Accounting Basics Quiz

What classification is accounts receivable?

• Liability

• Asset

• Equity

• Revenue

What is the term for bringing a bank statement and a checkbook into agreement?

• Bank Reconciliation

• Bank Statement Analysis

• Financial Auditing

• Account Balancing

What does GAAP stand for?

• General Accounting and Auditing Principles

• Generally Accepted Accounting Principles

• Government Approved Accounting Practices

• Global Accounting and Auditing Procedures

What is a check returned by the bank because there aren't enough funds in the drawing account?

• Bounced Check

• Overdraft Check

• Dishonored/NSF Check

• Insufficient Funds Notice

What is the term for anything "owned" by a business?

• Liability

• Asset

• Equity

• Revenue

What is the term for anything "owed" by a business?

• Asset

• Liability

• Equity

• Revenue

How are assets affected when the owner invests $1000 into a business?

• Assets decrease by $1000

• Assets remain unchanged

• Assets increase by $1000

• Assets increase by $500

What is the accounting equation?

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets = Revenue + Expenses

• Assets = Liabilities / Owner's Equity

What form is used to prove equality of debits and credits after posting?

• Balance Sheet

• Income Statement

• Trial Balance

• Cash Flow Statement

What is the term for a business owned by one person?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company