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Fundamentals of Accounting 2

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

A statement of financial position can be best described as a:

a)

listing of money received and paid during the past year

b)

summary of what happened last year

c)

summary of all assets, expenses, liabilities, and revenues

d)

summary of the position of an organization

2.

Which of the following definition denotes an asset?

a)

expense that will recur in more than one year

b)

obligation to transfer benefits as a result of past transactions

c)

interest of the owner in the business

d)

any financial resources that is used by the business in its operation trade-offs

3.

The Statement of Financial Position equation is:

a)

A - C = L

b)

L + C = A

c)

A - L = C

d)

all of the above

4.

Brod Pete have non-current assets of 560,000, current assets of 570,000, current liabilities of 540,000,

and a long-term loan of 50,000; as such the owners’ equity will be:

a)

540,000

b)

550,000

c)

560,000

d)

570,000

5.

What is a financial statement that shows the financial position of an enterprise at a particular

point in time?

a)

Statement of Financial Position

b)

Cash Flow Statement

c)

Income Statement

d)

Statement of Changes in Equity

6.

A Statement of Financial Position

a)

Shows the changes of the owners interest

b)

Reports the assets and claims of an enterprise at a specified moment in time

c)

Presents revenues and expenses of an enterprise

d)

Reports the inflow and outflow of cash in an enterprise

7.

Which of the following transactions would increase cash as well as non-current liabilities?

a)

Long-term bank loan

b)

Purchasing equipment on credit

c)

Payment to suppliers

d)

Payment from customers

8.

Which of the following accounts is a current asset?

a)

Bond Payable

b)

Property, plant, and equipment

c)

Trade and other payables

d)

Trade and other receivables

9.

Which of the following accounts is a non-current asset?

a)

Accounts Payable

b)

Capital

c)

Cash

d)

Trademarks

10.

Which of the following accounts is a current liability?

a)

Trade receivables

b)

Retained earnings

c)

Trade payables

d)

Machineries

11.

The business owner purchased some office equipment from the Jonathan Blaze Mudlong Store on credit, amounting 518,900

a)

Increase in assets = Increase in liabilities

b)

Increase in assets = Decrease in capital

c)

Decrease in assets = Decrease in capital

d)

None of the above

12.

The business owner paid one-half of the amount due to Jonathan Blaze Mudlong Store.

a)

Increase in assets = Increase in capital

b)

Increase in assets = Increase in liabilities

c)

Decrease in assets = Decrease in liabilities

d)

None of the above

13.

The business owner withdrew 515,500 from his business.

a)

Increase in assets = Increase in capital

b)

Increase in assets = Increase in liabilities

c)

Decrease in assets = Decrease in capital

d)

None of the above

14.

The business owner received 540,000 from his various clients for the services he rendered to them.

a)

Increase in assets = Increase in capital

b)

Increase in assets = Increase in liabilities

c)

Decrease in assets = Decrease in capital

d)

None of the above

15.

The business owner paid his current balance to the Jonathan Blaze Mudlong Store.

a)

Increase in assets = Increase in capital

b)

Decrease in assets = Decrease in capital

c)

Decrease in assets = Decrease in liabilities

d)

None of the above

16.

The business owner sent a 517,000 bill for services rendered to Ms. Mikka Ella Joson.

a)

Increase in assets = Increase in capital

b)

Increase in assets = Increase in liabilities

c)

Decrease in assets = Decrease in capital

d)

None of the above

17.

The business owner paid the salary of his two employees; each received 510,000.

a)

Increase in assets = Increase in capital

b)

Increase in assets = Increase in liabilities

c)

Decrease in assets = Decrease in capital

d)

None of the above

18.

Atty. Joanne Dela Cruz invested 560,000 in a law office.

a)

Increase in assets = Increase in capital

b)

Increase in liabilities = Increase in capital

c)

Increase in assets = Increase in liabilities

d)

None of the above

19.

The business owner purchased office supplies in cash.

a)

Increase in assets = Increase in capital

b)

Increase in one form of assets = Decrease in another form of assets

c)

Increase in assets = Increase in liabilities

d)

None of the above

20.

Ms. Joson, a customer, paid her account in full.

a)

Increase in assets = Increase in capital

b)

Increase in one form of assets = Decrease in another form of assets

c)

Increase in assets = Increase in liabilities

d)

None of the above

21.

The income statement heading specify a point of time, indicating “as of” or “as at.”

a)

True

b)

False

22.

Revenue is the amount earned by a business in its main operating activities.

a)

True

b)

False

23.

When a company disposes equipment and receives an amount more than the carrying value of asset in the accounting records, the company should record or report gain.

a)

True

b)

False

24.

The multistep income statement shows gross profit in its presentation.

a)

True

b)

False

25.

The single step income statement format segregates the operating revenues and expenses from the non-operating revenues.

a)

True

b)

False

26.

Net sales minus the cost of goods sold equals to gross profit.

a)

True

b)

False

27.

Gross profit minus operating expenses is best defined as net sales.

a)

True

b)

False

28.

Gross profit is computed as the difference between the net sale and cost of sales.

a)

True

b)

False

29.

The statement of comprehensive income informs the reader about the “performance” and activities of the company for a certain period.

a)

True

b)

False

30.

Salary of personnel in the production department is considered to be operating expenses.

a)

True

b)

False

31.

Increase in assets

a)

Debit

b)

Credit

32.

Increase in liabilities

a)

Debit

b)

Credit

33.

Increase in expenses

a)

Debit

b)

Credit

34.

Increase in income

a)

Debit

b)

Credit

35.

Increase in capital

a)

Debit

b)

Credit

36.

Decrease in assets

a)

Debit

b)

Credit

37.

Decrease in liabilities

a)

Debit

b)

Credit

38.

Decrease in expenses

a)

Debit

b)

Credit

39.

Decrease in income

a)

Debit

b)

Credit

40.

Decrease in capital

a)

Debit

b)

Credit

41.

Sales

a)

Merchandising

b)

Service

42.

Consulting Revenue

a)

Merchandising

b)

Service

43.

Purchases

a)

Merchandising

b)

Service

44.

Cost of Sales

a)

Merchandising

b)

Service

45.

Inventory-Beginning

a)

Merchandising

b)

Service

46.

Referral Revenue

a)

Merchandising

b)

Service

47.

Freight-in

a)

Merchandising

b)

Service

48.

Purchase Returns and Allowances

a)

Merchandising

b)

Service

49.

Advertising Revenue

a)

Merchandising

b)

Service

50.

Service Revenue

a)

Merchandising

b)

Service