Quiz Detail

Q1 . To increase accounts receivable, we have to debit them.

A True

B False

Q2 . When recording journal entries, the debits and credits do not necessarily have to balance.

A True

B False

Q3 . To increase Revenue, we have to debit it.

A True

B False

Q4 . To increase a cash account, we have to credit it.

A True

B False

Q5 . To increase common shares, we have to credit it.

A True

B False

Q6 . The importance of the trial balance is.

A Make sure all transactions have been recorded.

B Make sure the total debits equal the total credits.

C Make sure there are no errors in the accounting records.

D Make sure the journal entries have been posted only once.

Q7 . To decrease accounts payable, we have to credit it.

A True

B False

Q8 . To increase Owner's drawings, we have to debit it.

A True

B False

Q9 . Which of the following statements about posting to the general ledger is true?

A It involves the transfer of journal entries to the ledger accounts.

B It involves the transfer from the trial balance to the financial statements.

C It normally occurs before entering transactions into a journal.

D It involves the transfer from the trial balance to the general ledger.

Q10 . To increase an expense, we have to credit it.

A True

B False

Q11 . A post-closing trial balance contains:

A Liabilities and Assets Only

B Assets and Owner's equity Only

C Liabilities and Owner's equity Only

D Assets, Liabilities, and Owner's Equity Only

Q12 . How are entries recorded in the journal?

A In the proper order of account numbers used

B Alphabetically

C Chronologically

D It depends on the business.

Q13 . By debiting the income statement balances, you are.

A Closing the revenue accounts for the year.

B Closing the expense accounts for the year.

C Closing the drawings account for the year.

D You are not closing any account.

Q14 . The document which records all the accounts of the business and activities and balances of each specific account is called a:

A Journal

B General Ledger

C Trial Balance

D General Journal

Q15 . Zero balances will be found in some accounts in the new accounting period - these are.

A Cash and Revenue

B Revenue and Accounts Receivable

C Revenue and Expenses

D Expenses and bank loans

Q16 . After posting the closing entries, a company must prepare a(n).

A Posting trial balance

B Post-closing trial balance

C Unadjusted trial balance

D Adjusted trial balance

Q17 . The income statement and the balance sheet are linked by:

A The statement of Owner's Equity

B The journal and the ledger

C Debits and Credits

D The ledger and the trial balance

Q18 . The statement of Owner's equity:

A Reports any changes in equity over the reporting period

B Is used to calculate the ending Owner's equity so that it can be transferred to the income statement

C Is Used to determine the sources and uses of cash

D Reflects increases due to losses and decreases due to profits

Q19 . A company has a 60,000 loan to be paid off in 20 months. Principal payments are 2,000 per month. The current and non-current portions of the loan after three months are.

A 24,000 Current and 30,000 non current

B 36,000 Current and 24,000 non current

C 30,000 Current and 24,000 non current

D 24,000 Current and 36,000 non current

Q20 . At the end of June, the company has total assets of 150,000. Non-current assets are worth 42,500. The current portion of the bank loan is 2,000. The expenses were 5,500. The Service Revenue account has a balance of 5,500. What is the net profit of the company for the previous month?

A 5,500

C 100,000

D 105,500

Q21 . After closing revenues and expenses, but before closing the income summary account, a successful company would show a

A A credit balance in the income summary account.

B A debit balance in the income summary account.

C A zero balance in the income summary account.

D The income summary account in this transaction is not relevant.

Q22 . The chart of accounts is a listing of all the accounts being used by all businesses with a standard set of numbers.

A True

B False

Accounting Quiz For Starters

Q1 . To increase accounts receivable, we have to debit them.

Q2 . When recording journal entries, the debits and credits do not necessarily have to balance.

Q3 . To increase Revenue, we have to debit it.

Q4 . To increase a cash account, we have to credit it.

Q5 . To increase common shares, we have to credit it.

Q6 . The importance of the trial balance is.

Q7 . To decrease accounts payable, we have to credit it.

Q8 . To increase Owner's drawings, we have to debit it.

Q9 . Which of the following statements about posting to the general ledger is true?

Q10 . To increase an expense, we have to credit it.

Q11 . A post-closing trial balance contains:

Q12 . How are entries recorded in the journal?

Q13 . By debiting the income statement balances, you are.

Q14 . The document which records all the accounts of the business and activities and balances of each specific account is called a:

Q15 . Zero balances will be found in some accounts in the new accounting period - these are.

Q16 . After posting the closing entries, a company must prepare a(n).

Q17 . The income statement and the balance sheet are linked by:

Q18 . The statement of Owner's equity:

Q19 . A company has a 60,000 loan to be paid off in 20 months. Principal payments are 2,000 per month. The current and non-current portions of the loan after three months are.

Q20 . At the end of June, the company has total assets of 150,000. Non-current assets are worth 42,500. The current portion of the bank loan is 2,000. The expenses were 5,500. The Service Revenue account has a balance of 5,500. What is the net profit of the company for the previous month?

Q21 . After closing revenues and expenses, but before closing the income summary account, a successful company would show a

Q22 . The chart of accounts is a listing of all the accounts being used by all businesses with a standard set of numbers.