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Basic Accounting Processes

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Individuals or firms that invest money professionally

a)

bootstrapping

b)

accounting equation

c)

line of credit

d)

venture capitalist

2.

Ownership in a business

a)

due diligence

b)

line of credit

c)

equity

d)

 accounting equation

3.

Things of value banks can take if you don’t pay a loan back.

a)

collateral

b)

assets

c)

income statements

d)

financial statements

4.

Creative techniques to get a business started

a)

leverage

b)

bootstrapping

c)

assets

d)

collateral

5.

When a team of experts checks out a business.

a)

due diligence

b)

due process

c)

coaching

d)

scoping

6.

An agreement by a bank to lend money.

a)

character

b)

line of credit

c)

assets

d)

cash flow

7.

Things you own

a)

stuff

b)

items

c)

assets

d)

liabilities

8.

Assets – Liabilities = Net/Owner’s Equity

a)

accounting problem

b)

income statement

c)

financial statement

d)

accounting equation

9.

Sources of funding that help one to buy or start a business

a)

Personal savings

b)

loans or grants

c)

friends and family

d)

all of the above

10.

Bankers judge the acceptance of a loan applicant based on

a)

Character

b)

capital

c)

Collateral

d)

all of the above

11.

Contingency funds are used

a)

To provide money in case something goes wrong

b)

As money you need to ensure a positive cash flow

c)

s money to start your business

d)

None of the above

12.

A report of the revenue, expenses, and net income of a business

a)

Balance Sheet

b)

General Ledger

c)

Cash Flow Statement

d)

 Income Statement

13.

A debt of a business

a)

fixed asset

b)

asset

c)

liabilities

d)

capital

14.

The accounting period of time that begins and end in months other than the calendar  year.

a)

GAAP

b)

Fiscal year

c)

calendar year

d)

accounting period

15.

The major account that houses all of your customer accounts.

a)

Accounts receivable

b)

Sales journal

c)

accounts payable

d)

general ledger

16.
Which goes on the left side of a T account?
a)
Debits
b)
Credits
c)
Normal Balance
d)
Increase
17.

Which goes on the right side of a T account?

a)

Debits

b)

Credits

c)

Normal Balance

d)

Increase

18.
Which is the first step in analyzing a transaction?
a)
Identify Accounts
b)
Identify Increase/Decrease
c)
Identify Account Type
d)
Identify Amount
19.
Which is the fourth step in analyzing a transaction?
a)
Identify Accounts
b)
Identify Increase/Decrease
c)
Identify Account Type
d)
Identify Amount
20.
Which is the third step in analyzing a transaction?
a)
Identify Accounts
b)
Identify Increase/Decrease
c)
Identify Account Type
d)
Identify Amount
21.
Which is the second step in analyzing a transaction?
a)
Identify Accounts
b)
Identify Increase/Decrease
c)
Identify Account Type
d)
Identify Amount
22.

Cash is classified as an

a)

liability

b)

asset

c)

expense

d)

owners equity

23.

A debit to an accounts payable account will ____ it

a)

Increase

b)

Decrease

24.

A credit to the capital account will ______ it

a)

increase

b)

decrease

25.

Debit is on the left and credit is on the right for ALL t accounts.

a)

true

b)

false

26.

To decrease an asset, you _____ it.

a)

Debit

b)

Credit