1. The type of accounts that have monetary value are called?
assets
liabilities
revenue
expenses
2. What accounting forms should accounting students be familiar with?
balance sheets
income statements
cash flow
all the above
3. The main difference between a service business and a merchandising business chart of accounts is?
the assets
cost of merchandise
expenses
stockholders' equity
4. Advertising, wages and utilities are in which section of the chart of accounts?
assets
liabilities
revenue
expenses
5. What is the section in the chart of accounts where we record investments by owners?
assets
stockholder's equity
liabilities
expenses
6. What is the account called that is used to record items bought from a supplier meant for resale?
purchases
rent expense
common stock
retained earnings
7. When your company gets its loan, what account will be used to record it?
rent
accounts payable
notes payable
purchases
8. How many sections are there in a chart of accounts for a service business?
5
6
7
8
9. How many sections are there in a chart of accounts for a merchandising business?
4
5
6
7
10. Furniture and Fixtures would be classified as?
asset
liabilities
revenue
expense
11. Debts of the business are called?
assets
liabilities
stockholders' equity
expenses
12. The amout of money invested by shareholders is called?
common stock
retained earnings
revenue
expense
13. Which type of account is in the fourth section of a chart of accounts?
revenue
expenses
assets
liabilities
14. Money owed to the government for federal income tax withheld from employees' pay checks, is what type of account?
asset
liabilities
revenue
cost of merchandise
15. Other income is in which section of a chart of accounts?
assets
liabilities
stockholder's equity
revenue
Chapter 1 Accounting Test