Deck 2: Chart of Accounts

Question 1

Non-posting accounts:

A)Track information required for the accounting system
B)Do not appear on the Balance Sheet
C)Do not appear on the Income Statement
D)All of the choices are correct

Answer 1

D

Question 2

What are assets?

A)Net worth of a company
B)Resources that a company owns with future benefit
C)Amounts paid to owners
D)Amounts owed to others and are future obligations

Answer 2

B

Question 3

What is the purpose of a non-posting account?

A)To calculate income.
B)To track information necessary for the accounting system.
C)To calculate expenses.
D)To identify owner's equity.

Answer 3

B

Question 4

To add a new account to the Chart of Accounts:

A)From the Chart of Accounts window,select Account > New
B)From the Company menu,select New Account
C)From the Home Page,select Account > New
D)From the Lists Menu,select New > Account

Question 5

Which of the following is not considered an income account in QuickBooks?

A)Sales
B)Rent Expense
C)Interest Revenue
D)Gain on sale

Question 6

Which of the following is a temporary account?

A)Inventory
B)Advertising Expense
C)Accounts Payable
D)Accounts Receivable

Question 7

Income Statement accounts are also called:

A)Equity accounts
B)Permanent accounts
C)Temporary accounts
D)None of the choices are correct

Question 8

To re-sort the Chart of Accounts,first display the Chart of Accounts window,then:

A)Click on the Company heading bar
B)Click File > Sort
C)Click Account > Re-sort List
D)Right click > Sort by Name

Question 9

A company's office furniture is classified as what account type:

A)Expense
B)Owner's Equity
C)Fixed Asset
D)Retained Earnings

Question 10

The different types of business ownership are:

A)Sole proprietorship
B)Partnership
C)Corporation
D)All of the choices are correct

Question 11

Balance Sheet accounts are also called:

A)Permanent accounts
B)Temporary accounts
C)Equity accounts
D)None of the choices are correct

Question 12

Which account below is not an Expense account?

A)Utilities
B)Rent
C)Accounts Payable
D)Advertising

Question 13

Which of the following is a liability?

A)Accounts Receivable
B)An amount a company owes
C)A resource a company owns
D)Dividends

Question 14

Which of the following is considered a permanent account?

A)Income Statement accounts
B)Balance Sheet accounts
C)All the choices are correct
D)None of the choices are correct

Question 15

Which of the following is an asset?

A)Mortgage Payable
B)Accounts Payable
C)Inventory
D)Unearned Revenue

Question 16

How do you access the screen to add a user and password?

A)Company Menu > Set Up Users and Passwords > Set Up Users
B)Edit Menu > Preferences > Employees
C)Employees > Employee Center
D)Company Menu > Company Information

Question 17

What does the Chart of Accounts list?

A)Assets,liabilities and owner's equity accounts
B)Income and expense accounts
C)Owner's contributions
D)All of the choices are correct

Question 18

An example of a non-posting account is ________.

A)Employee Expense Account
B)Purchase Orders Account
C)Inventory Account
D)Accounts Payable Account

Question 19

The Income Statement:

A)Lists the accounts and account numbers
B)Lists a company's assets
C)Summarizes the results of a company's operations,listing income and expenses
D)Summarizes what a company owns and what it owes

Question 20

Which of the following increases owner's equity?

A)Dividends
B)Business losses
C)Business expenses
D)Business profits

Question 21

Briefly explain the difference between a permanent and a temporary account.

Question 22

Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.

Question 23

Briefly explain the purpose and benefits of using a password for QuickBooks access.