FBLA Accounting 1 Sampler

A single line ruled under all amount columns indicates that totals are correct.

• True

• False

The balance of a contra account increases the balance in another account.

• True

• False

Allowance for Uncollectible Accounts is classified as a contra asset and appears on the balance sheet.

• True

• False

The amount of sales tax collected is a/an

• asset

• liability

• revenue

• expense

If a company purchases supplies on account, ___ and ___ are affected.

• Purchases-Debit, Accounts Payable/XYZ Company-Credit

• Supplies-Debit, Accounts Payable/XYZ Company-Credit

• Supplies-Debit, Accounts Receivable/XYZ Company-Credit

• Supplies-Debit, Accounts Payable/XYZ Company-Credit

Accounts Receivable is classified as:

• Asset

• Cost of Merchandise

• Revenue

• Contra

One way to increase the gross profit on sales is to:

• increase cost of merchandise sold.

• decrease sales revenue.

• decrease expenses.

• increase sales revenue.

The Income Summary account is classified as

• a. an asset account.

• b. an expense account.

• c. a stockholders' equity account.

• d. a liability account.

Received a check on account for $588 for a sale of $600, less a discount of $12. Write the letter of the journal on which the transaction is recorded.

• Sales Journal

• Purchases Journal

• Cash Receipts Journal

• Cash Payments Journal

• General Journal

Sold $73 in merchandise on account. Write the letter of the journal on which the transaction is recorded.

• Sales Journal

• Purchases Journal

• Cash Receipts Journal

• Cash Payments Journal

• General Journal