Double-Entry Bookkeeping | Debits & Credits | Chart of Accounts Exam

Double-Entry Bookkeeping | Debits & Credits | Chart of Accounts Exam - Deep Computer

Quiz

 

1. The chart of accounts is a listing of the accounts presently having balances in the general ledger.
   1.   True
   2.   False
2. Some accounting software will classify some accounts as "income" accounts, while accountants might refer to these accounts as "revenue" accounts.
   1.   True
   2.   False
3. 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.
   1.   True
   2.   False
4. The accounts shown in the chart of accounts can be broadly classified into two categories: balance sheet accounts and __________ accounts.
   
   
   
5. Every transaction will affect how many accounts?
   1.   Only One
   2.   Only Two
   3.   Two Or More
   4.   Only Three
6. In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's __________ chart.
   
   
   
7. A company receives NRs. 50,000 of cash as an additional investment in the company by its owner, Hari Sharma. The company's Cash account is increased and Hari Sharma, Capital is increased. Should the NRs. 50,000 entry to the Cash account be a debit?
   1.   Yes
   2.   No
8. A company receives NRs. 50,000 of cash as an additional investment in the company by its owner, Hari Sharma. The company's Cash account is increased and Hari Sharma, Capital is increased. Should the NRs. 50,000 entry to Hari Sharma, Capital be a debit?
   1.   Yes
   2.   No
9. A company using the accrual method of accounting performed services on account in August. The services were for NRs. 2,02,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. Assuming that the company prepares monthly income statements, what will be the account debited for NRs. 2,02,000 in August?
   1.   Cash
   2.   Accounts Receivable
   3.   Service Revenue
   4.   All of Above
10. A company using the accrual method of accounting performed services on account in August. The services were for NRs. 2,02,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. Which account should the company credit for NRs. 2,02,000 in August?
    1.   Cash
    2.   Accounts Receivable
    3.   Service Revenue
    4.   All of Above
11. A company using the accrual method of accounting performed services on account in August. The services were for NRs. 2,02,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. In September when the company receives the NRs. 2,02,000 from the customer, which account should the company credit?
    1.   Cash
    2.   Accounts Receivable
    3.   Service Revenue
    4.   All of Above
12. Generally when an expense is involved in a transaction, an expense will be
    1.   Debited
    2.   Credited
13. Generally when revenues are involved in a transaction, a revenue account will be
    1.   Debited
    2.   Credited
14. The accountant's word to indicate that an entry will be recorded on the left-side of an account is
    1.   Debit
    2.   Credit
15. A contra-liability account such as Discount on Notes Payable will likely have which balance?
    1.   Debit
    2.   Credit
16. The two main methods of bookkeeping and accounting are 1) the cash method, and 2) the __________ method.
    
    
    
17. __________-entry bookkeeping means that every transaction will affect two or more accounts.
    
    
    
18. A __________ amount will appear on the left side of a T-account.
    1.   Debit
    2.   Credit
19. A listing of the balances in the accounts in order to determine whether debits are equal to credits is a __________ balance.
    
    
    
20. The listing of accounts that are available for posting transactions is the __________ of accounts.
    
    
    
21. When a check is written, a cash account should be __________.
    1.   Debited
    2.   Credited
22. Liability accounts will normally have __________ balances.
    1.   Debit
    2.   Credit
23. Revenue accounts will normally have __________ balances.
    1.   Debit
    2.   Credit
24. The bookkeeping or accounting equation is Assets = Liabilities + Owner's __________.
    
    
    
25. The book of original entry is the definition of a __________.
    1.   Journal
    2.   Ledger
    3.   Trail balance
    4.   All of above
26. When a sale is made on credit, the seller will debit the asset account Accounts __________.
    1.   Receivable
    2.   Payable
    3.   Stock Increase
    4.   Non of Above
27. Asset, __________, and stockholders' equity accounts are known as balance sheet accounts.
    1.   Expenses
    2.   Income
    3.   liability
    4.   No of above
28. Large corporations should report revenues on their income statements when the __________.
    1.   Cash Is Received
    2.   Revenues Are Earned
    3.   Non of Above
    4.   A and B Both
29. The difference between the balance in a company's cash account and its bank statement is documented in the __________ of the bank statement.
    1.   Statement
    2.   Reconciliation
    3.   Non of Above
    4.   A & B Both
30. Accrued expenses are likely to pertain to transactions that have __________ been paid.
    1.   Already
    2.   Not Yet
    3.   Non of Above
    4.   A & B
31. The owner invests personal cash in the business. the effect of Assets, Liabilities and Owner's (or Stockholders') Equity are
    1.   Increase | Decrease | No Effect
    2.   Increase | No Effect | Increase
    3.   No Effect | Increase | Decrease
    4.   Non of Above
32. The owner withdraws cash from the business for personal use. the effect of Assets, Liabilities and Owner's (or Stockholders') Equity are
    1.   Increase | Decrease | No Effect
    2.   Increase | Decrease | No Effect
    3.   Decrease | No Effect | Decrease
    4.   Non of Above
33. What type of entry will increase the normal balance of the general ledger account that reports the amount owed as of the balance sheet date for a company's accrued expenses?
    1.   Debit
    2.   Credit
34. What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?
    1.   Asset
    2.   Liability
    3.   Equity
    4.   Expense
35. Which of the following will be included in the adjusting entry to accrue interest expense?
    1.   A Debit To Cash
    2.   A Credit To Interest Payable
    3.   A Debit To Interest Payable
    4.   A Debit To Prepaid Interest