Accounting

Question 1

This ASSET represents the money owed to a business by its customers for goods or services provided on credit.

Answer 1

Accounts Receivable

Question 2

This LIABILITY represents the money a business owes to suppliers for goods or services received on credit.

Answer 2

Accounts Payable

Question 3

This EXPENSE represents the direct costs incurred to produce goods or services that have been sold.

Answer 3

Cost of Goods Sold

Question 4

This REVENUE account represents the revenue a company earns from selling goods or services.

Answer 4

Sales

Question 5

This LIABILITY represents money received by a company for goods or services that have not yet been delivered.

Answer 5

Unearned Revenue

Question 6

This EQUITY account represents ownership in a company issued to shareholders

Answer 6

Stock

Question 7

This LIABILITY represents a company’s formal written obligations to repay borrowed money.

Answer 7

Notes Payable

Question 8

This ASSET represents an advance payment for insurance coverage that has not yet been used.

Answer 8

Prepaid Insurance

Question 9

This EQUITY account represents the accumulated net income of a company that has not been distributed as dividends to shareholders.

Answer 9

Retained Earnings

Question 10

______ and _______ when in a journal entry, always increase on the debit side and decrease on the credit side

Answer 10

Assets and Expenses

Question 11

________, _________ , and ________ when in a journal entry, always increase on the credit side and decrease on the debit side.

Answer 11

Liabilities, Equity and Revenue