Accounting I- Mack (Pretest)

What is an example of an asset account?

• Utilities Expense

• Office Equipment

• Mack Capital

• Desert Schools Bank

What is the function of the 'Purchases' account?

• To keep track of purchases of merchandise made for resale.

• To keep track of the amount of money spent for advertising.

• To keep track of supplies purchased.

What does a Balance Sheet prove?

• It is the end of the month.

• The month's transactions have all been entered in the General Ledger.

• The equality of debits and credits in the General Ledger.

The name of a book of vendors is

• The Accounts Payable Ledger.

• The Journal.

• The Accounts Receivable Ledger.

Why is it important to check your debit totals and your credit totals in the Journal at regular intervals in the month?

• For a sales report.

• To prove the equality of the debit and credit totals.

• To close out an Accounts Receivable account.

What is an outstanding check?

• A check that you have voided.

• A check that you have not deposited yet.

• A check you have written but has not been presented for payment at the bank.

After all the posting from the journal is complete, what must be true about the General Ledger?

• The debit balances must equal the credit balances.

• 2. The accounts should be full.

• There must be the same number of asset accounts as there are expense accounts.

One of the factors that determine how much income tax is withheld from an employee is

• how long they have been at a job

• whether they are married or single.

• job location

• age

A worksheet is a financial report that shows

• how much the owner's capital has increased.

• how much money the owner has withdrawn for personal use.

• what the asset accounts have for balances.

• if the business has a net income or net loss for the period.

An Income Statement's primary purpose is to show

• How much each partner took out of the business for personal use during the year.

• How the net income for the year was determined. The company's financial performance over a period of time

• how many partners the business has had over the life of the buisness.