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? - answerThe general Ledger
Which of the following is not information normally provided by an Accounts Receivable
Subsidiary Ledger? - answerAmount Owed by each supplier
A balance sheet is a formal financial statement that summarizes revenues and
expenses for a specific period of time. - answerFalse
Which of the following should not be classified in the balance sheet as property, plant,
and Equipment? - answercars held for sale
The normal balance of any account is? - answerSide which increases the account
Which of the following is considered to be good cash management practices? -
answerAll:
Preparing monthly bank reconciliations
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? - answerThe general Ledger
Which of the following is not information normally provided by an Accounts Receivable
Subsidiary Ledger? - answerAmount Owed by each supplier
A balance sheet is a formal financial statement that summarizes revenues and
expenses for a specific period of time. - answerFalse
Which of the following should not be classified in the balance sheet as property, plant,
and Equipment? - answercars held for sale
The normal balance of any account is? - answerSide which increases the account
Which of the following is considered to be good cash management practices? -
answerAll:
Preparing monthly bank reconciliations
