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Accounting Quiz Bee 1

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

When cash is received from a customer in payment for an account receivable, how are the elements of the accounting equation affected?

a)

Decrease assets (cash and increase assets (accounts receivable)

b)

Increase assets (cash) and decrease assets (accounts receivable)

c)

Increase assets and increase liabilities

d)

Increase assets and increase equity

2.

The recording of financial transactions and events manually or electronically is called which of the following?

a)

Bookkeeping

b)

Budgeting

c)

Auditing

d)

Reporting

3.

If at the end of the accounting period the liabilities total $18,000, and equity totals $32,000, then what must be the total of the assets?

a)

$14,000

b)

$18,000

c)

$32,000

d)

$50,000

4.

The investment of cash in the business will result in which of the following?

a)

An increase in cash and a decrease in equity

b)

An increase in cash and an increase in equity

c)

A decrease in cash and an decrease in liabilities

d)

An increase in fees earned and an increase in equity

5.

Withdrawals increase equity.

a)

TRUE

b)

FALSE

6.

Purchasing equipment on account will have what effect on the components of the accounting equation?

a)

Increase in equipment and a decrease in equity

b)

Increase in equipment and an increase in equity

c)

Increase in equipment and an increase in liabilities

d)

Increase in equipment and a decrease in liabilities

7.

Which of the following is not an equity account?

a)

Owner's Capital

b)

Owner's Withdrawals

c)

Revenue

d)

Unearned Revenue

8.

An account titled Prepaid Rent would be classified as which of the following?

a)

Asset account

b)

Liability account

c)

Revenue account

d)

Expense account

9.

Which of the following statements is true?

a)

Journalizing precedes posting

b)

Revenue accounts are increased by debit entries

c)

Debit entries are entries involving the right-hand side on an account

d)

Journalizing errors should be erased and a correct entry made

10.

Total revenues were $105,000, total expenses, except for wage expense were $50,000, and net income was $35,000. What was the amount of wage expense?

a)

$15,000

b)

$20,000

c)

$55,000

d)

$70,000