Payables Quiz

In the general ledger account, Accounts Payable is a ______.

• Fixed Asset

• Current Asset

• Current Liability

• Capital

The balance in Accounts Payable is decreased with a _____ entry.

• Debit

• Credit

The expenses that have been incurred but not yet entered as accounts payable should be part of _____ entry.

• Adjustment

• Accrual

• Reversal

• Prepayment

Under the accrual method of accounting, the interest expense that is reported on the income statement is the amount of interest that was _____.

• incurred

• paid

• unpaid

• prepaid

When a company receives goods or services on credit, the amount is recorded in Accounts Payable as a _____.

• debit

• credit

The amount of prepaid insurance that has not expired as of the end of an accounting period should be reported as _____.

• an asset

• an expense

• a liability

What is debit and credit from the banks point of view?

• Credit what goes in

  Debit what goes out

• Credit what goes out

  Debit what goes in

Which of the following is an acceptable petty cash practise?

• Cashing a post-dated cheque for the company's treasurer

• Accepting an IOU from the company's controller

• Advancing funds to the company's executive vice president for a golfing outing

• Reimbursing the credit manager RM150 for petrol when he presented a receipt authorised by his boss

Which of the following entries would be posted as a debit?

• Decrease to an expense account

• Increase to a revenue account

• Increase to an expense account

• Decrease to an asset account

All of the following accounts are liability accounts EXCEPT:

• Salary payable

• Accrual

• Prepaid insurance

• Provision for taxation