Accounting Basic Quizzes
Deferred revenues likely involve cash amounts that have __________ been received.
Already
Accrued expenses are likely to pertain to transactions that have __________ been paid.
Not Yet
The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the
Balance Sheet
Which term is associated with "left" or "left-side"?
Debit
The bookkeeping or accounting equation is Assets = Liabilities + Owner's __________.
Equity
Under the accrual basis of accounting, expenses are reported in the accounting period when the
Expense Matches The Revenues Or Is Used Up
The basic accounting equation is Assets = Liabilities + __________.
Owner's Equity or Stockholders' Equity (if a corporation). Net assets (if a nonprofit organization).
When a sale is made on credit, the seller will debit the asset account Accounts __________.
Receivable
Large corporations should report revenues on their income statements when the __________.
Revenues Are Earned
Under the accrual basis of accounting, revenues are reported in the accounting period when the
Service Or Goods Have Been Delivered
A supplier of goods or services is known as a __________.
Vendor
The company repays the bank that had lent money to the company. assets, liabilities, owners equity
a - decrease l - decrease oe - no effect
The owner withdraws cash from the business for personal use. assets, liabilities, owners equity
a - decrease l - no effect oe - decrease
The company purchases a significant amount of supplies on credit. assets, liabilities, owners equity
a - increase l - increase oe - no effect
The company purchases land by paying half in cash and signing a note payable for the other half. assets, liabilities, owners equity
a - increase l - increase oe - no effect
The company receives cash from a bank loan. assets, liabilities, owners equity
a - increase l - increase oe - no effect
The owner contributes his/her personal truck to the business. assets, liabilities, owners equity
a - increase l - no effect oe - increase
The owner invests personal cash in the business. assets, liabilities, owners equity
a - increase l - no effect oe - increase
When a check is written, a cash account should be __________.
credited
Cash and Accounts Receivable are two examples of accounts that are reported on the classified balance sheet under the heading __________ assets.
current
Liabilities often have the word __________ in their account title.
payable
Revenue accounts will normally have __________ balances.
Credit
__________-entry bookkeeping means that every transaction will affect two or more accounts.
Double
The book of original entry is the definition of a __________.
Journal
Unearned Revenues is what type of account?
Liability
Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June. In June, Company X receives the $5,000. What is the effect on the accounting equation and which accounts are affected at Company X? assets, liabilities, owner's equity
a - increase l - no effect oe -
Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June. In May, Company X records the transaction by a debit to Accounts Receivable for $5,000 and a credit to Service Revenues for $5,000. What is the effect of this entry upon the accounting equation for Company X? assets, liabilities, owner's equity
a - increase l - no effect oe - increase
The company purchases equipment with its cash. assets, liabilities, owners equity
a - increase l - no effect oe - no effect
The two main methods of bookkeeping and accounting are 1) the cash method, and 2) the __________ method.
accrual
The listing of accounts that are available for posting transactions is the __________ of accounts.
chart
The listing of all of the accounts available for use in a company's accounting system is known as the __________.
chart of accounts
The separation of duties is part of the internal __________ for safeguarding assets.
controls
Assets are usually reported on the balance sheet at which amount?
cost
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.
cost
Entries to revenues accounts such as Service Revenues are usually
credit
Liability accounts will normally have __________ balances.
credit
What will usually cause the liability account Accounts Payable to increase?
credit
When a company pays a bill, the account Cash will be
credit
Which term is associated with "right" or "right-side"?
credit
A __________ amount will appear on the left side of a T-account.
debit
Entries to expenses such as Rent Expense are usually
debit
What will usually cause an asset account to increase?
debit
When cash is received, the account Cash will be
debit
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
income statement
Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.
liabilities
Asset, __________, and stockholders' equity accounts are known as balance sheet accounts.
liability
Revenues minus expenses equals __________.
net income
The difference between the balance in a company's cash account and its bank statement is documented in the __________ of the bank statement.
reconciliation
A __________ entry typically removes an accrual-type adjusting entry that had been recorded in the preceding accounting period.
reversing
Assets minus liabilities equals __________.
stockholders' equity or owner's equity (net assets if a nonprofit)
A listing of the balances in the accounts in order to determine whether debits are equal to credits is a __________ balance.
trial
Accounting entries involve a minimum of how many accounts?
two
