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Accounting Drills: Balance Sheet

Total questions: 21

Worksheet time: 13mins

Name
Class
Date
1.

Another name for the balance sheet is

a)

Statement of Operations

b)

Statement of Financial Position

2.

The balance sheet heading will specify a

a)

Period of Time

b)

Point in Time

3.

Which of the following is a category or element of the balance sheet?

a)

Expenses

b)

Gains

c)

Liabilities

d)

Losses

4.

Which of the following is an asset account?

a)

Accounts Payable

b)

Prepaid Insurance

c)

Unearned Revenue

5.

Which of the following is a contra-account?

a)

Accumulated Depreciation

b)

Mary Smith, Capital

6.

What is the normal balance for an asset account?

a)

Debit

b)

Credit

7.

What is the normal balance for liability accounts?

a)

Debit

b)

Credit

8.

What is the normal balance for Owner's Equity accounts?

a)

Debit

b)

Credit

9.

What is a normal balance for an asset contra account?

a)

Debit

b)

Credit

10.

What is a normal balance for a liability contra account?

a)

Debit

b)

Credit

11.

Client Jay pays ABC Co. $1,000 in December for ABC to perform services for Jay in 45 days. ABC uses the accrual basis of accounting. In December ABC will debit cash for $1,000. What will be the other account involved int he December accounting entry prepared by ABC (and what type of account is it)?

a)

Accounts Receivable (asset)

b)

Prepaid Services (asset)

c)

Service Revenues (revenue)

d)

Unearned Revenues (liability)

12.

ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days. ABC follows the accrual basis of accounting. In January ABC received the $4,000 from Kay. In January ABC will debit Cash, since cash was received. What account should ABC credit in the January entry?

a)

Accounts Receivable

b)

Sales Revenue

c)

Owner's Equity

13.

ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. The service was billed at the agreed upon amount of $3,500. ABC Co. debited Accounts Receivable for $3,500 and credited Service Revenue for $3,500. The effect of this entry on the balance sheet of ABC is to increase assets by $3,500 and to...

a)

Decrease Assets by $3,500

b)

Increase Owner's Equity (Stockholders') Equity by $3,500

14.

Which of the following would not be a current asset?

a)

Accounts Receivable

b)

Land

c)

Prepaid Insurance

d)

Supplies

15.

Which of the following would normally be a current liability?

a)

Note Payable in Two Years

b)

Unearned Revenue

16.

When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. What is the other effect on the balance sheet?

a)

Owner's/Stockholders' Equity Decreases

b)

None

17.

ABC Co. incurs cleanup expense of $500 on December 30. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9. ABC follows the accrual basis of accounting and its accounting year ends on December 31. What is the effect of the cleanup service on the December balance sheet of ABC?

a)

Assets Decreased

b)

Liabilities Increased

c)

No Effect on Owner's Equity

18.

Deferred credits will appear on the balance sheet with the

a)

Assets

b)

Liabilities

c)

OE

19.

NP could not appear as a line on the balance sheet in which classification?

a)

Current Assets

b)

Current Liabilities

c)

LT Liabilities

20.

On Dec 1, ABC Co. hired Juanita Perez to begin working on Jan 2 at a monthly salary of $4,000. ABC's balance sheet of Dec 31 will show a liability of?

a)

$4,000

b)

$48,000

c)

No Liability

21.

ABC Co has current assets of $50,000 and total assets of $150,000. ABC has current liabilities of $30,000 and total liabilities of $80,000. What is the amount of ABC's OE?

a)

$20,000

b)

$30,000

c)

$70,000

d)

$120,000