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Accounting Test 1 Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following correctly defines the acronym GAAP?

a)

Generally Accrued Accounting Principles

b)

Generally Accepted Accounting Process

c)

Generally Advised Accounting Principles

d)

Generally Accepted Accounting Principles

2.

Which type of accounting is used to develop information for outside sources such as investors?

a)

Tax accounting

 

b)

External accounting

c)

Financial accounting

d)

Management accounting

3.

Which of the following occurs when the amount of money earned is less than the amount of money spent?

a)

Profit

 

b)

Loss

c)

Depreciation

 

d)

Social Cost

4.

Which of the following refers to a company’s moral duty to uphold laws and regulations?

a)

Profit responsibility

 

b)

Regulatory responsibility

 

c)

Ethical responsibility

d)

Social cost

5.

Which of the following can be defined as an individual who owns a part of a company through stock ownership?

a)

Auditor

b)

Shareholder

 

c)

Creditor

d)

Tax accountant

 

6.

Which of the following is NOT an asset for a boutique?

a)

Shoe inventory

 

b)

T-shirt inventory

c)

Accounts payable

d)

Accounts receivable

7.

Which of the following types of information is found on an income statement?

a)

Company assets

 

b)

Company revenues

c)

Company cash flow

 

d)

Company liabilities

8.

Under which of the following categories would land appear on a balance sheet?

a)

Assets

b)

Liabilities

c)

Owner’s equity

d)

Stockholders’ equity

 

9.

Baker Landscaping received $200 in cash for mowing a 5 acre lot. Which of the following accounts is debited?

a)

Cash

b)

Inventory

c)

Service revenue

d)

Accounts receivable

10.

The Financial Accounting Standards Board is the government agency regulating the accounting industry.

a)

True

 

b)

False

 

11.

Which of the following accounts would be debited if O'Reilly's paid all employees for their work in April?

a)

Cash

b)

Salaries

c)

Accounts receivable

 

d)

Unearned service revenue

 

12.

What is a reason to pay more than the minimum payment due on your credit statement each month?

a)

You save money on interest

b)

It takes more time to pay off a balance

 

c)

It hurts your creditworthiness

 

d)

Your credit utilization rate stays the same

 

13.

Which is the best strategy for paying your credit card bill?

a)

Make no monthly payments at all

 

b)

Pay the minimum payment every month

 

c)

Pay half the balance every month

 

d)

Pay the entire balance every month

14.

What is the definition of freezing your credit?

a)

No one can use your credit cards to make a purchase

 

b)

No one can open a credit card in your name

c)

You can only use your credit cards if you notify one of the credit reporting agencies

 

d)

The credit reporting company will call to check when someone tries to open a new account

 

15.

What is the correct definition of capacity for potential cosigners?

a)

The cosigner's credit history

b)

The cosigner's financial assets, such as a house or car

 

c)

The cosigner's past record of paying on time

d)

The cosigner's current financial situation

16.

What is the correct definition of collateral for potential cosigners?

a)

The cosigner's credit history

b)

The cosigner's financial assets, such as a house or car

c)

The cosigner's past record of paying on time

d)

The cosigner's current financial situation

 

17.

What is the correct definition of character for potential cosigners?

a)

The cosigner's current bank balance

 

b)

The cosigner's financial assets, such as a house or car

 

c)

The cosigner's past record of paying on time

d)

The cosigner's current financial situation

18.

What is the best definition of a credit report?

a)

A number that shows a snapshot of your credit at a specific moment in time

 

b)

period of time between when you spend money and when the company charges you interest

c)

A number that shows how much of your overall credit you're using

 

d)

A history of how you pay back loans and credit cards

19.

What is the best definition of a credit score?

a)

A period of time between when you spend money and when the company charges you interest

 

b)

A number that shows a snapshot of your credit at a specific moment in time

c)

A number that shows how much of your overall credit you're using

d)

 

A history of how you pay back loans and credit cards

 

20.

SMART Goals - What do each of the letters stand for?

a)

Specific, Measurable, Attainable, Realistic, Time-based

b)

Short, Measurable, Attainable, Realistic, Time-bound

c)

Specific, Measurable, Adaptable, Realistic, Time-based

 

d)

Specific, Measurable, Adaptable, Rewarding, Time-based