WorksheetsAccounting 1: Chp. 1
Total questions: 30
Worksheet time: 16mins
What is an example of an asset?
Cash
Short Term Loan
Owner's Capital
Accounts Payable
What is an example of a liability?
Account payable to Ms. Shelman
A house
The sale of your car
Account Receivable
Equity is also known as...
An asset
A liability
Capital
Stocks and bonds
The difference between personal assets and personal liabilities is...
Owner's Equity
Personal Net Worth
Capital Account
An Asset
(a) = Liabilities + Owner's Equity
Planning, recording, analyzing, and interpreting financial information is...
Financing
Project managing
Auditing
Accounting
Financial Statements are reports that show...
the financial condition of business operations
personal net worth
the account balance
if a business is ethical or not
A decrease in owner's equity resulting from the operation of a business is best known as a
liability
asset
capital investment
expense
Equity is defined as
Financial rights to the assets of a business
The amount of debt a business posses
The salary a business owner can pull out each month
The theory of everything in business being equal
Which of the following are classified as assets (hint: there are 3!)
Accounts Receivable
Accounts Payable
Supplies
Prepaid Insurance
3rd party Investment
Which two accounts are affected: Paid $350 on account to Wells Inc. for ice cream supplies.
Cash and Accounts Receivable
Accounts Payable and Inventory
Accounts Payable and Supplies
Supplies and Cash
A transaction is a business activity that changes the numerical value in the given accounts: assets, liabilities, and owner's equity
True
False
Heather paid for advertising, utilities, and rent for her business. Which account will these payments be recorded in?
Assets
Liabilities
Expenses
Owner's Equity
The total assets that a business has valued on its books, is the value that was invested by the owner, also known as owner's equity
True
False
A business owner withdrawals money from the capital account, this should be reported as a business expense.
True
False
Paying on account and paying with cash both result in the immediate transfer of currency.
True
False
Which of the following is not an example of paying on account?
Writing a check
Using a credit card
Taking a loan
A handwritten note promising to pay in 1 week
Which two accounts are affected if the business owner withdrawals money from the business?
Assets and Owner's Equity
Liabilities and Owner's Equity
Assets and Liabilities
Only Owner's Equity
After every single transaction that occurs within a business, the accounting equation must be in balance.
True
False
A negative net worth is the result in assets being greater than liabilities. Creditors favor this financial position.
True
False
After ISU lost to Iowa, Anna's clothing store discounted all ISU sweatshirts in order to stock more Iowa sweatshirts. Anna sold $500 worth of ISU sweatshirts to Sam who paid for them on account. What accounts does this transaction affect?
Accounts Receivable and Cash
Supplies and Liabilities
Accounts Receivable and Revenue
Owner's Equity and Revenue
If Brad has $15,600,000 in assets and $13,900,000 in liabilities, what is the balance of his capital account?
$13,500,000
$29,500,000
$15,600,000
$1,700,000
Schuster, a logistical trucking company, is best classified as what type of business?
Proprietorship
Corporation
Service Business
GAAP
Nate received $2,000 from Jeff as an investment to start his own business. What accounts are affected and do these accounts increase or decrease in numeric value?
Cash (increase) and Liabilities (increase)
Cash (increase) and Owner's Equity (increase)
Liabilities (increase) and Owner's Equity (increase)
Owner's Equity (increase) and Cash (decrease)
Leah purchases $100 worth of ribbon for her bouquet shoppe on account. Which accounts are affected and in which direction?
Cash (decrease) and Accounts Receivable (increase)
Liabilities (increase) and Expenses (increase)
Supplies (increase) and Accounts Payable (decrease)
Supplies (increase) and Accounts Payable (increase)
The principles of right and wrong that guide an individual in making decisions is referring to
Morals
Being a good person
GAAP
Ethics
Accountants must follow a standardized set of rules and procedures while accounting for business transactions. This standardization is known as GAAP (generally accepted accounting principles).
True
False
Asset always equal Liabilities and Owner's Equity...
True
False
Owner's Equity can be calculated by...
Assets less Liabilities
Assets plus Liabilities
Revenue less Expenses
Calculating the owner's salary
If a business's capital account values $500 and their assets total $2,400, how much does their liabilities account equate to?
$500
$2,900
$1,900
$2,400
