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WorksheetsPre-Test for Accounting I
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity.
a)
True
b)
False
2.
Detailed information about changes in owner’s equity is needed by owners and managers to make sound business decisions.
a)
True
b)
False
3.
When two asset accounts are changed in a transaction, there must be an increase and a decrease.
a)
True
b)
False
4.
A negative amount for net worth would reflect more debt than assets, something a creditor would favor.
a)
True
b)
False
5.
An accounting device used to analyze transactions is a T account.
a)
True
b)
False
6.
After each transaction, the accounting equation must remain in balance.
a)
True
b)
False
7.
Each asset account has a normal credit balance.
a)
True
b)
False
8.
Each liability account has a normal debit balance.
a)
True
b)
False
9.
An amount recorded on the right side of a T account is a debit.
a)
True
b)
False
10.
The source document for all cash payments is a check.
a)
True
b)
False
11.
The source document used when supplies are bought on account is a memorandum.
a)
True
b)
False
12.
The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.
a)
True
b)
False
13.
A receipt is the source document for cash received from transactions other than sales.
a)
True
b)
False
14.
All corrections for posting errors should be made in a way that leaves no question as to the correct amount.
a)
True
b)
False
15.
The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.
a)
True
b)
False
16.
A journal shows in one place all the changes in a single account.
a)
True
b)
False
17.
An outstanding check is one that has been issued but not yet reported on a bank statement.
a)
True
b)
False
18.
When petty cash is replenished, Petty Cash is debited and Cash is credited.
a)
True
b)
False
19.
Only accounts with a balance are listed in the Trial Balance columns of a work sheet.
a)
True
b)
False
20.
Many businesses choose a one-year fiscal period that ends during a period of high business activity.
a)
True
b)
False
21.
Adjusting entries must be posted to the general ledger accounts.
a)
True
b)
False
22.
When preparing a balance sheet, the amount of owner’s capital is calculated using amounts obtained from
a)
a. the general ledger.
b)
b. the income statement.
c)
c. the journal.
d)
d. none of these.
23.
Accounts used to accumulate information from one fiscal period to the next are
a)
a. revenue accounts.
b)
b. permanent accounts.
c)
c. temporary accounts.
d)
d. expense accounts.
24.
Income Summary is a(n)
a)
a. asset account.
b)
b. liability account.
c)
c. temporary account.
25.
An income statement reports a business’s financial
a)
a. condition over a specific period of time.
b)
b. progress over a specific period of time.
c)
c. condition on a specific date.
d)
d. progress on a specific date.
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