FREE FBLA Accounting Trivia Questions and Answers

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According to the Federal Tax Reform Law of today, having a social security number is only required for individuals who are older than two.

Correct! Wrong!

The claim is untrue since everyone, regardless of age, must have a social security number under the Federal Tax Reform Law.

There will be a reduction in the account when the accountant debits the withdrawals account.

Correct! Wrong!

In reality, the account will increase when the accountant debits the withdrawals account. When an account is debited, an entry is made on the left side, signifying a rise in the amount of money taken out or withdrawn from the firm in the case of the withdrawals account. As such, it is false to say that "this will result in a decrease to the account".

A bonus is money given to an employee as a proportion of sales as opposed to a commission.

Correct! Wrong!

A bonus is an extra sum that is given to an employee as compensation for their success, not a proportion of sales. In contrast, a commission is a portion of sales that an employee gets paid for bringing in new business. As a result, it is untrue to say that a bonus is money given to a worker as a proportion of sales.

Using straight-line depreciation, a plant's cost is spread out evenly across its useful life.

Correct! Wrong!

Allocating an asset's cost evenly over its useful life is possible using straight-line depreciation. This applies to plants as well as other assets. This indicates that the asset's cost is distributed equally over the anticipated number of years of operation. The asset is assumed to decline according to a straight line, which means that each year, its value would drop by the same amount. Consequently, it is accurate to say that straight-line degradation distributes a plant's cost evenly across the course of its useful life.

The accountant needed to know the principle, interest rate, term, and interest on a promissory note in order to calculate the interest.

Correct! Wrong!

The principal, interest, rate, and term of a promissory note must be known by the accountant in order to calculate the interest. This is so because these factors are used to determine the interest on a promissory note. The initial amount borrowed is known as the principle, interest is the rate at which the borrower will be charged, rate is the percentage used to compute interest, and term is the period of validity of the note. The accountant can compute the interest on the promissory note with accuracy if they have knowledge of these variables.

An account's debit is always an increase.

Correct! Wrong!

An account's debit does not necessarily equate to a rise. Depending on the kind of account, a debit entry in accounting can raise or lower an account balance. Debut entries reduce liability, equity, and revenue accounts while increasing asset and expense accounts. As a result, the impact of a debit entry on various account types can vary.

Every time a petty cash fund is used by a business, the fund is deducted.

Correct! Wrong!

A petty cash fund used by a business is not deducted each time it is replenished. As an alternative. When the fund is created, it is first debited. Later, it is refilled by crediting the petty cash fund account and debiting the relevant spending accounts. This guarantees the accuracy of all expenditures made from the petty cash fund and its continuous balance.

The asset account is credited by the bookkeeper when a company purchases equipment.

Correct! Wrong!

The asset account is debited by the bookkeeper when a company purchases equipment. This is so that the asset account is debited to represent the increased worth of the company's assets, which is what happens when equipment is purchased.

The fundamental accounting formula can be written as

Correct! Wrong!

The basic accounting principle is represented by this equation, which states that the total worth of an organization's assets is equal to the sum of its liabilities and owner equity. It illustrates the connection between an organization's assets, liabilities, and owner equity—the amount of money the owner has invested in the company. The preparation of financial statements and the analysis of a company's financial status are based on this equation.

The year and month are recorded in an all-purpose diary.

Correct! Wrong!

Every diary page has the month and year recorded on it to give the transactions a neat and orderly record. This aids in the identification and grouping of the data according to the transaction record and date. This facilitates the identification and date-based categorization of the data, which makes it simpler to find and examine certain transactions. Furthermore, putting the year and month on every page guarantees that the data is correct and constant all the way through the diary.

A person or entity to which a check is payable is known as a payee.

Correct! Wrong!

The individual or company selected to receive payment from a cheque is known as the payee. They have the right to cash or deposit the check since they are the intended beneficiary of the monies. Consequently, it is accurate to say that a payee is an individual or company to whom a check is payable.

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