chapters 3-5 review. a business transaction affects at least how many accounts? a.one b.two c.three...
TRANSCRIPT
Chapters 3-5 Review
A business transaction affects at least how many accounts?
A. OneB. TwoC. ThreeD. Four
1
A business transaction affects at least how many accounts?
A. OneB. TwoC. ThreeD. Four
Double-entry accounting requires that the Debits equal
the Credits – must have at least two accounts, may have more –
must keep the equation in balance
1
The owner’s claims to a business’ assets are:
A. AssetsB. LiabilitiesC. Owner’s EquityD. Cash in Bank
2
The owner’s claims to a business’ assets are:
A. AssetsB. LiabilitiesC. Owner’s EquityD. Cash in Bank
2
The account Accounts Receivable is an example of:
A. An AssetB. A LiabilityC. Owner’s EquityD. None of the above
3
The account Accounts Receivable is an example of:
A. An AssetB. A LiabilityC. Owner’s EquityD. None of the above
3
All of the following account titles are assets titles except:
A. Office FurnitureB. Accounts PayableC. Cash in BankD. Equipment
4
All of the following account titles are assets titles except:
A. Office FurnitureB. Accounts PayableC. Cash in BankD. Equipment
4
If the creditor's financial claim to property totals $1,000 and the
owner's financial claim to property totals $11,000, the property value is:
A. $10,000B. $11,000C. $12,000D. $1,000
5
If the creditors’ financial claim to property totals $1,000 and the
owner's financial claim to property totals $11,000, the property value is:
A. $10,000B. $11,000C. $12,000D. $1,000
A = L + OEAssets are propertyLiabilities are creditors’ financial
claim to the propertyOwner’s Equity is the owner’s financial claim to the property
5
Each of the following is a business expense except a
payment for:
A. AdvertisingB. Monthly rentC. Utility billsD. Equipment
6
Each of the following is a business expense except a
payment for:
A. AdvertisingB. Monthly rentC. Utility billsD. Equipment
6
A purchase of a desk on account will increase Office Furniture and
will also increase:
A. Cash in BankB. Marie Krabish, CapitalC. Accounts ReceivableD. Accounts Payable
7
A purchase of a desk on account will increase Office Furniture and
will also increase:
A. Cash in BankB. Marie Krabish, CapitalC. Accounts ReceivableD. Accounts Payable
7
If Paul Abdou deposits $30,000 in a checking account in the
name of his business, the two accounts affected are:
A. Cash in Bank & Accounts PayableB. Cash in Bank & Accounts ReceivableC. Cash in Bank & Paul Abdou, WithdrawalsD. Cash in Bank & Paul Abdou, Capital
8
If Paul Abdou deposits $30,000 in a checking account in the
name of his business, the two accounts affected are:
A. Cash in Bank & Accounts PayableB. Cash in Bank & Accounts ReceivableC. Cash in Bank & Paul Abdou, WithdrawalsD. Cash in Bank & Paul Abdou, Capital
8
A business transaction can affect two accounts on the same side of the accounting equation and still
leave the equation in balance.
A. TrueB. False
9
A business transaction can affect two accounts on the same side of the accounting equation and still
leave the equation in balance.
A. TrueB. False
Example: Receive cash on accounts receivable
Example: Write a check to purchaseoffice equipment
9
The list of all the accounts used by a business to record its
transactions is:
A. Double-entry accountingB. The normal balanceC. T accountsD. The chart of accounts
10
The list of all the accounts used by a business to record its
transactions is:
A. Double-entry accountingB. The normal balanceC. T accountsD. The chart of accounts
10
A chart of accounts is limited to 50 accounts.
A. TrueB. False
11
A chart of accounts is limited to 50 accounts.
A. TrueB. False
11
The amount entered on the left side of an account is:
A. The debitB. The normal balanceC. The account with the lowest account #D. The asset account
12
The amount entered on the left side of an account is:
A. The debitB. The normal balanceC. The account with the lowest account #D. The asset account
12
A credit to an account always decreases it, a debit to an
account always increases it.
A. TrueB. False
13
A credit to an account always decreases it, a debit to an
account always increases it.
A. TrueB. False
See the tan sheet – review all
13
The normal balance (increase) side of any asset account is the:
A. Debit sideB. Credit sideC. Right SideD. None of these
14
The normal balance (increase) side of any asset account is the:
A. Debit sideB. Credit sideC. Right SideD. None of these
14
The normal balance (increase) side of any liability account is the:
A. Debit sideB. Credit sideC. Left sideD. None of these
15
The normal balance (increase) side of any liability account is the:
A. Debit sideB. Credit sideC. Left sideD. None of these
15
The normal balance (increase) side of the owner’s equity account is the:
A. Debit sideB. Credit sideC. Left sideD. None of these
16
The normal balance (increase) side of the owner’s equity account is the:
A. Debit sideB. Credit sideC. Left sideD. None of these
16
Debits must equal credits:
A. In a T accountB. On the equation’s left sideC. One the equation’s right sideD. For each transaction
17
Debits must equal credits:
A. In a T accountB. On the equation’s left sideC. One the equation’s right sideD. For each transaction
17
How many steps are there to analyzing a business transaction?
A. TwoB. FourC. SixD. Eight
18
How many steps are there to analyzing a business transaction?
A. TwoB. FourC. SixD. Eight
1) Identify the accounts affected2) Classify the accounts affected3) Determine the amount of the
increase or decrease for each account4) Make sure the accounting equation
remains in balance
18
An expense account is a:
A. Permanent liability accountB. Permanent asset accountC. Temporary owner’s equity accountD. Temporary revenue account
19
An expense account is a:
A. Permanent liability accountB. Permanent asset accountC. Temporary owner’s equity accountD. Temporary revenue account
See the tan sheet
19
The following applies to Temporary accounts :
A. Balances are carried forward to the next accounting period
B. Balances are transferred to capital and start over at a zero balance for the next accounting period
C. They are the only accounts listed on the Chart of Accounts
D. Balances are always a credit since they are actually Capital accounts
20
The following applies to Temporary accounts :
A. Balances are carried forward to the next accounting period
B. Balances are transferred to capital and start over at a zero balance for the next accounting period
C. They are the only accounts listed on the Chart of Accounts
D. Balances are always a credit since they are actually Capital accounts
20
Are you ready for the test?