transaction as: An Invoice A Sales Receipt A Credit Memo A Bank Deposit

A Credit Memo

A customer paid in advance for a service. They need to cancel the service. If the business owner wishes to apply that money towards the customer's next service, the owner would enter that transaction into their accounting software as: A Refund A Sales Receipt An Invoice A Credit Memo

A form or statement that lists the titles and balances of all ledger accounts at a given date is known as: A) Statement of retained earnings B) Trial balance C) Balance sheet D) Income statement

Chart of Accounts

A listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger is known as a: Chart of Accounts Journal Entry Financial Statement

The General Ledger

A schedule that contains all accounts needed to prepare financial statements is known as: A Journal Entry An Income Statement The General Ledger

Cash Flow Statement

A seasonal business like Lou's Landscaping can have decreased cash during off-season months. Which financial statement would show the cash inflows and outflows for a particular month? Balance Sheet Cash Flow Statement Income statement Statement of equity

As a bookkeeper, you will be primarily concerned with a business's: A) Financial Transactions B) Employee Benefits C) Marketing Strategy D) Technology Investments

Date Description Debit Credit June 10 Leaf Blower Equipment $70 Cash $70 In this example, the journal entry shows a(n) _______ in the Equipment account and a(n) ______ in the Cash account. A) decrease, increase B) increase, increase C) decrease, decrease D) increase, decrease

Date Description Debit Credit June 10 Leaf Blower Equipment $70 Cash $70 This journal entry could represent: A) Purchasing $70 worth of equipment with cash. B) Selling $70 worth of equipment for cash. C) Purchasing $70 worth of equipment on credit. D) Selling $70 worth of equipment on credit.

The left

Debits are always represented on what side of a T-chart? The left. The right.

539,000

Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm had assets of $800,000 and liabilities of $185,000. Assuming that assets decreased by $52,000 and liabilities increased by $24,000 during 2020, use the accounting equation to calculate equity at the end of 2020. (Enter your answer as a whole number. Don't use a decimal.)

520,000

Mary Smith is the owner and operator of Smith Construction. At the end of the company's accounting period, December 31, 2020, Smith Construction has assets totaling $760,000 and liabilities totaling $240,000. Use the accounting equation to calculate what Mary's Owner Equity would be as of December 31, 2020. (Enter your answer as a whole number. Don't use a decimal.)

373,000

Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the company's assets totaled $500,000 and its liabilities totaled $175,000. Assuming that over the 2020 fiscal year, assets increased by $120,000 and liabilities increased by $72,000, use the accounting equation to determine what Mike's Owner's equity will be as of December 31, 2020? (Enter your answer as a whole number. Don't use a decimal.)

Vehicle Loan

On the chart of accounts, which account would you find under liabilities? Equipment Landscaping Income Vehicle loan Paid-in capital

Pepper Consulting bought computers with credit from PYO Suppliers and entered the purchase into QuickBooks. The transaction journal for Pepper Consulting would show the following entry: A) Debit: PYO Credit Payable Credit: Computers B) Debit: Computers Credit: Sales C) Debit: Computers Credit: PYO Credit Payable D) Debit: Sales Credit: computers

A Bank Deposit

Question 15 An owner has deposited several payments they've received from customers into the business's bank account. The owner would then enter this transaction in their accounting software as: A Bank Deposit A Vendor Check Bank Feed An Invoice A Bank Feed

last

Question 15 The preparation of financial statements and closing the books is the ______ step of the accounting cycle. last third second fourth

Debit

Question 3 If you're increasing an Interest Expense account, you _____ it. Debit Credit

Rudiger has just recorded and posted his business transactions to the ledger. His next step in the accounting cycle is to _______. A) prepare the income statement B) collect all receipts and invoices C) prepare an unadjusted trial balance D) analyze transactions

The Adjusted Trial Balance

The document that shows all of the account balances after adjustments have been made is known as: The Unadjusted Trial Balance The General Journal The General Ledger The Adjusted Trial Balance

