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WorksheetsChapter 1 Review
Total questions: 10
Worksheet time: 5mins
The formula for a net worth statement is
Total Assets - Owner's Equity
Total Assets - Total Liabilities
Equities + Liabilities
Total Liabilities - Total Assets
Which of the following would be considered an asset account?
Accounts Payable
Revenue
Investment
Prepaid Insurance
Which of the following could change Equity in a business?
Cash
Prepaid Insurance
Revenue
Accounts Payable
What is the accounting equation?
Assets + Liabilities = Owner's Equity
Assets - Owner's Equity = Liabilities
Assets = Liabilities + Owners Equity
Revenues - Expenses = Net Income
If you pay cash for a utility bill, which two accounts are affected?
Cash and Accounts Payable
Cash and Owner's Equity
Accounts Receivable and Cash
Cash and Utility Payable
When the owner takes $1,000 from the business, how is the equity account affected?
Decrease$1000/Expense
Increase$1000/Withdrawal
Decrease $1000/Withdrawal
Decrease$1000/Revenue
Which of the following does not change the Equity account?
Withdrawals
Expenses
Revenues
Accounts Payable
A sale will
Increase in Revenue for Owner's Equity
Decrease in Revenue for Liabilities
Increase in Cash for Liabilities
Decrease in Revenue for Owner's Equity
Which of the following accounts are affected if the Owner of the company sells their personal computer for cash?
Supplies and Cash
Owner's Equity and Supplies
Cash and Owner's Equity
None of the above
Whenever there is an activity involving a transactions, how many accounts are affected?
1
3
2
4
