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WorksheetsMs. Fields: Accounting 1 Test (Ch. 1 & 2)
Total questions: 56
Worksheet time: 14hrs 0mins
Payable/ on account
Concept: a business's records should never be mixed with an owner's personal records and reports
adequate disclosure
business entity
objective evidence
going concern
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
The overall purpose of accounting is to
maintain accurate reports.
compile the business’s expenses.
keep track of sales.
control the finances of the business.
The process of keeping the financial records of a business is known as
accounting.
controlling.
financing.
bookkeeping.
How do you find liabilities?
Assets + Owner's Equity
Liabilities - Assets
Assets - Capital (Owner's Equity)
None of the Above
If liabilities equal $800 and owner's equity equals $200, what do the assets equal?
$400
$1,000
$800
Assets - 100,000
Liabilities- ?
Owner's Equity- 40,000
$200,000
$60,000
$290,000
If the company has $5,000 in cash and borrows $2575 what is Owner's Equity?
$2,425
$15,000
$8,000
Profit is the amount of money left over after all expensenses have been paid.
True
False
What is the missing value?
11,000
2,800
10,200
4,800
What is the missing value?
5,300
1,300
2,300
4,300
The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity.
True
False
When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.
True
False
An accounting device used to analyze transactions
Chart of accounts
T Accounts
Normal accounts
Accounts Receivable
Define Entrepreneur.
A person that runs a business.
A person who creates a new product and then organizes and operates a business to sell the new product or service.
A person who wants to invest in your company.
The CEO of a large corporation.
Define Profit, choose 2.
Selling something.
Difference between the amount earned and the amount spent.
Opening a business.
A financial gain.
Which is one of the greatest benefits of being an Entrepreneur?
Quick return on Investment
Financial Risk
Meeting new people
Schedule Control
What are some advantages of being an entrepreneur, choose 2?
Be Your Own Boss
Flexible Schedule
Responsibility
Risk
A business with one owner is known as a:
Company
Sole proprietorship
Partnership
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole proprietorship
Share the workload
Two Brothers Pizza would most likely show which type of ownership
Partnership
Corporation
Stock and Bonds
Single Ownership
Important aspects of a corporation, such as the
name of the firm, information about the stock issued,
and a description of the firm’s operations, are
contained in a:
a) mission.
b) policy.
c) charter.
d) plan.
e) venture.
Which type of business does NOT provide physical goods to a customer?
Goods business
Service business
Tangible business
It is a type of business that involves buying and selling of goods
Merchandising Business
Service Business
Manufacturing
This type of merchandiser buys inventory in bulk
Wholesaler
Retailer
What accounting activities make a merchandising business differ from a service business?
purchasing and selling of products
purchasing of supplies and insurance
owner's capital and drawing account
selling on account
It is the product or good that you are selling
Supplies
Cash
Inventory
Prepaid Expense
What is a merchandising business?
A company that offers products that are appropriate for individual use
A business that consults with stores to give merchandising advice
A company that sets up displays in stores
A business that sells supplies to another company for manufacturing purposes
Which of the following businesses is not a merchandising businesses?
Toy stores
Furniture stores
Health food stores
Accountants
Companies that buy the raw materials and convert them into the finished goods for customers are a part of
manufacturing sector companies
merchandising sector companies
service sector companies
franchise companies
What is their main business activity?
Manufacturing
Service
Merchandise
Hybrid
What is their main business activity?
Manufacturing
Service
Merchandise
Hybrid
What is their main business activity?
Manufacturing
Service
Merchandise
Hybrid
What is their main business activity?
Manufacturing
Service
Merchandise
Hybrid
List the two of the Big 4 Accounting Firms.
