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Debits and Credits(Quick Test #2)

Author:
Harold Averkamp, CPA, MBA

After you have answered all 20 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. A listing of the account numbers and titles but without account balances is the __________ of accounts.

    2. 2. Posted transactions are stored in accounts contained in the __________ ledger.

    3. 3. A sole proprietor’s withdrawal of cash for personal use is recorded in the account Salaries Expense.

    4. 4. Bad Debts Expense is an income statement account used to report the losses associated with the asset account __________ __________.

    5. 5. __________ Depreciation is a contra-asset account.

    6. 6. Sales and services that are provided on credit will cause an increase in the asset account __________ __________.

    7. 7. Accounts Payable, Wages Payable, and Notes Payable are examples of __________ accounts.

    8. 8. Prepaid Insurance and Supplies on Hand are examples of __________ accounts.

    9. 9. Customer Deposits and Unearned Fees are examples of accounts under the balance sheet classification of __________.

    10. 10. Each revenue and expense account will begin the accounting year with __________ balance.

    11. 11. Freight-out is part of a company’s __________.

    12. 12. The Allowance for Doubtful Accounts is one of the accounts under the __________ section of the chart of accounts.

    13. 13. The end-of-year balances in the asset accounts will become the following year’s __________ balances.

    14. 14. A control account in the general ledger is supported by the details in a __________ ledger.

    15. 15. Sales commission expense is part of the cost of goods sold.

    16. 16. The__________ accounts are usually listed first in the general ledger and in the chart of accounts.

    17. 17. The purchase of supplies should be recorded in the company’s Purchases account.

    18. 18. A separate account for meals expense is helpful since business meals are expensed in full on the financial statements but may or may not be fully deductible on the income tax return.

    19. 19. The interest due on a long-term loan is usually recorded in an account which is separate from the account containing the principal amount.

    20. 20. A lawsuit has been filed against a company. Even if the company’s attorney believes that it is remote that the company will lose, the amount should be recorded in a liability account.

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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