Intro to Accounting

What type of an account is cash?

• ASSET

• LIABILITIES

• OWNER'S EQUITY

What type of an account is Accounts Payable?

• ASSET

• LIABILITIES

• OWNER'S EQUITY

What type of an account is Capital?

• ASSET

• LIABILITIES

• OWNER'S EQUITY

The accounting equation must always be

• balanced

• uneven

• zero

• equal to the square root of 5

The basic accounting equation is Assets=Liabilities + _______________________.

• Income
• Owner's Equity
• Expenses
• Profit

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

• assets
• liabilities
• profit
• income

If the total liabilities is $15,000 and the total assets is $23,000, what is the total equity using the accounting equation?

• $ 38,000

• $ 8,000

• $ 15,000

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Cash Statement

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity