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Accounting Essential Vocabulary

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A permanent record organized by account number

a)

General Ledger

b)

General Journal

c)

Assets

d)

Liabilities

2.

A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time

a)

Income Statement

b)

Trial Balance

c)

Chart of Accounts

d)

Balance Sheet

3.

A report of the net income or net loss for a specific period

a)

Income Statement

b)

Trial Balance

c)

Chart of Accounts

d)

Balance Sheet

4.

A list of all accounts used by a business

a)

Income Statement

b)

Trial Balance

c)

Chart of Accounts

d)

Balance Sheet

5.

The accounting equation is...

a)

An equation showing the relationship among assets, liabilities, and owner's equity

b)

The owner's claims to the assets of the business

c)

The amount by which total revenue exceeds total expenses for the accounting period or the amount by which the total expenses exceed the total revenues for the accounting period

d)

The cost of goods or services used to operate a business

6.

The net income or net loss of a business is...

a)

An equation showing the relationship among assets, liabilities, and owner's equity

b)

The owner's claims to the assets of the business

c)

The amount by which total revenue exceeds total expenses for the accounting period or the amount by which the total expenses exceed the total revenues for the accounting period

d)

The cost of goods or services used to operate a business

7.

Cash kept on hand for making small incidental cash payments

a)

Assets

b)

Liabilities

c)

Retained Earnings

d)

Petty Cash Fund

8.

Income earned from the sale of goods and services

a)

Profit

b)

Revenue

c)

Expense

d)

Assets

9.

A business that buys finished goods and resells them to individuals or other businesses.

a)

Service Business

b)

Merchandising Business

10.

A business that provides a needed service for a fee

a)

Service Business

b)

Merchandising Business

11.

A ledger with detailed data that is summarized in a controlling account in the general ledger

a)

General Ledger

b)

Subsidiary Journal

c)

Subsidiary Ledger

d)

General Journal

12.

The items of merchandise a business has in stock

a)

Income

b)

Inventory

c)

Assets

d)

Petty Cash

13.

The original price of all merchandise sold during a fiscal period

a)

Profit

b)

Revenue

c)

Cost of Merchandise Sold

d)

Inventory

14.

The cost of goods or services used to operate a business

a)

Profit

b)

Revenue

c)

Expense

d)

Assets

15.

Reports prepared to summarize changes resulting from business transactions that occur during the accounting period

a)

Chart of Accounts

b)

Financial Statements

c)

Equity Reports

d)

Green Bay Press Gazette

16.

Amounts owed to creditors

a)

Liabilities

b)

Assets

c)

Expenses

d)

Owner's Equity

17.

The owner's claims to the assets of the business

a)

Liabilities

b)

Assets

c)

Expenses

d)

Owner's Equity/Capital

18.

Property or items of value owned by a business

a)

Liabilities

b)

Assets

c)

Expenses

d)

Owner's Equity/Capital

19.

An account whose balance is a decrease to its related account

a)

Decreasers

b)

Rivals

c)

Opposites

d)

Contra Account

20.

An all-purpose journal in which all the transactions of a business my be recorded.

a)

General Ledger

b)

General Journal

c)

Assets

d)

Liabilities