Accounting Account Types Quiz
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Questions and Answers

Which type of account represents the goods that are held for sale by a business?

  • Inventory (correct)
  • Cash
  • Accounts receivable
  • Allowance for bad debts

What is the term used to describe receivables supported by oral or informal promises to pay?

  • Allowance for bad debts
  • Cash
  • Accounts receivable (correct)
  • Notes receivables

What is the term used to describe the aggregate of estimated losses from uncollectible accounts receivable?

  • Accounts receivable
  • Allowance for bad debts (correct)
  • Notes receivables
  • Cash

Which account includes money or its equivalent that is readily available for unrestricted use?

<p>Cash (A)</p> Signup and view all the answers

What are receivables supported by written or formal promises to pay in the form of promissory notes called?

<p>Notes receivables (A)</p> Signup and view all the answers

Which account represents the cost of unused office and other supplies?

<p>Prepaid rent (B)</p> Signup and view all the answers

What is the term used to describe rent that is paid in advance?

<p>Prepaid insurance (D)</p> Signup and view all the answers

Which asset is not subject to depreciation?

<p>Building (A)</p> Signup and view all the answers

Study Notes

Accounts and Receivables

  • Inventory represents goods held for sale by a business, crucial for assessing available stock.
  • Informal receivables are termed "oral promises," showcasing agreements made without formal documentation.
  • Estimated losses from uncollectible accounts receivable are referred to as "allowance for doubtful accounts," affecting financial forecasts and reporting.

Cash and Supplies

  • Cash includes money or equivalents that are readily available for unrestricted use, essential for day-to-day operations.
  • Office supplies that are not fully utilized are recorded in a "supplies expense" account, representing cost efficiency in resource management.

Rent and Assets

  • Prepaid rent is the term for rent paid in advance, affecting cash flow and future expense recognition.
  • Land is an asset not subject to depreciation, maintaining its value over time and essential in real estate accounting.

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Description

Test your knowledge on the different types of major accounts in accounting! This quiz will cover common account titles for assets, liabilities, equity, income, and expenses. Challenge yourself to correctly identify the various account types and enhance your understanding of accounting terminology.

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