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Accounting 1 - Ch. 2 - Balance Sheet

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

In IFRS, the Balance Sheet is called the Financial Position

a)

True

b)

False

2.

Office furniture is classified as:

a)

Accounts Payable

b)

Equity

c)

Long-term asset

d)

Current asset

3.

If OE is $300 and Assets are $1500, the Liabilities are:

a)

$1800

b)

$1200

c)

$300

d)

$1500

4.

Which of the following is not true

a)

A-E=L

b)

A-L=E

c)

A+L=E

d)

A=L+E

5.

When is the only time you can use abbreviations on a balance sheet?

a)

When the abbreviation is in the company's legal name

b)

If the abbreviation is more than four letters long

c)

Only if you forget how to spell the abbreviated word

d)

Whenever you want

6.

Which liability would appear last on the balance sheet?

a)

Accounts Payable

b)

Bank Loan

c)

Mortgage Payable

d)

Car Loan

7.

How are Assets organized within their respective column?

a)

Least to most liquid

b)

Greatest to least price

c)

At random

d)

Most to least liquid

8.

Which of the following is not another name or abbreviation for Owner's Equity?

a)

Capital

b)

OE

c)

Owner's Capital

d)

Boss Money

9.

What is the name for someone who owes you money?

a)

Debtor

b)

Creditor

c)

Owner

d)

Customer

10.

Which of the following is a liability?

a)

Accounts Receivable

b)

Long Term Investments

c)

Inventory

d)

Accounts Payable

11.

If assets decrease by $15,000 and liabilities increase by $10,000, Owner's Equity..

a)

Increase by $5000

b)

Decrease by $25,000

c)

Increase by $10,000

d)

Decrease by $15,000

12.

If over the course of a year, your assets increase by $16 000 but your owner's equity decreases by $2000, what change occurred in your liabilities?

a)

Liabilities increased by $14 000

b)

Liabilities decreased by $14 000

c)

Liabilities increased by $18 000

d)

Liabilities stayed the same

13.

What is accounts payable?

a)

Money that you owe someone else

b)

Money that you loaned to the bank

c)

Money that a business owes to another business

d)

Money that you invested in a company