Bookkeeping (Quiz #1)- 23 Accurate
Questions and Answers
List as many assets as you can - -A/R, cash, savings, building/land,
equipment, supplies.
-List as many liabilities as you can - -A/P, mortgage payable, bank loan,
credit card payable.
-What is the accounting equation? - -ALOE. A=L+OE
-What is the acronym for the rules of accounting that govern the
bookkeeping system? - -GAAP. (Generally accepted accounting principles)
-What financial statement shows assets, liabilities, and owners equity? - -
Balance sheet
-Does the drawings account increase owners equity or decrease it? - -
Decrease
-What two main categories are recorded on the income statement? - -
Revenue and expense
-If a business makes a sale but doesn't get paid cash, which accounts
change? - -Accounts receivable and revenue
-What is the accounting period? - -Can be any time covered by financial
statement
-What is the first figure on the statement of owners equity? - -Beginning
capital balance
-How would you arrive at net income? - -Subtract expenses from revenue
-When an owner withdraws cash for personal use do his assets increase or
decrease? - -Decrease
-When you incur an expense, does it mean that you have paid cash for it? -
-No
-What two accounts change when a sale is made on an account? - -
Accounts receivable and revenue
-What is the unwritten promise to pay a creditor? - -Accounts payable
Questions and Answers
List as many assets as you can - -A/R, cash, savings, building/land,
equipment, supplies.
-List as many liabilities as you can - -A/P, mortgage payable, bank loan,
credit card payable.
-What is the accounting equation? - -ALOE. A=L+OE
-What is the acronym for the rules of accounting that govern the
bookkeeping system? - -GAAP. (Generally accepted accounting principles)
-What financial statement shows assets, liabilities, and owners equity? - -
Balance sheet
-Does the drawings account increase owners equity or decrease it? - -
Decrease
-What two main categories are recorded on the income statement? - -
Revenue and expense
-If a business makes a sale but doesn't get paid cash, which accounts
change? - -Accounts receivable and revenue
-What is the accounting period? - -Can be any time covered by financial
statement
-What is the first figure on the statement of owners equity? - -Beginning
capital balance
-How would you arrive at net income? - -Subtract expenses from revenue
-When an owner withdraws cash for personal use do his assets increase or
decrease? - -Decrease
-When you incur an expense, does it mean that you have paid cash for it? -
-No
-What two accounts change when a sale is made on an account? - -
Accounts receivable and revenue
-What is the unwritten promise to pay a creditor? - -Accounts payable
