THE PARTNER OR THE PRETENDER

What is the main purpose of accounting?

• To keep track of how many doughnuts you can eat in a minute

• To record, summarise, and report financial information

• To see who can make the best spreadsheet dance

• • To count the number of pencils in the office

Which of the following is considered an asset?

• Your collection of rubber ducks

• The company’s delivery van

• The boss’s secret cookie stash

• • The office plant that’s barely alive

If you buy a new computer for your business, what type of account increases?

• Assets

• Liabilities

• The number of cat videos you can watch

• • Expenses for pizza parties

Which of the following is a liability?

• The amount you owe your friend for lunch

• The number of times you’ve lost your pen

• The company’s bank loan

• • The office goldfish’s emotional baggage

What does the accounting equation state?

• Assets=Liabilities+Owner’s Equity

• Assets=Pizza+Ice Cream

• Liabilities=Assets−Owner’s Equity

• • Owner’s Equity=Number of Selfies

Which financial statement shows a company’s revenues and expenses?

• Statement of Pizza Consumption

• Income Statement

• Statement of Lost Socks

• • Balance Sheet

If you receive $100 for mowing lawns, what account increases?

• Expenses

• The number of grass stains on your jeans

• Liabilities

• Revenue

What is depreciation?

• When your phone battery goes from 100% to 1% in 10 minutes

• The decrease in value of an asset over time

• The number of times you forget your password

• • The increase in your snack stash

Which of the following is NOT an expense?

• Wages paid to employees

• Rent for the office

• Money found in the couch cushions

• • Utility bills

What is the main job of an accountant?

• To record and report financial transactions

• To make sure the office fridge is always full

• To win at office trivia night

• • To count how many times the photocopier jams