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Accounting Lesson 1

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following describes accounting? (select all that apply)

a)

Accounting is a type of math

b)

Accounting is the language of business.

c)

Accounting includes the process of collecting & recording financial transactions for a company.

d)

Accounting includes analyzing financial information of a company.

2.

Select the 3 business activities included on the Cash Flow Statement.

a)

Managing activities

b)

Operating activities

c)

Financing activities

d)

Investing activities

3.

Which formula best represents "The Accounting Equation?"

a)

Revenues-Expenses = Net Income

b)

Assets = Liabilities + Equities

c)

Operating Activities + Investing Activities + Financing Activities

d)

Debits = Credits

4.

Which of the following is NOT one of the general purpose financial statements?

a)

Income Statement

b)

Balance Sheet

c)

Statement of Owners Equity

d)

Revenue Statement

5.

Accounts that represent the costs related to earning money are classified as _.

a)

revenues

b)

equities

c)

expenses

d)

assests

6.

Accounts that represent amount owned by a company are classified as _.

a)

liabilities

b)

revenues

c)

expenses

d)

assets

7.

The owner's claim to a company's assets are classified as _.

a)

assets

b)

liabilities

c)

equities

d)

revenue

8.

Accounts representing a company's earnings are classified as _.

a)

expenses

b)

assets

c)

liabilities

d)

revenue

9.

The left side of a T account is called the _ side.

a)

increase

b)

decrease

c)

debit

d)

credit

10.

On which financial statement would you find the following equation: Revenue - Expenses = Net Income

a)

Statement of Owners Equity

b)

Cash Flow Analysis

c)

Balance Sheet

d)

Income Statement