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Balance Sheet(Quick Test #1)

Author:
Harold Averkamp, CPA, MBA

After you have answered all 35 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers.

Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

    1. 1. Current assets are usually presented on the balance sheet in order of __________.

    2. 2. Working capital is defined as __________ __________ minus __________ __________.

    3. 3. Allowance for Doubtful Accounts is a contra account to __________ __________.

    4. 4. Inventory is often reported at the lower of __________ or net __________ value.

    5. 5. The cost of insurance premiums that have been paid but have not yet expired are reported in the asset account __________ Insurance.

    6. 6. Plant assets used in the business are reported under the heading of property, plant, and __________.

    7. 7. The contra asset account that is associated with the depreciable assets is __________ __________.

    8. 8. An asset’s cost minus its accumulated depreciation is known as its __________ value or carrying value.

    9. 9. Goodwill, patents, copyrights, and mailing lists are examples of __________ assets.

    10. 10. An obligation due within one year of the balance sheet date that will require the use of a current asset or create another current liability is the definition of a __________ __________.

    11. 11. A long-term debt security that usually pays interest semiannually is a __________.

    12. 12. Expenses that have occurred but were not yet processed into the accounts payable system are known as __________ expenses.

    13. 13. A loan secured by a lien on real estate is a __________ loan.

    14. 14. A corporation’s total assets minus its total liabilities is the total of the balance sheet section __________ __________.

    15. 15. A sole proprietorship’s total assets minus its total liabilities is reported on the balance sheet as __________ __________.

    16. 16. Unearned fees, unearned revenues, and customer deposits will likely appear on the balance sheet as current __________.

    17. 17. Credit sales that have not been collected are reported in the asset account __________ __________.

    18. 18. A negative cash balance should be reported in the balance sheet section current __________.

    19. 19. The guarantee of another party’s loan is a __________ liability.

    20. 20. A current asset is an asset that will turn to cash or be consumed within the longer of 1) one year, or 2) the __________ cycle.

    21. 21. A corporation’s stockholders’ equity section of its balance sheet could contain four major categories: paid-in __________, __________ earnings, accumulated other __________ income, and treasury stock.

    22. 22. Income taxes that result from the difference in the timing of depreciation on the tax return versus the depreciation recorded on the books is often reported in the liability account __________ income taxes.

    23. 23. A balance sheet is also referred to as the statement of __________ position.

    24. 24. When a retailer purchases supplies or merchandise on credit terms, it will credit the liability account __________ __________.

    25. 25. A contingent liability is recorded in the general ledger accounts if it is both 1) __________, and 2) the amount can be estimated.

    26. 26. A current liability is an obligation that is due within one year of the __________ __________ date and will require the use of a current asset or will create another current liability.

    27. 27. When the balance sheets of a corporation’s subsidiaries are combined into a single balance sheet, the result is a __________ balance sheet.

    28. 28. The book value of a corporation is related to its reported amount of __________ __________.

    29. 29. The balance sheet heading indicates __________.

    30. 30. Balance sheet accounts are known as __________ accounts.

    31. 31. Which of the following is not an asset account?

    32. 32. Which of the following is more likely to appear as the first current liability?

    33. 33. The liability and expense associated with a product warranty is best reported at the time that the product __________.

    34. 34. Which of the following current assets will appear first on a classified balance sheet?

    35. 35. When a corporation declares a dividend on its common stock, which stockholders’ equity account’s normal balance will be reduced?

Any questions left unanswered will be marked incorrect.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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