WorksheetsPre-Assessment in Basic Accounting
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
The Basic purpose of Accounting is
a)
To provide the information that the managers of an economic entity need to control its operations
b)
To provide information that the creditors of an economic entity can use in deciding whether to make additional loans to the entity.
c)
To measure the periodic income of the economic entity.
d)
To provide quantitative financial information about an entity that is useful in making rational economic decisions.
2.
Assets taken out of a business for the owner's personal use
a)
capital
b)
withdrawals
c)
equities
d)
revenue
3.
A decrease in owner's equity resulting from the operation of a business
a)
account
b)
capital
c)
asset
d)
expense
4.
Amount owed by a business
a)
liability
b)
asset
c)
capital
d)
account
5.
A business activity that changes assets, liabilities, or owner's equity
a)
transaction
b)
expense
c)
revenue
d)
sale on account
6.
Anything of value that is owned
a)
account
b)
asset
c)
withdrawal
d)
expense
7.
A business owned by one person
a)
service business
b)
revenue
c)
expense
d)
proprietorship
8.
Financial reports that summarize the financial condition and operations of a business
a)
financial statements
b)
ethics
c)
withdrawals
d)
equities
9.
Revenues minus expenses equals _____________________.
(Revenues-Expenses = _______________)
(Revenues-Expenses = _______________)
a)
Profit
b)
Overhead
c)
Income
d)
None of the above
10.
Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.
a)
assets
b)
liabilities
c)
profit
d)
income
11.
The basic accounting equation is Assets=Liabilities + _______________________.
a)
Income
b)
Owner's Equity
c)
Expenses
d)
Profit
12.
The ________________ __________________ is one of the main financial statements and reports revenues and expenses for a period of time such as a month or year.
a)
Income Statement
b)
Balance Sheet
c)
Income Worksheet
d)
Balance Sheet
13.
The _____________________________ is one of the main financial statement and reports the assets, liabilities, and owner's equity at a specific point in time.
a)
Income Statement
b)
Balance Sheet
c)
Income Worksheet
d)
Balance Worksheet
14.
What is owner's equity?
a)
The amount of money the owner's has
b)
The stock options
c)
The assets
d)
The assets minus the liabilities of a business
15.
What is assets?
a)
Cash in the business
b)
Anything that a creditor has financial claim to
c)
What remains after liabilities are paid
d)
any item or property owned by the business
16.
Assets taken out of a business for the owner's personal use
a)
capital
b)
withdrawals
c)
equities
d)
revenue
17.
When cash is received, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
18.
When a company pays a bill using cash, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
19.
When a company buys supplies on account, the cash account does what?
a)
Increases
b)
Decreases
c)
Stays the same
d)
There is no cash account
20.
Received cash from owner as investment
a)
Increase cash & capital
b)
Decrease cash & capital
c)
Increase assets & liabilities
d)
Decreases assets & liabilities
21.
How would an accountant record an increase in cash?
a)
Debit
b)
Credit
22.
Expense
a)
debit
b)
credit
23.
Journal is a book of ______entry
a)
Secondary
b)
Original
c)
First
d)
None of these
24.
Recording of transaction in ledger is called as
a)
Journalizing
b)
Posting
c)
Recording
d)
None of these
25.
Accounting is referred to as the "language of ___________________."
a)
profit
b)
life
c)
accounting
d)
business
26.
The left side of a T-Account is called
a)
Debit
b)
Credit
c)
Left Side
d)
Right Side
27.
Recording transactions is a journal in a chronological order on a daily basis is known as______________________.
a)
Recording
b)
Updating
c)
Interpreting
d)
Journalizing
28.
______________________ is the transfer of journalized transactions to their accounts.
a)
Posting
b)
Recording
c)
Updating
d)
Journalizing
29.
The name given to an account
a)
account title
b)
capital
c)
expense
d)
revenue
30.
_____________________ are useful in showing how transactions are recorded.
a)
B-Accounts
b)
A-Accounts
c)
C-Accounts
d)
T-Accounts
100 %
