Recording Transactions in Accounting Quiz Test your understanding of accounting principles with this quiz on recording transactions. Assess your knowledge on assets, liabilities, contra accounts, and more.
#1
Accounts payable
Inventory
Salaries expense
Utilities payable
#2
An increase in assets
A decrease in liabilities
The left side of an account
A decrease in owner's equity
#3
Matching principle
Consistency principle
Materiality principle
Revenue recognition principle
#4
Increases assets, decreases equity
Decreases assets, decreases equity
Decreases assets, decreases liabilities
No effect on the accounting equation
#5
To record transactions in two separate journals
To ensure accuracy by recording each transaction in at least two accounts
To simplify the recording process for large corporations
To eliminate the need for trial balances
#6
Accounts payable
Accumulated depreciation
Inventory
Notes receivable
#7
To identify errors in recording transactions
To report financial results to stakeholders
To record adjusting entries
To calculate the cost of goods sold
#8
To record all transactions of a business in chronological order
To summarize the financial position of a business at a specific point in time
To record transactions in a chronological order
To record transactions classified by accounts
#9
Service revenue
Accumulated depreciation
Retained earnings
Prepaid insurance
#10
Recording a sale of inventory on credit
Paying utility bills
Accruing interest expense
Withdrawing cash from the bank
#11
To report the company's financial position at a specific point in time
To summarize the company's revenues and expenses over a period of time
To provide information about the company's cash receipts and cash payments during a period
To disclose significant accounting policies used by the company
#12
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#13
To close temporary accounts and transfer their balances to permanent accounts
To adjust the balances of asset and liability accounts
To record transactions related to the purchase of long-term assets
To calculate the cost of goods sold
#14
Recording revenue when cash is received
Recording expenses when cash is paid
Recording revenue and expenses when they are earned or incurred, regardless of when cash is received or paid
Recording only cash transactions
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