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WorksheetsQ2 TLE09 Assessment Review
Total questions: 95
Worksheet time: 1hrs 11mins
Name
Class
Date
1.
What are items of value that a business owns
a)
Liabilities
b)
Equities
c)
Assets
d)
Expenses
2.
Which of the following is a primary component of a balance sheet
a)
Revenue
b)
Expenses
c)
Owner's Equity
d)
Costs
3.
For an item to be listed as an asset it must be valuable measurable and what else
a)
New
b)
Insured
c)
Controlled by the business
d)
Liquid
4.
What category do assets fall into if they are expected to be converted to cash within one year
a)
Noncurrent assets
b)
Tangible assets
c)
Current assets
d)
Intangible assets
5.
Inventory and cash balances are examples of what
a)
Noncurrent assets
b)
Current assets
c)
Owner's equity
d)
Liabilities
6.
Which assets are not expected to be converted into cash within one year
a)
Current assets
b)
Liquid assets
c)
Bank balances
d)
Noncurrent assets
7.
Noncurrent assets are typically valuable to a business for how long
a)
Less than six months
b)
More than a year
c)
Exactly one year
d)
Less than a year
8.
What are noncurrent assets with a physical substance called
a)
Intangible assets
b)
Current assets
c)
Tangible assets
d)
Liquid assets
9.
Land buildings and machinery are common examples of what type of asset
a)
Intangible noncurrent assets
b)
Current assets
c)
Tangible noncurrent assets
d)
Trade receivables
10.
Which of these is an example of an intangible asset
a)
A company vehicle
b)
Office equipment
c)
A building
d)
A patent
11.
What term describes the debts of a business
a)
Assets
b)
Equity
c)
Revenue
d)
Liabilities
12.
Salaries payable and accounts payable are classified as what
a)
Noncurrent liabilities
b)
Current liabilities
c)
Assets
d)
Owner's equity
13.
A liability that arises from purchasing items on credit is called what
a)
Salaries payable
b)
Rent payable
c)
Accounts payable
d)
Utilities payable
14.
What are long-term debts of a business that will be paid off over more than a year called
a)
Current liabilities
b)
Accounts payable
c)
Noncurrent liabilities
d)
Owner's equity
15.
A bank loan is a common example of what
a)
Current liability
b)
Noncurrent liability
c)
Current asset
d)
Owner's equity
16.
What does Owner's Equity reflect in a business
a)
The business's daily sales
b)
The amount the owner has invested
c)
The total debt of the business
d)
The total cash on hand
17.
What are the two sources of Owner's Equity
a)
Assets and Liabilities
b)
Revenue and Expenses
c)
Owner's Investment and Retained Earnings
d)
Cash and Credit Sales
18.
What is the fundamental accounting equation
a)
Assets = Liabilities - Owner's Equity
b)
Assets = Liabilities + Owner's Equity
c)
Assets + Liabilities = Owner's Equity
d)
Assets + Owner's Equity = Liabilities
19.
If a business's assets are P200000 and its liabilities are P80000 what is the owner's equity
a)
P120000
b)
P280000
c)
P80000
d)
P200000
20.
When an owner invests personal cash into a business what two things increase
a)
Assets and Liabilities
b)
Liabilities and Expenses
c)
Assets and Owner's Equity
d)
Owner's Equity and Liabilities
21.
When a business borrows money from a bank what two things increase
a)
Assets and Owner's Equity
b)
Assets and Liabilities
c)
Liabilities and Expenses
d)
Owner's Equity and Revenue
22.
What must always be true for the accounting equation after any transaction
a)
Assets must be greater than liabilities
b)
Both sides must be equal
c)
Owner's equity must be zero
d)
Liabilities must be zero
23.
What is a list of account codes for assets liabilities equity revenues and expenses called
a)
A balance sheet
b)
An income statement
c)
A chart of accounts
d)
A journal entry
24.
What does revenue refer to in business
a)
The costs of operation
b)
The owner's investment
c)
The amount earned by selling goods or services
d)
The debts owed by the business
25.
