Basic Bookkeeping
Which of the following accounts is an asset account? - Answer- cash, inventory, accounts receivable, all of the listed answers are correct
Economic events that affect the financial position of a business are called> - Answer- Transactions
Paying an amount owed to a sup...
Basic Bookkeeping
Which of the following accounts is an asset account? - Answer- cash, inventory,
accounts receivable, all of the listed answers are correct
Economic events that affect the financial position of a business are called> - Answer-
Transactions
Paying an amount owed to a supplier? - Answer- Decreases assets and decreases
liabilities
A debit to which of the listed accounts increases the account's balance? - Answer-
Assets
Owner's Draw
Expense
Which of the following statements is not correct? - Answer- The normal balance of a
liability account is a debit balance.
_____ are properties used in the operation or investment activities of a business. -
Answer- assets
____ are creditor's claims to the property (assets of a business. - Answer- Liability
A book containing the account balances for a business's assets, liabilities, equity,
revenue, expense, and draw accounts is called? - Answer- The general Ledger
Which of the following is not information normally provided by an Accounts
Receivable Subsidiary Ledger? - Answer- Amount Owed by each supplier
A balance sheet is a formal financial statement that summarizes revenues and
expenses for a specific period of time. - Answer- False
Which of the following should not be classified in the balance sheet as property,
plant, and Equipment? - Answer- cars held for sale
The normal balance of any account is? - Answer- Side which increases the account
Which of the following is considered to be good cash management practices? -
Answer- All:
Preparing monthly bank reconciliations
maintaining an accurate check book
Preparing cash forecasts
making daily cash deposits
Given the following information, beginning balance of unearned revenues, $1,000;
ending balance of unearned revenues - $2,000;and advance payments received *-
3,000 the amount of revenue earned for the period is _____. - Answer- $2,000
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