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WorksheetsBasic Accounting Principles ICEV Unit Test
Total questions: 25
Worksheet time: 25mins
Which of the following represents the amount of revenue generated by a business?
Sales Figures
Cost 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 Cost = Profit
Which of the following represents is 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
Accounts payable are classified as which of the following?
debits decrease assets
Credits icrease 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 known as a profit and loss statement?
Income statements
liability statement
net worth ledger
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 (GAAP)
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 accountatn's capabilities
credit limits
