Bookkeeping Basics Case Study Quiz Answers

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Bookkeeping Basics Case Study Quiz Answers

Question 1)

Instructions: Make sure you have completed the hands-on bookkeeping workbook portion of the course 1 project before starting this quiz. You will need your completed workbook to help you respond to many of the questions. 

Lou made _______ in landscaping income in the month of July.  

• $4,500
• $5,000 
• $5,500
• $4,750

Question 2)

If Lou makes a $500 payment to the bank for his small business loan, what will be the new loan balance?  Assume he is not being charged interest.

• $9,500
• $10,000
• $10,500
• $500

Question 3)

The total debits for the Trial Balance equal: 

• $33,000
• $16,500
• $18,610
• $12,700

Question 4

Lou’s total operating expenses for the month of July are ______. 

(Format your answer as $x,xxx) 

• 2110

Question 5)

Lou’s net income on his income statement is _______.  

(Format your answer as $x,xxx) 

• 3390

Question 6)

What was Lou's Accounts Receivable balance for the month of July? 

(Format your answer as $x,xxx)

• 4500

Question 7)

Which accounting assumption allows bookkeepers to break a company’s financial life into smaller chunks of time?

• Accrual Basis Assumption
• Entity Assumption
• Going Concern Assumption
• The Periodicity Assumption

Question 8)

Caren Cosmos is the world's most popular soft rock folk singer. She sold t-shirts online last year and made $7,000. The money from these sales went directly into her personal banking account which she used for her personal needs. Which key accounting assumption did Caren ignore? 

• Accrual Basis Assumption
• Entity Assumption
• Going Concern Assumption
• Periodicity Assumption

Question 9)

Which expense provided by Lou did you not include in the journal? 

• On July 7, Lou rented a piece of commercial equipment from Home Depot for $1,000. He paid for it using his credit card.
• July 24, Lou hired a subcontractor to help with a job. He paid the subcontractor with check #0002 for $650.00. 
• On July 17, Lou purchased a new bicycle for his son for $275.
• On July 4, Lou put an ad in the Penny Saver for his business. He paid $450 with check #0001.

Question 10)

An accounting method in which revenues are reported when they are earned and expenses are reported when they are incurred is called: 

• Cash-Basis Accounting
• Accrual Accounting
• Hybrid Accounting