Deck 4: General Accounting and End-Of- Period Procedures: Service Business

Question 1

9 When paying for insurance using the accrual-basis of accounting, you debit the expense account in the General Journal.

Answer 1

False

Question 2

If an account was used previously but now has a 0.00 balance, it may be deleted.

Answer 2

False

Question 3

Accrual basis accounting matches the income from the period and the expenses for the period to determine the net income for the period.

Answer 3

True

Question 4

In a sole proprietorship an owner's name is added to the vendor list for recording withdrawals.

Question 5

The Statement of Cash Flows organizes information regarding cash as Operating Activities, Investing Activities, and Financing Activities.

Question 6

The Reconciliation Report may be printed as ______.

A)a Summary report
B)a Detailed report
C)Both
D)All the above

Question 7

The report that proves Assets = Liabilities + Equity is the_______ .

A)Trial Balance
B)Income Statement
C)Profit and Loss Statement
D)Balance Sheet

Question 8

An Inactive Account may be used to record a transaction for a period that was prior to the date when the account was marked as inactive.

Question 9

The Journal report shows _____.

A)all transactions no matter where they were recorded
B)only those transactions recorded in the General Journal
C)only transactions recorded in account registers
D)only those transactions that have been edited

Question 10

At the end of the year, QuickBooks Desktop automatically puts the net income for the year in the _______account.

A)owner's capital
B)owner's investment
C)owner's net income
D)owner's equity

Question 11

______allow(s) you to make a closer observation of transaction details and/or amounts.

A)Graphs
B)QuickZoom
C)Invoices
D)The Balance Sheet

Question 12

If the adjusting entry to transfer Net Income/Owner's Equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows _______.

A)Owner's Equity
B)Net Income
C)both Net Income and Owner's Equity
D)none of the above because the income/earnings has been transferred into capital

Question 13

When the depreciation of an asset is recorded, it is marked as an adjusting entry.

Question 14

A closing date is assigned_____ .

A)after all passwords have been assigned
B)at the beginning of the year
C)by entering a closing transaction
D)at the end of the accounting period to be closed

Question 15

A QuickBooks Desktop register_____ .

A)is prepared for every balance sheet account
B)contains records of all activity for an account
C)can be used to record transactions
D)all the above

Question 16

The bank statement ending balance will always match the ending balance of the checking account.

Question 17

Changes to the chart of accounts may be made_____ .

A)at the beginning of a fiscal period
B)before the end of the fiscal year
C)at any time
D)once established the chart of accounts may not be modified

Question 18

Anything entered as a bank service charge or as interest earned will be entered automatically when the bank reconciliation is complete.

Question 19

QuickMath displays _____.

A)a calculator
B)adding machine tape
C)a calculator with adding machine tape
D)none of the above

Question 20

You can record an automatic loan payment when reconciling the checking account.

Question 21

A report may be exported to______ for working with "what if" scenarios.

Question 22

The keyboard shortcut to edit an account name is______ .

Question 23

The Journal report shows all transactions in the traditional ______format.

Question 24

A check written to the owner for working in the business is considered a(n)______ .

Question 25

Additional investments by an owner may be____ or____ items.