Font size
WorksheetsBasic Accounting
Total questions: 50
Worksheet time: 25mins
A Bank Loan is classified as a:
Revenue
Expense
Asset
Liability
The owner invests personal cash in the business. Assets will.......
Increase
Decrease
No effect
The company receives cash from a bank loan. Liabilities will.........
Increase
Decrease
No Effect
It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.
Bookkeeping
Journalizing
Accounting
Auditing
________________ is prepared at the end of the accounting period to show the financial position o f business
Profit & loss account
Balance sheet
Profit & loss statement
Satetment of financial position
Accounts receivable normally has a ________ balance
Debit
Credit
Negative
Tidak ada jawaban yang benar
A collection of all accounts is a ___________
Journal
Trial balance
Ledger
Chart of Accounts
Revenues minus expenses equals _____________________.
(Revenues-Expenses = _______________) when Revenue is greater than Expenses.
Net Income
Overhead
Income
None of the above
Donovan made a picnic table to sell for profit. He made a list about what he did:
*price paid for wood: $45
*price paid for nails: $5
*cost of paint: $10
*selling price: $100
What was Donovan's profit from selling the table?
$55
$60
$40
$50
Addison ordered a dozen fancy pens to sell at her school carnival. She sold all of them for $4 each. She paid $20 for the dozen pens and $3.50 for shipping. How much profit did she earn when she sold the dozen fancy pens?
$24.50
$48
$28
$44.50
Any transaction that will effect two accounts is called_______.
Double Entry Accounting
Bookeeping
Accounting
Financial report
Suppose, ABC company has $ 1, 000,000 in assets, and
$ 300,000 liabilities. How much is Owner's Equity?
$ 700,000
$ 1,300,000
$400,000
$70,000
A report in which revenues and expenses are being summarized is..
Equity report
Balance sheet
Cash flow
Income statement
The amount invested by the proprietor in a business is called
Capital
Cash
Revenues
Loan
This is a financial statement that reports assets, liabilities and owners equity on a specific date.
Profit and Loss Account
Balance Sheet
Which of the following is not a correct variation of the basic accounting equation?
Assets = Liabilities + Equity
Assets - Liabilities = Equity
Assets - Equity = Liabilities
Assets + Liabilities = Equity
The components of a balance sheet equation are
assets, income and owner’s equity
assets, liabilities, and owner’s equity
income, expenses and profit
investments, withdrawals, and profit
A current asset which include coins, currencies and bank deposits is called
cash equivalent
accounts receivable
notes receivable
cash
Which of the following is not subject to depreciation?
building
land
equipment
machinery
Entries recorded on the right side of any account are called
increases
credits
decreases
debits
All the followings are assets except
unearned revenue
cash
equipment
inventory
An account has two sides called the
debit and credit
asset and liability
income and expense
journal and pen
A chart of account is a (an)
flowchart of all transactions
list of names of all account titles
accounting procedure
journal
Which of the following are Assets?
Bank Account
Bank Loan
Vehicles
Bank overdraft
Furniture and fittings
The following are liabilities .
Bank Loan
Stock / inventory
Mortgage
Accounts Payable
Equity can also be called Capital
TRUE
FALSE
When a business owner invests in the business
This increases equity
This decreases equity
Which of the following item is not an asset.
Cash at Bank
Motor Vehicle
Stationery
Inventories
Which of the following are the costs directly associated with making or acquiring products such as materials purchased from outside suppliers?
Net income
Sales figures
Gross profit
Costs of goods
Which of the following is the amount of money the business has earned after paying income taxes?
Net income
Gross profit
Costs of goods sold
Sales figures
Which of the following is derived by subtracting the cost of goods sold from the net sales figures?
Sales figures
Net income
Gross profit
Costs of goods sold
Which of the following represents the amount of revenue generated by a business?
Sales figures
Costs of goods sold
Gross profit
Net income
Which of the following is NOT a current asset?
Checking accounts
Accounts receivable
Money market accounts
Land
Which of the following is the most liquid asset?
Real estate
Stocks
Cash
Machinery
Accounts payable are classified as which of the following?
Fixed assets
Current liabilities
Owner's equity
Net income
Which of the following statements is TRUE?
Debits decrease assets
Credits increase expenses
Debits decrease liabilities
Credits increase assets
When suppliers are paid, which of the following occurs?
Accounts payable is increased by a debit
Accounts payable is decreased by a debit
Accounts payable is decreased by a credit
Accounts payable is increased by a credit
Which of the following is also known as a profit and loss statement?
Net worth ledger
Liability statement
Income statement
Transaction ledger
It is often beneficial for a business owner to use business accounts and personal accounts interchangeably.
True
False
What are the accounting rules used to prepare, present and report financial statements called?
Standard Business Financial Practices
Financial Accounting Standards
Generally Accepted Accounting Principles
Financial Account Management Techniques
The Financial Accounting Standards Board is the government agency regulating the accounting industry.
True
False
How often should a business calculate profitability and review financial statements?
Weekly
Monthly
Quarterly
Annually
Income statements are used to help determine __________.
Employee pay
Prices of goods and/or services
An accountant's capabilities Credit limits
Credit limits
