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WorksheetsAccounting Final Exam
Total questions: 50
Worksheet time: 25mins
What is the main purpose of accounting?
To let the business owner know if there are enough funds to purchase a much needed company vehicle
To print business documents to take to the bank in hope of obtaining a loan for your business
To organize and analyze all financial activities of the business
To know if your business is making money or losing money
What will usually cause the Accounts Payable to increase?
Purchasing a company printer, and paying for it in a few months when you receive the bill in the mail
Paying the light bill the same month you receive the bill in the mail
Selling your customer 100 new calculators
Making a charitable contribution of $1000 to the Red Cross
What will usually cause the Accounts Receivable to increase?
Paying all your bills on time
Never paying your bills on time
Sometimes paying all your bills on time
Performing a job for your customer and allowing them to pay you later
When supplies are purchased with cash, what will the change in the Cash Account be?
When supplies are purchased, Cash account will increase
When supplies are purchased, Cash account will decrease
When supplies are purchased, no changes will occur to the Cash account
When supplies are purchased, Cash account will remain the same for 30 days and then increase
When cash is received, the Cash Account will change in what way?
Cash account is debited and will increase
Cash account is credited and will decrease
Cash account will remain the same
Cash account will remain consistent and then decrease
Which term is associated with the "right side" of the T-Account?
The right side of the T-Account is called the positive side
The right side of the T-Account is called the negative side
The right side of the T-Account is called the debit side
The right side of the T-Account is call the credit side
What term is associated with the "left side" of the T-account?
The left side of the T-account is called the positive side
The left side of the T-Account is called the negative side
The left side of the T-Account is called the debit side
The left side of the T-Account is called the credit side
What is an example of an Asset?
Accounts Receivable
Water Bill
Electricity Bill
Accounts Payable
What is an example of a liability?
Accounts Receivable
Company vehicle
Fork lift
Accounts Payable
What is capital?
What a business owner contributes to his business, and has a cash value
The location where a business owner works
A large corporation
The balance of your cash account
Liabilities plus Owner's Equity equals what?
Accounts Receivable
Accounts Payable
Materials
Assets
Accounting entries involve a minimum of how many accounts?
Two
Three
Four
Five
What account is Supplies associated with?
Assets
Liabilities
Owner's Equity
Materials
A business that only has one owner is called what?
Corporation
Partnership
LLC
Sole Proprietorship
What does LLC stand for?
Long Living Corporation
Last Line Construction
Length of Living Company
Limited Liability Company
Which of the following is not considered one of the financial reports a business will normally have?
Income Statement
Balance Sheet
Mastery Report
Statement of Cash Flows
What is Owner's Equity?
Owner's investment in a business
Owner's withdrawals from a business account
Owner's concern about the business
Owner's reputation in the community
What does GAAP stand for?
General Accounting Application Problems
Greater Accounting Applications Project
Geographic Accounting Application Principles
Generally Accepted Accounting Principles
Which account is "Accounts Receivable" listed under in the Accounting Equation?
Assets
Liabilities
Owner's Equity
Receivable Goods
Which account is "Gas Expense" listed under in the Accounting Equation?
Assets
Liabilities
Owner's Equity
Receivable Goods
What is a purchase order?
Sales receipt given to you by the cashier at Wal-mart.
Document that the business owner gives to his secretary listing current assets
Document that a buyer gives to a seller indicating products/services to be purchased
Document that a seller gives a buyer indicating products/services to be sold
When a business owner receives a loan from the bank, what happens to his Cash Account?
Increases
Decreases
Remains the same
Begin to drastically decrease
When a business owner buys a new printer for his office, what happens to the Supplies account?
Increase
Decrease
Remain the same
Drastically decreases
When a business is making money, what is that called?
Loss
Revenue
Profit
Net income
What is Double-Entry Accounting?
Every accounting entry has an opposite, corresponding entry in a different account
Every accounting entry is entered into the software two times
Using 2 accounting software programs on the same computer
Using 2 accounting software programs on two separate computers
Which of the following statement is TRUE?
