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WorksheetsAccounting Posttest
Total questions: 50
Worksheet time: 25mins
A balance sheet reports a business's financial
Condition over a specific period of time
Progress over a specific period of time
Condition on a specific date
Progress on a specific date
The accounting equation must remain in balance after each ________.
transaction
credit
account
debit
Assets = Liabilities _____Owner's Equity
+
_
x
/
A separate record used to summarize changes in each assets, liabilities, and owner's equity.
Accountant
Account
Account Title
Count
Planning, recording, analyzing, and interpreting financial information.
accounting
transaction
equities
accounting equation
Organized summaries of a business's financial activities.
accounting
accounting records
accounting equations
accounting systems
The principles of right and wrong that guide an individual in
making decisions.
ethics
business ethics
withdrawals
financial statements
If a company has total liabilities of $50,000 and owners equity of 30,000, what are its total assets?
$20,000
$50,000
$80,000
$30,000
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
13. The _______ refers to the accounting book in which the accounts and their related amounts as recorded in the journal are posted periodically.
Journalizing
Journal
Subsidiary ledger
ledger
Which of the following financial ratios measures a company's ability to pay off its short-term liabilities with its short-term assets?
Debt-to-equity ratio
Return on assets ratio
Current ratio
Gross profit margin
Which inventory costing method assumes that the most recently purchased items are sold first?
LIFO (Last-In, First-Out)
Weighted average
FIFO (First-In, First-Out)
Specific identification
Which business structure is owned and operated by a single individual?
Sole Proprietorship
Corporation
Partnership
Limited Liability Company
Which business structure is a legal entity separate from its owners?
Sole Proprietorship
Corporation
Partnership
Limited Liability Company
Which business structure involves two or more individuals sharing ownership and responsibilities?
Sole Proprietorship
Corporation
Partnership
Limited Liability Company
Which business structure offers flexibility in management and taxation?
Sole Proprietorship
Corporation
Partnership
Limited Liability Company
What do payment terms 'Net 10' mean?
Customer pays the entire balance within 10 days of the invoice.
Customer receives a 10% discount when paying the balance.
Customer will be charged 10% interest when paying balance.
Customer has 10 days to dispute any charges.
What do payment terms '2/10 Net 30' mean?
2% of the balance is due in 10 days, the remainder in 30 days.
10% discount if paid in 2 days, otherwise whole amount due in 30 days.
2% discount if paid in 10 days, otherwise whole amount due in 30 days.
None of the above.
What is the main difference between current assets and non-current assets?
Current assets have a shorter useful economic life than non-current assets
Current assets are tangible, while non-current assets are intangible
Current assets are owned by individuals, while non-current assets are owned by businesses
Current assets can be easily converted into cash, while non-current assets cannot
Expenses _______ equity, so their normal balance is a ________ balance
increase; debit
decrease; debit
increase; credit
decrease; credit
Which account decreases with a debit?
Cash
Notes Payable
Accounts Receivable
Rent Expense
Which type of business does NOT provide physical goods to a customer?
Intangible business
Service business
Tangible business
Merchandising Business
Which of the following refers to the balance an account is always supposed to have?
Normal balance
Debit
Credit
Double Entry System
What is a sales invoice?
A sales invoice is a document that confirms the purchase of goods or services from a supplier.
A sales invoice is also called a sales slip or sales ticket. It records a sale on account.
A sales invoice is a document that confirms the cancellation of a sale.
What is a memo?
A memo is a type of bird found in South America.
A memo is a type of musical instrument.
A memo is a short written message or note used for internal communication within an organization.
A memo is a type of dessert made with chocolate and cream.
What are forms and papers that provide information about a business transaction called?
ledgers.
accounts.
journals.
source documents.
When the total expenses are greater than the total revenues,
The Income Summary account has a credit balance.
The Income Summary account has a debit balance.
Debits equal credits.
All of the above.
Temporary accounts begin each new fiscal period with a
Debit balance
Credit balance
Zero balance
Net income balance
The last step in the accounting cycle is to
Record transactions in a journal.
Prepare a work sheet.
Journalize and post closing entries.
Prepare a post-closing trial balance.
What is the purpose of withholding taxes in payroll accounting?
To ensure accurate payroll calculations.
To collect income taxes from employees throughout the year.
To calculate employee benefits.
To provide additional income for the employees.
When a single check for payroll is prepared and deposited into a special payroll bank account, which of the following entries is made to record that deposit?
Dr Wages & Salaries Expense
Cr Cash
Dr Payroll Cash
Cr Cash
Dr Cash
Cr Payroll Expense
Dr cash
Cr Wages & Salaries Expense
