Basic Accounting Principles Quiz & Dentrix Ledger Practice

1. Credit– is a transaction that adds value to an account; it results in the increase of an asset or a decrease in a liability or owners equity True or False (circle)

2. Debit –  is a transaction that removes value from an account; it results in a decrease to an asset or expense account, or increases capital, liability, or revenue account True or False (circle)

3. Debits always appear on the left  AND Credits always appear on the right True or False (circle)

4. The accounting equation is a simple way to view the relationship of financial activities across a business. True or False   (circle)

5. The balance sheet essentially takes care of filling in each of the values in the equation, so the equation is not meant for actual use but is instead a simplified representation of how the financial side of a business functions. True or False   (circle)

6. Debits include assets – add value to your individual or business wealth such as cash (bank and on hand), accounts receivable, and equipment, buildings, supplies, stock/inventory – while these are expenses incurred by the business, they are considered an asset to the company/business. True or False   (circle)

7. Expenses – an owner can pull money out of the business for personal reasons; a distribution of shareholder equity. True or False (circle)

8. Draw is– rent, utilities, internet, telephone, wages True or False (circle)

9. Liabilities – accounts that remove value from your individual or business worth – these include accounts payable, debt owed, bank loan Equity – this is the amount of money the owner has invested in the business. True or False (circle)

Part- II (10 MARKS)

Using the Dentrix Ledger included and using your accounting skills fill in the blanks below: 

1.)  What was the sum of the first visit 28/08/1998? $____________________. (1mark)

2.)  Was there a Mastercard payment on the account? ___________________________How much was it?____________________ (2 marks) 

3.)  On 02/02/2007 what treatment was completed?  And what was the grand total of the treatment on that day? (2 marks)

4.)  What’s the final balance owning on the patient’s account?_______________________1 mark

5.) How much treatment has the patient had at the office?  What’s the sum of the total billed to the patient since they’ve been coming to the office?________________________________(2marks) 

6.)  If the patient didn’t pay for  his crown and treatment on the 02/02/2007 and was charged the interest of 2% what would his interest be after 90 days? (1 mark) (Think back to the formula you used for the interest on invoices not paid.)

7.)  What were today’s charges?(1 mark)