FBLA Test 2005

FBLA Test 2005 - #101 Accounting I 2005 FBLA WRC WRC...

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#101 Accounting I 2005 FBLA WRC WRC 2005--Accounting I True/False Indicate whether the sentence or statement is true or false. ____ 1. The capital account is an owner's equity account. ____ 2. If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance. ____ 3. A business that performs an activity for a fee is a service business. ____ 4. A proprietorship is also known as a sole proprietorship. ____ 5. A business has two types of equities. ____ 6. When an owner withdraws cash from the business, the transaction affects both assets and owner's equity. ____ 7. When cash is paid to the owner for personal use, assets decrease and owner's equity decreases. ____ 8. The right side of a balance sheet presents liabilities and assets. ____ 9. Sandra Stern, Drawing is increased with a credit. ____ 10. The source document for cash payments is a check. ____ 11. The Objective Evidence accounting concept requires that there be proof that a transaction did occur. ____ 12. A journal shows in one place all the changes in a single account. ____ 13. A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger. ____ 14. If a bank does not receive payment from the person who signed the check, each endorser of the check is individually liable for payment. ____ 15. Blank endorsements should be used when sending checks through the mail. ____ 16. Most banks will accept postdated checks. ____ 17. Anytime a payment is made from the petty cash fund, a petty cash slip is prepared showing proof of a petty cash payment. ____ 18. The petty cash slip is the source document for the entry to replenish petty cash. ____ 19. All general ledger account titles are listed on a trial balance even if some accounts do not have a balance. ____ 20. Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept. ____ 21. When the Income Statement Credit column total is greater than the Income Statement Debit column total on a work sheet, the business has a net income. ____ 22. Information needed to prepare the liabilities section of a balance sheet is obtained from the work sheet's Account Title column and the Balance Sheet Credit column. ____ 23. The Adequate Disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition. ____ 24. Only revenue accounts and expense accounts are used in preparing the income statement. ____ 25. The net income on an income statement is verified by checking the balance sheet. 1
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#101 Accounting I 2005 FBLA WRC ____ 26. An amount written in parentheses on a financial statement indicates an estimate. ____ 27.
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This note was uploaded on 10/14/2011 for the course ACCT 2101 taught by Professor Clark during the Fall '10 term at Georgia State.

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FBLA Test 2005 - #101 Accounting I 2005 FBLA WRC WRC...

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