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FBLA Accounting I - FBLA Accounting I Practice Test 2004...

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FBLA Accounting I Practice Test 2004 True/False Indicate whether the sentence or statement is true or false. 1. When a business uses a petty cash fund, the fund is debited each time it is replaced. 2. A debit to an account is always an increase. 3. When a business buys equipment, the bookkeeper credits the asset account. 4. To determine the interest on a promissory note, the accountant will need to know principal, interest, rate, and term. 5. A payee is the person or business to whom a check is payable. 6. Today the Federal Tax Reform Law only requires persons who are over two years old to have a social security number. 7. A bonus, rather than a commission, is an amount paid to an employee as a percentage of sales. 8. Depreciation is allocating the cost of a plant asset over the asset’s useful life. 9. When the accountant debits the withdrawals account, this will result in a decrease to the account. 10. Straight-line depreciation is allocating the cost of a plant equally over its useful life. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 11. The basic accounting equation may be expressed as a. A + E c. Assets = Liabilities + Owner’s Equity b. A = OE - L d. Assets + Liabilities = Owner’s Equity 12. The year and month are written in a general journal 13. Debts that are not required to be paid within the next accounting period are called
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14. Which of the following transactions will result in the trial balance being out of balance? 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.
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