Expenditures made to generate revenue are known as what
a)
Assets
b)
Liabilities
c)
Equity
d)
Expenses
26.
In a sample chart of accounts which category is typically assigned the first block of codes like 1-50
a)
Liabilities
b)
Capital
c)
Expenses
d)
Assets
27.
Which type of bookkeeping records each transaction as a single entry
a)
Double-entry
b)
Computerized
c)
Manual
d)
Single-entry
28.
What kind of organizations typically use single-entry bookkeeping
a)
Large corporations
b)
Government agencies
c)
Small businesses and clubs
d)
Multinational companies
29.
A receipts and payments account is more commonly known as a what
a)
Ledger
b)
Balance sheet
c)
Cashbook
d)
Journal
30.
What is a significant limitation of the single-entry bookkeeping system
a)
It is too complex
b)
It does not show asset details
c)
It is too expensive
d)
It requires special software
31.
Why can auditing a single-entry system be a tedious process
a)
Information must be converted to a double-entry format
b)
The records are always digital
c)
There are too many accounts
d)
The system is too secure
32.
Which bookkeeping system is considered the standard for most businesses
a)
Single-entry
b)
Manual
c)
Double-entry
d)
Simplified
33.
Every financial transaction in double-entry bookkeeping requires what
a)
A single credit entry
b)
A single debit entry
c)
A debit entry and a credit entry
d)
Approval from the owner
34.
Due to their shape double-entry accounts are often referred to as what
a)
Box accounts
b)
'L' accounts
c)
'T' accounts
d)
Circle accounts
35.
Under double-entry rules an increase in an asset account is recorded as a what
a)
Credit
b)
Debit
c)
Expense
d)
Liability
36.
Under double-entry rules a decrease in an asset account is recorded as a what
a)
Debit
b)
Credit
c)
Income
d)
Equity
37.
How is an increase in a liability account recorded
a)
As a debit
b)
As an expense
c)
As a credit
d)
As an asset
38.
How is a decrease in a liability account recorded
a)
As a credit
b)
As a debit
c)
As income
d)
As a loss
39.
An increase in a capital or owner's equity account requires which entry
a)
A debit entry
b)
A credit entry
c)
An expense entry
d)
An asset entry
40.
A decrease in an owner's equity account requires which entry
a)
A debit entry
b)
A credit entry
c)
An income entry
d)
A liability entry
41.
How is an increase in an expense account recorded
a)
As a credit
b)
As income
c)
As a debit
d)
As a liability
42.
How is an increase in an income or revenue account recorded
a)
As a debit
b)
As a credit
c)
As an expense
d)
As a liability
43.
When an owner invests P100000 cash into a new business what is the correct double entry
a)
Debit Capital P100000 Credit Cash P100000
b)
Debit Cash P100000 Credit Capital P100000
c)
Debit Cash P100000 Credit Loans Payable P100000
d)
Debit Loans Payable P100000 Credit Cash P100000
44.
If a business buys inventory on credit from a supplier what happens
a)
An asset decreases and a liability decreases
b)
An asset increases and a liability increases
c)
An asset increases and owner's equity increases
d)
An asset decreases and owner's equity decreases
45.
When a business pays off a creditor with a check what is the correct entry
a)
Debit the creditor's account and credit Bank
b)
Credit the creditor's account and debit Bank
c)
Debit both the creditor's account and Bank
d)
Credit both the creditor's account and Bank
46.
What are the two primary methods of bookkeeping
a)
Single and Double
b)
Internal and External
c)
Manual and Computerized
d)
Debit and Credit
47.
Which bookkeeping method is paper-based and done by hand
a)
Computerized
b)
Digital
c)
Automated
d)
Manual
48.
Why do small businesses often use the manual bookkeeping method
a)
It is modern and fast
b)
It is simple cheap and easy to maintain
c)
It provides better reports
d)
It prevents all errors
49.
