Accounting Basics

Accounting entries involve a minimum of how many accounts?

• One
• Two
• Three
• Four

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Which term is associated with "right" or "right-side"?

• Debit
• Credit
• Plus
• Minus

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

What will usually cause the liability account Accounts Payable to increase?

• Debit
• Credit

Unearned Revenues is what type of account?

• Asset
• Liability
• Stockholders' Equity

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

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

When cash is received, the account Cash will be

• Debited
• Credited

Assets are usually reported on the balance sheet at which amount?

• Cost
• Current Market Value
• Expected Selling Price
• None of These