WorksheetsAccounting - College Level - Chapter 2
Total questions: 22
Worksheet time: 11mins
What does posting mean in accounting?
A. Entering transactions into the journal
B. Copying data from the ledger to the journal
C. Copying data from the journal to the ledger
D. Creating financial statements
What is the definition of expense?
A. The cost of operating a business; a decrease in stockholders' equity
B. Revenue generated from sales
C. The amount of money in the company's bank account
D. The total assets of a business
What is the definition of debit?
A. Right side of an account
B. Decreases in an account
C. Left side of an account
D. Increases in stockholders' equity
What is the definition of trial balance?
A. Lists all accounts with their balances
B. Summarizes revenues and expenses
C. Records daily transactions
D. Identifies the cost of goods sold
What is the definition of equity?
A. Total liabilities
B. Assets + Expenses
C. Assets - Liabilities
D. Revenues - Expenses
What is the definition of net income?
A. Assets - Liabilities
B. Revenues - Expenses
C. Total Equity
D. Gross profit - Operating expenses
What is the definition of receivable?
A. Always a liability
B. Always an asset
C. Represents money owed by customers
D. Represents money owed to suppliers
What does charts of accounts mean in accounting?
A. Lists a company's accounts and account numbers (no account balances in this item)
B. Summarizes financial performance
C. Records daily transactions
D. Presents a detailed analysis of cash flows
What does payable mean in accounting?
A. Represents money owed by customers
B. Always an asset
C. Represents money owed to suppliers
D. Always a liability
What is a journal in accounting?
A. Lists all accounts with their balances
B. Record of transactions
C. Summarizes revenues and expenses
D. Presents a detailed analysis of cash flows
What is a normal balance in accounting?
A. Side of an account where decreases are recorded
B. Side of an account where increases are recorded
C. Always a debit
D. Always a credit
What is a ledger?
A. The book of accounts and their balances
B. Summarizes financial performance
C. Records daily transactions
D. Identifies the cost of goods sold
Bonds payable
Liability
Asset
Equity
Equipment
Liability
Asset
Equity
Accounts Payable
Liability
Asset
Equity
Salaries payable
Liability
Asset
Equity
Common Stock
Liability
Asset
Equity
Retained earnings
Liability
Asset
Equity
Cash
Liability
Asset
Equity
Accounts receivable
Liability
Asset
Equity
Sales revenue
Liability
Asset
Equity
Inventory
Liability
Asset
Equity
