Deck 8: General Accounting, End-Of-Period Procedures, and Budgets

Question 1

A budget tracks income and expenses and may be helpful for use in making business decisions.

Answer 1

True

Question 2

Closing entries for a company that sells inventory items is the same as a company that sells services.

Answer 2

True

Question 3

To change an existing inventory item's quantity on hand because it was damaged, you adjust .

A) Inventory Quantities
B) Inventory Start Quantity
C) Chart of Accounts
D) Opening Balance Equity

Answer 3

A

Question 4

To record depreciation for the month, you complete a(n) .

A) Expense Report
B) Equipment Value Loss Form
C) Journal Entry
D) Depreciation Adjustment Form

Question 5

After closing a period, net income cannot be edited.

Question 6

After adding an inventory item and preparing a purchase order, you will have an Inventory Start Value for the item.

Question 7

The report that shows actual amounts and budgeted amounts is .

A) Budget Overview
B) Budget vs. Actuals
C) Company Snapshot
D) Both A and B

Question 8

The types of accounts that may be reconciled are .

A) Assets
B) Liabilities
C) Equity
D) All of the above

Question 9

An owner may make the business.

A) Additional cash investments in
B) Additional non-cash investments in
C) A withdrawal from
D) All of the above

Question 10

Inventory starting value may be adjusted if the quantity is provided when the account is added.