WorksheetsAccounting Midterm - Period 4 Test
Total questions: 16
Worksheet time: 8mins
Nora is considering a career path and wants to know which of the following best describes an accounting career?
Accountants only work on taxes
Focuses on maintaining financial records and ensuring accuracy
Focuses on increasing sales and setting the correct pricing
Focuses in inventory management
What is the initial phase in the accounting process?
Drafting the financial statements
Initiating the general journal
Gathering and verifying source documents
Compiling the trial balance
Which of the following is a liability that would be reported on the Balance Sheet?
Interest Income
Accounts Receivable
Accounts Payable
Operating Expenses
Lily is reviewing the financial statements of her family business. What does the balance sheet report?
A company’s revenues and expenses over a period
A company’s cash flow activities
Things of value in other words, A company’s assets, liabilities, and shareholders' equity at a specific point in time
A company’s net income for the period
Which of the following items is not found on an income statement?
Sales Revenue
Operating Expenses
Net Profit
Liabilities
What is a common feature of a checking account?
Offers higher interest rates than savings accounts
Primarily used for accumulating savings over time
Facilitates easy transactions like cash withdrawals, ATM usage, online debit card payments, or transfers via apps like Cash App.
Funds are invested in the Stock Market for faster growth
Kai is planning to save money for his future goals. Which of the following best describes the type of account he should consider?
Savings Accounts
Checking Account
Cash App/Venmo Acct
Certificate of Deposit
What is the primary purpose of a cash account on the Balance Sheet ?
To manage a company's long-term investments
To handle short-term cash transactions and liquidity
To oversee the company's equity and shareholder distributions
To track depreciation of assets
Kai is managing the office supplies budget. Which of the following is considered an expense?
A large sell
Purchase of a new building
Printer paper for the office
A cash donation
What is a primary function of QuickBooks?
It is an Accounting System used for managing tasks, creating financial reports, and maintaining accounting records
It is exclusively for designing business cards
It is a tool for editing videos
Still Not Sure
What is the purpose of an invoice?
To confirm that a payment has been made for goods purchased.
To outline the terms of a lease agreement for a property.
To serve as a formal request for payment for goods or services provided, detailing the transaction between buyer and seller.
To be used exclusively in the service sector as a formal document.
A company pays for office supplies previously purchased on account. Which of the following accounts is DEBITED?
Loans
Office Supplies
Account's Payable
Cash
Harper is reviewing the financial documents of a company to understand its financial health. On which financial statement would Harper find the total of all the company's loans?
Balance Sheet
Income Statement
Owner's Equity
Cash Flow
Why is it important for future Accountants to be familiar with QuickBooks?
To become certified public accountants (CPAs).
To understand basic accounting principles.
Since QuickBooks is widely used in small to middle sized businesses therefore it will improve job prospects and provide an important skill to place on your resume.
To replace traditional accounting methods entirely.
