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Accounting 1 - Chapter 1

Total questions: 14

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is not an example of an expense...

a)

Advertising

b)

Utilities

c)

Repairs

d)

Accounts Receivable

2.

Which of the following is an example of a transaction that affects only one side of the accounting equation...

a)

Bought supplies on account

b)

Paid cash on account

c)

Paid cash for insurance

d)

Received cash from the owner as an investment

3.

Complete the equation...

(a)  

4.

Complete the equation...

(a)  

5.

The accounting equation is stated as...

a)

Assets + Liabilities = Owner's Equity

b)

Assets + Owner's Equity = Liabilities

c)

Assets = Liabilities + Owner's Equity

d)

We have an equation?!? What is this? Math class!?!

6.

Which of the following is not a disadvantage of a sole proprietorship

a)

Limited resources

b)

Limited expertise

c)

Quick and easy to make changes

d)

Obligation to follow federal and state laws

7.

Which of the following is not an advantage of a sole proprietorship...

a)

Which of the following is not an advantage of a sole proprietorship...

b)

Easy to form

c)

Don't have to share profit

d)

Limited liability

8.

A business owned by one person is a...

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

S Corp

9.

Anything that includes the word prepaid is a(n)...

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Revenue

10.

Anything that includes the word receivable is a(n)...

a)

Asset

b)

Liability

c)

Revenue

d)

Expense

11.

Accounts Payable is a(n)...

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Revenue

12.

Supplies is a(n)...

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Revenue

13.

Cash is a(n)...

a)

Asset

b)

Liability

c)

Owner's Equity

d)

Expense

14.

After each transaction, the accounting equation must remain in balance.

a)

True

b)

False