Accounting Vocabulary Quiz

They had to hire a(n) (a) because Jane was not qualified to produce all the documents for the audit in June.

• auditor

• bookkeeper

• accountant

• manager

Choose the correct match-

• 
  A part of a company’s assets that the owner has. It’s calculated as assets minus liabilities. --- INCOME TAX

• 
  The decrease in the value of products or services a company offers. ---- PAYROLL

• All the expenses a company needs to pay for, like the costs of advertising, labor, bills and taxes. ---- OVERHEAD

• Money that individuals and companies owe to the government, based on the income they make.----DEPRECIATION

As she was calculating the company’s liabilities, she realized she forgot to include the ___.

• accounts receivable

• accounts payable

• profit

• gross

In order to see what a company’s (a) is/are, you need to have a look at the (b) and subtract all the expenses of doing business.

• liabilities

• revenues

• assets

• profit

• capital

In (a) , you need to record (b) on the left side and (c) on the right side.

• credits

• single entry bookkeeping

• double entry bookkeeping

• debits

He was hoping to be able to raise enough ___ to set up his own business in five years’ time.

• assets

• equity

• capital

The ___ is an important accounting document showing a company’s assets, liabilities and the owner’s equity.

• balance sheet

• income statement

• cash flow statement

They wanted to resort to ___ in order to convince investors of their company’s high profitability, but then they realized that the auditors that worked for the investors would see right through it.

• creative accounting

• accounting

• bookkeeping

He had been trying to pass his exams in order to become a(n) ___, but in the end he gave up and decided to charge a higher fee for his bookkeeping services in order to make ends meet.

• chartered accountant

• investor

• shareholder

The auditor was looking at the financial statements that the company presented him when he realized he was actually interested in a different ___. He then had to ask for a different set of financial statements.

• payroll

• income statement

• accounting period