Bookkeeping Quiz

Bookkeeping Quizizz Activity

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Instructions:

Bookkeeping Quiz

Watch the video on the next slide. If the video won't play, go to (https://youtu.be/pKpdibyljR4). Take notes on the video, paying attention to particular terms and definitions that the video's author goes over in detail. Leave this activity with the general knowledge that the act of bookkeeping is more than just recording your expenses and profits...

Multiple Choice

According to the video, WOTF best describes the task of bookkeeping?

• The systematic retrieval and categorizing of past information that can be used to make future transactions.

• The recording of day-to-day expenditures and profits to ensure accurate taxation by the state and federal government.

• The act of using programs like Excel or Google Sheets to help modernize the ways in which sales and expenditures are being made.

• The way in which an organization's financial information is kept up-to-date for both tax collectors to collect an accurate percentage of the organization's annual revenue and investors to make informed decisions on how many shares to purchase.

Reorder

Place the top 5 of the 6 Steps of Bookkeeping in chronological order.

• Categorize Transactions

• Gather Source Documents

• Reconcile Transactions

• Prepare Financial Statements

• Read My Financial Statment(s)

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Multiple Choice

WOTF was the 6th Step of Bookkeeping?

• Fill out a W-2 Form.

• Apply for a General Excise Tax License.

• Make Decision(s) based on the Accumulated Data.

• Review your 1098 form.

Multiple Choice

WOTF is true about cash transactions?

• They're more profitable than a credit or debit payment because cash can't be taxed.

• They're not easy to track because they don't show up on banking statements.

• Cash transactions are challenging to record because the merchant must provide exact change.

• Embezzlement happens more often with credit or debit payments than it does with hard currency payments.

Multiple Choice

WOTF pieces of evidence works best for cash transactions in your tax records?

• Receipt(s) of the transaction.

• A picture or selfie on your phone recording the actual transaction because your phone will also record the date of the photo.

• A written reason for the cash transaction occurring.

• A bank statement that reflects a credit for the value of the transaction that was added to your account.

Multiple Choice

What is the best way in which a business owner should receive and send payments?

• Wire transfer.

• Personal check.

• Credit or Debit cards whose charges will be reflected in their monthly statements.

• Pay by cash so that the government can't tax it.

Multiple Choice

Define "liability"

• A business' cash or inventory that can be used to generate revenue.

• The value of something, such as one's home, or the value of a company's stock shares.

• The cost of something, such as a company's electric or water bill, or employees.

• Income that is derived from a company's sales or a country's taxes and trade relationships.

• The state of being responsible for something, such as future payroll or a loan.

Multiple Choice

Define “expense”

• The cost of something, such as a company's electric or water bill, or employees.

• A business' cash or inventory that can be used to generate revenue.

• The value of something, such as one's home, or the value of a company's stock shares.

• The state of being responsible for something, such as future payroll or a loan.

• Income that is derived from a company's sales or a country's taxes and trade relationships.

Multiple Choice

Define “asset”

• The cost of something, such as a company's electric or water bill, or employees.

• A business' cash or inventory that can be used to generate revenue.

• The value of something, such as one's home, or the value of a company's stock shares.

• The state of being responsible for something, such as future payroll or a loan.

• Income that is derived from a company's sales or a country's taxes and trade relationships.

Multiple Choice

Define “revenue”

• A business' cash or inventory that can be used to generate revenue.

• The cost of something, such as a company's electric or water bill, or employees.

• Income that is derived from a company's sales or a country's taxes and trade relationships.

• The value of something, such as one's home, or the value of a company's stock shares.

• The state of being responsible for something, such as future payroll or a loan.

Multiple Choice

Define “equity”

• Income that is derived from a company's sales or a country's taxes and trade relationships.

• A business' cash or inventory that can be used to generate revenue.

• The cost of something, such as a company's electric or water bill, or employees.

• The value of something, such as one's home, or the value of a company's stock shares.

• The state of being responsible for something, such as future payroll or a loan.

Multiple Choice

Which explanation best defines "Reconciling Transactions"?

• None of the choices

• Proving to the IRS the legitimacy of your business based on your sales and expenses.

• Matching ALL transactions in one's banking statements to the transactions in one's accounting book or software.

• Having a priest or minister look over your business transactions for the year to determine their morality.

Multiple Choice

Known as the statement of financial position, it contains asset, liability, and equity transactions. Assets on this form must equal liabilities plus equity. If not, the total on this form will not compute.

• Cashflow Statement

• Balance Sheet

• Income Statement

Multiple Choice

Known as a profit and loss statement (P&L). Because it contains revenue and expenses, it can tell the business owner how profitable the business is during certain periods throughout a fiscal year.

