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Business Activities Test

Total questions: 35

Worksheet time: 1hrs 10mins

Name
Class
Date
1.

The Top-Level managers of a school would be responsible for which one of these tasks?

a)

Cutting the grass on the weekend

b)

Explaining the future of the upcoming school year

c)

Cleaning up the bathrooms at the end of the school day

d)

Teaching the students how to do math problems

2.

A manager wants to ensure all employees were meeting the weekly sales levels. He keeps them on track with the viewings of the practice presentation. This is an example of which function?

a)

Organizing

b)

Planning

c)

Controlling

d)

Leading

3.

Teachers would be an example of middle-level managers.

a)

True

b)

False

4.

Having power over the employees is essential to being an effective manager.

a)

True

b)

False

5.

The Accounting Equation is closely related to the Income Statement because the Assets should always equal the total of Liabilities and Owner's Equity. 

a)

False

b)

True

6.

Keeping the company on track is found under which managerial function?

a)

Leading

b)

Organizing

c)

Planning

d)

Controlling

7.

Looking at the income statement, an owner realize that he has a Net Income of $55,000 and has Total Expenses totaling $40,000. What is the value of the Total Income for this particular owner's business. 

a)

$1,500

b)

$15,000

c)

$95,000

d)

$9,500

8.

The statement used to determine the amount of withdrawals made by the owner in the company is 

a)

Statement of Owner's Equity

b)

Balance Sheet

c)

Income Statement

d)

Checkbook

9.

All of the following are examples of liabilities except which one 

a)

Mortgage

b)

Taxes

c)

Accounts Receivables

d)

Accounts Payable

10.

Suppose when looking at a balance sheet, the Assets balance reads a total of $50,000. Which of the following could not be the values of the Liabilities and Owners Equity accounts?

a)

Owners Equity= $15,000 Liabilities = $35,000

b)

Owners Equity= $30,000 Liabilities = $15,000

c)

Owners Equity= $45,000 Liabilities = $5,000

d)

Owners Equity= $25,000 Liabilities = $25,000

11.

Debra is a CEO of a marketing firm. She went out to purchase new desks for the office from the cash account. Which of the following would not be a possible post to the corresponding account?

a)

Debit to office equipment account

b)

Credit to the cash account

c)

Debit to the cash account

12.

Planning, recording, analyzing and interpreting financial information is called accounting. 

a)

False

b)

True

13.

All of the money that a company earns is called 

a)

Accounts Receivables

b)

Taxes

c)

Revenues

d)

Expenses

14.

If a company has only one employee, there isn't a manager for this business.

a)

False

b)

True

15.

Property owned by an individual

a)

Liability

b)

Asset

c)

Property

d)

Net Worth

16.

Examples of Liabilities include which of the following:

a)

Loans, credit cards, and real property

b)

Loans, mortgage, and credit cards

c)

Loans, Art collection, and savings account

d)

Mortgage, credit card, and real property

17.
The table below shows Claude's assets and liabilities.  What is the total value of his assets?
a)
$24,950
b)
$25,420
c)
-$24,950
d)
$50,370
18.

Which one is right?

a)

Asset = Owner's equity + Liability

b)

Asset = Owner's equity - Liability

c)

Asset + Owner's equity = Liability

d)

Asset + Owner's equity = expense

19.

Which one is not belongs to liability?

a)

Mobile Phone Bill

b)

Bank Loan

c)

Bank Balance

d)

Owed To Friends

20.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
21.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

22.
money received
a)
net loss
b)
net gain
c)
insurance
d)
income
23.

Owner's Equity is equal to:

a)

Liabilities added to assets

b)

Assets minus liabilities

c)

Assets added to liabilities

24.
How would an accountant record an increase in cash?
a)
Debit
b)
Credit
25.
The basic accounting equation is Assets=Liabilities + _______________________.
a)
Income
b)
Owner's Equity
c)
Expenses
d)
Profit
26.
An increase in owner's equity resulting from the operation of a business
a)
asset
b)
expense
c)
withdrawl
d)
revenue
27.
What is assets? 
a)
Cash in the business
b)
Anything that a creditor has financial claim to 
c)
What remains after liabilities are paid 
d)
any item or property owned by the business
28.

What is the purpose of preparing the Statement of Financial Performance?

a)

inform stakeholders the profitability of business

b)

inform stakeholders the income and expenses of business

c)

inform stakeholders the nature of business

d)

inform stakeholders the size of business

29.

The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the:

a)

Balance sheet

b)

Income Statement

c)

Trial Balance

d)

General Ledger

30.

Calculate the revenue.

a)

$102000

b)

$102700

c)

$102950

d)

$103800

31.

Returns inwards should be?

a)

added to sales

b)

deducted from sales

c)

added to purchases

d)

deducted from purchases

32.
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: 
a)
Balance Sheet
b)
Statement of Retained Earnings
c)
Statement of Cash Flows
d)
Income Statement
33.
The income statement can be expressed as an equation:
a)
Income =Income-Expenses
b)
Revenue-Expenses = Net Income (Loss)
c)
Revenue + Expenses = Income/Loss
d)
Expenses = Net Income + Revenue
34.
This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.
a)
Income Statement
b)
Balance Sheet
35.

Cash at bank is an example of a

a)

Current asset

b)

Non-current asset

c)

Equity