A Business Quiz: True/False Questions

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Jazibkhan

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Quizzes Created: 4 | Total Attempts: 2,023

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1/19 Questions

A number of individual balance sheet items may appear on one account page, as long as they are shown separately
- True
- False

About This Quiz

One of the best ways to know if you understand a topic is by picking true and false answers to some confusing questions. This business quiz below is designed to jog your memory of all you have learned so far. All the best and keep on revising for the sake of the knowledge.

A Business Quiz: True/False Questions - Quiz

2.

Many accountants use the equation analysis sheet instead of the ledger.
- True
- False
Correct Answer

A. False

Explanation

although the ledger may be more complex, it is better organized

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3.

There is a page in the ledger for the total assets figure.
- True
- False
Correct Answer

A. False

Explanation

A total assets figure is not found in the ledger but found on balance sheets

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4.

T-accounts are ideal for small businesses.
- True
- False
Correct Answer

A. False

Explanation

t-accounts are informal documents where they try to explain the debit and credit theory in a basic way

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5.

The first dollar amount recorded in an account is placed on the same side as it appears on a simple balance sheet.
- True
- False
Correct Answer

A. True

Explanation

The statement is true because on a simple balance sheet, the first dollar amount recorded in an account is placed on the same side as it appears. In a balance sheet, assets are listed on the left side and liabilities and equity are listed on the right side. Therefore, the first dollar amount recorded in an account will be placed on either the left or right side of the balance sheet, depending on whether it is an asset or a liability/equity.

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6.

There is no account for capital because it can always be found by subtracting the total assets from the liabilities.
- True
- False
Correct Answer

A. False

Explanation

Yes there is a capital account which is the owner's equity and needs to be recorded

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7.

A transaction analysis sheet is a permanent accounting record.
- True
- False
Correct Answer

A. False

Explanation

it is informal to express one's thoughts about transactions

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8.

for every transaction, there is always one debit amount and one credit amount which are equal.
- True
- False
Correct Answer

A. True

Explanation

This statement is a fundamental principle of double-entry bookkeeping. According to this principle, every transaction involves two accounts - one account is debited and another account is credited, and the amounts recorded in these accounts are always equal. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. By following this principle, accurate and reliable financial records can be maintained.

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9.

A balanced accounting entry is a correct accounting entry.
- True
- False
Correct Answer

A. False

Explanation

it may not be correct as there may be some errors like misplacing a value in the wrong account, debit, or credit, or even putting a value in a wrong account

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10.

The balance of an account that is not zero must be either a debit or a credit.
- True
- False
Correct Answer

A. True

Explanation

In accounting, every transaction affects two accounts - one is debited and the other is credited. The basic principle of double-entry bookkeeping states that every debit must have a corresponding credit. Therefore, if the balance of an account is not zero, it means that there have been transactions affecting that account, and thus, there must be either a debit or a credit balance. Hence, the statement is true.

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11.

The J.R Dahl account in the ledge of C. Jacob is either an account receivable or account payable.
- True
- False
Correct Answer

A. True

Explanation

The statement is true because the J.R Dahl account in the ledger of C. Jacob can be classified as either an account receivable or an account payable. An account receivable refers to the amount owed to C. Jacob by J.R Dahl, while an account payable refers to the amount owed by C. Jacob to J.R Dahl. Therefore, depending on the nature of the transaction between the two parties, the J.R Dahl account can be either an account receivable or an account payable.

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12.

Eric Lai's account has a credit balance. This means that he purchased services on credit.
- True
- False
Correct Answer

A. False

Explanation

this is most likely an accounts payable and we owe him instead of him purchasing.

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1
13.

An exceptional balance is opposite to what would be normal.
- True
- False
Correct Answer

A. True

Explanation

An exceptional balance refers to a balance that is not typical or ordinary. It implies a deviation from what is considered normal or expected. Therefore, the statement "An exceptional balance is opposite to what would be normal" is true, as it suggests that an exceptional balance is contrary to what is typically observed or anticipated.

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14.

A customer given a refund because of unsatisfactory service. The account of this customer will have an exceptional balance.
- True
- False
Correct Answer

A. False

Explanation

The customer does not owe anything, but the company loses cash, so the account affected is cash.

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15.

A ledger contains an exceptional balance. A trial balance cannot be taken until the exceptional balance is transferred to another part of the ledger.
- True
- False
Correct Answer

A. False

Explanation

A trial balance is used to identify the error, and can be taken at any time

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16.

A trial balance that is in balance proves that there are no errors in the accounts.
- True
- False
Correct Answer

A. False

Explanation

false, it proves that there is no error is the amounts, but these amounts may be in the wrong accounts

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17.

A trial balance that is taken using a printing calculator; when the total key is pressed, the figure 89.00 comes up. This is the amount of the error.
- True
- False
Correct Answer

A. False

Explanation

this proves that there are 1 or more errors

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18.

The business buys supplies and pays cash. The accounting entry made in the accounts is DR bank and CR supplies. this causes TE ledger to be UT of balance.
- True
- False
Correct Answer

A. False

Explanation

debit supplies, credit cash, the ledger will balance numerically

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19.

A correct trial balance needs to be kept only until the next one is taken.
- True
- False
Correct Answer

A. False

Explanation

A correct trial balance needs to be kept permanently as it serves as a snapshot of the financial position of a company at a specific point in time. It is an essential tool for preparing financial statements and identifying any errors or discrepancies in the accounting records. Keeping a correct trial balance ensures the accuracy and integrity of the financial information, and it is not discarded after the next trial balance is taken.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Oct 22, 2012

Quiz Created by
Jazibkhan

A Business Quiz: True/False Questions

A number of individual balance sheet items may appear on one account page, as long as they are shown separately

Quiz Preview

Many accountants use the equation analysis sheet instead of the ledger.

There is a page in the ledger for the total assets figure.

T-accounts are ideal for small businesses.

The first dollar amount recorded in an account is placed on the same side as it appears on a simple balance sheet.

There is no account for capital because it can always be found by subtracting the total assets from the liabilities.

A transaction analysis sheet is a permanent accounting record.

for every transaction, there is always one debit amount and one credit amount which are equal.

A balanced accounting entry is a correct accounting entry.

The balance of an account that is not zero must be either a debit or a credit.

The J.R Dahl account in the ledge of C. Jacob is either an account receivable or account payable.

Eric Lai's account has a credit balance. This means that he purchased services on credit.

An exceptional balance is opposite to what would be normal.

A customer given a refund because of unsatisfactory service. The account of this customer will have an exceptional balance.

A ledger contains an exceptional balance. A trial balance cannot be taken until the exceptional balance is transferred to another part of the ledger.

A trial balance that is in balance proves that there are no errors in the accounts.

A trial balance that is taken using a printing calculator; when the total key is pressed, the figure 89.00 comes up. This is the amount of the error.

The business buys supplies and pays cash. The accounting entry made in the accounts is DR bank and CR supplies. this causes TE ledger to be UT of balance.

A correct trial balance needs to be kept only until the next one is taken.