• Cashflow Statement

• Balance Sheet

• Income Statement

Multiple Choice

This financial statement ontains 3 components: 1) Currency from operations 2) Currency from financing 3) Currency from investments.

• None of the choices.

• Income Statement

• Cashflow Statement

• Balance Sheet

Multiple Select

The 3 features of a Balance Sheet are

• it must balance

• assets are listed first

• liability and equity are listed last

• expenses are listed first

• revenue is listed last

Multiple Select

WOTF best describes liquidity? Select ALL that apply.

• Cash.

• Refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

• A real estate agent is in the process of selling 3 houses. House 1 is located in a suburb that has top rated public schools, has shopping centers and restaurants located within walking distance, and has access to public beaches and private recreation center membership that is included in the association fees. House 2 is located in the metropolitan area of the main city. Lucrative jobs are located within biking or walking distance of House 2. House 3 is located in a rural area. House 3 is located within 1-3 hours of the nearest hospital. Grocery stores and pharmacies are within 45 minutes of House 3. House 1 was built in the early 2000s, making it the "youngest" of the 3 houses, no one died in House 1, and it has already been sold 3 times since its construction. House 2 was built in the 1980s. House 2's kitchen and plumbing need to be updated to 2023 standards. The original owners rented the property for revenue, but now need to sell because their business went bankrupt during the COVID pandemic. House 3 was built in the 1920s. House 3 also has 1 set of owners who recently passed away in their house of natural causes. House 3 also needs updates to its foundation and plumbing. Based on its circumstances, House 1 will be the easiest to liquidate.

• As far as investments go, cars are less valuable than houses because cars lose value over time. It is also said that as soon as a car owner drives the car off the lot, the car has already begun depreciating. If a house is in a town that offers top-ranked public schools, association fees that contribute to upkeep of the town and access to private recreation centers, it will either hold or increase in value.

• Stocks and Bonds.

Multiple Select

Select ALL of the statements that apply to Net-Worth

• Liabilities: Debts such as credit card bills or mortgages.

• Book Value = Assets - Liabilities

• Assets: Money in one's checking and savings account, value of securities, such as stocks or bonds, real property value, market value of one's automobile,

• Whatever is left after selling all assets and paying off personal debt is the net worth.

Multiple Choice

The dollar amount of earnings reinvested back into the business refers to

• revenue.

• liabilities.

• net-worth.

• retained earnings.

• assets.

Multiple Choice

The top line of an income statement includes

• expenses.

• revenue.

• equity.

• liabilities.

• assets.

Multiple Choice

How many sub-categories may the revenue section be broken down into?

• 1

• 2

• 3

• 4

• 5

Multiple Select

On an income statement, the second line contains

• price of goods sold.

• cost of goods sold.

• profits from goods sold.

• amount of goods sold.

• costs of sales.

Multiple Choice

Net Income =

• Retail Sales - Discount Sales

• Profits - Labor Costs

• Retail Price - Wholesale Price

• Total Revenue - Total Expenses

• Number of Units Sold - the Costs of Producing those Units

Multiple Choice

Net Income is the answer to WOTF questions?

• What is the profit or loss of the business?

• How much money should be paid in taxes for 2022?

• How do labor costs affect profit margins?

• How many employees should be hired within the next year?

• In what ways do cash transactions affect banking statements?

Multiple Choice

With your new understanding of Net Income, when you look up your favorite celebrity's Net Worth, you know it's referring to that celebrity's

• after-tax income - charitable contributions.

• gross annual income - (taxes + publicity costs).

• social media following.

• craft, as in, what that celebrity is famous for, like movies, music, or sports.

Multiple Select

WOTF is not a category of the Cashflow Statement?

• Taxable Revenue

• Operations

• Finances

• Investments

• Expenses

Multiple Choice

The everyday, ongoing activities are the ____ of a Cashflow Statement.

• Liabilities

• Operations

• Financial Transactions

• Investments

• Expenses

Multiple Choice

The capital-raising activities of a business are ____ the business.

• insuring

• operating

• financing

• expanding

• marketing

Multiple Choice

When you or your business buys stock in another company, it is considered a(n)

• investing activity

• financing activity

• embezzlement activity

• budgeting activity

Multiple Select

Which 2 factors are determined by the balance sheet?

• Liquidity

• Profitability

• Stability

• Sustainability

Multiple Select

The income statement tells business owners the ____, ____, and ____ of the business.

• operating performance

• lists revenues and expenses

• reveals profits or losses

• net income

• liability revenue