Intro to Accounting Quiz

What is accounting?

• The process of keeping track of your money

• The process of keeping books for a company

• The process of planning, recording, analyzing, and interpreting financial information

• The Process of keeping track of spending vs saving of a business

What is the accounting equation?

• Assets + Owner's Equity = Liabilities

• Assets+Liabilities = Owner's Equity

• Assets = Liabilities + Owner's Equity

• Liabilities - Assets = Owner's Equity

What is an asset? And give me 2 examples

(a)  

Financial Reports that summarize the financial condition and operations of a business are called what?

(a)  

Amounts that are owed to others are called what?

(a)  

Susie has $10,000 in the bank. She owes $6,000 on a bank loan from college and is currently paying off her car that she purchased and she still owes 3,000 on her car. Susie's _______ is $1,000

• Net Worth

• Net Value

• Personal Worth

• Debt to value ratio

Financial rights to the assets of a business are called?

(a)  

ABC company has 100,000 in assets and 75,000 in liabilities. What does ABC Company's owner's have in Equity?

• 100,000

• 75,000

• 25,000

• -25,000

Any business activity that changes assets, liabilities, or Owner's Equity is a what?

(a)  

Johnny does the accounting books for ABC company. Johnny realized that his math was not adding up and some money was missing. What should Johnny do?

• Forget about it, it will all come out in the wash.

• Redo his math, maybe he made a mistake.

• Tell Someone, maybe there is someone stealing

• Redo his math and then if he is correct, go and tell someone.