Accounting 1-Aseya

Accounts Receivable & Inventory are the examples of:

• Liquid assets

• Current assets

• Fixed assets

• Capital assets

The chart of accounts is a listing of the accounts presently having balances in the general ledger.

• True

• False

• Not sure

• Not applicable

What are assets?

• Resources owned by a company

• Amounts owed to others

• Net worth of a company

• Amounts paid to owners

The chart of accounts is a:

• List of checks and check numbers

• List of Customers and customer numbers

• List of inventory items and item numbers

• List of accounts and account numbers

What is it called that has all accounts used by a business to record its financial transactions?

• Income Summary

• Book of accounts

• Chart of accounts

• Permanent accounts

The payment of rent for this month causes a decrease in cash and which of the following?

• A credit to Rent Expense

• A decrease in Rent Expense

• Both (b) and (c)

• An increase in Rent Expense

A purchase of office supplies results in recording a decrease in cash and which of the following?

• a. An increase in Office Supplies

• b. A decrease in Office Supplies

• c. A debit to Office Supplies

• d. Both (a) and (c)

An internal transaction is a transaction that takes place in the company, usually among the employees of the company.

• True

• False

• Not sure

• Not applicable

When a company borrows money from a bank, it is an _____________.

• Internal Transaction

• External Transaction

• Intra-company Transaction

• None of the above

Which account is not a liability account?

• Accounts payable

• Accrued expenses

• Cash

• Notes payable