WorksheetsAE 13 CHAPTER 1 PRE-LECTURE QUIZ
Total questions: 10
Worksheet time: 12mins
GAAP stands for
Generally Accepted Auditing Procedures.
Generally Accepted Accounting Principles.
Generally Accepted Auditing Principles.
Generally Accepted Accounting Procedures.
Owner's equity is best depicted by the following:
Assets = Liabilities.
Liabilities + Assets.
Residual equity + Assets.
Assets – Liabilities.
Liabilities
are future economic benefits.
are existing debts and obligations.
possess service potential.
are things of value used by the business in its operation.
Liabilities of a company are owed to
debtors.
benefactors.
creditors.
shareholders.
The basic accounting equation cannot be restated as
Assets – Liabilities = Owner's Equity.
Assets – Owner's Equity = Liabilities.
Owner's Equity + Liabilities = Assets.
Assets + Liabilities = Owner's Equity
Which of the following statements is incorrect?
Accounting communicates financial information about a business enterprise to both
internal and external users.
Financial statements are the major means of communicating accounting information to
interested parties.
The purchase of office equipment on credit increases total assets and total liabilities.
The normal balance of Assets is credit.
A net loss will result during a time period when
liabilities exceed assets.
drawings exceed investments.
expenses exceed revenues.
revenues exceed expenses.
If expenses are paid in cash, then
assets will increase.
liabilities will decrease.
owner's equity will increase.
assets will decrease.
Net income results when
Assets > Liabilities.
Revenues = Expenses.
Revenues > Expenses.
Revenues < Expenses.
Which of the following statement is true?
Owners of business firms are the only people who need accounting information.
The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
The basic accounting equation states that Assets = Liabilities
Net income for the period is determined by subtracting total expenses and drawings from
total revenues.