The double-entry system of bookkeeping normally results in which of the following balances in the ledger accounts? A) Debit: Assets and revenue Credit: Liabilities, equity, and expenses B) Debit: revenue, capital, and liabilities Credit: Assets and expenses C) Debit: Assets and expenses Credit: Liabilities, equity, and revenue D) Debit: Assets, expenses, and capital Credit: Liabilities and revenue

Full Disclosure Principle

This type of assumption/principle requires a business to disclose all information about the business that is important for a lender or investor to know in financial statements in the financial statement notes. Full Disclosure Principle Economic Entity Assumption Reliability Assumption Conservatism Assumption

False

True or False: It is always the bookkeeper's responsibility to identify the need for adjusting journal entries.

True

True or False: The difference between a sales receipt and an invoice is whether or not the customer pays at the time of the sale or service.

True

True or False: The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a "1" might signify that the account is an asset account, a "6" might signify an operating expense, etc.

False

True or False: The ending cash balance on the Statement of Cash Flow should not equal the cash balance reported on the Balance Sheet.

False

True or False: Journal entries should not be used during year-end adjustments.

False

True or False: Journal entries should not be used to enter depreciation.

True

True or False: Once the adjusted trial balance has been prepared, it's time to create the financial statements.

False

True or False: Your client was paid in cash for a service that they provided. They've asked you to leave it off their financial records. Since you are employed by the client, you should do what they ask.

What is the "undeposited funds" account? A) An account that allows you to pool rejected payments that your bank is not able to accept. B) A miscellaneous category for misplaced or forgotten funds. C) A temporary account that holds payments you plan to deposit later. D) A collection of bank and credit card payments that a business's customers were not able to successfully send over.

What is the first step in the accounting cycle? A) Preparing financial statements B) Making adjustments C) Posting transactions to the general ledger D) Reviewing source documents and analyzing transactions

What tasks would a bookkeeper do? A) Handle bank feeds and reconciles bank accounts, managing accounts receivable/payable, and record financial transactions B) Record financial transactions, create employee write-ups, and handle bank feeds and reconcile bank accounts C) Manage accounts receivable/payable, recording financial transactions, and implement HR policies

When would the undeposited funds feature not be necessary? A) When you have less than 3 checks to process. B) When you've already deposited the funds during the receive payment process. C) When a check is for more than $500. D) When the customer has sent you a check in the mail.

Which of the following best defines a debit as it's used in double-entry accounting? A) An increase in liabilities/expenses and a decrease in assets/owner's equity and revenue. B) A decrease in assets/expenses and an increase in liabilities/owner's equity and revenue. C) An increase in assets/expenses and a decrease in liabilities/owner's equity and revenue. D) An increase in assets/owner's equity and income and a decrease in liabilities/expenses.

The Income Statement

Which of the following financial statements provides a summary of a company's revenue and expenses over a period of time? The Statement of Equity The Balance Sheet The Income Statement The Statement of Cash Flow

The Statement of Cash Flow

Which of the following financial statements provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investments? The Statement of Equity The Statement of Cash Flow The Balance Sheet The Income Statement

The Statement of Equity

Which of the following financial statements provides you with the owner's change in capital over time? The Income Statement The Statement of Equity The Balance Sheet The Statement of Cash Flow

Statement of Cash Flow

Which of the following financial statements reports the sources and uses of cash by a business? 1 / 1 point Statement of Equity The Balance Sheet Statement of Cash Flow The Income Statement

The Balance Sheet

Which of the following financial statements shows the balances of a company's assets, equity, and liability? The Balance Sheet The Income Statement The Statement of Cash Flow The Statement of Equity

Which of the following is an ethical/social responsibility associated with Honesty? 1 / 1 point A) Avoiding any activity, both in your personal or professional life, that could bring shame to the profession and client. B) Never allowing another party to influence your findings. C) Never discussing anything related to the client outside of the job. D) Owning any mistakes and doing everything you can to fix them.

Which of the following is an ethical/social responsibility associated with Objectivity? A) Never letting any personal bias get in the way of performing your duties. B) Never using inside information regarding the client for personal gain. C) Maintaining your credentials and continuing education. D) Reporting financial data accurately and timely.

