FBLA Accounting I Practice Test

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• Which type of business generally has a larger inventory?
• What is the primary focus of a merchandising business?
• What is the name of the form used to list the currency and checks to be deposited?
• What is a planned process for providing financial information that will be useful to management called?
• What is the amount of money paid to an employee at a specified rate per hour worked called?
• Which of the following transactions would most likely result in a revenue increase?
• What does the accounting cycle refer to?
• What type of tax is applied to the retail sale of goods and services?
• What type of payment is related to the number of items an employee produces?
• What term refers to the amount of money left after all deductions have been taken from gross earnings?
• What term describes the amount paid for each piece produced in a factory or manufacturing plant?
• Which aspect do external controls focus on?
• What document serves as proof for a petty cash payment?
• What do you call a business form that gives written acknowledgment for cash received?
• What does a signature card contain?
• What is a business paper called from which information is obtained for a journal entry?
• What term refers to a collection of accounts?
• What is the purpose of Form 940?
• Which type of property includes all assets not classified as real property?
• What type of payment is made directly into an employee’s bank account?
• What is a subsidiary ledger that is summarized in a controlling account in the general ledger called?
• Which term refers to the planning, recording, analyzing, and interpreting of financial information?
• What procedure involves arranging accounts in a general ledger and keeping records up-to-date?
• Which equation shows the relationship between assets, liabilities, and owner's equity?
• What method is typically used for ensuring accuracy between the bank's balance and the checkbook balance?
• What does a restrictive endorsement do?
• What type of card automatically deducts the amount of a purchase from the cardholder's checking account?
• What is the function of temporary accounts in accounting?
• What is required to complete a restrictive endorsement on a check?
• Which of the following statements is true about net income?
• What term is used for the decrease in equity that results when a plant asset is sold for less than its book value?
• What is the purpose of a controlling account in accounting?
• What are assets taken out of a business for the owner's personal use called?
• What is referred to as the loss when a plant asset is sold for less than its book value?
• What is a typical purpose for writing a check?
• In accounting, what is the significance of a plant asset record?
• What outlines the time allotted for payment on a sale?
• Which of the following describes the information recorded for each transaction in a journal?
• What is the rate that is double the straight-line rate in depreciation called?
• What term describes the revenue gained from selling a plant asset for more than its book value?
• What is a component percentage in financial statements?
• A business that sells to a retailer is known as what?
• What type of account typically earns higher interest than a checking account?
• Which of the following best describes 'deduction'?
• Which accounting form is used to summarize general ledger information needed for financial statements?
• What is the primary advantage of using an electronic funds transfer system?
• What are the changes made on a work sheet to update general ledger accounts at the end of a fiscal period called?
• What term refers to the amount of time for which an employee is paid?
• What financial document summarizes the financial status of a business at a particular time?
• What does reconciling the bank statement involve?
• What term is used to describe the items of merchandise that a business has in stock?
• What term describes the act of recording transactions in a journal?
• What is a statement that guides the ethical behavior of a company and its employees?
• Which document is predominantly used for tracking revenue and expense accounts in a financial accounting system?
• What is a business that performs an activity for a fee called?
• What are unemployment taxes based on?
• What is a list of a business's employees and the payment due to each employee for a specific pay period called?
• What is the value of an asset determined by tax authorities for the purpose of calculating taxes called?
• What do financial rights to the assets of a business refer to?
• What do you call a business that is owned by one person?
• Who is responsible for preparing the payroll?
• How is 'withdrawals' recorded in accounting?
• What is a canceled check?
• What is the process of transferring information from a journal entry to a ledger account known as?
• Which type of form contains a brief message describing a transaction?
• Who are stakeholders in an organization?
• Which term describes an allowance claimed by a taxpayer that reduces the amount of taxes owed?
• What is the purpose of the Form 8109?
• Which special journal is specifically used to record the sale of merchandise on account?
• What do you call the increase in equity resulting when a plant asset is sold for more than its book value?
• What type of account allows a bank customer to deposit cash and write checks?
• What are financial reports that summarize the financial condition and operations of a business called?
• Which of the following is a fixed amount of money paid to an employee for each pay period?
• A business entity that combines resources from multiple owners is called what?
• What type of endorsement consists only of the endorser's signature?
• What is a list of accounts used by a business called?
• What is the assessed value of an asset used for in accounting?
