Basic Accounting Quiz! Trivia Exam

The normal balance for an expense account is debit. This means that expenses are typically recorded as debits in the accounting system. Debits increase expense accounts, while credits decrease them. This is because expenses are considered to be decreases in the company's assets or increases in its liabilities, and these types of transactions are recorded as debits.

Posting is the correct answer because it refers to the process of transferring information from the General Journal to the General Ledger. This involves recording the debits and credits for each transaction in the appropriate accounts in the General Ledger, ensuring that the financial records are accurate and up to date. Journalizing refers to the initial recording of transactions in the General Journal, adjusting entries are made to correct errors or update accounts, and the income statement is a financial statement that shows the revenues and expenses of a company over a specific period.

The income statement is the correct answer because it is the financial statement that shows the cost of merchandise sold. The income statement provides a summary of a company's revenues, expenses, and net income or loss for a specific period. It includes the cost of goods sold, which represents the direct costs associated with producing or purchasing the merchandise that was sold during the period. By subtracting the cost of goods sold from the revenues, the income statement calculates the gross profit or gross loss generated by the company's operations.

An Owner's Equity Statement is not used to report a business's financial progress. It is a financial statement that shows the changes in the owner's equity of a business over a specific period of time. It includes information about the initial investments, additional investments, withdrawals, and net income of the owner. The purpose of an Owner's Equity Statement is to provide information about the changes in the owner's ownership interest in the business, rather than the overall financial progress of the business.

The statement suggests that checks are enjoyable and one never gets tired of doing them. However, this is a subjective opinion and may not be true for everyone. Some people may find checks to be tedious or boring over time. Therefore, the statement is not universally applicable, making the answer "False".

The correct answer is pencil because writing a worksheet typically involves using a writing instrument that can be easily erased or corrected. Pencil allows for easy erasing and making changes, which is important when creating a worksheet that may require revisions or adjustments. Markers, pens, and paint are not ideal for writing a worksheet as they do not offer the same level of flexibility and ease of correction.

A Trial Balance is a financial statement that lists each account in the general ledger along with its balance as of a specific date. It is used to ensure that the total debit balances equal the total credit balances in the ledger, which helps in identifying any errors or discrepancies in the recording of financial transactions. The Trial Balance is an important tool for accountants to verify the accuracy of their work and to prepare accurate financial statements.

The statement is false because to "debit" an account means to subtract from it, not add to it. Debiting an account involves recording an entry that increases an expense or asset account or decreases a liability or equity account. This is done by entering a debit entry on the left side of the account.

When revenues are greater than expenses, it means that the company has generated more income than it has spent on its operations. This positive difference between revenues and expenses is known as net income. Net income represents the profitability of a company and indicates that it has made a profit during a specific period of time. It is calculated by subtracting total expenses from total revenues.

A journal typically consists of multiple columns used for recording different types of information or transactions. These columns are used to categorize and organize the data in a systematic manner. Therefore, the correct answer is 11, indicating that there are 11 columns in a journal.

Before finishing journalizing, it is important to check the totals to ensure that all debits and credits are properly balanced. This step helps to identify any errors or discrepancies in the journal entries. Additionally, the double rule is another crucial step in accounting where each entry is recorded twice, once on the debit side and once on the credit side, to maintain accuracy and prevent errors.