Worksheetsfundamental accounting
Total questions: 30
Worksheet time: 15mins
Which of the following does NOT define accounting?
Classifying
Recording
Summarizing
Concluding
Which of the following statements does NOT describe about users of accounting information?
Management is considered an external user
Government is considered an external user
Investor is considered an external user
Payable / Creditor is considered an external user
Interpret the meaning of Going Concern in accounting perspective
Continue to expand and operate in the future or long term period
Be liquidated in the near future
Purchase new asset in the near future
Purchase another business in the future
“The same accounting method will be used from one accounting period to another accounting period”
Going concern
Consistency
Materiality
Accountability
Recognize which of the following statements about users of accounting information is CORRECT
Tax authorities are considered as internal users
Creditors/Payables are considered as internal users
Management is considered as external users
Regulatory authorities are considered as external users
An Asset is...
An asset is a resource currently owned and controlled by a business as a result of a past transaction
An asset is a resource owned by a business as a result of a past transaction
An asset is something that costs money
A liability is...
obligation of a business as a result of a past transaction
Something a business has to pay because of a past event
current obligation of a business as a result of a past transaction
An Expense is...
An expense is defined as a decrease in assets which can be a distribution to the owner
An expense is defined as an increase in assets which can be a distribution to the owner
An expense is defined as a decrease in assets which is not a distribution to the owner
Which of the following is an example of an expense?
Machinery
Bank
Petrol
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
Which of the following is an example of an asset?
Vehicle
Electricity
Mortgage
Who is known as the father of accounting?
Leonardo da Vinci
Fra Luca Pacioli
Al Khawarizmy
Al Mazendarany
The proprietor is treated as a creditor to the extent of his capital according to:
(a) Cost Concept
(b) Business Entity Concept
(c) Going Concern Concept
(d) Materiality Concept
What is the type of Drawings Account?
(a) Personal
(b) Real
(c) Nominal
Expenses
Which of the following is not part of accounting
Summarizing data
Recording transactions
Interpreting Financial Statements
Sharing accounting data with other businesses
Which of the following allows a business to be successful?
Making a loss
Making a profit
Making constant profit
Making constant loss
Which of the following are fundamental principles of ethical behavior?
Integrity
Objectivity
Confidentiality
Subjectivity
Which of the following is not an internal user of accounting information?
Owner
Managers
Employees
Government
When revenues are greater than expenses it means that the business is making a
Profit
Loss
Break even
Sale
When the money earned is equal to what was spent it is called...
Profit Margin
Sale
Loss
Break even
This card is linked to a checking account
Credit
Debit
Both
Customers spend the money in their accounts at the time of purchase
Credit
Debit
Both
Users borrow money on the card and pay it at a later time
Credit
Debit
Both
Purchases are subject to interest charges if the balance is not paid in full
Credit
Debit
Both
Transactions are recorded in a monthly statement
Credit
Debit
Both
Users can sometimes be responsible for an annual fee or other penalties
Credit
Debit
Both
Card balances can be paid at the end of the month to avoid interest
Credit
Debit
Both
Users can ask for cash back at the time of purchase
Credit
Debit
Both
This card can be used at an ATM to withdraw cash from a checking account
Credit
Debit
Both
Users are limited to a specific amount called a credit limit
Credit
Debit
Both
