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Recording Financial Transactions

Total questions: 15

Worksheet time: 21mins

Name
Class
Date
1.

What type of account is Accounts Payable?

a)

Assets

b)

Expenses

c)

Liabilities

d)

Revenues

2.

What type of account is Account Receivable?

a)

Assets

b)

Expenses

c)

Liabilities

d)

Revenues

3.

What type of account is

"Prepaid Insurance"?

a)

Owner's Equity

b)

Expenses

c)

Assets

d)

Liabilities

4.

A listing of the accounts in order to determine whether debits are equal to credits is a (a)  

5.

The book of original entry is the definition of a __________.

a)

Journal

b)

Ledger

6.

When a sale is made on credit, the seller will debit the asset account "Accounts (a)   "

7.

Financial accounting is focused on the __________ financial statements of a company.

a)

Internal

b)

External

8.

The accounting equation is Assets = (a)   + Owner's Equity.

9.

The profitability of a company for a specified period of time is reported on the (a)   statement.

10.

Which financial statement's structure is closest to that of the basic accounting equation?

a)

Income Statement

b)

Statement Of Stockholders’ Equity

c)

Balance Sheet

d)

Statement Of Cash Flows

11.

To increase the balance in the following accounts, would you debit the account or would you credit the account?

"Accounts Receivable"

a)

Debit

b)

Credit

12.

To decrease the balance in the following accounts, would you debit the account or would you credit the account?

"Mary Smith, Capital"

a)

Debit

b)

Credit

13.

What is the normal balance for the following accounts?

"Unearned Revenue"

a)

Debit

b)

Credit

14.

A (a)   is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

15.

Invoice is written by:

a)

Buyer

b)

Supplier