Petty cash is an amount of cash kept on hand to make very large purchases
Petty cash is an amount of cash kept on hand to make very small purchases
For money to gain interest, you must make frequent withdrawals
For money to gain interest, you must make consistent withdrawals
What does FDIC stand for in the banking industry?
Federally Driven Investment Company
Federal Deposit of Instant Credit
Federal Dangers of Insurance Companies
Federal Deposit Insurance Corporation
What does CD stand for in the banking industry?
Certificate of Deposit
Certificate of Deposition
Certification of Deposition
Certified Delinquency
What is a Note Payable?
A written promise to pay a loan
A customer's payment to another local vendor
A note to a business owner stating who oversees the Note Payable Department
A note to a business owner stating who to talk to about paying company expenses
What is an example of direct deposit?
Sending money from your Paypal account to your personal account regularly
Paying your light bill each month out of the same account
Allowing your boss to send your paycheck directly to your bank account
Creating a direct link between your checking account and your savings account
If you needed to borrow $1000 from the bank to make some repairs on your roof, which of the following would you most likely consider?
Auto Loan
Mortgage Loan
Personal Loan
Professional Loan
Which of the following statements is true?
Business expenses, such as buying more printer paper, are normally high for a successful business
Business expenses are not associated with a business that is very small
Business expenses are referred to as “the consistent spending of cash”
Business expenses are referred to as “the cost of doing business”
Which one of the following is a Liability?
Notes Receivable
Supplies
Office Equipment
Accounts Payable
Which of the following is an Asset?
A fork lift used in the warehouse
Accounts Payable
Office Supply Expense
Gas Expense
What is a current asset?
Cash
Computer documents
Breakroom drinks and snacks
Computer paper, stapler, and pens
What is the best definition of an account?
A location to store money
A separate record maintained for each category of assets, liabilities, and owner’s equity
A document that is printed and indicates how many assets you have that day
A separate document that will give directions as to where your money will gain the most interest
Which of the following statements is TRUE?
Increasing your liabilities will help you grow your business
Selling most all your assets will help you grow your business
Debits and credits are neither good or bad
Credits cards and debit cards are normally the same
What is the best explanation of a monthly maintenance fee?
A certain amount charged by the bank for having and maintaining your checking account
A certain amount charged by the bank due to insufficient funds
A certain amount charged by the bank due to over drafting your checking account
A certain amount charged by the bank when you use your debit card
What happens to the Cash account when you sell a product and receive cash from your customer?
Increase
Decrease
Remain the same
Drastically decreases
When setting up your chart of accounts, what accounts are in the 400's?
Assets
Owner's Equity
Revenue
Liabilities
What is Land considered?
Asset
Liability
Owners Equity
Personal property
What happens when you buy office equipment with cash?
Cash account increases, office equipment decreases
Office equipment decreases, accounts payable increase
Office supplies increases, cash account increases
Cash account decreases, office equipment increases
The amount of money in an account is called th
transaction balance
account total
total amount
account balance
The original cost of a fixed asset, less the accumulated depreciation, is called the
starting price
total price
book value
fixed value
The loss in value of an asset over time during its useful life is called
depreciation
accumulation
standardization
compactization
Once an asset is no longer useable it will be sold at a value called the
purchasing value
salvage value
standard value
subsidiary value
The value or amount allowed on the old asset toward the purchase of a new asset is called the
limited value
salvage value
trade-in value
summarized value
The net salary earned by an employee after all payroll deductions have been made is called the
gross pay
summarized pay
Total pay
net pay
A right or privilege to sell or distribute a product in accordance with special conditions, and normally pays a yearly fee (ex. McDonalds or Days Inn) is called what type of business?
a franchise
a corporation
a partnership
a not-for-profit corporation
A corporation’s distribution of income to the stockholders of the corporation, in either cash or shares of stock, is considered a
stock release
bonus
dividend
transition