Which bookkeeping method uses accounting software
a)
Manual
b)
Traditional
c)
Paper-based
d)
Computerized
50.
What is a major advantage of computerized bookkeeping
a)
It is the cheapest method
b)
It requires no training
c)
It is faster and more convenient
d)
It can be done without a computer
51.
What is a potential disadvantage of computerized bookkeeping
a)
It is slow
b)
It is unreliable
c)
It is expensive
d)
It is outdated
52.
A company's own delivery vehicle is an example of what
a)
An intangible asset
b)
A current asset
c)
A tangible noncurrent asset
d)
A liability
53.
What does 'Accounts Receivable' represent
a)
Money the business owes to suppliers
b)
Money customers owe to the business
c)
The owner's personal funds
d)
A long-term bank loan
54.
Utilities used but not yet paid for would be recorded as what
a)
Utilities Expense
b)
Utilities Payable
c)
Prepaid Utilities
d)
Utilities Revenue
55.
The owner taking cash out of the business for personal use is called a what
a)
Salary
b)
Investment
c)
Drawing
d)
Expense
56.
Which statement best describes the relationship in the accounting equation
a)
What a business owns is paid for by debt only
b)
What a business owns is paid for by the owner only
c)
What a business owns is paid for by either debt or the owner's investment
d)
What a business owes is equal to what it owns
57.
Which of the following is NOT a current asset
a)
Inventory
b)
Cash in bank
c)
Office equipment
d)
Accounts receivable
58.
Which of the following is NOT a current liability
a)
Accounts payable
b)
Salaries payable
c)
Mortgage payable
d)
Utilities payable
59.
The process of single-entry bookkeeping is best described as
a)
Complex and detailed
b)
Similar to a checkbook register
c)
Requiring debits and credits
d)
Used only for large companies
60.
A primary reason double-entry bookkeeping is more reliable than single-entry is because
a)
It is simpler to learn
b)
It has a self-checking mechanism
c)
It can be done without a calculator
d)
It is used by more people
61.
If a company performs a service and sends a bill to the client who will pay next month what is the correct double entry
a)
Debit Cash Credit Service Income
b)
Debit Accounts Receivable Credit Service Income
c)
Debit Service Income Credit Cash
d)
Debit Service Income Credit Accounts Receivable
62.
The term 'payable' in an account title like 'Salaries Payable' signifies a what
a)
Asset
b)
Liability
c)
Revenue
d)
Expense
63.
The term 'receivable' in an account title signifies a what
a)
Asset
b)
Liability
c)
Revenue
d)
Expense
64.
Which system makes it easier to prepare financial statements like the balance sheet
a)
Single-entry
b)
Double-entry
c)
Manual
d)
Cashbook
65.
What is a copyright an example of
a)
A tangible asset
b)
An intangible asset
c)
A current liability
d)
A current asset
66.
When a business pays rent for the month with cash what accounts are affected
a)
Rent Expense and Cash
b)
Rent Payable and Cash
c)
Rent Expense and Accounts Payable
d)
Prepaid Rent and Revenue
67.
Using the double-entry rules how would you record paying rent with cash
a)
Debit Cash Credit Rent Expense
b)
Credit Cash Credit Rent Expense
c)
Debit Rent Expense Credit Cash
d)
Debit Cash Debit Rent Expense
68.
A business's financial position is based on which three elements
a)
Revenue Expenses and Profit
b)
Cash Inventory and Equipment
c)
Assets Liabilities and Owner's Equity
d)
Sales Costs and Loans
69.
An item must have a value that can be what to be considered an asset
a)
Appreciated
b)
Insured
c)
Measured
d)
Guaranteed
70.
The amount of money provided directly by the owner to the business is called what
a)
Retained Earnings
b)
Revenue
c)
A loan
d)
Owner's Investment
71.
What are the profits kept in the business called
a)
Owner's Investment
b)
Sales Revenue
c)
Retained Earnings
d)
Net Loss
72.
