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WorksheetsAccounting I-Chapter 3 Review
Total questions: 30
Worksheet time: 15mins
After each business transaction, the basic accounting equation should remain in balance.
True
False
A business transaction affects at least two accounts.
True
False
Assets + Liabilities = Owner's Equity is another way to express the accounting equation.
True
False
The increases and decreases caused by business transactions are recorded in specific accounts.
True
False
What do you call the owner's claim to the assets of the business?
Assets
Liabilities
Owner's Equity
Equities
What is the creditor's claim to the assets of the business called?
Assets
Liabilities
Owner's Equity
Equities
If the creditor's claim to the property is $1,000 and the owner's claim to the property is $ 11,000, What is total value of the property?
$10,000
$11,000
$12,000
$1,000
How do you classify Accounts Receivable
Asset
Liability
Revenue
Owner's Equity
All the following account names are assets except which one?
Office Furniture
Accounts Payable
Cash in Bank
Equipment
A business transaction that involves a purchase on account is considered what type of transaction?
cash transaction
investment by owner
credit transaction
expense transaction
Which of the following is NOT a business expense?
advertising
monthly rent
utility buills
office equipment
The purchase of a desk on account will increase Office Furniture and what other account?
Accounts Payable
Cash in Bank
Accounts Receivable
Joe Dunn, Capital
What is the term used to describe the total financial claim to the business? (both the owner's claim and creditor's claim)
equities
liablility
owner's equity
assets
If Joe Dunn deposits $30,000 in a checking account for the business, which two accounts are affected?
Cash in Bank and Computer Equipment
Cash in Bank and Accounts Receivable
Cash in Bank and Joe Dunn, Capital
Cash in Bank and Accounts Payable
A cost of goods or services necessary to operate a business is called what?
expense
creditor
equity
revenue
What is the accounting equation?
A+L=OE
A=L+OE
A+OE=L
L-OE=A
Income earned from the sale of goods or services is called what?
Expense
Withdrawals
Accounts Receivable
Revenue
An economic event that causes a change in assets, liabilities, or owner's equity is know as what?
accounting
business transaction
credit
captial
What is account used to represent money our business owes the creditor of our business?
Accounts Receivable
Owner's Equity
Accounts Payable
Cash in Bank
What account represents the total amount of money to be received in the future for goods or services sold on credit?
Accounts Receivable
Accounts Payable
Joe Dunn, Capital
Cash in Bank
What is it called when the owner takes cash or other assets out of the business for personal use?
Revenue
Expense
Investment
Withdrawals
What is property or item of value owned by a business?
Asset
Liability
Owner's Equity
On Account
How do you classify Accounts Receivable?
Asset
Liability
Owner's Equity
How do you classify Computer Equipment?
Asset
Liability
Owner's Equity
How do you classify Accounts Payable?
Asset
Liability
Owner's Equity
How do you classify Cash in Bank?
Asset
Liability
Owner's Equity
How do you classify Joe Dunn, Capital?
Asset
Liability
Owner's Equity
How does the following transaction affect the accounting equation?
Jenn bought equipment with cash $2,000
Asset (+) / Liability (+)
Asset (+) / Asset (-)
Asset (-) / Liability (-)
Asset (+) / Owner's Equity (-)
Hows does the following transaction affect the accounting equation?
Received cash for an eye exam service.
Asset (+) / Owner's Equity (+)
Asset (+) / Liability (+)
Asset (-) / Owner's Equity (+)
Liability (+) / Owner's Equity (-)
How does the following transaction affect the accounting equation?
Made a partial payment for office furniture purchased previously on account
Asset (+) / Liability (+)
Asset (+) / Asset (-)
Asset (-) / Liability (-)
Asset (+) / Owner's Equity (+)
