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Accounting I Final Exam Study Quiz

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

A Credit is the ____________ side of a T account, while a Debit is the ____________ side of a T account.

a)
Left, right
b)
Increase, decrease
c)
Right, left
d)
Smaller, larger
2.

A liability decreasing is a(n)

a)
Credit
b)
Debit
c)
Liability
d)

Increase

3.

An asset is an amount

a)
Owned
b)
Over
c)
Owed
d)
Decreased
4.

A financial statement that reports Net Income is known as a(n):

a)
Income Statement
b)
Balance Sheet
c)
Trial Balance
d)
Chart of Accounts
5.

A Balance Sheet reports

a)

Liabilities and Revenue

b)
Assets and Liabilities
c)
Revenue and Expenses
d)
Assets and Expenses
6.

_____________ is transferring information from a journal entry to a ledger account.

a)

Adjusting Entries

b)
Closing Entries
c)
Journalizing
d)
Posting
7.

What is the correct journal entry for paying rent with cash?

a)

Debit Cash, Credit Rent Expense

b)

Debit Rent Expense, Credit Cash

c)

Credit Cash, Credit Rent Expense

d)

Debit Rent Expense, Credit Accounts Payable

8.

____________ are assets taken out of a business for the personal use of the owner.

a)
Investments
b)
Expenses
c)
Withdrawals
d)

Dividends

9.

What is the normal balance of a revenue account?

a)
Credit side
b)
Debit Side
c)

Left Side

d)
None of the above
10.

Accounts that do NOT accumulate information from one fiscal period to the next are _______________ accounts.

a)
Permanent accounts
b)
Temporary accounts
c)

Real accounts

d)
Chart of accounts
11.

What is the correct journal entry for paying cash on account?

a)
Debit Accounts Receivable, Credit Cash
b)
Debit Accounts Payable, Credit Cash
c)
Debit Cash, Credit Accounts Payable
d)
Debit Cash, Credit Accounts Receivable
12.

What is the correct journal entry for paying for supplies on account?

a)

Debit Supplies, Credit Cash

b)

Debit Cash, Credit Supplies

c)

Debit Supplies, Credit Accounts Payable

d)

Debit Accounts Payable, Credit Supplies

13.

Which is the second line of the heading of a financial statement?

a)

Business Name

b)

Report Name

c)

Date

d)

For Month Ended December 31, 20--

14.

Accounts Receivable, Office Equipment, and Cash are all:

a)
Expenses
b)
Assets
c)
Liabilities
d)
Utilities
15.

A _____________ is used to summarize the general ledger information needed to prepare financial statements.

a)
Adjusted Trial Balance
b)
Schedule of Accounts Receivable
c)
Worksheet
d)
Schedule of Accounts Payable
16.

An ____________ is an account in a general ledger that summarizes all accounts in a subsidiary ledger.

a)
Contra account
b)
Temporary account
c)
Nominal account
d)
Controlling account
17.
Many businesses deposit employee net pay directly to each employee's bank account by using
a)
EFTs
b)

Deductions

c)
Petty Cash
d)

Crypto

18.

A reduction in the invoice amount to encourage prompt payment is known as:

a)

Trade Discount

b)

Depreciation

c)

Sales Discount

d)
Liability
19.

A promissory note that a business offers to a person or business is a(n):

a)
Note payable
b)
Note receivable
c)
Net loss
d)
Endorsement
20.

Earnings NOT distributed to stockholders are known as:

a)

Retained earnings

b)

Capital stock

c)

Withdrawals

d)
Dividends
21.

A check which has not been cashed due to insufficient funds is known as:

a)
Canceled
b)
Disnohored
c)
Voided
d)
Postdated
22.

If expenses are higher than revenue, the business has a:

a)
Net Income
b)
Net Loss
c)
Gross Profit
d)
Gross Margin
23.

If the actual amount of petty cash on hand is more than the recorded amount it is called:

a)
Net Loss
b)
Cash Loss
c)
Cash Over
d)
Cash Short
24.
An account that reduces a related account on a financial statement is a(n):
a)
Controlling account
b)
Permanent account
c)
Contra account
d)
Real account
25.

Which of the following is not a special journal?

a)
General
b)

Cash Payments

c)

Cash Receipts

d)

Sales

26.
The original price of all the merchandise sold during a fiscal period is known as the:
a)
Cost of merchandise sold
b)
Gross profit
c)
Gross margin
d)
Par value
27.

Which of the following decreases the cash account?

a)

Pay by check

b)

Pay by cash

c)

Pay by debit card

d)

All of these

28.
GAAP stands for:
a)
General Applied Accounting Practices
b)

Generally Agreed Accounting Principles

c)

General Accounting Audit Practices

d)
Generally Accepted Accounting Principles
29.

Assets used for more than a year, such as a equipment are called ____________ assets.

a)
Current
b)
Long-Term
c)
Plant
d)
Fiscal
30.

A business that performs an activity for a fee is a ___________ business.

a)
Service
b)
Merchandising
c)
Inventory
d)
Manufacturing
31.

Earnings paid to an employee before payroll taxes and other deductions is known as:

a)
Gross Pay
b)
Gross Salary
c)
Net Pay
d)
Net Sales
32.

Which of the following is not an operating expense?

a)

Rent Expense

b)

Salary Expense

c)

Federal Income Tax Expense

d)

Utilities Expense

33.

Payroll deductions are withheld from an employee's:

a)

Gross Pay

b)

Net Pay

c)

Retained Earnings

d)

Salary Expense

34.

Assets = Liabilities + Owner's Equity is known as:

a)

The Balance Sheet

b)

The Accounting Equation

c)

The Accounting Cycle

d)

The Chart of Accounts

35.

Accounting is known as the language of _____________.

a)
Ethics
b)

Finance

c)

Business

d)
Money