Accounting Vocabulary Quiz

Which of the following is NOT considered an asset?

• Delivery truck

• Office building

• Bank loan

• Inventory

Which statement reports a company’s financial performance over a period of time?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• Journal Entry

Which accounting method records revenue when it is earned, even if payment is received later?

• Cash Basis

• Accrual Accounting

• Asset Method

• Liability Matching

A credit increases:

• Asset accounts

• Liability and equity accounts

• Expense accounts

• Inventory levels

The difference between a company’s assets and liabilities is called:

• Equity

• Revenue

• Expense

• Net Income

Match the term 'Asset' with its correct definition.

• Goods held for sale to customers

• Cost of an asset spread over its useful life

• Something a business owns with future economic value

• Obligation to pay another party

• Money earned from normal operations

Match the term 'Liability' with its correct definition.

• Goods held for sale to customers

• Cost of an asset spread over its useful life

• Something a business owns with future economic value

• Obligation to pay another party

• Money earned from normal operations

Match the term 'Revenue' with its correct definition.

• Goods held for sale to customers

• Cost of an asset spread over its useful life

• Something a business owns with future economic value

• Obligation to pay another party

• Money earned from normal operations

Match the term 'Inventory' with its correct definition.

• Goods held for sale to customers

• Cost of an asset spread over its useful life

• Something a business owns with future economic value

• Obligation to pay another party

• Money earned from normal operations

Match the term 'Depreciation' with its correct definition.

• Goods held for sale to customers

• Cost of an asset spread over its useful life

• Something a business owns with future economic value

• Obligation to pay another party

• Money earned from normal operations