WorksheetsBAF Ch 1 & 2 Review
Total questions: 20
Worksheet time: 15mins
A medical clinic is considered to be a merchandising business.
True
False
A non-profit organization is any firm that has recently lost money on its operations.
True
False
A service business never has physical products available for sale.
True
False
It is possible for a corporation to have one owner (shareholder).
True
False
A good accounting system should provide adequate information for the use of:
the management of the firm
creditors
the government
all of the above
Which is not a merchandising firm?
Sobey's
Canadian Tire
First Choice Haircutters
Best Buy
A business with more than one owner with unlimited liability is called:
a sole proprietorship
a partnership
a corporation
a franchise
A business called Holiday Homes Ltd. is organized as a:
sole proprietorship
partnership
corporation
producer/manufacturer
The financial position of a business is:
the difference between assets and liabilities
represented by the assets, liabilities, and capital
the same as the net worth of the business
Which one of the following is not true?
A - OE = L
A - L = OE
A + L = OE
A = L + OE
If total assets are $25,000 and total liabilities are $20,000, owner's equity is:
$5,000
$20,000
$45,000
$0
A balance sheet shows:
all of the owner's assets and liabilities
a financial picture of the business on a certain date
the progress of the business over a period of time
Which of the following is not true?
The heading of a balance sheet shows a particular date
Current assets are listed in the order of their liquidity
Personal assets have no place on the business balance sheet
A company car should be recorded at its current market value
Which of the following is false?
Accounts Payable should be listed first in the Liabilities section
On a balance sheet, there are 2 sets of double-underlined numbers
On a balance sheet, the owner's name appears in the heading
On a balance sheet, there should not be a dollar sign in front of every number
Jason's capital in a company is $26,000 and company assets are $42,000. What are the liabilities?
$16,000
- $16,000
$58,000
$68,000
During one year of business, a company's assets increase by $10,000 and equity goes up by $3,000. How did liabilities change?
Increased by $3000
Decreased by $3000
Decreased by $7000
Increased by $7000
During a year, Ravi's liabilities went up by $15,000 while his net worth decreased by $5,000. How did his assets change?
Increased by $20,000
Decreased by $20,000
Increased by $10,000
Decreased by $10,000
GAAPs stands for:
Good Accurate Accounting Practices
Generally Accurate Accounting Problems
Generally Accepted Accounting Principles
Great Accountants Always Proofread
Which of the following is not an account name that we'd expect to see on a balance sheet?
J. Darling, Capital
Accounts Receivable
Mortgage Payable
Owner's Equity
Which of the following statements about Accounts Receivable is true?
Accounts receivable is listed as a current liability
Accounts receivable are owed to us from debtors
Accounts receivable are owed to us by creditors
Accounts receivable are not considered to be liquid
