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WorksheetsAssessment 3 Mock CBT
Total questions: 53
Worksheet time: 1hrs 22mins
What will usually cause an asset account to increase?
Debit
Credit
What will usually cause the liability account Accounts Payable to increase?
Debit
Credit
Entries to expenses such as Rent Expense are usually
Debit
Credit
Entries to revenues accounts such as Service Revenues are usually
Debit
Credit
When a company pays a bill, the account Cash will be
Debited
Credited
When cash is received, the account Cash will be
Debited
Credited
Which term is associated with "right" or "right-side"?
Debit
Credit
Accounting entries involve a minimum of how many accounts?
One entry
Two entries
not specific
none of the above
Liabilities often have the word __________ in their account title
Receivale
Payable
accrued
All of the above
Under the accrual basis of accounting, revenues are reported in the accounting period when the
Service Or Goods Have Been Delivered
Cash Is Received
Cash is owed
none of the above
The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the
General Journal
Cashflow statement
Balance sheet
Income statement
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
General Journal
Cashflow Statement
Balance sheet
Income Statement
The listing of all of the accounts available for use in a company's accounting system is known as the
General Journal
Cash Journal
General Ledger
Chart of Accounts
Assets minus liabilities equals
Expenses
Equity
Revenue
None of the above
Accounting provides information on
Cost and Income
company tax liabilities for a specific year
financial condition of institution
all of the above
the long term assets that does not have physical existance but they have value are called
fixed assets
intangible assets
current assets
none of the above
the assets that can be converted into cash within a short period of time is called
fixed assets
intangible assets
current assets
All of the above
patent, copyrights and trade marks are
fixed assets
intangible assets
current assets
none of the above
what are the debts that can be repaid within a short period of time?
fixed liabilities
intangible liabilities
current liabilities
none of the above
which of the following is types of journals
Purchase
sales
cash
All of the above
the statement that shows the company's fiinancial status at ANY given time
income statement
balance sheet
profit and loss statement
cash book
the balance sheet is a statement of
capital
assets
liabilities
all of the above
The statement of revenue and expense in a SPECIFIC period of time is
List of accounts
Balanace sheet
Profit and loss statement
none of the above
Balanace sheets are perpared
Monthly
Quarterly
Every 6 mmonths
Annually
Which of the following items would not fall under the definition of an asset
cash
property
owners's equity
receivables
Which one of the following items would fall under the definition of a liability
tax owed
payables
debt
inventory
What is the main purpose of financial accounting?
ORGANIZE FINANCIAL INFORMATION
PROVIDE USEFUL, FINANCIAL INFORMATION TO OUTSIDERS
KEEP TRACK OF COMPANY EXPENSES
MINIMIZE COMPANY TAXES
which equation is correct
Liabilities = Assets+ Owner’s Equity.
Assets = Liabilities + Owner’s Equity.
Owner’s Equity = Liabilities + Assets
All of the above
Which financial statement uses the expanded accounting equation?
STATEMENT OF STOCKHOLDER’S EQUITY
CASH FLOW STATEMENT
BALANCE SHEET
INCOME STATEMENT
The ................... is a record of business transactions
general journal
Chart of accounts
Accounting ledger
none of the above
Which account is not a liability account?
Accrued Expense
Accrued Payable
Cash
Note payable
Which account increases equity?
Expense
withdrawl
Revenue
All of the above
Management accounting differs from financial accounting in that financial accounting is
More oriented toward the future
primarily concerned with historical accounting
Primarily concerned with non quantitative information.
Heavily involved with decision analysis and implementation of decisions.
A statement of financial position is intended to help investors and creditors
Assess the amount, timing, and uncertainty of prospective net cash inflows of a firm
Evaluate economic resources and obligations of a firm.
Evaluate economic performance of a firm.
Evaluate changes in the ownership equity of a firm
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
A general Leger/T) has a ______ and _______ side.
cash receipt and debtors
debit and payments
debit and credit
creditors and debtors
Assets increase on the ________ side?
subsidiary
T-account
credit
debit
owners equity decreases on the _________ side?
credit
debit
payments
liability
Equipment are an example of an/a ______?
loan
asset
liability
owners equity
when the owner takes money out of the business's account it is called _________?
credit
drawings
debt
borrowing
water and electricity is an/a __________?
credit
asset
expense
income
Company purchases supplies on account (on credit)
Increase cash, decrease supplies
Decrease cash, increase supplies
Increase supplies, increase accounts payable
Decrease supplies, decrease accounts payable
to whom is the Audit report addressed to
shareholders
directors
internal auditor
external auditor
profit on sale of an asset is an/a
current asset
income
expense
current liability
What is meant by Break-even point?
Where the business made no loss nor profit.
When sales are more than cost of sales.
When profit is more than expenses
When gross expenses exceeds income.
The account of a supplier would be found in:
General ledger
Purchases ledger
Sales day book
Purchases day book
Where are amounts owed by customers for credit purchases found?
accounts receivable subsidiary ledger
sales journal
accounts receivable journal
general ledger
