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Bookkeeping questions with complete solutions
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Bookkeeping questions with complete solutions
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BookkeepingIf a business owner uses $10,000 of his personal money as a down-payment on the purchase of a piece
of property for the business, that $10,000 would be considered... - correct answer ✔✔Equity
Rosemary got a 24-month 0% loan from a store to buy a copier. The copier cost $1,500. Which parts of
the accounting equation does this impact? - correct answer ✔✔Assets and Liabilities
Rosemary bought some advertising for $150 on her credit card. Which part(s) if the equation does this
impact? - correct answer ✔✔Liabilities and Equity
Both sides of the accounting equation are ALWAYS affected. - correct answer ✔✔No! Sometimes only
one side is affected, but both sides always have to be equal.
What is the accounting equation? - correct answer ✔✔Assets = Liabilities + Equity
Rosemary bought some inventory for $2,000 cash. Which part(s) of the accounting equation does this
impact? - correct answer ✔✔Assets
What are the two sub-accounts that affect Equity? - correct answer ✔✔Income and Expenses
In what order do the accounts appear on the Chart of Accounts? - correct answer ✔✔Assets, Liabilities,
Equity, Revenue, Expenses
The listing of all accounts used by a business to record and classify financial transactions is the... - correct
answer ✔✔Chart of Accounts (COA)
What is used to classify and summarize financial transactions? - correct answer ✔✔A Financial Ledger
, The two-column summary of all the debits and credits in the Chart of Accounts is the... - correct answer
✔✔Trial Balance
Which financial statement shows the balances in the accounts as of a specific date? - correct answer
✔✔Balance Sheet
If a business owner wanted to know the financial health of his company, which financial statement
would he need to see? - correct answer ✔✔All 3 financial statements
If a business owner wanted to know where her cash came from and where it went, she would need
which financial statement? - correct answer ✔✔Statement of Cash Flows
If a business owner wanted to know how much equity was in their business, which financial statement
would you provide? - correct answer ✔✔Balance Sheet
Which financial statement is also referred to as the Statement of Financial Position? - correct answer
✔✔Balance Sheet
If a business owner asked you for their Profit and Loss (P&L) report, which financial statement would you
provide? - correct answer ✔✔Income Statement
Operating, Investing, and Financing activities are shown on which financial statement? - correct answer
✔✔Statement of Cash Flows
Which financial statement is a temporary statement that gets closed out? - correct answer ✔✔Income
Statement
Which financial statement would show a company's profit for January of the current year? - correct
answer ✔✔Income Statement
Which financial statement is like the accounting equation in financial statement form? - correct answer
✔✔Balance Sheet
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