WorksheetsHow Transactions Affect the Accounting Equation
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
What two accounts are involved when you receive cash from owner as an investment?
a)
cash and capital
b)
cash and investment
c)
cash and owner's equity
d)
cash and supplies
2.
When you receive cash from sales, you debit cash and credit sales
a)
False
b)
True
3.
Paying cash for insurance increases and decreases an asset.
a)
False
b)
True
4.
When you pay cash for supplies, you debit supplies.
a)
False
b)
True
5.
Buying supplies on account creates a receivable.
a)
False
b)
True
6.
When you pay cash on account by writing check number 20, your doc/ref number is r20.
a)
False
b)
True
7.
Any activity that changes the Accounting Equation is called a payment.
a)
False
b)
True
8.
A sale for which payment will be received at a later date is called a sale on account.
a)
False
b)
True
9.
A withdrawl decreases owner's equity
a)
False
b)
True
10.
A T account is a device used to analyze transactions in accounting.
a)
False
b)
True
11.
Mikaela Mundt invested $2,000.00 of her own money in the business. Receipt No. 1. What two accounts are affected?
a)
Cash and Insurance
b)
Cash and Prepaid Insurance
c)
Cash and Mikaela Mundt, Investment
d)
Cash and Mikaela Mundt, Capital
12.
Used business cash to purchase supplies costing $216.00. Wrote Check No. 1. This transaction increases and decreases assets.
a)
False
b)
True
13.
Wrote Check No. 2 for insurance, $245.00. Who do you debit?
a)
Check
b)
Cash
c)
Prepaid Insurance
d)
Insurance
14.
Purchased supplies for $68.00 over the phone from Southern Supplies, promising to send the check next week. Memo No. 1. What two accounts are affected?
a)
cash and supplies
b)
supplies and accounts receivable, Southern Supplies
c)
cash and accounts payable, Southern supplies
d)
cash and check
15.
Purchased supplies for $68.00 over the phone from Southern Supplies, promising to send the check next week. Memo No. 1. Who do you debit?
a)
cash
b)
supplies
c)
accounts payable, southern supplies
16.
Wrote an $800.00 check to Ms. Mundt as a withdrawal of equity for personal use. Used Check No. 5. What two accounts are affected?
a)
Cash and Mikaela Mundt, Capital
b)
Cash and Mikaela Mundt, Drawing
c)
Cash and accounts payable Mikaela Mundt
17.
Wrote an $800.00 check to Ms. Mundt as a withdrawal of equity for personal use. Used Check No. 5. What account do you debit?
a)
Drawing
b)
Mikaela Mundt, Drawing
c)
Capital
d)
Mikaela Mundt, Capital
18.
Wrote an $800.00 check to Ms. Mundt as a withdrawal of equity for personal use. Used Check No. 5. What is the document number?
a)
R1
b)
C1
c)
C5
d)
R5
19.
Sold services for $412.00 to J. Lepowsky, who agreed to pay for them within ten days. Sales Invoice No. 1. What is this type of sale called?
a)
T account sale
b)
Pay later sale
c)
Sale on account
d)
My type of sale
20.
Sold services for $412.00 to J. Lepowsky, who agreed to pay for them within ten days. Sales Invoice No. 1. What account is debited?
a)
Sales
b)
Accounts Receivable, J. Lepowsky
c)
Cash
d)
Accounts payable, J. Lepowsky
100 %
