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Accounting Q1 & Q2 Test

Enter the letter for the matching Answer
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1.
T/F When an asset is purchased for cash, the owner's equity account is decreased
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2.
_____ are the costs related to the earning of revenue
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3.
Debit & Credit which accounts: purchased office equipment on account
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4.
The capital account: a. decreases with increased revenues b. decreases with an investment c. decreases with increased expenses d. has a normal debit balance e. always has a balance equal to the cash account
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5.
An account designed to accumulate totals to offset a related account
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6.
The cost of a fixed asset less its accumulated depreciation: a. cost b. book value c. market value d. true value
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7.
A formal statement of the results of the operations of a business during an accounting period is called a(n): a. statement of changes b. balance sheet c. statement of condition d. income statement
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8.
T/F Equipment and supplies are considered assets
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9.
Debit & Credit which accounts: paid cash for rent on the office
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10.
If the owner takes cash out of the business each month, this is called a(n):
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11.
Which of the following would not appear in the post-closing trial balance? a. capital b. acc. dep., equipment c. wages payable d. equipment e. advertising expense
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12.
A business paper that serves as a record of a transaction is called: a. trail balance b. ledger account c. source document d. journal
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13.
Increase/Decrease which accounts: Owner invested cash
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14.
The amount by which total assets exceed total liabilities
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15.
An event affecting a business that can be expressed in terms of money and that must be recorded in the accounting records is called a(n):
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16.
Property owned by a business: a. asset b. liability c. capital d revenue e. expense
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17.
The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called:
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18.
The categories listed under the classifications Assets, Liabilities, Owner's Equity, Revenue, and Expenses are called:
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19.
Those obligations that are due within one year or the normal operating cycle of a business and will be paid with money provided by the current assets are called:
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20.
The owner's investment or equity in an enterprise is called:
A.
asset
B.
transaction
C.
false
D.
capital/owner's equity
E.
increase an asset, increase owner's equity
F.
decreases with increased expenses
G.
withdrawal
H.
debit equipment, credit accounts payable
I.
expenses
J.
true
K.
book value
L.
accounts
M.
debit rent expense, credit cash
N.
capital
O.
double-entry accounting
P.
current liabilities
Q.
advertising expense
R.
source document
S.
income statement
T.
contra account
Type the Answer that corresponds to the displayed Question.
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21.
Cash & all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of a business are classified as:
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22.
An error resulting in debits not being equal to credits would be found where? a. chart of accounts b. income statement c. statement of owner's equity d. contra account e. trial balance
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23.
Which of the following is an asset? a. account payable b. drawing account c. prepaid insurance d. supplies expense e. accumulated depreciation, equipment
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24.
Debits signify increases in: a. expenses b. owner's equity c. revenue d. all of these e. none of these
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25.
The account used to record the amounts owed by charge customers is:
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26.
Property of a relatively permanent nature used in the operation of a business and not intended for resale: a. current liability b. fixed asset c. owner's equity d. long term liability d. current asset
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27.
The "book of original entry" is the: a. general journal b. general ledger c. worksheet d. chart of accounts
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28.
The ability of a business to meet its current obligations may be determined by the: a. current ratio b. inventory turnover c. working ratio d. accounts receivable turnover
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29.
An error resulting in debits not being equal to credits would be found where?
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30.
The "book of original entry" is the:

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