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WorksheetsBasic Accounting - Live quiz 1
Total questions: 16
Worksheet time: 8mins
Which form of business organization is characterized by limited liability?
Sole proprietorship
Partnership
Corporation
Accounting is often characterized as the language of business.
True
False
A business transaction is the occurrence of an event or of a condition that must be recorded.
True
False
Which of the following processes best defines accounting?
a. Measuring economic activities
b. Communicating results to the interested parties
c. Preventing Fraud
d. Both a and b
The ______ concept assumes that the business has an indefinite economic life.
accounting entity
accounting period
going concern
objectivity
Which of the following is a trading business?
A Clinic
A Law Firm
A Pharmacy
A Telecommunication Company
Assets are usually valued under which basis?
Replacement cost
Historical Cost
Net realizable value
Which of the following concept should be considered if the owner of a business takes goods from inventory for his personal use?
The substance over form concept
The accrual concept
The going concern concept
The business entity concept
Which of the following is an appropriate definition of accounting?
The measurement, processing and communication of financial information about the identifiable economic entity
A means of recording transactions and keeping records
The interconnected network of subsystems necessary to operate a business
Electronic collection, organization and communication of vast amounts of information
Liabilities represents amounts owed to creditors.
True
False
Assets are things of value owned by a business entity.
True
False
The owner can invest cash or other assets of value in the business.
True
False
Cash, Accounts Receivable and Equipment are examples of
Liabilities
Revenue
Assets
Expenses
Income or Revenue accounts normally have _____ balances.
Debit
Credit
Liability Accounts normally have ______ balances
Debit
Credit
Increases in expense are recorded on the _____ side.
Debit
Credit
