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Transaction Analysis and GAAP

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

The first step in preparing a transaction analysis sheet is to restate the balance sheet

a)

True

b)

False

c)

I don't know

2.

The accounting period is the period of time covered by financial statements.

a)

True

b)

False

3.

With any transactions how many accounts are affected?

a)

1

b)

2

c)

At least 2

d)

4 or more

4.

Accounting standards are the principles, rules, and guidelines followed when ....

a)

preparing an income statement.

b)

preparing a salad.

c)

preparing and presenting accounting information.

d)

preparing any math equation.

5.

The fair value principle uses the ................... of the assets for the financial reports.

a)

Current fair market value

b)

actual cost

c)

estimated cost

6.

What accounts are affected?

Jul. 2 Purchased new physiotherapy equipment for $500 cash

a)

Increase Equipment by $300 and Cash will decrease by $500

b)

Increase Equipment by $500 and Cash will decrease by $500

c)

Decrease Equipment by $500 and Cash will decrease by $500

d)

Decrease Equipment by $500 and Cash will increase by $500

7.

What accounts are affected?

Jul. 5 Bought office supplies for $55, on credit, from Central Office Supply Co.

a)

Office Supplies decrease by $55 and the liability Accounts Payable also decrease by $55

b)

Office Supplies increases by $25 and the liability Accounts Payable also increases by $55

c)

Office Supplies decrease by $55 and the liability Accounts Payable also increases by $55

d)

Office Supplies increases by $55 and the liability Accounts Payable also increases by $55

8.

The personal assets of the owner of a company will not appear on the company's balance sheet because of which GAAP?

a)

Business Entity

b)

Going Concern

c)

Objective Evidence

d)

Realization of Revenue

9.

Which GAAP directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?

a)

Going Concern

b)

Objective Evidence

c)

Realization of Revenue

d)

Matching Expenses with Revenue

10.

Which GAAP requires that all accounting records and statements are prepared as though the business will

continue even after the present owner is gone?

a)

Business Entity

b)

Going Concern

c)

Unit of Measurement

d)

Adequate Disclosure

11.

Mr. Bean prepares quarterly financial statements to stakeholders to report his companies financial standing. What GAAP is Mr. Bean folloiwng?

a)

Realization of Revenue

b)

Adequate Disclosure

c)

Accounting Period Cycle

d)

Business Entity

12.

The principles and procedures that together make up accepted accounting pratice at any given time are know as?

a)

International financial reporting standards

b)

Principle of periodicity

c)

Generally accepted accounting principles

d)

Time period principle

13.

Paid monthly rental of the office space $20,000.

a)

increase in assets = increase in capital

b)

increase in liabilities = increase in assets

c)

decrease in assets = decrease in capital

d)

decrease in assets = decrease in liabilities

14.

Completed legal work for Jenie Rose Blak and collected $30,000 cash.

a)

increase in assets = increase in capital

b)

increase in assets = increase in liabilities

c)

increase in one form of asset = decrease in another form of asset

d)

increase in liabilities = increase in assets