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An account classification




1. What is an example of an account classification?;Supplies.;Asset.;Office equipment.;Rent Expense.;2. What is an example of an account title?;Liability.;Owners' equity.;Revenue.;Rent Expense.;3. The normal balance side of any account is also its;decrease side.;entry side.;increase side.;either side.;4. For the transaction 'paid cash for office supplies,' the accounts affected would be;Cash Debit and Office Supplies Credit.;Office Supplies Debit and Cash Debit.;Office Supplies Debit and Cash Credit.;Prepaid Insurance debit and Cash Credit.;5. How are accounts in the General Ledger numbered?;By account classification.;By where they appear in the alphabet.;By how many times they are affected each month.;By random numbering (no particular order).;6. A Balance Sheet proves that;all the transactions have been entered in the General Ledger.;the debits and credits equal in the General Ledger.;the numbering of accounts in the General Ledger is correct.;the account classifications are out of order in the General Ledger.;7. The General Ledger is a book of;expenses.;customers.;accounts.;vendors.;8. When you post items from the Journal, you;total all the Journal columns.;transfer transactions from the Journal to the General Ledger accounts.;figure the account balances.;rearrange the order of the accounts in the General Ledger.;9. In the General Ledger, how are expense accounts and liabililty accounts arranged?;Chronologically;Alphabetically within their own classification;Numerically;In no particular order;10. How are accounts in the Accounts Payable Ledger arranged?;Chronologically;Numerically;Alphabetically;By the amount they owe your business;11. To increase the balance in an account in the Accounts Payable Ledger, you;Debit the account.;Credit the account.;Make no entry in the account.;Put an entry on the decrease side of the account.;12. To decrease the balance in an account in the Accounts Payable Ledger, you;Enter a debit entry.;Enter a credit balance.;Make no entry into the account.;Make an entry on the increase side.;13. How are the customers in the Accounts Receivable Ledger arranged?;In alphabetical order.;In numerical order.;In order of how much they owe the business.;In chronological order.;14. The amount of sales tax collected on a sale is entered into an account titled;Sales.;Sales Tax Payable.;Purchases.;Cash.;15. The debit side of an Accounts Receivable account is;the decrease side.;the entry side.;the increase side.;the side payments from customers are put in.;16. How is an employee's hourly overtime rate figured?;By multiplying his regular hourly rate by 2.;By multiplying his regular hourly rate by 2 1/2.;By multiplying his regular hourly rate by 1 1/2.;By dividing his regular hourly rate by 2.;17. Who would have more federal income tax withheld from his/her paycheck?;An employee with 5 allowances.;An employee with only 1 allowance.;An employee with 6 allowances.;An employee with 3 allowances.;18. What is a mandatory deduction?;a.One the employee elects to pay.;b.Deductions which the employer elects to keep for the business.;c.Deductions that an employer is required to make by law and send in to a government agency at a later date.;d.Deductions which are given to the employee at a later date.;19.A special endorsement has what words?;a.'For Deposit Only'.;b.'Mary Jones.;c.'Pay to the Order Of.;d.'Full payment for my bill.;20.When completing a bank reconciliation statement, what do you do with outstanding checks?;a.Add them to the checkbook balance.;b.Add them to the bank balance.;c.Subtract them from the checkbook balance.;d.Subtract them from the bank balance.;21.A bank reconciliation form is prepared for what?;a.To prove your business is making money.;b.To bring your checkbook balance into agreement with the bank records.;c.To see if you have any outstanding deposits.;d.To make sure all deposited checks are endorsed properly.;22.Before any of the year-end financial work can be completed, the General Ledger must what?;a.Show how much profit the business made.;b.Show how much the owners invested in the business for the year.;c.Be in balance, i.e. the debit balances and the credit balances must agree.;d.Have all the accounts closed out.;23.What does a Schedule of Accounts Receivable show?;a.How much money is owed to your business by customer name.;b.How much money you owe your vendors.;c.How many customers you allow to charge their purchases.;d.What the business had for a profit for the year.;24.Why are numbers under the column totals in the Journal important?;a.They show which account the column total was posted to in the General Ledger.;b.They show that the debits and credits in the Journal agree.;c.They show all the posting has been completed for the entire Journal.;d.They show that the debits and the credits in the Journal are equal.;25.The purpose of the Adjustments column in the worksheet is;a. to make necessary adjustments to the Supplies, Prepaid Insurance, and Merchandise Inventory accounts; begin the new fiscal period.;c. to prove the equality of debits and credits in the General Ledger.;d. to show how much the owner has withdrawn from the business.;whether or not the business has a net income or a net loss.;26.What classifications of accounts are shown in the Balance Sheet section of a worksheet?;a.Revenue and expenses.;b.Sales and expenses.;c.Assets, liabilities, and owners' equity;d.Cash and Expenses;27.How often is a worksheet usually prepared?;a.Once a month.;b.Once a week.;c.Every six months.;d.At the end of each year.;28.What is an Income Statement prepared for?;a.To show how much money the business made or lost during the year.;b.To show how much money the owner withdrew for the year.;c.To show the total liabilities of the business.;d.To show the total assets of the business.;29.What is an Owners' Equity Statement prepared for?;a.To show the assets the business acquired during the year.;b.To show the total expenses the business had for the year.;c.To update the owners' capital account balances.;d.To show the total of the Accounts Receivable Ledger.;30.A Balance Sheet is prepared for what?;a.To update the owner's capital account.;b.To prove the accounting equation, i.e. Assets = Liabilities + Owners' Equity.;c.To show the total expenses of the business for the year.;d.To show the total amount withdrawn by the owners for personal use for the year.;31.The main purpose of adjusting entries is to;a.bring certain accounts in the general ledger up-to-date for the next fiscal period.;b.close out all accounts in the general ledger.; show what the balance is in the owner's capital account.; show how much merchandise was purchased during the year.;32.A debit entry as an adjusting entry to Merchandise Inventory would;a.decrease the balance.;b.increase the balance.; out the balance.;d.not have any affect on the account balance.;33.What are two of the four accounts in the general ledger which need to be updated with adjusting entries?;a.Prepaid insurance and office supplies.;b.Cash and Rent Expense.;c.The owner's drawing account and purchases.;d.Sales and the owner's capital account.;34.Closing entries are necessary to a business so;a.the accounts in the general ledger are updated and ready for the next fiscal period.;b.the owner can determine if the business has a net income or a net loss.;c.the owner can determine where costs can be cut.; the employees will get a raise.;35.What happens after all the closing entries have been posted to the general ledger?;a.The owner's drawing account will have a balance to be carried into the next fiscal period.;b.All the expense accounts will be closed out.;c.The Sales account balance is carried into the next fiscal period.;d.The Purchases account balance will increase.;36.At the end of the fiscal period, it is most desirable to have the capital account?;a.decrease.; out.;c.increase.; added to the drawing account balance.


Paper#26139 | Written in 18-Jul-2015

Price : $43