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Accounting Basics

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

In a Cash account: when money is deposited, this is known as a:

a)

Credit

b)

Liability

c)

Owners' Equity

d)

Debit

2.

The Accounts Payable account is for:

a)

money people owe your business

b)

fun

c)

keeping track of what you've earned

d)

the money your business owes

3.

When you add up the debits and credits for each account, you need to minus the small number from the big number to get the...

a)

total

b)

balance

c)

transaction

d)

owner's equity

4.

If you end up with a negative number when you balance an account, this is the accounting way of writing it correctly:

a)

(500)

b)

500 negative

c)

less 500

5.

TRUE or FALSE: some transactions can have more than 1 debit or credit.

a)

FALSE

b)

TRUE

6.

The types of accounts you use to keep track of the money your business makes are known as __________ accounts.

a)

Expense

b)

Machines

c)

Owner's Equity

d)

Revenue

7.

The formula to determine if your business is making a profit or not is:

a)

Expenses minus revenues

b)

Revenues minus expenses

c)

Owner's Equity minus Cash

d)

Accounts Payable minus Accounts Receivable

8.

You, the owner, want to give a vehicle your company owns to your niece. Are you allowed to do that?

a)

Yes

b)

No

c)

Yes, but you need to have enough money in Owner's Equity to cover the cost

9.

A customer pays off a purchase they made 27 days ago. What accounts are affected, and HOW are they affected?

a)

Cash goes down, Bank Loan goes up

b)

Accounts Payable goes down, Cash goes up

c)

Accounts Receivable goes down, Cash goes up

d)

Bank Loan goes down, Cash goes up

10.

True or False: T-Accounts are used by accountants IRL.

a)

True

b)

False