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WorksheetsQ4 TLE-08 Lesson 02 Short Quiz
Total questions: 58
Worksheet time: 29mins
What is the **Chart of Accounts**?
A financial report
A list of account codes
A statement of income
A bank document
Which account code range is used for **Assets**?
51–100
1–50
151–200
201–250
What is the code range for **Liabilities**?
1–50
101–150
51–100
201–250
The code range for **Capital** is:
101–150
151–200
51–100
1–50
What code range is assigned to **Revenues**?
201–250
151–200
1–50
51–100
**Expenses** are assigned which account code range?
1–50
51–100
101–150
201–250
Which of the following is NOT part of the Chart of Accounts?
Revenues
Expenses
Statements
Assets
The chart of accounts helps in:
Filing income tax
Organizing account categories
Budgeting expenses
Applying for loans
Which of the following accounts would fall under code 1–50?
Accounts Payable
Owner’s Equity
Cash in Bank
Sales Revenue
What is the main purpose of a chart of accounts?
To prepare payroll
To compute taxes
To organize financial records
To create invoices
What is another name for the Balance Sheet?
Income Statement
Statement of Financial Condition
Cash Flow Statement
Statement of Revenue
Which of the following is shown in the Balance Sheet?
Monthly expenses
Sales transactions
Assets, Liabilities, and Net Worth
Annual budget
The basic accounting equation is:
Assets = Liabilities – Equity
Assets + Equity = Liabilities
Assets = Liabilities + Owner’s Equity
Assets – Liabilities = Profit
What does the Balance Sheet reflect?
Income and expenses
Profit margin
Financial condition of a business
Cash on hand
The Balance Sheet is used to determine:
Payroll details
Total sales
Owner’s investment
Financial position
In the accounting equation, Net Worth is also called:
Asset
Expense
Liability
Owner’s Equity
What is recorded under Current Assets?
Equipment
Building
Cash in Bank
Mortgage Payable
What is deducted from Accounts Receivable to show expected collection?
Depreciation
Investment
Allowance for Bad Debts
Owner’s Drawings
Prepaid expenses are listed as:
Revenue
Asset
Liability
Equity
Land and building are examples of:
Current Liabilities
Non-current Assets
Expenses
Owner’s Equity
What is deducted from buildings to show their reduced value?
Rent
Accumulated Depreciation
Investment
Loan
Where is Accounts Payable listed?
Owner’s Equity
Current Assets
Current Liabilities
Expenses
Payroll Taxes Payable is a type of:
Asset
Owner’s Investment
Expense
Liability
Which item is a long-term liability?
Accounts Receivable
Cash in Bank
Mortgage Payable (over 12 months)
Inventory
Retained earnings are part of:
Revenues
Expenses
Owner’s Equity
Liabilities
What does the Balance Sheet show about a firm?
Net sales
Market share
Financial standing
Marketing plan
Wages payable is a:
Current liability
Current asset
Non-current asset
Long-term liability
Which is NOT a function of the balance sheet?
Shows financial position
Lists assets and liabilities
Calculates profit
Shows owner’s claim
What formula shows Owner’s Equity?
Liabilities + Net Worth
Assets + Liabilities
Assets – Liabilities
Assets + Expenses
Owner’s investment is classified as:
Expense
Liability
Revenue
Equity
Which of the following is NOT a liability?
Mortgage Payable
Wages Payable
Retained Earnings
Accounts Payable
What are funds committed to business activities?
Revenues
Assets
Expenses
Liabilities
Claims against business assets are known as:
Expenses
Investments
Liabilities
Owner’s Equity
Which item is NOT an asset?
Cash in Bank
Accounts Receivable
Inventory
Wages Payable
The total of liabilities and equity must equal:
Assets
Revenues
Net Worth
Cash
An item found in both the accounting equation and the balance sheet is:
Income
Equity
Interest
Discounts
Which asset is most liquid?
Cash in Bank
Land
Inventory
Accounts Receivable
Owner’s claim on assets is called:
Revenue
Equity
Expenses
Debt
Which account is adjusted for depreciation?
Accounts Payable
Cash
Building
Retained Earnings
Which document is used to understand a company’s financial condition at a certain time?
Invoice
Balance Sheet
Receipt
Ledger
Which of the following represents a revenue account?
Salaries Expense
Sales
Building
Accounts Payable
What is the classification of “Utilities Expense”?
Asset
Revenue
Liability
Expense
Which account would be found under Owner’s Equity?
Drawing
Cash
Rent Expense
Accounts Payable
The account “Supplies” is classified as:
Current Liability
Owner’s Equity
Current Asset
Revenue
The term **Net Worth** refers to:
Total Liabilities
Assets minus Liabilities
Total Expenses
Total Revenues
If assets increase and liabilities stay the same, equity will:
Decrease
Stay the same
Increase
Double
Which of the following accounts normally has a **credit** balance?
Cash
Accounts Receivable
Accounts Payable
Equipment
Which account would not be classified as an expense?
Advertising
Salaries
Rent
Service Revenue
A decrease in Owner’s Equity may result from:
Investment
Net income
Net loss
Sales
What type of account is “Unearned Revenue”?
Asset
Liability
Equity
Expense
“Service Income” increases which part of the accounting equation?
Assets
Liabilities
Equity
Expenses
If liabilities exceed assets, the business is:
Profitable
Stable
Solvent
Insolvent
The **double-entry system** means:
Every transaction has one effect
Only revenues and expenses are recorded
Each transaction affects two accounts
One side is always larger than the other
Which account is usually debited when office supplies are purchased?
Supplies
Cash
Owner’s Equity
Accounts Payable
What financial document is prepared at the end of the accounting period to show balances?
Ledger
Trial Balance
Receipt
Invoice
What is the correct classification of “Building”?
Expense
Current Asset
Non-current Asset
Liability
Which account is increased by a debit entry?
Revenue
Liability
Expense
Capital
Which document lists all the accounts in the general ledger?
Trial Balance
Chart of Accounts
Balance Sheet
General Journal
