Accounting Elements

Question 1

It represents incidental items that are expected to be consumed in the near future.

Answer 1

Supplies

Question 2

It represents small amount of bills and coins that an organization keeps on the premises to pay for minor expenditures.

Answer 2

Petty Cash Fund

Question 3

It represents the physical availability of cash with the business.

Answer 3

Cash on Hand

Question 4

It represents a fee associated with an insurance contract that has been paid in advance of the coverage period.

Answer 4

Prepaid Insurance

Question 5

It represents the advance payment of rent that is expected to expire for a certain period.

Answer 5

Prepaid Rent

Question 6

It represents a cost that has already been incurred, but which has not yet been consumed.

Answer 6

Deferred Expense

Question 7

It represents a written pledge that the business will collect from the customer on a certain date.

Answer 7

Notes Receivable

Question 8

A cash payment that is made by the employer for business expenses that are anticipated to be incurred by the employee on behalf of the employer.

Answer 8

Advances to Employees

Question 9

It represents the goods that are held for sale in the ordinary course of business.

Answer 9

Merchandise Inventory

Question 10

It represents a short-term, highly liquid investment that is readily convertible to a known amount of cash

Answer 10

Cash Equivalent

Question 11

It represents the cash that is deposited and maintained in the bank.

Answer 11

Cash in Bank

Question 12

It represents any structure that is permanently attached to the land and where business operations take place.

Answer 12

Building

Question 13

It represents any vehicle or conveyance, which is used by the business in transporting goods or services.

Answer 13

Delivery Equipment

Question 14

It represents the machines that are used by the entity in the business operations.

Answer 14

Machinery

Question 15

It represents an authorization that grants an individual or business to carry out specified commercial activities.

Answer 15

Franchise

Question 16

It represents the ground where the business is situated.

Answer 16

Land

Question 17

It represents the electronic products that are used by the business in the office.

Answer 17

Office Equipment

Question 18

Items of movable equipment that are used to furnish an office such as tables, chairs, desk, and filing cabinets.

Answer 18

Furniture and Fixture

Question 19

It represents an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers new technical solution to a problem.

Answer 19

Patent

Question 20

It represents the amount owed by the business for the purchase of goods or services at a specific date.

Answer 20

Accounts Payable

Question 21

It represents a written promissory note in which one party agrees to pay the other party a certain amount of cash.

Answer 21

Notes Payable

Question 22

It represents the money received for goods and services that has not yet been earned.

Answer 22

Deferred Income

Question 23

It represents the money received from customers for goods and services that have not yet been delivered.

Answer 23

Advances to Customers

Question 24

It represents the rent collected in advance that is not yet earned.

Answer 24

Unearned Rent Income

Question 25

It represents an arrangement under which the owner of property, usually cash, allows another party the use of it in exchange for an interest payment and the return of property at the end of the lending arrangement.

Answer 25

Loans Payable

Question 26

It represents the tax due of an individual or business to the government.

Answer 26

Tax Payable

Question 27

It represents the long-term debt for which the business has pledged a certain asset as a security to the creditor.

Answer 27

Mortgage Payable

Question 28

t represents the original and additional investments of the owner of the business entity.

Answer 28

Capital

Question 29

It represents the removal of an account from the business for personal use.

Answer 29

Withdrawal

Question 30

It represents the tax that the government imposes on income generated by businesses and individuals within their jurisdiction.

Answer 30

Income Tax

Question 31

It represents an incidental expense that has no specific classification.

Answer 31

Miscellaneous Expense

Question 32

Goods that are acquired from the suppliers.

Answer 32

Purchases

Question 33

It represents the shipping cost paid by the buyer for goods purchased.

Answer 33

Freight In

Question 34

It represents the incidental items that are consumed or used in business operations.

Answer 34

Supplies Expense

Question 35

It represents a monetary amount owed to a creditor that is no longer considered to be collectible.

Answer 35

Bad Debts

Question 36

It represents the cost incurred to ensure that an asset continues to operate.

Answer 36

Repairs and Maintenance

Question 37

It represents the sum of the periodic depreciation charges.

Answer 37

Accumulated Depreciation

Question 38

It represents the reduction of the total amount of accounts receivable.

Answer 38

Allowance for Doubtful Account

Question 39

It represents the goods received by the seller from customers that are defective or not in accordance with the specifications of the buyers.

Answer 39

Sales Return

Question 40

It represents the fees earned by professionals from rendering service income.

Answer 40

Professional Income