WorksheetsAccounting study guide
Total questions: 34
Worksheet time: 18mins
Which of the following is not a core financial statement?
The Income Statement
Statement of Cash Flows
The Trial Balance
The Balance Sheet
income statement, which presents the results of operations, can be prepared in many forms including:
Single Step Income Statement
Condensed Income Statement
Common Sized Income Statement
All of the above
Which of the following account types increase by debits in double-entry accounting?
Assets, Expenses, Losses
Assets, Revenue, Gains
Expenses, Liabilities, Losses
Gains, Expenses, Liabilities
Which of the following is true?
Accounts receivable are found in the current asset section of a balance sheet.
Accounts receivable increase by credits.
Accounts receivable are generated when a customer makes payments,
Accounts receivable become more valuable over time
What are the main sections on a balance sheet?
Assets, liabilities, income
Assets, liabilities, equity
Assets, liabilities, expenses
Assets, gains, revenue
How are a company's financial statements used?
For internal analysis
For external negotiation
For compliance
All of the above
Which of the following scenarios increases accounts payable?
A customer fails to pay an invoice.
A supplier delivers raw materials on credit.
Office supplies are purchased with cash.
None of the above
Which form is used to file you yearly tax return?
Form 1040EZ
Form 1040A
Form 1040E
Form 10400
Are federal Income taxes a hat tax or progressive tax? What evidence supports your answer
Progressive tax
Flat tax
Tax brackets are higher income levels that are taxed at higher rates
Tax brackets are lower income levels that are taxed at higher rates
Is child support and alimony taxed? What is not?
Only child support is taxed not alimony
Only alimony is taxed not child support
Are unemployed payments taxed
Yes its taxed
Not its not taxed
A W-2 shows all EXCEPT for the following:
Employer & Employee Address
Wages and compensation
Expected tax return amount
Taxes and withholdings
Which form tells your employer how much to withhold from your paycheck for income taxes?
W-2
DW-40
W-4
1040-EZ
What would the journal entry be for a company that takes out a five-year, $100,000 business loan?
Debit $100,000 non-current asset, Credit $100,000 non-current liabilities
Debit $100,000 current asset, Credit $100,000 non-current liabilities
Debit $100,000 non-current liabilities, Credit $100,000 non-current assets
Debit $100,000 current liabilities, Credit $100,000 current assets
Which accounts are associated with cost of goods sold?
Accrued interest
Depreciation
Dividends
Inventory
Which organizations are involved in development of US Generally Accepted Accounting Principles (GAAP)? (Check all that apply.)
Financial Accounting Standards Board (FASB)
Government Accounting Standards Board (GASB)
Securities and Exchange Commission (SEC)
Federal Accounting Standards Advisory Board (FASAB)
Which financial statement is a report of a company's revenues and expenses during a certain time period?
Statement of Changes in Equity
Income Statement
Statement Of Cash Flows
After making a sale of $3,000, where $1,200 is paid in cash and $1,800 is sold on credit, how would a company go about updating its balance sheet?
$1,800 debit in accounts receivable; $3,000 credit in retained earnings; $1,200 debit in cash
$3,000 debit in retained earnings; $1,200 credit in cash; $1,800 credit in accounts receivable
$1,800 debit in accounts payable; $1,200 debit in cash; $3,000 credit in retained earnings
$1,200 credit in cash; $1,800 credit in accounts payable; $3,000 debit in retained earnings.
which is not an example of financing cash flown
paying off a debt of $25,000
investing in equipment worth $90,000
paying $12,000 worth of dividends to shareholders
Issuing $42,000 worth of shares
Which side of the ledger account are debits recorded on?
Left
Right
Depends on the debit
Are assets on the balance sheet recorded at their estimated fair market value?
Yes
No
Sometimes; it's situational
Increasing an asset involves crediting the account.
False
True
What is the minimum number of accounts that accounting entries can have?
One
Four
Two
Five
Which is not classified as a current asset?
Cash
Product inventory
Liquid assets
Prepaid liabilities
Property
In a journal entry, a debit decreases which of the following accounts?
Cash
Accounts Payable
Supplies Expense
Both a and c
Which describes the double-declining balance depreciation method?
Estimated salvage value is greater at the end of the assets' useful life than with straight-line depreciation.
It yields reports of higher income in the early years and lower income later on.
This method decreases the useful life of the asset and disposal costs by half.
The depreciation expense is larger in the first few years and gets smaller as time goes on.
What are some advantages of a Partnership? (pick
A Partnership is run by a single person.
A Partnership does not get heavily taxed.
A Partnership is easy to establish.
A Partnership is expensive and requires legal services.
What is a Sole Proprietorship?
A type of contract that corporations use.
A business model where multiple partners share liability.
A type of tax that a business must pay.
A business that is owned by only one person.
What are some examples of a Non Profit Corporation?
Unicef
American Red Cross
Feeding America
McDonalds
What company is corporation?
Nike
Home Depot
Red Cross
Non-Profit organizations have to pay Federal taxes?
True
False
What is a similarity between a partnership and corporation?
They owner has complete control over the business
Both have double taxation
Both are extremely expensive
Both share legal responsibilitv
What is the worst disadvantage of a Sole Proprietorship?
Being the sole owner, you have unlimited personal liability.
There are multiple business partners with opposing opinions.
Tax rates are too low.
You have complete control over the business.
What are the four types of businesses?
Justin Beiber, Michael Jackson, Hannah Montana, Brittany S.
Sole Proprietorship, Non Profit, Corporation, Partnership
McDonald's, Burger King, Wendy's, KFC
Celtics, Patriots, Red Sox, OKC