• What type of account does a sales slip typically refer to in retail transactions?
• What enables a charge customer to purchase merchandise on credit?
• What type of invoice is specifically used as a source document for recording a sale on account?
• What is the term for a signature or stamp on the back of a check that transfers ownership?
• What is an itemized record of all transactions occurring in a depositor's account called?
• Who is referred to as the person that signs a check?
• What term refers to the principles of right and wrong that guide decision making?
• What is the term for an amount recorded on the left side of a T Account?
• What is any method of depreciation called that records greater depreciation expense in the early years and less in the later years?
• What is the term for the column in a journal that is not headed with an account title?
• What is the term for the number assigned to an account?
• In financial accounting, what term is used for a detailed record of all transactions affecting a particular account?
• What financial statement shows the revenue and expenses for a fiscal period?
• In accounting terms, what does 'merchandise' refer to?
• Which of the following is typically used to calculate an employee's hours worked?
• What term describes deposits that have been made and recorded in the checkbook but do not appear on the bank statement?
• What is described as a computerized cash payments system that transfers funds without checks or currency?
• What form is used for recording transactions in chronological order?
• What term refers to land and anything that is permanently attached to it?
• What document lists the details of a sale, including date, customer name, and description with price?
• What is the standard term for the fixed amount of compensation paid per hour worked?
• What type of endorsement restricts or limits how a check may be handled?
• What is the amount paid to an employee based on a percentage of the employee's salary called?
• Which depreciation method spreads the expense evenly over the useful life of an asset?
• What is the process of ensuring that the amount of cash agrees with the accounting records called?
• Which accounting concept involves summarizing transactions in various accounts?
• What is the term for distributing the cost of an intangible asset over its useful life?
• Which type of endorsement limits the further transfer of a check?
• What are organized summaries of a business's financial activities known as?
• What type of form describes the goods or services sold, including the quantity and price?
• What does Form W-2 summarize?
• What is the term for the fee charged by the bank for maintaining bank records and processing items for the depositor?
• What is the term for the difference between total revenue and total expenses when total revenue is greater?
• Which type of depreciation method can provide tax advantages in the early years of an asset's life?
• What does the term "Normal Balance" refer to in accounting?
• What is an increase in equity resulting from activity other than selling goods or services called?
• What is the name given to the recording of both the debit and credit parts of a transaction?
• What is the term used for the process of summarizing account balances in small pencil figures?
• What is the term used to describe the ratio of the money earned on investment relative to the amount of the investment?
• What is the action of writing the account title and number in the header of an account called?
• What is a document that reports deposits, withdrawals, and bank balance sent to a depositor by a bank?
• What does a bank statement primarily provide to the account holder?
• Which accounts are used to accumulate information over multiple fiscal periods?
• Which of the following describes a sale for which cash will be received at a later date?
• What is the amount remaining after subtracting liabilities from assets?
• What is it called when an asset is sold at its book value?
• What type of journal entries are made to update the general ledger accounts at the end of a fiscal period?
• What is the name of the accounting form used to record information about each plant asset?
• What are the multi-column journals specifically designated for recording certain types of transactions called?
• Which payment method involves a fixed sum on a regular basis regardless of hours worked?
• What is the primary purpose of credit terms provided to customers?
• What type of account document organizes a business's financial data?
• What is the primary purpose of an account title?
• What is the main goal of the accounting cycle?
• What is the main consequence of recording a loss on the sale of a plant asset?
• What does a payroll register summarize?
• What type of business sells directly to the final user?
• What is an accounting device used to analyze transactions?
• Which financial document would typically show a business's revenues and expenses over a specific period?
• What purpose does the electronic funds transfer system serve?
• What would you find in an accounts receivable subsidiary ledger?
• Who is referred to as a depositor?
• What document serves as proof of the equality of debits and credits in a general ledger?
• What is the term for the length of time a business summarizes and reports financial information?
• Which account category does revenue belong to?
• Which ledger includes all accounts necessary to prepare financial statements?
• Which of the following would be classified as a retailer?
• What term describes the amount in an account?
• What is the name given to an account?
• What is the main function of internal controls in a business?
• Which term describes a business form that orders a bank to pay cash from a bank account?
• What is an amount of cash kept on hand for making small payments called?
• What is the term for each employee's year-to-date gross earnings?
• Which bank is known as the one on which a check is written?
