Note that there is no time limit to answer the questions, and you can have as many goes at answering each question as you like. Why not try one of our accounting quizzes and test your knowledge of bookkeeping and accounting. A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account. LO 3.2Cromwell Corporation has the following trial balance account balances, given in no certain order, as of December 31, 2018.
- LO 3.4Identify whether ongoing transactions posted to the following accounts would normally have only debit entries (Dr), only credit entries (Cr), or both debit and credit entries (both).
- LO 3.5Prepare journal entries to record the following transactions.
- LO 3.5Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders’ equity, and prove the company’s accounts will still be in balance.
- Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping.
Perfect for Employees, Bookkeepers, Students, Accountants, and Small Businesses
This is a nice little question on the sale and purchase of fixed (or non-current) assets. Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License .
Time Value of Money
Note that this exercise includes transactions for a trading business (purchase and sale of goods). The first part of the solution contains the accounts affected (in the grid), while the second part shows the full journal entries. A liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased.
Bookkeeping Basics Quizzes
Follow along step-by-step and we’ll explain the most important accounting topics in a more intuitive away. Our Explanations simplify the most important accounting topics in a way that’s clear, straight-to-the-point, and easy to understand. With more than 25 years of teaching experience, Harold brings accounting to life by combining theory with real-world examples and stories.
I would definitely recommend to time yourself when you practice each of these exercises. This will help ensure you’re not taking too long to complete each question and will help you get used to doing exercises under exam settings. A quick and thorough overview of 30 key managerial and cost accounting topics.
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Please note that these are generally intermediate to advanced exercises. This is a great exercise for testing your understanding of the different accounts that are affected by some basic transactions. Note that this is a beginner exercise and does not cover a trading business (purchase and sale of goods). The first part of the solution contains just the names of the accounts, while the optional second part shows the journal entries. If you wish to take an accounting quiz please do so by first choosing a quiz from the Popular Quiz list below.
The amount in the Supplies Expense account reports the amounts of supplies that were used during the time interval indicated in the heading of the income statement. When you’re done, check the answers page at the end to see if you got them correctly. LO 3.5Post the following November transactions to T-accounts do insurance payouts have to be counted as income for Accounts Payable and Inventory, indicating the ending balance (assume no beginning balances in these accounts). LO 3.5Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating the ending balance (assume no beginning balances in these accounts).
A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement. For your convenience, difficulty levels and time limits are stated at the beginning of each of these exercises. LO 3.1Identify the normal balance for each of the following accounts.
Our Crossword Puzzles and Word Scrambles will help you learn, review, and retain important terminology for each accounting topic in a fun way. Our Practice Quizzes will help you assess your understanding of each Explanation and improve your retention. These are a great warm-up for our Quick Tests which contain more than 1,800 questions with solutions.
Using the information provided, prepare Cromwell’s annual financial statements (omit the Statement of Cash Flows). In this quiz you need to name whether certain items are capital expenditure or revenue in nature. These are good concepts to understand (I’ll explain them in the solution) and the exercise is a good test of your understanding of some of the basic elements of accounting.
