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WorksheetsBasic accounting principles ICEV
Total questions: 15
Worksheet time: 8mins
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 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 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
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
Accounts payable are classified as which of the following?
fixed assets
current liabilities
owners equity
net income
Which of the following statements is TRUE?
Debits decrease assets
Credits increase expenses
Debits decrease liabilities
Credits increase assets
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 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
Which of the following is also known as a profit and loss statement?
Net worth ledger
Liability statement
Income statement
Transaction ledger
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
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
