FBLA Accounting Exam: Trivia Quiz!
1.
When a business uses a petty cash fund, the fund is debited each time it is replaced.
A.
True
B.
False
Correct Answer
B. False
Explanation
When a business uses a petty cash fund, the fund is not debited each time it is replaced.
Instead, the fund is initially debited when it is established, and then it is replenished by debiting
the appropriate expense accounts and crediting the petty cash fund account. This ensures that
the petty cash fund remains at a constant balance, and any expenses made from the fund are
recorded accurately.
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,1
2.
A debit to an account is always an increase.
A.
True
B.
False
Correct Answer
B. False
Explanation
A debit to an account is not always an increase. In accounting, a debit entry can either increase
or decrease an account balance depending on the type of account. Debit entries increase asset
and expense accounts, while they decrease liability, equity, and revenue accounts. Therefore, a
debit entry can have different effects on different types of accounts.
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3.
When a business buys equipment, the bookkeeper credits the asset account.
A.
True
,B.
False
Correct Answer
B. False
Explanation
When a business buys equipment, the bookkeeper debits the asset account. This is because the
purchase of equipment increases the value of the company's assets, and debiting the asset
account reflects this increase.
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3
4.
To determine the interest on a promissory note, the accountant will need to know the principle,
interest, rate, and term.
A.
True
B.
False
Correct Answer
A. True
Explanation
, To determine the interest on a promissory note, the accountant needs to know the principle,
interest, rate, and term. This is because the interest on a promissory note is calculated based on
these factors. The principle is the initial amount borrowed, the interest is the rate at which the
borrower will be charged, the rate is the percentage at which the interest is calculated, and the
term is the length of time for which the note is valid. By knowing these variables, the
accountant can accurately calculate the interest on the promissory note.
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5.
A payee is a person or business to whom a check is payable.
A.
True
B.
False
Correct Answer
A. True
Explanation
A payee is the person or business that is designated to receive payment from a check. They are
the intended recipient of the funds and are entitled to cash or deposit the check. Therefore, the
statement that a payee is a person or business to whom a check is payable is true.
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1
6.
1.
When a business uses a petty cash fund, the fund is debited each time it is replaced.
A.
True
B.
False
Correct Answer
B. False
Explanation
When a business uses a petty cash fund, the fund is not debited each time it is replaced.
Instead, the fund is initially debited when it is established, and then it is replenished by debiting
the appropriate expense accounts and crediting the petty cash fund account. This ensures that
the petty cash fund remains at a constant balance, and any expenses made from the fund are
recorded accurately.
Rate this question:
,1
2.
A debit to an account is always an increase.
A.
True
B.
False
Correct Answer
B. False
Explanation
A debit to an account is not always an increase. In accounting, a debit entry can either increase
or decrease an account balance depending on the type of account. Debit entries increase asset
and expense accounts, while they decrease liability, equity, and revenue accounts. Therefore, a
debit entry can have different effects on different types of accounts.
Rate this question:
3.
When a business buys equipment, the bookkeeper credits the asset account.
A.
True
,B.
False
Correct Answer
B. False
Explanation
When a business buys equipment, the bookkeeper debits the asset account. This is because the
purchase of equipment increases the value of the company's assets, and debiting the asset
account reflects this increase.
Rate this question:
3
4.
To determine the interest on a promissory note, the accountant will need to know the principle,
interest, rate, and term.
A.
True
B.
False
Correct Answer
A. True
Explanation
, To determine the interest on a promissory note, the accountant needs to know the principle,
interest, rate, and term. This is because the interest on a promissory note is calculated based on
these factors. The principle is the initial amount borrowed, the interest is the rate at which the
borrower will be charged, the rate is the percentage at which the interest is calculated, and the
term is the length of time for which the note is valid. By knowing these variables, the
accountant can accurately calculate the interest on the promissory note.
Rate this question:
5.
A payee is a person or business to whom a check is payable.
A.
True
B.
False
Correct Answer
A. True
Explanation
A payee is the person or business that is designated to receive payment from a check. They are
the intended recipient of the funds and are entitled to cash or deposit the check. Therefore, the
statement that a payee is a person or business to whom a check is payable is true.
Rate this question:
1
6.
