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Accounting Terms 1

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

What is an asset?

a)

resources owed to the business

b)

a resources owned by the business

c)

amounts added to the business by the owner

d)

bills incurred to start the business

2.

What is a liability?

a)

Total money owed by the business

b)

Total money spent by the business

c)

Total of money supplied to the business by the owner

d)

Money earned by the business from sales

3.

If your classmate asked you "what is income?" What would your answer be?

a)

Costs incurred through operating the business

b)

Resources owed by the business

c)

Money owed by the business

d)

Money coming in to the business from its usual transactions

4.

What is Capital?

a)

Total of resources supplied to the business by the owner

b)

Total costs incurred by the owner in operating the business

c)

Money coming to the business from its usual transactions

d)

Resources owned by the business

5.

What is an expense?

a)

Total of money owed by the business

b)

Resources owned by the business

c)

Cost incurred in operating the business

d)

Total of money owed by the business

6.

What is revenue?

a)
Revenue is the total amount of expenses incurred by a business
b)
Revenue is the profit made by a company after taxes
c)
Revenue is the number of employees in a company
d)
Revenue is the total amount of income generated by the sale of goods or services.
7.

Profit can be defined as?

a)
Amount of money spent on expenses
b)
Financial gain obtained when revenue exceeds expenses
c)
Total revenue generated
d)
Loss incurred when expenses exceed revenue
8.

Loss is the excess of expenses over (a)   .

9.

Which of the following describes the ledger?

a)

Record of the closing-down of the business

b)

Records of the cash deductions of the owner

c)

Records of the day to day transactions of the business

d)

Record of the special transactions of the business

10.

For accounting purposes, what is a journal?

a)

Record of special transactions of the business

b)

Record of the day to day transactions of the business

c)

Record of all payments made by the business

d)

Record of all cash coming into the business

11.

(a)   are persons who owe money to the business.

12.

Persons owed money by the business are called (a)   .

13.

Accruals are:

a)

certificates of permission for the business to operate

b)

outstanding amounts owed by the business

c)

money due to be collected by the business

d)

money held over from the start-up loan

14.

A pre-payment is

a)

payments made by persons wishing to own part of the busness

b)

Payments made after the due date

c)

early payments to debtors

d)

an amount paid in advance by the business for expense items

15.

What is a balance sheet?

a)

A financial statement that shows the assets, liabilities, and equity of a business at a specific point in time

b)

A record of day-to-day transactions of the business

c)

A summary of the revenue and expenses of a business

d)

A report detailing the cash flow of a business