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accounting basics

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

a)

Balance Sheet

b)

Income Statement

c)

Statement of Cash Flow

2.

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

a)

Balance Sheet

b)

Income Statement

c)

Statement of Cash Flows

3.

Under the accrual basis of accounting, revenues are reported in the accounting period when the

a)

Cash Is Received

b)

Service Or Goods Have Been Delivered

4.

Assets are usually reported on the balance sheet at which amount?

a)

Cost

b)

Current Market Value

c)

Expected Selling Price

d)

Present Value

5.

Under the accrual basis of accounting, expenses are reported in the accounting period when the

a)

Cash Is Paid

b)

Expense Matches The Revenues Or Is Used Up

c)

both correct

d)

none of the above

6.

The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

a)

Cost

b)

Economic Entity

c)

Monetary Unit

d)

Conservatism

7.

Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial?

a)

Conservatism

b)

Full Disclosure

c)

Materiality

8.

Public utilities' balance sheets list the plant assets before the current assets. This is acceptable under which accounting principle/guideline?

a)

Conservatism

b)

Cost

c)

Industry Practices

9.

A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000. This is an example of which accounting principle/guideline?

a)

Conservatism

b)

Matching

c)

Monetary Unit

10.

Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

a)

Economic Entity

b)

Going Concern

c)

Time Period

d)

Full Disclosure