FREE FBLA Accounting Trivia Questions and Answers

Question 1

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

Accepted Answer

FALSE

Answer

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.

Question 2

An account's debit is always an increase.

Accepted Answer

FALSE

Answer

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.

Question 3

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

Accepted Answer

FALSE

Answer

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.

Question 4

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

Accepted Answer

TRUE

Answer

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.

Question 5

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

Accepted Answer

TRUE

Answer

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.

FBLA - Future Business Leaders of America Practice Test

FBLA - Future Business Leaders of America Practice Test

FREE FBLA Accounting Trivia Questions and Answers