Question 1
Which two accounts have debit balances as the "natural account balance"? (Choose 2)
a. Liabilities
b. Equity
c. Assets
d. expenses
e. Revenues
ANSWER
Assets and Expenses
Question 2
Uncollectible Accounts
ANSWER
Uncollectible Accounts is used to describe the portion of credit sales in accounts receivable
the company does not expect to collect from a customer.
Question 3
Widget Wise Company (WWC) sells a number of widgets to ABC Builders for $15,000, with
payment due in 30 days. After 60 days of nonpayment, ABC Builders goes out of business
without paying their debt to WWC.As bookkeeper, you Credit the Accounts Receivable
1
, Account for the $15,000 ABC Builders will not be paying. Which account should be Debited
for $15,000?
a. Notes Receivable
b. Uncollectible Accounts
c. Accounts Receivable
d. Cash
ANSWER
b. uncollectible accounts
Question 4
Company XYZ is applying for a loan at a bank. The loan officer wants to see the company's
assets.Which financial statement will show the bank the assets of the company?
a. cost of goods
b. change in equity statement
c. income statement
d. balance sheet
ANSWER
balance sheet
Question 5
Which two statements correctly identify accounts with their "natural account balance"?
(Choose 2)
a. Asset accounts and expense accounts have natural "credit" balances.
b. Revenues, liabilities and stockholder's equity accounts have natural "credit" balances.
c. Accounts have natural balance when revenue and expenses are equal.
2
Which two accounts have debit balances as the "natural account balance"? (Choose 2)
a. Liabilities
b. Equity
c. Assets
d. expenses
e. Revenues
ANSWER
Assets and Expenses
Question 2
Uncollectible Accounts
ANSWER
Uncollectible Accounts is used to describe the portion of credit sales in accounts receivable
the company does not expect to collect from a customer.
Question 3
Widget Wise Company (WWC) sells a number of widgets to ABC Builders for $15,000, with
payment due in 30 days. After 60 days of nonpayment, ABC Builders goes out of business
without paying their debt to WWC.As bookkeeper, you Credit the Accounts Receivable
1
, Account for the $15,000 ABC Builders will not be paying. Which account should be Debited
for $15,000?
a. Notes Receivable
b. Uncollectible Accounts
c. Accounts Receivable
d. Cash
ANSWER
b. uncollectible accounts
Question 4
Company XYZ is applying for a loan at a bank. The loan officer wants to see the company's
assets.Which financial statement will show the bank the assets of the company?
a. cost of goods
b. change in equity statement
c. income statement
d. balance sheet
ANSWER
balance sheet
Question 5
Which two statements correctly identify accounts with their "natural account balance"?
(Choose 2)
a. Asset accounts and expense accounts have natural "credit" balances.
b. Revenues, liabilities and stockholder's equity accounts have natural "credit" balances.
c. Accounts have natural balance when revenue and expenses are equal.
2
