WorksheetsAccounting Chapter 1
Total questions: 37
Worksheet time: 19mins
Name
Class
Date
1.
A formal report that shows what an individual owns,what an individual owes, and the difference between the two.
a)
owner's equity
b)
personal net worth
c)
net worth statement
d)
financial statements
2.
Planning, recording, analyzing, and interpreting financial information.
a)
Accountants
b)
Accounting
c)
Account Equation
d)
Accounting System
3.
An equation showing the relationship among assets, liabilities, and owner’s equity.
a)
Accounting System
b)
Accounting Equation
c)
Accounting Balance
d)
Accounting
4.
A business activity that changes assets, liabilities, or owner’s equity.
a)
transaction
b)
capital
c)
business ethics
d)
business plan
5.
A planned process for providing financial informationthat will be useful to management.
a)
Accounting equation
b)
Accounting Title
c)
Accounting System
d)
Accounting Balance
6.
The standards and rules that accountants follow while recording and reporting financial activities.
a)
GASP
b)
GAAP
c)
GAPA
d)
GAGA
7.
The account used to summarize the owner’s equity in the business.
a)
Liability Account
b)
Summary Account
c)
Asset Account
d)
Capital Account
8.
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
a)
asset
b)
liability
c)
owner's equity
d)
nothing
9.
A record summarizing all the information pertaining to a single item in the accounting equation.
a)
accounting
b)
account title
c)
account balance
d)
account
10.
The difference between personal assets and personal liabilities.
a)
Personal property
b)
Personal Assets
c)
Personal Net Worth
d)
Personal Department
11.
Anything of value that is owned.
a)
asset
b)
liability
c)
owner's equity
d)
expenses
12.
A sale for which cash will be received at a later date.
a)
revenue
b)
on sale
c)
sale on account
d)
withdrawals
13.
Assets taken out of a business for the owner’s personal use.
a)
liabilities
b)
expenses
c)
assets
d)
withdrawals
14.
A formal written document that describes the nature of a business and how it will operate.
a)
proprietorship
b)
service business
c)
business plan
d)
financial statements
15.
A business owned by one person.
a)
ethics
b)
service business
c)
sale on account
d)
sole proprietorship
16.
The use of ethics in making business decisions.
a)
business ethics
b)
revenue
c)
financial statements
d)
expense
17.
A business that performs an activity for a fee.
a)
service business
b)
sole proprietorship
c)
financial statements
d)
creditor
18.
Financial reports that summarize the financial conditions and operations of business.
a)
capital accounts
b)
transactions
c)
financial balances
d)
financial statements
19.
An amount owed by a business.
a)
expense
b)
liability
c)
asset
d)
equity
20.
A person or business to whom a liability is owed.
a)
proprietor
b)
supervisor
c)
creditor
d)
business man
21.
A decrease in owner’s equity resulting from the operation of a business.
a)
equity
b)
ethics
c)
equality
d)
expense
22.
An increase in owner’s equity resulting from the operation of a business.
a)
expnese
b)
revenue
c)
equities
d)
equity
23.
The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity.
a)
True
b)
False
24.
After each transaction, the accounting equation must remain in balance.
a)
TRUE
b)
FALSE
25.
A negative amount for net worth would reflect more debt than assets, something a creditor would favor.
a)
TRUE
b)
FALSE
26.
When two asset accounts are changed in a transaction, there must be an increase and a decrease.
a)
TRUE
b)
FALSE
27.
Detailed information about changes in owner’s equity is needed by owners and managers to make sound business decisions.
a)
TRUE
b)
FALSE
28.
When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.
a)
TRUE
b)
FALSE
29.
A transaction for the sale of goods or services results in a decrease in owner’s equity.
a)
TRUE
b)
FALSE
30.
Keeping separate the financial records for a business and for its owner’s personal belongings is an application of the Business Entity accounting concept.
a)
TRUE
b)
FALSE
31.
An expense is a decrease in owner’s equity resulting from the operation of a business.
a)
TRUE
b)
FALSE
32.
Business ethics are the principles of right and wrong that guide an individual in making decisions.
a)
TRUE
b)
FALSE
33.
Payments for advertising, equipment repairs, utilities, and rent are liabilities.
a)
TRUE
b)
FALSE
34.
Withdrawals are assets taken out of a business for the owner’s personal use.
a)
TRUE
b)
FALSE
35.
The most common type of withdrawal by an owner from a business is the withdrawal of cash.
a)
TRUE
b)
FALSE
36.
When an owner withdraws cash from the business, the transaction affects both assets and owner’s equity.
a)
TRUE
b)
FALSE
37.
A withdrawal is an expense.
a)
True
b)
False
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