WorksheetsReview-Part 1
Total questions: 38
Worksheet time: 28mins
Which of the following is an example of an asset?
Accounts Payable
Cash
Owner’s Equity
Revenue
What are the three main components of a Balance Sheet?
Assets, Revenue, Expenses
Assets, Liabilities, Equity
Revenue, Net Income, Assets
Equity, Expenses, Revenue
Owner's equity is calculated by:
Assets - Liabilities
Revenue - Expenses
Liabilities + Revenue
Expenses + Assets
Which of the following would appear under liabilities?
Cash
Accounts Receivable
Accounts Payable
Inventory
Which financial report shows what a company owns and owes?
Income Statement
Cash Flow Statement
Balance Sheet
Trial Balance
Which of the following is NOT typically found on a Balance Sheet?
Assets
Liabilities
Equity
Trial Balance
The balance sheet must always:
Show a profit
Balance
Include tax information
Match the cash flow statement
The Income Statement covers:
A single point in time
An entire year only
A specific period of time
Only monthly data
The bottom line of the Income Statement is called:
Revenue
Expenses
Net Income
Equity
If a business has more expenses than revenue, the result is:
Net income
Net loss
Equity increase
Asset growth
Which of the following is NOT an expense?
Utilities
Rent
Salaries
Inventory on hand
Net income is calculated by:
Revenue + Expenses
Assets - Liabilities
Revenue - Expenses
Liabilities + Equity
An Income Statement shows:
the revenues and expenses of a business over a period of time
the cash flow of a business at a specific date
the assets and liabilities of a business at a specific date
the owner's equity changes over a period of time
Equity represents:
What the company owes
What the company owns
Owner's share in the business
Business income
Which of the following is a non-current asset (also called fixed asset)?
Office supplies
Cash
Land
Accounts receivable
A loan from the bank would appear as:
An asset
Equity
Liability
Expense
Income Statements are used to evaluate:
Profitability
Asset value
Owner investment
Loan balances
Accounts receivable is classified as:
A liability
An asset
Revenue
Expense
Interest expense is shown on the:
Balance Sheet
Statement of Equity
Income Statement
Chart of Accounts
Which of these is a current asset?
Buildings
Inventory
Land
Patents
Operating income is calculated after subtracting ______ from Gross Profit:
COGS only
Assets
Operating expenses
Loans
Which of the following would be recorded as revenue?
Loan payments
Salary expense
Product sales
Utilities expense
The difference between current assets and fixed assets is:
Current assets are expected to be converted into cash within a year, while fixed assets are long-term resources used in business operations.
Current assets are used for long-term investments, while fixed assets are for daily expenses.
Current assets are intangible, while fixed assets are always tangible.
Current assets are liabilities, while fixed assets are equity.
Equipment are an example of an/a ______?
loan
asset
liability
owners equity
Furniture is regarded as
Assett
Fixed Assett
Liability
Current Liability
Which of the following is considered an asset in accounting?
Bank loan
Office furniture
Car insurance
Employee salaries
What is liquidity?
Refers to the state of water
Money invested as a down payment
How quickly you can convert an asset to cash
An example of cash outflow is
Salary earned
Interest earned
Electricity bill paid
Rent received
Susan opened a business and invested $5,000 in cash and a computer worth $2,500. These investments will increase
assets by $5,000
assets by $7,500
liabilities by $5,000
liabilities by $7,500
A company pays $50,000 in cash to its employees for their monthly salaries. Which category does this cash outflow belong to? Think about the day-to-day activities required to run the business.
Operating Activities
Financing Activities
Investing Activities
A bakery buys a new delivery van for $30,000 in cash. How should this be classified? This purchase involves a long-term asset that will help the business for more than one year.
Operating Activities
Financing Activities
Investing Activities
A tech startup receives $1,000,000 in cash from selling its own stock to investors. Which category is this? Hint: Where did the company get the money from? Owners or operations?
Operating Activities
Financing Activities
Investing Activities
A retail store collects $5,000 in cash from customers for clothing sales. Which category is this?
Investing Activities
Operating Activities
Financing Activities
A large corporation pays $200,000 in cash dividends to its shareholders. How is this classified?
Investing Activities
Financing Activities
Operating Activities
A construction company sells an old, used bulldozer for $15,000 in cash. What category is this?
Financing Activities
Operating Activities
Investing Activities
