Accounting Pretest

Which of the following are assets? (select all that apply)

• Cash

• Credit Card Debt

• Car Loan

• Land

• Accounts Receivable

Which of the following are liabilities? (select all that apply)

• Medical Bills

• Credit Card Debt

• House

• Stocks

• Accounts Payable

A __________________ must always have the same amounts on both sides.

• Balance Sheet

• Income Statement

• Cash Flow

The following is the accounting Equation:

• Equity=Assets – Liabilities

• Assets=Liabilities + Equity

• Liabilities=Assets + Equity

If I take out a loan for $1,500 and buy a computer, on my balance sheet I would change the

• Asset column only

• Asset & Liability columns

• Liability & Equity columns

• Asset & Equity columns

After you deduct all your expenses, the money left over is your:

• Gross

• Taxes

• Net

• Securities

Barney has $10,000 in cash and no liabilities. He purchases a ring for $3,500, paying cash. How much is his equity?

• $6,500

• $13,500

• 10,000

• $2,000

____________________ the process of analyzing, classifying, recording, summarizing, and interpreting business transactions in financial or monetary terms.

• Accounting

• Finance

• Business Math

________________________ money owed to a business by its customers

• Accounts Payable

• Accounts Receivable

• Notes Payable

The first step in the accounting cycle is to:

• Collect & Analyze Source Documents

• Analyze Transactions

• Create Financial Statements