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WorksheetsMake-up Exam
Total questions: 52
Worksheet time: 26mins
Full Name (Last Name, First Name)
Section (example format: ABM 1)
What is the primary purpose of accounting?
To prepare tax returns
To provide financial information
To reduce company expenses
To attract more customers
Which of the following is considered an asset?
Loan Payable
Owner’s Capital
Utilities Expense
Accounts Receivable
Which financial statement shows a company’s revenues and expenses?
Balance Sheet
Cash Flow Statement
Income Statement
Owner's Equity Statement
What is a liability?
Obligation payable to others
Property owned by a business
Money earned by a business
Investment made by owners
Which of the following is NOT a type of business organization?
Sole proprietorship
Partnership
Corporation
Government agency
A debit entry will:
Decrease assets and increase revenue
Increase assets and decrease liabilities
Increase liabilities and increase expenses
Increase revenue and decrease assets
The owner's claim against the business assets is called:
Liability
Revenue
Owner’s Equity
Asset
Which account normally has a credit balance?
Cash
Accounts Receivable
Accounts Payable
Equipment
Which of the following increases owner’s equity?
Expense
Withdrawal
Liability
Revenue
Which account decreases with a debit entry?
Accounts Payable
Cash
Equipment
Supplies
A business purchases supplies for cash. What accounts are affected?
Supplies and Accounts Payable
Cash and Revenue
Equipment and Supplies
Supplies and Cash
Owner withdraws cash for personal use. Which account decreases?
Revenue
Drawing
Capital
Expense
If an expense is paid in cash, what happens?
Cash increases
Cash decreases
Expense decreases
Owner’s equity increases
If you receive cash from a customer, which account is credited?
Cash
Service Revenue
Accounts Receivable
Owner’s Equity
Which financial statement shows a company’s assets, liabilities, and owner’s equity?
Income Statement
Statement of Cash Flows
Owner’s Equity Statement
Balance Sheet
Which financial statement would you look at to find a company's net income?
Balance Sheet
Income Statement
Statement of Owner’s Equity
Cash Flow Statement
The ending balance of owner’s equity is shown in which statement?
Balance Sheet
Income Statement
Statement of Owner’s Equity
Statement of Cash Flows
What does an increase in owner’s drawings do to equity?
Increases it
Decreases it
No effect
Doubles it
Which of the following increases with a credit?
Expenses
Assets
Revenues
Drawings
Paying an account payable does what?
Increases Cash
Decreases Cash
Increases Revenue
Decreases Owner’s Equity
Recording transactions chronologically is done in the:
Ledger
Trial Balance
Journal
Balance Sheet
Which is prepared first?
Ledger
Trial Balance
Journal
Financial Statements
In a journal entry, what comes first?
Credit
Debit
Explanation
Date
Which account is usually credited when a business performs a service?
Cash
Service Revenue
Accounts Receivable
Unearned Revenue
What is the purpose of a trial balance?
To compute net income
To prove debits equal credits
To show cash inflows
To calculate owner’s equity
Closing entries are made to:
Reset temporary accounts to zero
Record cash receipts
Adjust asset accounts
Increase liabilities
Which of the following is a temporary account?
Accounts Receivable
Cash
Service Revenue
Accounts Payable
Which account is NOT closed at the end of the accounting period?
Utilities Expense
Service Revenue
Rent Expense
Owner’s Capital
A business pays salaries of ₱15,000. What is the journal entry?
Debit Salaries Payable, Credit Cash
Debit Cash, Credit Salaries Expense
Debit Salaries Expense, Credit Cash
Debit Owner’s Capital, Credit Salaries Expense
What is the primary purpose of posting in accounting?
To record initial transactions
To organize transactions by account
To prepare financial statements
To adjust accounts
A transaction that increases both an asset and a liability is:
Purchasing supplies on account
Paying off a loan
Receiving cash from revenue
Owner investment
The accounting assumption that states business transactions are separate from the owner’s personal transactions is:
Going Concern Assumption
Economic Entity Assumption
Monetary Unit Assumption
Time Period Assumption
The owner invests additional cash into the business. Which account increases?
Expense
Owner’s Capital
Revenue
Owner’s Drawing
The purchase of office equipment for cash affects:
One asset increases, another asset decreases
Asset increases, liability increases
Asset increases, equity decreases
Asset decreases, revenue decreases
The business provides service on account. What is recorded?
Debit Cash, Credit Service Revenue
Debit Accounts Payable, Credit Service Revenue
Debit Accounts Receivable, Credit Service Revenue
Debit Owner’s Capital, Credit Accounts Receivable
Which accounts are increased by credits?
Assets and Expenses
Liabilities and Revenues
Assets and Revenues
Owner’s Equity and Expenses
Which of the following is an internal user of financial information?
Investor
Creditor
Manager
Tax authority
What is the result of revenues exceeding expenses?
Net Loss
Net Income
Increased Liabilities
Decreased Assets
Which element is NOT included in the accounting equation?
Assets
Liabilities
Revenue
Owner’s Equity
What type of account is "Accounts Payable"?
Asset
Liability
Owner’s Equity
Revenue
When the company pays a debt, what is the effect on the accounting equation?
Increase assets, decrease liabilities
Decrease assets, decrease liabilities
Increase assets, increase liabilities
Increase liabilities, decrease assets
Which account increases with a debit?
Service Revenue
Accounts Payable
Cash
Capital
If Assets = ₱150,000 and Liabilities = ₱90,000, what is Owner’s Equity?
₱60,000
₱240,000
₱90,000
₱150,000
If Owner’s Equity = ₱70,000 and Liabilities = ₱30,000, what are the Assets?
₱40,000
₱100,000
₱20,000
₱70,000
Which of the following transactions would decrease owner’s equity?
Revenue
Investments
Expenses
Sale of assets
Paying salaries to employees affects the accounting equation by:
Decreasing assets and equity
Increasing liabilities
Increasing assets
Decreasing liabilities only
Which side of the accounting equation does revenue affect?
Liabilities
Assets
Owner’s Equity
None
An increase in assets must be accompanied by:
An equal decrease in liabilities
A decrease in equity
An equal increase in liabilities or equity
No change
Which transaction would cause both the asset and the liability to increase?
Owner investment
Paying rent
Purchasing supplies on credit
Paying salaries
Paying rent expense affects the equation how?
Decreases assets and equity
Increases assets
Increases liabilities
Decreases liabilities
