The accounting equation is most often stated as:

Assets = Liabilities + Owner’s Equity

Assets + Liabilities = Owner’s Equity

Assets - Liabilities = Owner’s Equity

Assets + Owner’s Equity = Liabilities

After each transaction, the accounting equation must:

Be adjusted for profit and loss

A negative amount for net worth would reflect more debt than assets, which is:

A sign of good financial health

Something a creditor would favor

Detailed information about changes in owner’s equity is needed by:

Owners and managers to make sound business decisions

Customers to evaluate product prices

Government agencies for tax purposes

A transaction for the sale of goods or services results in:

An increase in owner’s equity

Keeping separate financial records for a business and its owner’s personal belongings is an application of:

The Revenue Recognition principle

An expense is defined as:

A decrease in owner’s equity resulting from the operation of a business

An increase in owner’s equity

Business ethics are best described as:

The principles of right and wrong that guide an individual in making decisions

The financial standards set by regulatory bodies

The rules for financial reporting

The strategies used to increase profits

Withdrawals are best described as:

Assets taken out of a business for the owner’s personal use

Expenses incurred by the business

When an owner withdraws cash from the business, the transaction affects:

Both assets and owner’s equity

Both liabilities and owner’s equity

Received cash from the owner as an investment, $10,000.00. What is the effect on the accounts?

Cash (+$10,000), Owner’s Equity (+$10,000)

Cash (+$10,000), Accounts Payable (+$10,000)

Owner’s Equity (+$10,000), Supplies (+$10,000)

Cash (+$10,000), Supplies (-$10,000)

Paid cash for insurance, $3,000.00. What is the effect on the accounts?

Cash (-$3,000), Insurance (+$3,000)

Cash (+$3,000), Insurance (+$3,000)

Cash (-$3,000), Owner’s Equity (-$3,000)

Cash (-$3,000), Accounts Payable (+$3,000)

Bought supplies on account from Conrad Supplies, $1,500.00. What is the effect on the accounts?

Supplies (+$1,500), Accounts Payable (+$1,500)

Supplies (+$1,500), Cash (-$1,500)

Supplies (+$1,500), Owner’s Equity (+$1,500)

Supplies (+$1,500), Accounts Payable (-$1,500)

Paid cash on account to Conrad Supplies, $1,000.00. What is the effect on the accounts?

Cash (-$1,000), Accounts Payable (-$1,000)

Cash (-$1,000), Supplies (+$1,000)

Cash (-$1,000), Owner’s Equity (-$1,000)

Cash (-$1,000), Supplies (-$1,000)

Received cash from sales, $2,700.00. What is the effect on the accounts?

Cash (+$2,700), Owner’s Equity (+$2,700)

Cash (+$2,700), Supplies (+$2,700)

Cash (+$2,700), Accounts Payable (+$2,700)

Cash (+$2,700), Insurance (-$2,700)

Sold services on account to Ashley Computers, $3,300.00. What is the effect on the accounts?

Accounts Receivable (+$3,300), Owner’s Equity (+$3,300)

Cash (+$3,300), Supplies (-$3,300)

Accounts Receivable (+$3,300), Accounts Payable (+$3,300)

Accounts Receivable (+$3,300), Owner’s Equity (-$3,300)

Paid cash for supplies, $850.00. What is the effect on the accounts?

Cash (-$850), Accounts Payable (+$850)

Cash (-$850), Owner’s Equity (-$850)

Paid cash for rent, $1,000.00. What is the effect on the accounts?

Cash (-$1,000), Rent Expense (+$1,000)

Cash (-$1,000), Owner’s Equity (+$1,000)

Cash (-$1,000), Accounts Payable (+$1,000)

Cash (-$1,000), Rent Expense (-$1,000)

Paid cash to owner for personal use, $1,200.00. What is the effect on the accounts?

Cash (-$1,200), Owner’s Equity (-$1,200)

Cash (-$1,200), Supplies (+$1,200)

Cash (-$1,200), Accounts Payable (-$1,200)

Cash (-$1,200), Owner’s Equity (+$1,200)

Accounting Benchmark 1

Authored by Alishia Sexton

Business

12th Grade

Used 3+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

88 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A formal report that shows what an individual owns, what an individual owes, and the difference between the two is called:

Personal Net Worth

Net Worth Statement

Owner’s Equity

Financial Statement

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The process of planning, recording, analyzing, and interpreting financial information is known as:

Accounting

GAAP

Business Ethics

Financial Reporting

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The equation that shows the relationship among assets, liabilities, and owner’s equity is called:

Accounting Equation

Financial Equation

Equity Equation

Asset-Liability Equation

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A business activity that changes assets, liabilities, or owner’s equity is known as a(n):

Accounting System

Business Transaction

Expense

Liability

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A planned process for providing financial information that will be useful to management is called a(n):

Business Plan

Accounting System

Financial Statement

GAAP

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The standards and rules that accountants follow while recording and reporting financial activities are referred to as:

Ethics

Business Ethics

GAAP (Generally Accepted Accounting Principles)

Accounting System

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The account used to summarize the owner’s equity in the business is called:

Capital Account

Equity Account

Liability Account

Asset Account

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

83 questions

Investing Unit Exam Review

Quiz

•

9th - 12th Grade

93 questions

MARKETING 3rd Quarter Test bank

Quiz

•

12th Grade

Popular Resources on Wayground

7 questions

History of Valentine's Day

Interactive video

•

4th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

15 questions

Valentine's Day Trivia

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

Discover more resources for Business

13 questions

BizInnovator Startup - Experience and Overview

Quiz

•

9th - 12th Grade

10 questions

Understanding Stock Market Investing

Interactive video

•

9th - 12th Grade

12 questions

Time Management Lesson

Lesson

•

1st - 12th Grade

20 questions

Review for Business Essentials 2.05

Quiz

•

9th - 12th Grade

Accounting Benchmark 1

A formal report that shows what an individual owns, what an individual owes, and the difference between the two is called:

The process of planning, recording, analyzing, and interpreting financial information is known as:

The equation that shows the relationship among assets, liabilities, and owner’s equity is called:

A business activity that changes assets, liabilities, or owner’s equity is known as a(n):

A planned process for providing financial information that will be useful to management is called a(n):

The standards and rules that accountants follow while recording and reporting financial activities are referred to as:

The account used to summarize the owner’s equity in the business is called:

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called:

A record summarizing all the information pertaining to a single item in the accounting equation is called a(n):

The difference between personal assets and personal liabilities is referred to as:

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business