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BAF3M - Accounting Review Flashcards | StudBud
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BAF3M - Accounting Review
BAF3M - Accounting Review
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StudBud Administration
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Let's see what we remember from Grade 11 Accounting!
Flashcards
27 cards
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Questions
27
Answers
1
What is another term for net income?
Net loss
Net worth
Net surplus
Net profit
2
Capital decreases on the credit side.
True
False
3
In a journal entry, accounts to be debited are recorded before accounts to be credited.
True
False
4
An example of a drawings transaction: an owner taking equipment of the company for her own use.
False
True
5
Which of the following is not a date for the heading of an Income Statement?
for the year ending December 31st 2015.
for the month ending December 31st 2015.
on December 31st 2015.
for the period ending March 31st 2015.
6
The terms “account” and “ledger” are the same and may be used interchangeably.
False
True
7
The correct journal entry for a business remitting HST to the government would be:
debit Tax Expense, credit HST Payable.
debit Tax Expense, credit Bank.
debit HST Payable, credit HST Recoverable, credit Bank.
debit Bank, debit HST Recoverable, credit HST Payable.
8
The year is only recorded on the first line of each page of the journal.
False
True
9
A group or file of accounts is called a ledger.
False
True
10
When an item is subject to HST, what must the seller do when recording the sale?
debit HST Recoverable.
the seller need not record the tax separately.
debit HST Payable
credit HST Payable.
11
Which of the following statements is incorrect?
Expenses = decrease in equity.
Drawings = decrease in equity.
Revenues – expenses = net income, if expenses > revenues
Revenues = increase in equity.
12
Which of the following is not considered to be a revenue account?
Drawings
Rental revenue
Fees earned
Royalties
13
Drawings are not included in the income statement.
True
False
14
Paying a phone bill using cash, one of the accounts affected would be a liability account.
True
False
15
Accounting entries are first recorded in the journal.
True
False
16
Equity decreases on the debit side.
False
True
17
Expenses are recorded on the credit side of the account.
True
False
18
Which of the following statements about the journal is incorrect?
It is the book of original entry.
It provides a chronological record of business transactions.
It presents the financial position of the business.
used as a reference to verify information in the ledger.
19
A ledger only keeps records for a period of one year.
True
False
20
If revenue exceeds expenses, there will always be an increase in equity.
True
False
21
What is the purpose of taking off a trial balance?
It is a way to check the accuracy of a ledger.
It shows where a mistake has been made.
It is done when there is no time for an Actual Balance Sheet
It is a list of the accounts with the largest balances.
22
Which of the following questions is not answered by the income statement?
How much money did the firm make in its first month?
How much money was spent on advertising?
How much do clients owe the company?
How much money was spent on wages?
23
A company bought equipment and paid a part of the cost in cash, which scenario is correct?
Asset credit, Asset debit, Liability debit.
Asset credit, Asset debit, Liability credit.
Yum yum dim sum
Asset debit, Asset debit, Liability debit.
24
When a customer purchases an item on account, the seller will debit Accounts Receivable.
True
False
25
Drawings increase the owner’s equity.
False
True
26
Revenues are credited when a sale is made.
True
False
27
What is the best meaning for a chart of accounts?
a table resembling the equation analysis sheet.
list of ledger accounts and numbers arranged in ledger order
a chart showing the accounts affected by transactions.
a chart showing the net income or net loss of the company.
