Bookkeeping (Test for Prospective Employees #1)

1. Which of the following is a complete listing of the names and numbers of the accounts that are available for recording transactions?

2. The bookkeeping or accounting equation is = liabilities + owner’s equity.

3. When a company pays a bill by writing a check, the company should a Cash account.

4. The account Sales is expected to have a balance.

5. A debit will the balance in Accounts Payable.

6. The balance that you would expect in the account Accumulated Depreciation is a balance.

7. Assuming a company has a significant amount of supplies on hand and has also used many supplies during the accounting period, both the asset account Supplies and the account Supplies Expense should have debit balances.

8. The account balances for revenues and liabilities should be credit balances.

9. When a company receives money, it should be recorded in the Cash account with the date that the money was .

10. Which part of a business loan payment is an expense?

11. The sales taxes collected by a retailer should be recorded in a account.

12. Which accounts will have their end-of-the-year balances carried forward to the next accounting year?

13. An internal report that a company prepares in order to test whether its general ledger debits are equal to its credits is a balance.

14. A company’s order and receiving report should be compared to the information on a vendor’s invoice before it is paid.

15. A vendor’s invoice of $800 has credit terms of 2/10, net 30. The amount to be remitted if the invoice is paid within 10 days is $.

16. If the terms of a sale include FOB Shipping Point, the is responsible for the shipping costs and damages during shipping.

17. A report that sorts a company’s accounts receivable according to the dates appearing on the unpaid sales invoices is the of accounts receivable.

18. The profit and loss statement is also known as the .

19. Which is more likely to appear in the heading of the balance sheet?

20. The owner’s draws are reported on the proprietorship’s income statement as an expense.

21. The merchandise held by a retailer is usually in the Inventory account at which amount?

22. Which inventory system will reduce the general ledger account Inventory and increase the general ledger account Cost of Goods Sold at the time of each sale?

23. To compute the amount of net sales, Sales is reduced by the amount of Sales Discounts and the amount of Sales and Allowances.

24. Net sales minus the cost of goods sold is the amount of a company’s profit.

25. Assuming that the date is July 1, a postdated check will have a date that is July 1.

26. Under the accrual method of accounting, an expense may appear on the income statement before it is paid.

27. When a company prepares an entry to accrue revenues, one of the accounts involved is account.

28. When a company defers an amount which is presently recorded in a revenue account, the amount to be deferred will be transferred to account.

29. If a company has paid an insurance premium in advance, the company should report the unexpired cost as .

30. The asset account that is associated with the Allowance for Doubtful Accounts is .

31. Depreciation is associated with .

32. The depreciation expense reported on a company’s income statement must be the same amount as the depreciation expense reported on the company’s federal income tax return for the same time period.

33. A reversing entry is more likely to occur for which of the following?

34. When reconciling the bank statement to the correct balance, the outstanding checks are deducted from the balance per .

35. A bank service charge will require a entry to a Cash account in the company’s general ledger.

36. FICA refers to the combination of Social Security taxes and taxes.

37. If an employee is paid biweekly, the number of paydays per year is likely to be .

38. Form 1099-NEC is associated with compensation paid to .

39. An employee has a pay rate of $10 per hour and is paid weekly. During one week the employee worked 8 hours per day for 4 days and 10 hours on the 5th day. Assuming that overtime is paid at time and one-half, the employee’s gross wages for the week will be $.

40. The book value of office equipment should be adjusted so that each balance sheet will report the equipment’s fair market value.