Question 26

A Balance Sheet can be prepared from information in the ledger.

a) True

b) False

Question 27

A double underline indicates a final total.

a) True

b) False

Question 28

A truck that cost $10,000 and for which $6,000 is owed is listed on the Balance Sheet as $4,400.

a) True

b) False

Question 29

An asset account cannot have a credit balance.

a) True

b) False

Question 30

Assets are listed in alphabetical order.

a) True

b) False

Question 31

Capital decreases on the credit side.

a) True

b) False

Question 32

Decimals and commas are necessary when working in a spreadsheet software program.

a) True

b) False

Question 33

Personal assets have no place on the business Balance Sheet.

a) True

b) False

Question 34

The heading of a Balance Sheet shows the date on which is was prepared.

a) True

b) False

Question 35

When revenue accounts are closed, the Income Summary account is debited.

a) True

b) False

Question 36

Fill In The Blank

A group or file of accounts that shows the account balance is called a: (Blank)

.

Question 37

Fill In The Blank

A(Blank) is prepared to check the accuracy of a ledger.

Question 38

Fill In The Blank

Accounting entries are first recorded in the general(Blank)

.

Question 39

Fill In The Blank

Even though an asset has increases significantly in value, the(Blank) principle will generally prevent a company from reporting its current value.

Question 40

Fill In The Blank

Sales revenues minus the Cost of Goods Sold equals (Blank)

.

Question 41

Fill In The Blank

The accrual-basis of accounting, which requires companies to report expenses in the period that it helped earn revenue, is the(Blank) principle.

Question 42

Fill In The Blank

The amount a sole proprietorship gives to its owner for the owner's personal consumption is recorded as a debit to (Blank) and a credit to Cash.

Question 43

Fill In The Blank

The inventory system that is updated whenever an item is sold or new stock purchased is a(Blank) Inventory System.

Question 44

Fill In The Blank

The listing of all the accounts available for use in the accounting system is referred to as the (Blank).

Question 45

Fill In The Blank

The name of the financial statement that is also known as the Statement of Financial Position is the (Blank)

Question 46

Fill In The Blank

The term used to describe the amount entered on the left-side of an account is(Blank)

Question 47

Fill In The Blank

The word to describe the systematic allocation of the value of a fixed asset from the Balance Sheet to an Expense on the Income Statement is (Blank)

Question 48

Fill In The Blank

When a company's accounting year ends on December 31, the company's accounting year is referred to as a calendar year. When a company's accounting year ends on a date other than December 31, the company's accounting year is referred to as a (Blank)

Question 49

Fill In The Blank

When a customer purchases an item on account, the accounting clerk for the seller will debit Accounts (Blank)

Question 50

Fill In The Blank

When an accountant is faced with two acceptable alternatives for reporting an amount, the accounting guideline/principle/constraint that directs the accountant to select and report the amount that will result in less profit, less assets, or less liabilities is the(Blank) principle.