GRADE 11 REVIEW QUIZ What do you remember??

TRUE OR FALSE #1 Ledger accounts are arranged alphabetically in order to find them more easily.

TRUE OR FALSE #2 The goods not sold represent the ending inventory.

TRUE OR FALSE #3 The owner’s withdrawal of cash for personal use reduces Cash and Accounts Payable.

TRUE OR FALSE #4 An entire journal entry for a $500 purchase invoice for supplies is not recorded. The general ledger will still balance.

TRUE OR FALSE #5 Only very rarely does a transaction affect only one account.

TRUE OR FALSE #6 An entire journal entry for a $500 purchase invoice for supplies is not recorded. Two accounts in the general ledger have incorrect balances.

TRUE OR FALSE #7 When a bookkeeper thinks of an accounting entry, he thinks of “debit” first.

TRUE OR FALSE #8 Business debts owed to us by our customers are known as Accounts Receivables.

TRUE OR FALSE #9 For a sale of goods or services on account, the accounting entry is a debit to Accounts Receivable and a credit to Service Revenue.

TRUE OR FALSE #10 Debtor accounts are listed in the liability section of the balance sheet.

MULTIPLE CHOICE #1 The fundamental accounting equation is: A. A = OE + L B. A = L + OE C. A = L – OE D. A + L = OE

MULTIPLE CHOICE #2 Office Equipment is classified as a: Current Liability Revenue Fixed Asset Current Asset

MULTIPLE CHOICE #3 A truck is purchased. If $3 000 cash is paid with the balance of $7 000 to be paid later, the following is true: A. Owner’s equity is increased B. Total assets decrease, total liabilities increase C. Total liabilities are not affected D. None of the above

MULTIPLE CHOICE #4 Beginning inventory plus purchases minus ending inventory equals: A. Cost of goods available for sale B. Cost of goods sold C. Gross profit D. Net purchases

MULTIPLE CHOICE #5 Which of the following accounts is not closed at the end of the fiscal period? A. Wages B. Accounts Receivable C. Bank Charges D. Loss on Sale of Equipment

MULTIPLE CHOICE #6 The last step in the basic accounting cycle is the: A. Financial statements B. Post-closing trial balance C. Closing entries D. Adjusting entries

MULTIPLE CHOICE #7 A fiscal period may be: One year long Six months long Any length, as long as it is not less than one year in length Any length, as long as it is not over one year in length

MULTIPLE CHOICE #8 P. Jones started a business with $25 000. During the year, she invested $5 000 and withdrew $7 000. If the ending balance was $34 000, the net income was: A. $9 000 B. $21 000 C. $11 000 D. $7 000

MULTIPLE CHOICE #9 The wages account is: A current liability A drawings account A current asset An expense

MULTIPLE CHOICE #10 A business buys land for $50 000 on credit. In recording the transaction, the effect on the equation will be: A. Assets both increase and decrease B. Assets increase, liabilities decrease C. Assets increase, liabilities increase D. Assets increase, equity increases

JOURNALIZING #1 Performed a repair service for Jack Wiley at a price of $185, but Mr. Wiley did not pay immediately.

JOURNALIZING #2 The owner, Victor Kovacs, withdrew $400 cash from the business for his personal use.

JOURNALIZING #3 Purchased $50 of supplies and paid cash.

JOURNALIZING #4 Invested $10 000 cash in a business.

JOURNALIZING #5 Cheque issued to Gregson Supply Co., $100 on account.

JOURNALIZING #6 Bank debit memo, $25.60 for bank service charges.

JOURNALIZING #7 Cash sales slip for $200.

JOURNALIZING #8 Paid $400 cash to the bank to reduce the bank loan.

JOURNALIZING #9 Cheque No. 308 to Royal Realty for monthly rent, $600.

JOURNALIZING #10 Cash receipt from Jack Mahoney, $322.50 on account.

SHORT ANSWER #1 Classify each of the following as an Asset (A) or Liability (L). A. Bank Loan B. Amount owed to C. Evans C. Amount owed by J. Draper

SHORT ANSWER #2 What is a transposition error?

SHORT ANSWER #3 For what account type(s) does a decrease mean DEBIT?

SHORT ANSWER #4 What effect does the following transaction have on total assets? Purchased equipment for $2 000 cash.

SHORT ANSWER #5 What kind of accounts have debit balances?

SHORT ANSWER #6 What is POSTING?

SHORT ANSWER #7 Name the four types of accounts found in the equity section of the ledger.

HOW DID YOU DO? Each answer is worth 1 mark. A total of 39 marks can be earned.

TRUE OR FALSE False True True False

MULTIPLE CHOICE B C D B D C

JOURNALIZING Debit A/R – Credit Service Revenue Debit V. Kovacs, Drawings – Credit Cash Debit Supplies – Credit Cash Debit Cash – Credit Capital Debit A/P – Credit Cash

Debit Bank Charges Expense – Credit Cash Debit Cash – Credit Service Revenue Debit Bank Loan Payable – Credit Cash Debit Rent Expense – Credit Cash Debit Cash – Credit A/R

SHORT ANSWER a) L b) L c) A (1 mark each) Reversal of two digits when recording a number. Liabilities and capital No change in total assets Assets, expenses, and drawings Process of transferring transactions from the journal to the ledger. Capital, drawings, revenues, and expenses