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WorksheetsAccounting I Chapter 2 EXAM
Total questions: 46
Worksheet time: 24mins
Name
Class
Date
1.
Planning, recording, analyzing, and interpreting financial information
a)
accounting
b)
financial statements
c)
sale on account
d)
transaction
2.
A business activity that changes assets, liabilities, or owner's equity
a)
accounting equation
b)
transaction
c)
equities
d)
asset
3.
An equation that shows the relationship among assets, liabilities, and owner's equity.
a)
Accounting equation
b)
account balance
c)
accounting system
d)
account records
4.
A planned process for providing financial information that will be useful to management
a)
accounting system
b)
accounting record
c)
financial statements
d)
sale on account
5.
The account used to summarize the owner's equity in the business.
a)
capital
b)
revenue
c)
sale on account
d)
asset
6.
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
a)
owner's equity
b)
liability
c)
account balance
d)
expense
7.
A business owned by one person
a)
proprietorship
b)
corporation
c)
partnership
d)
s-corporation
8.
Anything of value that is OWNED
a)
asset
b)
liability
c)
revenue
d)
equities
9.
A sale for which cash will be received at a later date
a)
sale on account
b)
accounts payable
c)
liability
d)
withdrawals
10.
Assets taken out of a business for the owner's personal use
a)
withdrawals
b)
revenue
c)
expenses
d)
assets
11.
An increase in owner's equity resulting from the operation of a business
a)
revenue
b)
expenses
c)
withdrawals
d)
accounting system
12.
Financial rights to the assets of a business
a)
equities
b)
ethics
c)
expenses
d)
liability
13.
A business that performs an activity for a fee
a)
service business
b)
manufacturing business
c)
goods producing industry
d)
farming
14.
An amount OWED by a business
a)
liability
b)
asset
c)
owner's equity
d)
capital
15.
The name given to an account
a)
account title
b)
account record
c)
accounting system
d)
accounting equation
16.
a decrease in owner's equity resulting from the operation of a business
a)
expense
b)
asset
c)
revenue
d)
withdrawal
17.
The accounting equation is most often stated as: Assets + Liabilities = Owner's Equity
a)
True
b)
False
18.
After each transaction, the accounting equation must remain in balance.
a)
True
b)
False
19.
Total assets are the amount the owner has invested in the business
a)
True
b)
False
20.
When 2 asset accounts are changed in a transaction, there must be an increase and a decrease.
a)
True
b)
False
21.
When items are bought and paid for at a future date, another way to state his is to say these items are bought on account.
a)
True
b)
False
22.
A transaction for the sale of goods or services results in a decrease in owner's equity.
a)
True
b)
False
23.
The capital account is the owner's liability account.
a)
True
b)
False
24.
Payments for advertising, equipment repairs, utilities and rent are expense transactions.
a)
True
b)
False
25.
The most common type of withdrawal by an owner from a business is the withdrawal of cash.
a)
True
b)
False
26.
When an owner withdrawals cash from the business, the transaction affects both assets and owner's equity.
a)
True
b)
False
27.
A withdrawal is an expense.
a)
True
b)
False
28.
Paid cash on account to Lee's Supplies would result in which of the following
a)
decrease in cash, decrease in accounts payable- Lee's supplies
b)
decrease in cash, increase in accounts payable- Lee's supplies
c)
decrease in cash, decrease in Owner's equtiy
d)
increase in cash, increase in accounts receivable- Lee's supplies
29.
Sold services on account to Jones Computers would result in which of the following?
a)
increase in Accounts Receivable- Jones Computers, increase in Owner's Equity
b)
increase in Accounts Receivable- Jones Computers, decrease in Owner's Equity
c)
Increase in cash, Increase in Owner's Equity
d)
Increase in Cash, Increase in Accounts Payable- Jones Computers
30.
Paid Cash for Rent results in which of the following
a)
decrease in Cash, decrease in Owner's Equity
b)
decrease in Cash, decrease in Supplies
c)
Increase in cash, increase in Owner's Equity
d)
decrease in cash, increase in Accounts Payable
31.
An accounting device used to analyze transactions
a)
Credit
b)
Debit
c)
T - account
d)
Balance Sheet
32.
A list of accounts used by a business
a)
Transactions
b)
T - Account
c)
Chart of Accounts
d)
Drawing
33.
True of False: Revenue accounts have a normal debit balance?
a)
True
b)
False
34.
The normal balance of any asset is a/an
a)
debit
b)
credit
35.
The normal balance of any liability is a
a)
debit
b)
credit
36.
The increase side of the capital account is a
a)
debit
b)
credit
37.
The decrease side of the capital account the
a)
debit
b)
credit
38.
The decrease side of the supplies account the
a)
debit
b)
credit
39.
The decrease side of the cash account the
a)
debit
b)
credit
40.
a)
Asset
1.
OWN
b)
Liability
2.
OWE
c)
Owner's Equity
3.
WORTH
41.
A common abbreviation for debit is
a)
dr.
b)
db.
c)
de.
42.
A common abbreviation for credit is
a)
cd.
b)
cr.
c)
ct.
43.
When an owner invests cash in a business, the owner's capital account is _________________
a)
Increased by a debit
b)
Increased by a credit
c)
Decreased by a debit
d)
Decreased by a credit
44.
If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is _______________
a)
Increased
b)
Decreased
c)
Unaffected
d)
Correct
45.
Label the parts of the T Account
a)
Account Title
b)
Credit
c)
Debit
1
2
3
1)
2)
3)
46.
Label the parts of the T Account for any Liability account.
a)
Account Title
b)
Decrease Side
c)
Increase Side and Normal Balance
1
2
3
1)
2)
3)
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