Accounting Principles

Assets are usually reported on the balance sheet at which amount?

• Current Market Value

• Expected Selling Price

• Cost

• None of These

Which term is associated with "left" or "left-side"?

• Debit

• Plus

• Minus

• Credit

What will usually cause the liability account Accounts Payable to increase?

• Credit

• Debit

Revenues minus expenses equals:

• Owners Equity

• Net Income

• Liabilities

• Assets

The financial statement that reports the revenue and expenses for a period of time such as a year or a month is the:

• Balance Sheet

• Statement of Cash Flows

• Income Statement

• None of the Above

This account refers to the ownership of a public company.

• Asset

• Liability

• Shareholder's Equity

• Revenue

Which of these is NOT a method of controlling cash?

• Employee Background Checks

• Separation of Duties

• Using only digital currency.

• Securing cash in safe location

These accounts are receivables, loans, or other debts that have virtually no chance of being paid.

• Forgivable Accounts

• Written Off Accounts

• Bad Debt Accounts

• Uncollectable Accounts

Under this method, you are assuming that items bought first are also used or sold first.

• LIFO

• FIFO

• Weighted Average

• FILO

A beginning balance in your Inventory account of $4,000. You purchase $1,000 of materials during the accounting period. At the end of the period, you count $1,500 of ending inventory. How much do you debit Cost of Goods Sold?

• $2,500

• $3,000

• $3,500

• $5,500