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WorksheetsAccounting Applications Unit 1 Exam
Total questions: 43
Worksheet time: 15mins
Name
Class
Date
1.
Accounting is an information system who's purpose is to identify, collect, measure, and communicate information about _____________ ?
a)
money units
b)
price units
c)
profit units
d)
economic units
2.
The functions of accounting include all of the following except?
a)
Systematic record of business transactions
b)
Protecting the money of the owners of the business
c)
Communicating results to the interested parties
d)
Compliance with legal requirements
3.
Some advantages of accounting include the following except?
a)
Evidence in court
b)
Settlement of taxation liability
c)
Retention of employees
d)
Sale of business
4.
A limitation of accounting is that it records various forms of transactions in a business.
a)
True
b)
False
5.
GAAP stands for Generally Acquired Accounting Principles.
a)
True
b)
False
6.
The amount (in terms of money or assets having money value) which the proprietor has invested in the firm or can claim from the firm is the definition for?
a)
Capital
b)
Funds
c)
Credit
d)
Profits
7.
Why would capital be a liability towards the owner for the firm?
a)
Because the owner is treated to be separate from the business.
b)
Because the capital is coming from the owner and they are one in the same.
c)
Because the firm sees the owner and capital as the same party investing.
d)
Because capital that is a liability to the owner must be one for the owner's firm as well.
8.
If an amount is due to be paid to any other person or institution other than the owner it is called a/an
a)
liability
b)
debt
c)
credit debt
d)
credit payment
9.
Long-term liabilities are those liabilities which are payable in the near future.
a)
False
b)
True
10.
All of the following are examples of short-term liabilities except?
a)
Mortgage
b)
Credit cards
c)
Bank overdrafts
d)
Bills payable
11.
Liabilities which are payable after a long term are long-term liabilities.
a)
True
b)
False
12.
Any physical thing or right owned that has a money value is a/an?
a)
Asset
b)
Profit
c)
Economic unit
d)
Value
13.
_________ assets are those assets which are purchased for the purpose of operating the business and not for resale.
a)
Fixed
b)
Current
c)
Liquid
d)
Material
14.
Those assets of the business which are kept for short term to converting cash are?
a)
Current assets
b)
Fixed assets
c)
Liquid assets
d)
Tangible assets
15.
When goods are sold to a person on credit that person pays the price in the future. This person is called ________?
a)
Debtor
b)
Debtee
c)
Creditor
d)
Payee
16.
A person who owes money to the firm, generally on account of credit sale of goods is called a debtor.
a)
True
b)
False
17.
The category used for that amount collected by the firm other than the amount due from debtors is _________.
a)
Payments
b)
Receivables
c)
Collections
d)
Payables
18.
The term used for a person to whom the firm owes money is _______?
a)
Creditor
b)
Debtor
c)
Payable
d)
Bill collector
19.
_________ is used for the amount payable by the firm, other than the amount due to creditors.
a)
Payables
b)
Receivables
c)
Revenue
d)
Credit
20.
It is the amount of money or the value of goods which the proprietor takes for his domestic or personal use.
a)
Drawings
b)
Profit
c)
Revenue
d)
Paycheck
21.
The amounts which, as a result of operations, is added to the capital.
a)
Revenue
b)
Profits
c)
Credits
d)
Debits
22.
Revenue is an inflow of assets which results in an increase in owner's equity.
a)
True
b)
False
23.
The amount spent in order to produce and sell the goods and services which produce the revenue.
a)
Payments
b)
Materials
c)
Expense
d)
Credits
24.
Expenses is that cost of the use of things or services for the purpose of generating revenue.
a)
True
b)
False
25.
Examples of expenses include all of the following except?
a)
Payment of salary
b)
Rent
c)
Wages
d)
Company Halloween party
26.
The profit earned over a period of time is called revenue.
a)
True
b)
False
27.
The difference between revenue and expense is called _______ ?
a)
Pay
b)
Income
c)
Debt
d)
Credit
28.
The difference between sales revenue or the proceeds of goods sold and services rendered over its direct cost is?
a)
Gross profit
b)
Net profit
c)
Value
d)
Revenue gains
29.
The profit made after allowing for all expenses.
a)
Net profit
b)
Profit
c)
Gross profit
d)
Cost of goods sold
30.
Costs of goods sold is the direct cost of the goods or services sold.
a)
True
b)
False
31.
In the case expenses are more than revenue it is _______ .
a)
Loss
b)
Net loss
c)
Debt
d)
Net expenses
32.
Expenditure is the amount spent while no liability is incurred for the value received.
a)
True
b)
False
33.
The amount that is incurred in current activities to purchase goods and services which are consumed during the period.
a)
Revenue expenditure
b)
Capital expenditure
c)
Deferred revenue expenditure
d)
Expenditure
34.
The amount that is incurred in purchasing assets which will give benefit extending over a number of accounting periods.
a)
Capital expenditure
b)
Revenue expenditure
c)
Expenditure
d)
Deferred revenue expenditure
35.
When customers are allowed any type of reduction in the prices of goods by the businessman, that is called discount.
a)
True
b)
False
36.
Term used to describe a profit of an irregular nature.
a)
Gain
b)
Irregular profits
c)
Irregular gain
d)
Irregular payables
37.
A transaction involving immediate receipt or payment of cash is a cash transaction.
a)
True
b)
False
38.
Transactions in which the receipt/payment of cash is postponed to a future date is called a credit transaction.
a)
True
b)
False
39.
Net worth means _____ minus _________.
a)
Assets, outside liabilities
b)
Assets, costs
c)
Debits, credits
d)
Credits, debits
40.
What is total trading income from cash sales and credit sales?
a)
Turn over
b)
Income
c)
Profits
d)
Revenues
41.
Any written document in support of a business transaction is called _______.
a)
Voucher
b)
Contract
c)
Agreement
d)
Receipt
42.
A voucher is an objective evidence in support of a transaction.
a)
True
b)
False
43.
When is the last day of school this year?
a)
It doesn't matter because I'll get an A in this class!
b)
Christmas
c)
Spring Break
d)
Thanksgiving
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