Unadjusted Trial Balance

Which of the following lists general ledger account balances at the end of a reporting period, before any adjusting entries are made? The Balance Sheet Statement of Equity Adjusted Trial Balance Unadjusted Trial Balance

The Balance Sheet

Which report includes the assets, liabilities, and owner's equity on a specific date? The Cash Flow Document The Balance Sheet The Statement of Equity The Income Statement

The Income Statement

Which report is used to calculate net income? The Income Statement The Statement of Equity The Cash Flow Document The Balance Sheet

The Cash Flow Statement

Which report provides a summary of cash movement over a specific time period? The Statement of Equity The Income Statement The Cash Flow Statement. The Balance Report

The Statement of Equity

Which report provides a summary of changes in an owner's equity? The Statement of Equity The Income Statement The Cash Flow Document The Balance Sheet

Accountant

Who should manually enter general journal entries? Owner (who is not an accountant) Accountant Bookkeeper

Balance Sheet

Zach needs to determine what his company's financial position was on March 31st of last year. Which of the following would be the best report to look at? Statement of retained earnings Balance sheet Statement of equity The general ledger

Adjusted Trial Balance

A trial balance that is prepared after taking into account all the adjusting entries is known as: Unadjusted Trial Balance Adjusted Trial Balance Cash Flow Statement

A trial balance where total debits equal total credits indicates: 1 / 1 point A) The company made a profit during the accounting period. B) One or more transactions have been incorrectly analyzed and recorded in the ledger accounts. C) The ledger is in balance.

Double-entry

A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is known as: Double-entry Single-entry Multiple-entry

A liability account

Accounts payable would be an example of what kind of account? A liability account. An asset account.

An asset account

Accounts receivable would be an example of what kind of account? A liablity account. An asset account.

Chronological order

After analysis, the business transaction is recorded in the journal in: Random order Chronological order

Making adjustments

After the Unadjusted Trial Balance is created, the process of going back and updating information is known as: Making changes Making corrections Making substitutions Making adjustments

A Vendor Check

An owner brought in a piece of equipment for servicing and paid for the repair with a check. The owner would then enter the transaction into their accounting software as: A bank deposit An invoice A Bank Feed A Vendor Check

Owner's equity account

An owner invests $1000 in the company. This transaction impacted the checking account and the owner's equity account. In your journal entry, which account do you credit? Checking account Owner's equity account

In the first month of operations, Pepper Consulting's total debit entries to the cash account amounted to $900, and the total credit entries to the cash account amounted to $600. The cash account has a: A) $300 debit balance B) $900 debit balance C) $600 credit balance D) $300 credit balance

Lou pays $100 to advertise in his local mailer and puts the charge on his Visa credit card. To record the journal entry, we will ____ the advertising expense account and _____ the Visa account. A) Credit, credit B) Debit, debit C) Debit, credit D) Credit, debit

Lou pays $100 to advertise in his local mailer and puts the charge on his Visa credit card. Which two accounts are involved in this transaction? A) Visa, Equipment B) Visa, cash C) Visa, Advertising expense D) Visa, Advertising revenue

Lou purchased his truck for $32,000. He paid $2,000 cash and took out a $30,000, 5-year loan. Select the correct journal entry below. A) Date Description Debit Credit Feb. 6 Purchase of truck Plant, Property, Equipment$32,000 Cash $2,000 Plant, Property, Equipment$32,000 Loan Payment $30,000 B) Date Description Debit Credit Feb. 6 Purchase of truck Plant, Property, Equipment $32,000 Cash $2,000 Loan Payment $30,000 C) Date Description Debit Credit Feb. 6 Purchase of truck Plant, Property, Equipment$32,000 Cash $2,000 Loan Payment $30,000

Cash account

The company pays off the credit card bill. This transaction impacts the accounts payable and the cash accounts. In your journal entry, which account do you credit? Cash account Accounts payable

QuickBooks Bookkeeping

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