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WorksheetsAccounting 1 Quarterly Exam Review
Total questions: 25
Worksheet time: 24mins
Recording and reporting a business's financial information separately from the owner's financial information is an application of the accounting concept ____.
Unit of Measurement
Going Concern
Business Entity
Separation of Records
The amount remaining after the value of all liabilities is subtracted from the value of all assets is ____.
a transaction
a financial report
owner's equity
the fair market value of the business
The accounting equation is most often stated as ________.
Cash = Assets
Assets = Liabilities + Owner's Equity
Liabilities + Assets = Owner's Equity
Assets = Liabilites
In the United States, recording business transactions in dollars is an application of the accounting concept
Separation of Records
Going Concern
Unit of Measurement
Business Entity
The account used to summarize the owner's equity in a business is ____.
owner's equity
a liability
capital
equity
If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is ____.
not changed
increased by $1,000.00
increased by $2,000.00
decreased by $2,000.00
When a transaction changes both sides of the accounting equation, ____.
neither side of the equation changes BC D
an increase on the right side must offset a decrease on the left side
an increase on the left side must equal an increase on the right side
none of the above
When a business pays cash for supplies, ____.
assets and liabilities decrease
assets increase and assets decrease
assets and liabilities increase
liabilities increase
When cash is decreased and supplies are increased by an equal amount, ____.
there is an increase in owner's equity
liabilities and capital are not changed
there is a decrease in liabilities
there is an increase in liabilities
When a transaction changes only one side of the equation, if one account is increased, the other account on the same side must ____.
decrease
not change
increase
none of the above
Prepaid Insurance is _______.
an asset account
a liability account
an Owner's equity account
none of the above
Buying items and paying for them at a future date is ____________.
not recommended
not a common business practice
illegal
a common business practice
When a business buys supplies on account, assets ___________.
increase and liabilities decrease
decrease
decrease and liabilities increase
increase
When supplies are bought on account, the business to whom money is owed is ____.
an asset account
a capital account
a liability account
an equity account
When cash is paid on account, ____________.
one asset and one liability are changed
one liability and owner's equity are changed
one asset and owner's equity are changed
two assets are changed
Total assets are $22,000.00. Supplies are bought on account for $1,500.00. The total assets are now ______.
$25,000.00
$23,500.000
$22,000.00
$20,500.00
Total assets are $19,500.00. Cash is paid for $1,500.00 of supplies. The total assets are now ______.
$22,500.00
$21,000.00
$19,500.00
$18,000.00
Accounts Payable is
an asset account
a liability account
an owner's equity account
none of the above
A business has total cash of $30,000.00. Then the business pays $1,000.00 on account, buys insurance coverage of $750.00, buys supplies for $1,200.00, and pays $300.00 more on account. The balance of the cash account is now ____.
$26,750.00
$25,750.00
$28,700.00
none of the above
A business has total assets of $30,000.00. Then the business pays $1,000.00 on account, buys insurance coverage of $750.00 cash, buys supplies for $1,200.00 cash, and pays $300.00 more on account. Total Assets are now
$28,700.00
$25,750.00
$26,750.00
none of the above
A transaction that increases accounts receivable and increases owner's equity is ____.
revenue
withdrawal
expense
none of the above
A transaction that increases cash and decreases owner's equity is _________.
revenue
withdrawal
expense
none of the above
Cash in increased by ______.
withdrawals
expenses
revenue
none of the above
The asset most commonly withdrawn by business owners is ___________.
insurance
supplies
cash
contributions
A decrease in owner's equity resulting from the operation of a business is ___________.
a withdrawal
an expense
revenue
none of the above
