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WorksheetsAccounting Basics Unit 6 Part 1
Total questions: 24
Worksheet time: 12mins
Name
Class
Date
1.
All monies owed to a firm by its customers are ____.
a)
Income
b)
Net Worth
c)
Accounts Receivable
d)
Accounts payable
2.
Which of the following is a requirement for a good accounting system?
a)
It should be updated annually
b)
It should provide needed information quickly
c)
It should eliminate the need for an accountant
d)
It should be replaced every two or three years
3.
In the accounting equation which of the following statements are true?
a)
A debit in Assets increases while a debit liabilities increases
b)
A debit in Assets increases whiles a debit liabilities decreases
c)
A credit in Assets decreases while a credit in Owner's Equity decreases
d)
A credit in Assets increases while a credit in Owner's Equity increases
4.
A bank denies a business owner's application for credit saying, "we feel that you would be un-able to make the monthly payment because of your other debts." what financial report did the bank review.
a)
budget
b)
balance sheet
c)
income statement
d)
operating budget
5.
A chronological record of the transactions, showing an explanation of each transaction, the accounts affected, whether those accounts are increased or decreased, and by what amount are the
a)
Accounting System
b)
General Journal
c)
Accounting Process
d)
Transaction Process
6.
businesses would not be able to determine if they are meeting their financial goals without accurate:
a)
production plans
b)
marketing plans
c)
accounting systems
d)
distribution systems
7.
Riley is an employee of the federal government who studies the financial reports of major businesses in a specific industry. The governments purpose in assigning this task to Riley is to
a)
verify compliance with laws
b)
calculate the businesses income taxes
c)
analyze employment statistics
d)
identify trends in the industry
8.
the process of keeping the financial records of a buisness is known as
a)
Accounting
b)
Controlling
c)
Financing
d)
bookkeeping
9.
TWO employees used a business's computerized accounting system to change some records. They were able to steal $50,000 from the business because the accounting system lacked which of the following:
a)
protection from theft and fraud
b)
an affordable price
c)
a manual system as backup
d)
printed financial statements
10.
For an accounting system to be useful to the business, the accounting information it contains must be accurate and up to date.
a)
accurate and up to date
b)
approved by the chief of executive officer
c)
posted by an accountant
d)
recorded using the accrual method
11.
Also known as stockholders' (or shareholders') equity, book value, and net worth.
a)
Assets
b)
liabilities
c)
equity
d)
net worth
12.
the overall purpose of accounting is to
a)
maintain accurate reports
b)
keep track of sales
c)
compile the business's expenses
d)
control the finances of the business
13.
What is on of the main reasons why businesses need to keep accurate accounting records?
a)
to follow procedures
b)
to control expenses
c)
to eliminate risks
d)
to regulate taxes
14.
Why are accurate accounting records important to a business/
a)
They prevent any financial losses
b)
they show the business how it is doing
c)
they increase the return on investments
d)
they give the business an image of success
15.
Businesses use the information collected through the accoutning process to prepare accurate:
a)
balance sheets
b)
purchase orders
c)
inventory forms
d)
promissory notes
16.
Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year:
a)
Balance Sheet
b)
Cash flow statement
c)
income statement
d)
bank statement
17.
The foundation for accounting, represents the relationship between assets, liabilities, and owners equity, is known as the
a)
accounting equation
b)
earnings
c)
balance statement
d)
worth
18.
Which of the following groups makes regular use of a business's managerial accounting information:
a)
managers
b)
creditors
c)
customers
d)
investors
19.
What accounting record would summarize a business's profit or loss for a previous year?
a)
bank statement
b)
inventory record
c)
income statement
d)
balance sheet
20.
Which of the following makes comparisons of the financial conditions at multiple organizations possible:
a)
bookkeeping
b)
source documents
c)
accounting standards
d)
trial balance
21.
What type pf accounting method would most likely be used by a small business owner who does not offer credit?
a)
check method
b)
cash method
c)
COD method
d)
accrual method
22.
Accounting records for a business show that the weeks total sales revenue for $125,000. Cash sales accounted for $50,000, and credit sales, $75,000. This is an example of
a)
classifying financial info
b)
the cash accounting method
c)
an income statement
d)
the accrual method of accounting
23.
A creditor is most likely to examine a bussines's financial accounting records if the business is
a)
applying for a bank loan
b)
selecting a new market
c)
using cash accounting
d)
complying with regulations
24.
an accounting device is used to analyze transactions is called
a)
T Account
b)
Account System
c)
Account Equation
d)
Transactions
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