WorksheetsAccounting & Budgets for Business
Total questions: 35
Worksheet time: 18mins
Budgeting is the ______ based on a determined structure.
Process of accomplishing goals
Development of regulations
Decision to make judgements
Allocation of monetary funds
Budgeting provides a guide for efficient business decisions.
True
False
The two basic parts of a budget are ____ and ____.
Wants; Needs
Equity; Debt
Income; Expenses
Resources; Consumption
Which of the following is NOT a step involved in creating a budget?
Gather financial records
Track spending
Expand earning avenues
Balance the budget
Rent is an example of a _____ expense.
Fixed
Variable
Gross income is income after the cost of goods and taxes are deducted.
True
False
Which of the following is NOT an example of an asset?
Children
Cash
Equipment
Buildings
Which of the following is NOT an example of a liability?
Cash
Equipment loans
Charge accounts
Rental fees
The presentation recommends updating and modifying your budget how often?
Annually or quarterly
Monthly or weekly
Daily or whenever making purchases
Never
Net worth = assets - liabilities
True
False
Which of the following represents the amount of revenue generated by a business?
Sales figures
Costs of goods sold
Gross profit
Net income
Which of the following is derived by subtracting the cost of goods sold from the net sales figures?
Sales figures
Cost of goods sold
Gross profit
Net income
Which of the following are the costs directly associated with making or acquiring products such as materials purchased from outside suppliers?
Sales figures
Cost of goods sold
Gross profit
Net income
Which of the following is the amount of money the business has earned after paying income taxes?
Sales figures
Cost of goods sold
Gross profit
Net income
Which of the following is the correct equation for profit?
Revenue - Expenses = Profit
Revenue + Expenses = Profit
Revenue - Net Income = Profit
Revenue - Sales costs = Profit
Which of the following represents the basic accounting equation?
Assets = Liabilities + Owner's Equity
Assets = Expenses - Revenue
Assets = Net Income - Revenue
Assets = Liabilities + Net income
Which of the following is the most liquid asset?
Real estate
Stocks
Cash
Machinery
Which of the following is NOT a current asset?
Checking accounts
Accounts receivable
Money market accounts
Land
Accounts payable are classified as which of the following?
Fixed assets
Current liabilities
Owner's equity
Net income
Which of the following statements is TRUE?
Debits decrease assets
Credits increase expenses
Debits decrease liabilities
Credits increase assets
Which of the following shows the numerical balances determined by the chart of accounts?
Profit and loss statement
Balance sheet
Net worth ledger
Transaction ledger
Which of the following shows any changes which have occurred in the numerical balances of a company?
Profit and loss statement
Balance sheet
Net worth ledger
Transaction ledger
Which of the following is also knows as a profit and loss statement?
Net worth ledger
Liability statement
Income statements
Transaction ledger
Which of the following is the last step in the business operating cycle?
Collect payment for credit sales
Sell the inventory
Pay suppliers or employees
Enter goods into finished goods inventory
When suppliers are paid which of the following occurs?
Accounts payable is increased by a debit
Accounts payable is decreased by a debit
Accounts payable is decreased by a credit
Accounts payable is increased by a credit
Accounting is simply the process used to figure out how much money a business made during a certain time period.
True
False
What are the accounting rules used to prepare, present and report financial statements called?
Standard Business Financial Practices
Financial Accounting Standards
Generally Accepted Accounting Principles
Financial Account Management Techniques
____ are items of value your company owns.
Profits
Revenues
Liabilities
Assets
____ are any debts or obligations owed by the company.
Profits
Revenues
Liabilities
Assets
It is often beneficial for a business owner to use business accounts and personal accounts interchangeably.
True
False
A(n) ____ is a summary of a company's profit or loss during any one given period of time.
Income statement
Balance sheet
Subledger
Fixed asset statement
How often should a business calculate profitability and review financial statements?
Weekly
Monthly
Quarterly
Annually
The Financial Accounting Standards Board is the government agency regulating the accounting industry.
True
False
How many steps are in the business operating cycle?
Eighteen
Twelve
Nine
Five
Income statements are used to help determine ____.
Employee pay
Prices of goods and/or services
An accountant's capabilities
Credit limits
