WorksheetsBasic Accounting Terms 1
Total questions: 23
Worksheet time: 12mins
Name
Class
Date
1.
Assets taken out of a business for the owner's personal use
a)
capital
b)
withdrawals
c)
equities
d)
revenue
2.
A decrease in owner's equity resulting from the operation of a business
a)
account
b)
capital
c)
asset
d)
expense
3.
Amount owed by a business
a)
liability
b)
asset
c)
capital
d)
account
4.
A business activity that changes assets, liabilities, or owner's equity
a)
transaction
b)
expense
c)
revenue
d)
sale on account
5.
Anything of value that is owned
a)
account
b)
asset
c)
withdrawal
d)
expense
6.
A business owned by one person
a)
service business
b)
revenue
c)
expense
d)
proprietorship
7.
The amount in an account
a)
account title
b)
revenue
c)
account balance
d)
accounting records
8.
The account used to summarize the owner's equity in a business
a)
account
b)
expense
c)
capital
d)
revenue
9.
An increase in owner's equity resulting from the operation of a business
a)
asset
b)
expense
c)
withdrawl
d)
revenue
10.
Revenues minus expenses equals _____________________.
(Revenues-Expenses = _______________)
(Revenues-Expenses = _______________)
a)
Profit
b)
Overhead
c)
Income
d)
None of the above
11.
Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.
a)
assets
b)
liabilities
c)
profit
d)
income
12.
The basic accounting equation is Assets=Liabilities + _______________________.
a)
Income
b)
Owner's Equity
c)
Expenses
d)
Profit
13.
The ________________ __________________ is one of the main financial statements and reports revenues and expenses for a period of time such as a month or year.
a)
Income Statement
b)
Balance Sheet
c)
Income Worksheet
d)
Balance Sheet
14.
The _____________________________ is one of the main financial statement and reports the assets, liabilities, and owner's equity at a specific point in time.
a)
Income Statement
b)
Balance Sheet
c)
Income Worksheet
d)
Balance Worksheet
15.
What is owner's equity?
a)
The amount of money the owner's has
b)
The stock options
c)
The assets
d)
The assets minus the liabilities of a business
16.
What is assets?
a)
Cash in the business
b)
Anything that a creditor has financial claim to
c)
What remains after liabilities are paid
d)
any item or property owned by the business
17.
Assets taken out of a business for the owner's personal use
a)
capital
b)
withdrawals
c)
equities
d)
revenue
18.
Accounting entries involve a minimum of how many accounts?
a)
0
b)
1
c)
2
d)
3
19.
When cash is received, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
20.
When a company pays a bill using cash, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
21.
When a company buys supplies on account, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
22.
Received cash from owner as investment
a)
Increase cash & capital
b)
Decrease cash & capital
c)
Increase assets & liabilities
d)
Decreases assets & liabilities
23.
Company purchases supplies on account
a)
Increase cash, decrease supplies
b)
Decrease cash, increase supplies
c)
Increase supplies, increase accounts payable
d)
Decrease supplies, decrease accounts payable
100 %
