The amount in the Supplies Expense account reports the amounts of supplies that were used during the time interval indicated in the heading of the income statement. A related account is Insurance Expense, which appears on the income statement. The amount in the Insurance Expense account should report the amount of insurance expense expiring during the period indicated in the heading of the income statement. Our Bookkeeping Video Training (13 videos) will help you build confidence as you increase your understanding of debits and credits, adjusting entries, transactions, and more. We have answered more than 1,100 of the most common accounting and bookkeeping questions.
Income Statement Multiple-Choice Quiz
These quizzes are a great way to practice accounting. Answering these questions efficiently will prepare you for your tests and quizzes. Click the orange text below the quiz to view the answers. Watch the video below deductions for sales tax each practice quiz to see further explanation on how to solve these accounting practice questions. Note that the questions listed below are basic accounting questions, meaning beginner to intermediate level.
Accounting Quizzes and Practice Tests
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Under the accrual basis of accounting the account Supplies Expense reports the amount of supplies that were used during the time interval indicated in the heading of the income statement. Supplies that are on hand (unused) at the balance sheet date are reported in the current asset account Supplies or Supplies on Hand. The current year net income might be in the temporary revenue and expense accounts and the current year draws might be in the drawing account. However, after the financial statements for the year are prepared the current year net income and draws will be transferred to this account.
Accounting Topics
Imagine not being stressed out while taking your test! You’ll become more efficient at answering these questions correctly, so you’ll feel calm, and confident while taking your test. A. Record journal entries for the above transactions B.
Full Accounting Questions and Exercises
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C. For each of the following accounts, indicate whether it is an Asset, Liability, Income, or Expense. If it is an asset or a liability, specify whether it is current or non-current. Our Visual Tutorials are perfect for people who get overwhelmed studying jargon-filled accounting textbooks. Follow along step-by-step and we’ll explain the most important accounting topics in a more intuitive away. The answers to these questions will be the account name.
Note that most of these questions have accompanying solutions but some do not. Please understand that I (Michael Celender) run this site on my own, and because there are hundreds of questions that have been submitted, I have not been able to answer every single one. Because of this I have also stopped accepting new submissions. Test yourself on the income statement with this 15-minute timed multiple-choice test. I would definitely recommend to time yourself when you practice each of these exercises.
Why not try one of our accounting quizzes and test your knowledge of bookkeeping and accounting. Here is a list of full accounting questions and answers that can be found on this site, along with a brief description of each one. Please note that these are generally intermediate to advanced exercises. A current asset which indicates the cost of the insurance contract (premiums) that have been paid in advance. It represents the amount that has been paid but has not yet expired as of the balance sheet date. This is a great exercise and similar to the one just above, but covers many more types of transactions and includes a grid for you to complete (as shown here).
