WorksheetsAccounting Vocab
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
What is a checking account?
a)
A bank account for receiving wire transfers
b)
A bank account for investing in stocks
c)
A bank account for ordering payments
d)
A bank account for saving money
2.
What is the purpose of a debit card?
a)
To withdraw cash from an ATM
b)
To transfer funds between accounts
c)
To deposit money into a checking account
d)
To automatically deduct the amount of a purchase from the checking account
3.
What is the difference between a credit and a debit in accounting?
a)
A credit increases assets and decreases liabilities, while a debit decreases assets and increases liabilities
b)
A credit decreases assets and increases liabilities, while a debit increases assets and decreases liabilities
c)
A credit increases assets and decreases owner's equity, while a debit decreases assets and increases owner's equity
d)
A credit decreases assets and increases owner's equity, while a debit increases assets and decreases owner's equity
4.
What is a petty cash slip?
a)
A form showing proof of a petty cash payment
b)
A form for depositing money into a petty cash fund
c)
A form for withdrawing money from a petty cash fund
d)
A form for transferring funds to a petty cash fund
5.
What is the difference between cash basis accounting and accrual basis accounting?
a)
Cash basis accounting is more accurate than accrual basis accounting
b)
Cash basis accounting records revenues and expenses when cash is received or paid, while accrual basis accounting records revenues and expenses when they are earned or incurred
c)
Cash basis accounting is used by large corporations, while accrual basis accounting is used by small businesses
d)
Cash basis accounting records revenues and expenses when they are earned or incurred, while accrual basis accounting records revenues and expenses when cash is received or paid
6.
What is the purpose of the cost of goods sold (COGS) in accounting?
a)
To calculate the net income of a company
b)
To calculate the value of a company's inventory
c)
To calculate the total expenses of a company
d)
To calculate the cost of producing or purchasing the products that a company sells
7.
What is an electronic funds transfer?
a)
A manual cash payments system
b)
A computerized cash payments system
c)
A paper-based cash payments system
d)
A phone-based cash payments system
8.
What is the purpose of the statement of cash flows?
a)
To report the sources and uses of cash during a period
b)
To report the financial position of a company at a specific point in time
c)
To report the revenues and expenses of a company
d)
To report the financial performance of a company over a period of time
9.
What is the difference between a balance sheet and an income statement?
a)
A balance sheet includes assets and liabilities, while an income statement includes revenues and expenses
b)
A balance sheet includes revenues and expenses, while an income statement includes assets and liabilities
c)
A balance sheet reports financial performance over a period of time, while an income statement reports financial position at a specific point in time
d)
A balance sheet reports financial position at a specific point in time, while an income statement reports financial performance over a period of time
10.
What is a dishonored check?
a)
A check that a bank refuses to pay
b)
A check that a bank accepts and processes
c)
A check that is post-dated
d)
A check that is endorsed by the payee
11.
What is a bank statement?
a)
A report of stock investments sent to a depositor by a bank
b)
A report of credit card transactions sent to a depositor by a bank
c)
A report of deposits, withdrawals, and bank balance sent to a depositor by a bank
d)
A report of loan payments sent to a depositor by a bank
12.
What is the difference between a current asset and a non-current asset?
a)
A current asset is expected to be used or converted into cash within one year, while a non-current asset is expected to be used or converted into cash after one year
b)
A current asset is tangible, while a non-current asset is intangible
c)
A current asset is more valuable than a non-current asset
d)
A current asset is expected to be used or converted into cash after one year, while a non-current asset is expected to be used or converted into cash within one year
13.
What is a blank endorsement?
a)
An endorsement restricting further transfer of a check’s ownership
b)
An endorsement consisting only of the endorser’s signature
c)
An endorsement with a stamp on the back of a check
d)
An endorsement indicating a new owner of a check
14.
What is the purpose of the adjusting entries in accounting?
a)
To close the revenue and expense accounts
b)
To record transactions that have not been previously recorded
c)
To update the general ledger accounts at the end of an accounting period
d)
To prepare financial statements
15.
What is petty cash?
a)
An amount of cash kept on hand and used for making small payments
b)
An amount of cash kept in a savings account
c)
An amount of cash kept in a checking account
d)
An amount of cash kept on hand and used for making large payments
16.
What is the purpose of a trial balance?
a)
To prepare financial statements
b)
To determine the accuracy of the accounting records
c)
To close the accounting cycle
d)
To record adjusting entries
17.
What is the accounting equation?
a)
Assets - Liabilities = Owner's Equity
b)
Assets = Liabilities + Owner's Equity
c)
Liabilities = Assets + Owner's Equity
d)
Owner's Equity = Assets - Liabilities
18.
What is the difference between a voided check and a canceled check?
a)
A voided check is unpaid, while a canceled check is paid
b)
A voided check is paid, while a canceled check is unpaid
c)
A voided check is not processed, while a canceled check is processed
d)
A voided check is processed, while a canceled check is not processed
19.
What is a deposit slip?
a)
A bank form for withdrawing money
b)
A bank form for listing account transactions
c)
A bank form for transferring funds
d)
A bank form for adding money to an account
100 %