On a balance sheet where are assets usually placed
a)
On the right side
b)
At the bottom
c)
On the left side
d)
In the middle
73.
On a balance sheet where are liabilities and owner's equity usually placed
a)
On the right side
b)
At the top
c)
On the left side
d)
Spread throughout
74.
A creditor is an individual or company to whom
a)
Money is owed
b)
Services are provided
c)
Goods are sold for cash
d)
A business reports its profits
75.
Which method is considered innovative and allows for faster recording of transactions
a)
The manual method
b)
The single-entry method
c)
The paper-based method
d)
The computerized method
76.
Reliability and efficiency are key benefits of which bookkeeping method
a)
Manual
b)
Computerized
c)
Single-entry
d)
Traditional
77.
Simplicity and low cost are key benefits of which bookkeeping method
a)
Computerized
b)
Double-entry
c)
Manual
d)
Digital
78.
A transaction involving the purchase of office supplies for cash would affect which accounts
a)
Supplies and Accounts Payable
b)
Supplies Expense and Cash
c)
Office Supplies and Cash
d)
Accounts Receivable and Cash
79.
The double-entry rule for expenses is that an increase is recorded as a
a)
Credit
b)
Debit
c)
Liability
d)
Asset
80.
The double-entry rule for revenue is that an increase is recorded as a
a)
Credit
b)
Debit
c)
Expense
d)
Liability
81.
If a business's Assets are P500000 and Owner's Equity is P300000 what are its Liabilities
a)
P800000
b)
P300000
c)
P500000
d)
P200000
82.
A trademark is a valuable asset but it cannot be physically touched so it is called what
a)
A current asset
b)
A tangible asset
c)
An intangible asset
d)
A noncurrent liability
83.
Clerical errors are a common limitation of which bookkeeping system
a)
Double-entry
b)
Computerized
c)
Single-entry
d)
Automated
84.
Which system makes it difficult to immediately determine a business's liabilities
a)
Double-entry
b)
Computerized
c)
Single-entry
d)
Audited
85.
The financial performance of a business may be unclear to management when using which system
a)
Double-entry
b)
Computerized
c)
Manual double-entry
d)
Single-entry
86.
The cross-referencing of accounts in double-entry bookkeeping facilitates what
a)
Slower data entry
b)
The ability to check for correctness
c)
The creation of more errors
d)
Hiding transactions
87.
Buying inventory on credit from Corpus Ltd creates what kind of account
a)
An asset account called Corpus Ltd
b)
An expense account called Corpus Ltd
c)
A liability account called Corpus Ltd
d)
A revenue account called Corpus Ltd
88.
The account 'Lee's Capital' in the chart of accounts represents what
a)
A liability
b)
Revenue
c)
An asset
d)
Equity
89.
The account 'Service Income' in the chart of accounts represents what
a)
An expense
b)
An asset
c)
Revenue
d)
A liability
90.
The account 'Rent Expense' in the chart of accounts is used to record what
a)
The cost of renting a property to generate revenue
b)
The income from renting out property
c)
The liability for future rent
d)
The asset value of a rental property
91.
Which of the following is a physical noncurrent asset
a)
Copyrights
b)
Cash
c)
Furniture
d)
Inventory
92.
When a business pays a utility bill what happens to the accounting equation
a)
An asset decreases and a liability decreases
b)
An asset decreases and an expense increases (decreasing equity)
c)
An asset increases and a liability increases
d)
An asset increases and equity increases
93.
What is the origin of a 'Salaries payable' liability
a)
Purchasing items on credit
b)
Services from employees that are not yet paid
c)
Unpaid rent
d)
Utilities used that are not yet paid
94.
The normal operating cycle of a business is a key factor in distinguishing between what
a)
Tangible and intangible assets
b)
Current and noncurrent items
c)
Manual and computerized systems
d)
Assets and liabilities
95.
The 'T' account format has a left side and a right side known as what
a)
Asset side and Liability side
b)
Income side and Expense side
c)
Debit side and Credit side
d)
Increase side and Decrease side
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