bookkeeping basics coursera week 3 answers
Transactions Practice Quiz
1. True or False: The difference between a sales receipt and an invoice is whether or not the customer pays at the time of the sale or service.
- True
- False
2. What is the “undeposited funds” account?
- A temporary account that holds payments you plan to deposit later.
- A miscellaneous category for misplaced or forgotten funds.
- An account that allows you to pool rejected payments that your bank is not able to accept.
- A collection of bank and credit card payments that a business’s customers were not able to successfully send over.
3. When would the undeposited funds feature not be necessary?
- When you have less than 3 checks to process.
- When a check is for more than $500.
- When the customer has sent you a check in the mail.
- When you’ve already deposited the funds during the receive payment process.
Adjustments Practice Quiz
4. True or False: It is always the bookkeeper’s responsibility to identify the need for adjusting journal entries.
- True
- False
5. True or False: Once the adjusted trial balance has been prepared, it’s time to create the financial statements.
- True
- False
6. If you’re increasing an Interest Expense account, you _____ it.
- Debit
- Credit
Four Core Financial Statements Practice Quiz
7. Which report includes the assets, liabilities, and owner's equity on a specific date?
- The Statement of Equity
- The Cash Flow Document
- The Income Statement
- The Balance Sheet
8. Which report provides a summary of changes in an owner's equity?
- The Balance Sheet
- The Cash Flow Document
- The Statement of Equity
- The Income Statement
9. Which report provides a summary of cash movement over a specific time period?
- The Income Statement
- The Statement of Equity
- The Balance Report
- The Cash Flow Statement
10. Which report is used to calculate net income?
- The Balance Sheet
- The Statement of Equity
- The Income Statement
- The Cash Flow Document
11. What is the change in cash? (Format your answer as $x,xxx)
Statement of Cash Flows
$2,000
Accounting Cycle (Part 2) Assessment
12. Which of the following financial statements provides a summary of a company’s revenue and expenses over a period of time?
- The Statement of Equity
- The Statement of Cash Flow
- The Income Statement
- The Balance Sheet
13. Which of the following financial statements provides you with the owner’s change in capital over time?
- The Statement of Equity
- The Income Statement
- The Statement of Cash Flow
- The Balance Sheet
14. Which of the following financial statements shows the balances of a company’s assets, equity, and liability?
- The Statement of Cash Flow
- The Statement of Equity
- The Income Statement
- The Balance Sheet
15. Which of the following financial statements provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investments?
- The Statement of Cash Flow
- The Balance Sheet
- The Income Statement
- The Statement of Equity
16. A seasonal business like Lou’s Landscaping can have decreased cash during off-season months. Which financial statement would show the cash inflows and outflows for a particular month?
- Cash Flow Statement
- Income statement
- Balance Sheet
- Statement of equity
17. Which of these accounts would have a balance of $0 at the beginning of each new accounting period?
- Cash
- Long-term loan payable
- Revenue
- Accounts receivable
18. A business owner performs a service and is paid when the job is performed. The owner would then enter this transaction into accounting software as:
- A Sales Receipt
- A Bank Deposit
- An Invoice
- A Credit Memo
19. A business owner performs a service but is not paid when the job is performed. Using their accounting software, the owner would enter the transaction as:
- A Bank Deposit
- A Sales Receipt
- A Credit Memo
- An Invoice
20. True or False: The ending cash balance on the Statement of Cash Flow should not equal the cash balance reported on the Balance Sheet.
- True
- False
21. A customer paid in advance for a service. They need to cancel the service. If the business owner wishes to apply that money towards the customer’s next service, the owner would enter that transaction into their accounting software as:
- A Refund
- A Sales Receipt
- A Credit Memo
- An Invoice
22. True or False: In order to complete a Statement of Equity, you will need the net profit from the Income Statement.
- True
- False
23. True or False: Business owners should use the General Ledger to make business decisions.
- True
- False
24. A Balance Sheet has four parts: a heading, assets, liabilities, and ______.
- owner/company name
- total
- gross profit
- equity
25. True or False: Financial reports should be produced before any adjustments have been made.
- True
- False
26. An owner has deposited several payments they’ve received from customers into the business’s bank account. The owner would then enter this transaction in their accounting software as:
- A Bank Feed
- An Invoice
- A Vendor Check Bank Feed
- A Bank Deposit
27. After the Unadjusted Trial Balance is created, the process of going back and updating information is known as:
- Making adjustments
- Making substitutions
- Making changes
- Making corrections
28. A business owner had a piece of equipment serviced and paid for the repair with a check. The owner would then enter the transaction into their accounting software as:
- A Bank Feed
- A bank deposit
- A Vendor Check
- An invoice
29. The document that shows all of the account balances after adjustments have been made is known as:
- The General Journal
- The Unadjusted Trial Balance
- The Adjusted Trial Balance
- The General Ledger
30. Becky provided a service to a customer, and they have yet to pay. Which type of journal entry would need to be made?
- A Deferral
- A Tax Adjustment
- A Missing Transaction
- An Accrual
31. True or False: The depreciation of a vehicle is not something that can be entered as an adjustment.
- True
- False
