FBLA Accounting Exam: Trivia Quiz!

40 Questions | Total Attempts: 643

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FBLA Accounting Exam: Trivia Quiz!


Questions and Answers
  • 1. 
    When a business uses a petty cash fund, the fund is debited each time it is replaced.
    • A. 

      True

    • B. 

      False

  • 2. 
    A debit to an account is always an increase.
    • A. 

      True

    • B. 

      False

  • 3. 
    When a business buys equipment, the bookkeeper credits the asset account.
    • A. 

      True

    • B. 

      False

  • 4. 
    To determine the interest on a promissory note, the accountant will need to know the principle, interest, rate, and term.
    • A. 

      True

    • B. 

      False

  • 5. 
    A payee is a person or business to whom a check is payable.
    • A. 

      True

    • B. 

      False

  • 6. 
    Today the Federal Tax Reform Law only requires persons who are over two years old to have a social security number.
    • A. 

      True

    • B. 

      False

  • 7. 
    A bonus, rather than a commission, is an amount paid to an employee as a percentage of sales.
    • A. 

      True

    • B. 

      False

  • 8. 
    Depreciation is allocating the cost of a plant asset over the asset�s useful life.
    • A. 

      True

    • B. 

      False

  • 9. 
    When the accountant debits the withdrawals account, this will result in a decrease to the account.
    • A. 

      True

    • B. 

      False

  • 10. 
    Straight-line depreciation is allocating the cost of a plant equally over its useful life.
    • A. 

      True

    • B. 

      False

  • 11. 
    The basic accounting equation may be expressed as
    • A. 

      A. A + E

    • B. 

      B. A = OE - L

    • C. 

      C. Assets = Liabilities + Owner’s Equity

    • D. 

      D. Assets + Liabilities = Owner’s Equity

  • 12. 
    The year and month are written in a general journal
    • A. 

      A. on each journal page.

    • B. 

      B. for each entry on each journal page.

    • C. 

      C. only at the top of page one of the journal page.

    • D. 

      D. at the bottom of each journal page.

  • 13. 
    Debts that are not required to be paid within the next accounting period are called
    • A. 

      A. wages.

    • B. 

      B. liabilities.

    • C. 

      C. taxes.

    • D. 

      D. long-term liabilities.

  • 14. 
    Which of the following transactions will result in the trial balance being out of balance?
    • A. 

      A. $500 salary payment posted as a $500 debit to cash and a $500 credit to salaries expense.

    • B. 

      B. $200 check from a customer in payment of his/her account posted as $200 debit to cash and a $200 credit to accounts receivable.

    • C. 

      C. $75 cash from a customer in payment of his/her account posted as a $75 debit to cash and a $57 credit to cash.

    • D. 

      D. $50 cash purchase of office supplies posted as a $50 debit to office equipment and a $50 credit to cash

  • 15. 
    At the close of the fiscal year in June, Bernard�s Novelty had a cash balance of $8,000. What was the cash balance on June 1 if Bernard�s cash receipts for June were $15,526 and his disbursements were $12,200?
    • A. 

      A. $3,326

    • B. 

      B. $7,526

    • C. 

      C. $4,200

    • D. 

      D. $4,674

  • 16. 
    Assume that Bernard�s Novelty is a partnership. Which transaction would occur if Partner A withdraws cash for personal use to purchase an automobile?
    • A. 

      A. Debit salary expense and credit cash

    • B. 

      B. Debit cash and credit Partner A, withdrawal

    • C. 

      C. Debit Partner A, withdrawal and credit cash

    • D. 

      D. Debit capital and credit cash

  • 17. 
    The accountant will write off a customer as a bad debt using the direct-write method by
    • A. 

      A. debiting bad debts expense and crediting accounts receivable/customer in the general journal.

    • B. 

      B. posting to the bad debts expense and accounts receivable accounts.

    • C. 

      C. posting to the customer’s account showing it to be uncollectible.

    • D. 

      D. All of the above

  • 18. 
    Adjusting entries journal entries to update the ledger. Therefore, to adjust and account for depreciation expense, the bookkeeper will
    • A. 

      A. debit the account and credit the related expense account.

    • B. 

      B. debit the depreciation account and credit the accumulated depreciation account.

    • C. 

      C. debit the accumulated depreciation account and credit the depreciation expense account.

    • D. 

      D. debit the depreciation account and credit the owner’s equity account.

  • 19. 
    Which tax is paid by both employer and employee on the employee�s gross wages?
    • A. 

      A. Federal income tax

    • B. 

      B. FICA tax

    • C. 

      C. State income tax

    • D. 

      D. State unemployment tax

  • 20. 
    Which of the following accounts needs no closing entries?
    • A. 

      A. Capital

    • B. 

      B. Supplies expense

    • C. 

      C. Fees owed

    • D. 

      D. All of the above

  • 21. 
    Ending inventory is merchandise a business has on hand at the
    • A. 

      A. beginning of the fiscal period

    • B. 

      B. end of the fiscal period.

    • C. 

      C. during the fiscal period.

    • D. 

      D. midpoint of the fiscal period.

  • 22. 
    A business had gross sales of $4,500 and sales discounts of $250 at the end of May. Net sales at the end of May were $4,100 as there was a sales return and allowance on May 15. How did the bookkeeper record the return and for what amount?
    • A. 

      A. Debit sales discounts for $250, credit accounts receivable/customer.

    • B. 

      B. Credit sales returns and allowances for $150, debit accounts receivable/customer.

    • C. 

      C. Debit sales returns and allowances for $150, credit accounts receivable/customer

    • D. 

      D. Debit sales discounts for $150, credit accounts receivable/customer

  • 23. 
    ___________ stock is the type of stock issued by a corporation when only one class of stock is issued.
    • A. 

      Preferred

    • B. 

      Common

    • C. 

      Capital

    • D. 

      Dividend

  • 24. 
    Retained earnings are earnings of a ________ and will be shown on the ______________.
    • A. 

      Sole proprietorship, balance sheet

    • B. 

      Partnership, income statement

    • C. 

      Corporation, balance sheet

    • D. 

      Corporation, income statement

  • 25. 
    The balance sheet will show:
    • A. 

      Asset accounts only on a specific date

    • B. 

      Preliminary balances of all the asset and liability accounts on a specific date.

    • C. 

      Final balances of all accounts on a specific date.

    • D. 

      Final balances in all asset, liability, and owner’s equity accounts