• What is the use of ethics specifically in business decision-making known as?
• What is a business activity that changes assets, liabilities, or owner's equity called?
• Which checks have been written but not yet deposited?
• Which form is typically used to certify the information on employment taxes?
• What is the term for an increase in owner's equity resulting from the operation of a business?
• Which financial term refers to the method used to calculate a decrease in value of an asset over time?
• When are closing entries typically made in the accounting process?
• Which accounting term is used for the systematic allocation of the cost of a tangible fixed asset?
• Which item is certainly not a characteristic of a debit card?
• Which of the following is NOT typically a part of accounting?
• What is a check called that has a future date on it?
• What is the accounting form on which a business records information about each plant asset?
• Which method of depreciation involves multiplying the book value of an asset by a constant rate to determine annual depreciation?
• What document might accompany merchandise delivered on credit?
• Which of the following components is NOT included in a balance sheet?
• What is the rate set by the Fair Labor Standards Act for overtime compensation?
• Which term refers to an authorized signature written or stamped on the back of a check?
• Which account is used to summarize the owner's equity in a business?
• What kind of record reflects the time an employee arrives at work and leaves, along with total hours worked each day?
• What financial statement would summarize the revenues and expenses of a period?
• When a company incurs an expense, what is the likely effect on owner's equity?
• Which form is used for an employer's quarterly federal tax return?
• What are closing entries used for in accounting?
• What is deducted from an employee’s gross earnings to calculate net pay?
• What does a stop payment order signify in banking terms?
• What is required for a trial balance to be considered correct?
• What is the term for an amount recorded on the right side of a T Account?
• Which type of accounts are closed at the end of a fiscal period?
• What is a term for a statement showing the status of checking accounts?
• What is a journal amount column that is headed with an account title known as?
• What is defined as an amount owed by a business?
• What is defined as the total value of an asset as determined by tax authorities for tax calculations?
• Which of the following is NOT considered an expense in accounting?
• What is a record that summarizes all information pertaining to a single item in the accounting equation?
• What do you call all property that is not classified as real property?
• An asset that lacks physical substance is categorized as what type of asset?
• What do we call the goods bought for resale to customers?
• Which of the following applies to a sales journal?
• What is the term for the separate ledger containing accounts for all charge customers?
• What are internal controls designed to protect?
• What is the method by which an employee's net pay can be deposited into their personal bank account?
• What does the term 'capital' specifically refer to in accounting?
• Which type of business buys goods and sells them for profit?
• What is meant by external controls in a business?
• What is an example of an adjusting entry?
• Which financial statement reports assets, liabilities, and owner's equity on a specific date?
• What do we call the difference between total revenue and total expenses when total expenses are greater?
• Which type of property includes land and anything attached to it?
• What represents a summary of a business's financial position at a point in time?
• What term describes the sale of goods that will be paid for at a later date?
• What does it mean to void a check?
• What is an NSF check?
• What type of endorsement would an endorser use if they only sign their name on the back of a check?
• What do you call a check that a bank refuses to pay?
• What must all adjustments on a worksheet reflect?
• What is a check?
• What document provides a summary of the taxes to be sent to the federal government?
• What is a post-closing trial balance?
• What is a decrease in equity resulting from activity other than selling goods or services known as?
• What information is commonly found on a deposit slip?
• Where is the individual payroll record for each employee recorded?
• When recording transactions, what does a gain on an asset indicate?
• What is the significance of maintaining current records in file maintenance?
• What occurs during the endorsement of a check?
• Unemployment taxes are collected for what primary reason?
• Which type of bank account allows a depositor to order payments?
• What technology encodes employee information on the magnetic strip of a time card?
• Which form summarizes the information contained on an employee's Form W-2?
• Which term refers to the documentation of all financial transactions over a period of time?
• What term indicates a decrease in owner's equity resulting from the operation of a business?
• What results from selling a plant asset at a price lower than its book value?
• Which of the following best defines the terms "drawer" and "drawee" in relation to a check?
• Which of the following is NOT a purpose of a ledger?
• What payment structure rewards employees based on their sales performance?
• What is the term for the customer who is allowed to make a purchase on credit?
• What term is used to refer to anything of value that is owned by a business?
• Which endorsement indicates a new owner of a check?
• What term refers to the amount that is subtracted from gross earnings?
• What term describes the total amount of money earned by an employee in a pay period?