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Accounting

Total questions: 30

Worksheet time: 2hrs 30mins

Name
Class
Date
1.

_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date

a)

Balance Sheet

b)

Statement of Cash Flow

c)

Income Statement

d)

None of the Above

2.

How do you find liabilities?

a)

Assets + Owner's Equity

b)

Liabilities - Assets

c)

Assets - Capital (Owner's Equity)

d)

None of the Above

3.

 

Which correctly shows a list of assets and liabilities?

a)

Assets: mortgage, car loan, land

Liabilities: retirement savings, cash, credit card loans

b)

Assets: building, cash in hand, accounts receivable

Liabilities: loans, accounts payable, mortgage

c)

Assets: creditors, prepaid expenses, loans

Liabilities: stocks, accounts receivable, car

d)

None of the above

4.

Assets = Liabilities + Owner's Equity

Assets - 100,000

Liabilities- 25,000

Owner's Equity- ?

a)

$125,000

b)

$25,000

c)

$75,000

5.

Assets = Liabilities + Owner's Equity

Assets - ?

Liabilities- 25,000

Owner's Equity- 100,000

a)

$125,000

b)

$25,000

c)

$100,000

6.

An economic event that has a direct impact on the business.

a)

External events

b)

Internal events

c)

Business transactions

d)

External transactions

7.

Increase of this account will decrease Owner's Equity

a)

Asset Account

b)

Expense Account

c)

Liability Account

d)

Income Account

8.

Accounting equation is very important tool to help in understanding and ______________ business transactions.

a)

measuring

b)

analyzing

c)

creating

d)

accounting

9.

A separate record used to summarize changes in each assets, liabilities, and owner's equity.

a)

Accountant

b)

Account

c)

Account Title

d)

Count

10.

The business rendered service to customer on account. What is Value Received?

a)

Cash

b)

Accounts Payable

c)

Accounts Receivable

d)

Service Income

11.

The business received cash from customer for the service rendered on account. What is Value Parted With?

a)

Cash

b)

Cancellation of Payables

c)

Cancellation of Receivables

d)

Service Income

12.
Any amounts owed by a business and reported on the balance sheet are referred to as ________________.
a)
assets
b)
liabilities
c)
profit
d)
expenses
13.
The basic accounting equation is Assets=Liabilities + _______________________.
a)
Income
b)
Owner's Equity
c)
Expenses
d)
Profit
14.
An increase in owner's equity resulting from the operation of a business
a)
asset
b)
expense
c)
withdrawl
d)
revenue
15.
Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.
a)
assets
b)
liabilities
c)
profit
d)
income
16.

Furniture is regarded as

a)

Assett

b)

Fixed Assett

c)

Liability

d)

Current Liability

17.
Cost incurred in its efforts to create revenue
a)
Expense
b)
 Revenue
c)
Withdrawal
d)
Liability
18.

Cash, goods and Asset etc. brought by the owner of the business is known as....

a)

Capital

b)

Drawings

c)

Income

d)

Expenses

19.

The person from whom we purchase goods on credit is known as .......

a)

Debtors

b)

Creditors

c)

Bad Debt

d)

Solvent

20.

Assets are Purchases with Intention

a)

Using it in Business

b)

Resale and Earn Profit

c)

Destroy them

d)

None of above

21.

When Income is more than Expenses, it is called as

a)

Loss

b)

Profit

c)

Trasnaction

d)

All of the Above

22.

Cash Received Immediately in Exchange of Goods given is called as

a)

Cash Purchase

b)

Cash Sales

c)

Credit Purchase

d)

Credit Sales

23.

Cash Paid in Future date for Goods received is called as

a)

Cash Purchase

b)

Cash Sales

c)

Credit Purchase

d)

Credit Sales

24.

Transactions are recorded in the period in which they occur.

a)

Business Entity Concept

b)

Going Concern Assumption

c)

Accrual Basis

d)

Periodicity

25.

Which of the following is a current asset?

a)

Land

b)

Building

c)

Cash

d)

Machinery

26.

These are assets purchased for long term use and are not likely to be converted quickly into cash.

a)

Current Assets

b)

Non-Current Liability

c)

Fixed Assets

d)

Curren Liability

27.

Which of the following is not a current liability?

a)

Interest Payable

b)

Salaries Payable

c)

Loan Payable

d)

None of the above

28.

Which of the following is the correct accounting equation?

a)

Capital = Assets + Liabilities

b)

Capital = Liabilities - Assets

c)

Assets - Liabilities = Capital

d)

Assets + Capital = Liabilities

29.

The term 'accounting' refers to the

a)

use information in making business decisions

b)

use of special ways of recording business information.

c)

is the process of recording, summarizing, reporting and analyzing of financial data.

d)

is the process of recording, summarizing, reporting and analyzing of accounts in special books

30.

When Expenses are more than Income is known as ______

a)

Profit

b)

Loss

c)

No Profit No Loss

d)

None