WorksheetsAccounting Review Cards
Total questions: 20
Worksheet time: 10mins
True or false: The business should record a legal expense of $1,500.
True
False
It depends on the context
Only if it exceeds $1,000
True or false: The business should record revenue of $4,000.
True
False
$4,500
$3,500
Which financial statement shows the assets of a company to the bank?
Income Statement
Cash Flow Statement
Balance Sheet
Statement of Changes in Equity
What does uncleared deposits mean?
Typically happens when the transaction is made on the last day of the month and the bank does not record it until the first day of the next month.
Refers to deposits that have been processed and are available for withdrawal immediately.
Indicates that the funds have been transferred to another account and are no longer available.
Describes deposits that are held in a pending state due to insufficient funds.
Current Asset or Long Term?
Current Asset
Long Term Asset
Fixed Asset
Intangible Asset
What are NSF checks?
Checks that are returned due to insufficient funds in the issuer's account.
Checks that are guaranteed by the bank.
Checks that are issued for a specific purpose only.
Checks that can be cashed at any bank without restrictions.
True or false:
Equity = Assets - Liabilities
and
Assets = Liabilities + Owner's Equity
Both true.
Only the first statement is true.
Only the second statement is true.
Both statements are false.
Which accounts have a natural debit balance?
Expenses and equity
Assets and expenses
Liabilities and revenue
Assets and liabilities
True or false: The business should record an expense of $300 for Communications – Internet.
True
False
$300 is too high
It depends on the budget
True or false: The business should record a total of $11,000 as a debit to Cash.
True
False
$11,000 should not be recorded
The business should record $11,000 as a credit
You are the bookkeeper for a video game company. Your company recently licensed one of its new games to a distributor. The distributor paid your company $4,000 at the contract signing as an advance royalty for the first 500 games sold and will pay $8 for each game sold after. Which best describes the effect of royalty income on the accounting equation?
Royalty income increases equity.
Royalty income decreases liabilities.
Royalty income has no effect on the accounting equation.
Royalty income decreases assets.
Current Asset or Long-Term? Trademark
Current Asset
Long-Term
Intangible Asset
Fixed Asset
You recently formed a small business selling fish and chips from a mobile food truck. The business is doing so well that you decide to include your brother as a partner. He joins the company and contributes a second food truck. What describes the effect of this transaction?
Decrease in assets and equity.
No change in assets and equity.
Increase in liabilities and equity.
Increase in assets and equity.
How is depreciation reported on an income statement?
A: As a current liability
B: As any other normal business expense
C: As an intangible asset
D: As a reduction in revenue
A concept that compares internal financial records against monthly statements from external sources?
Account reconciliation
Financial auditing
Budget variance analysis
Cash flow forecasting
Current Asset or Long Term?
Inventories
Current Asset
Long Term Asset
Fixed Asset
Intangible Asset
True or False: Investments other than cash are recorded at the cash equivalent or fair market value of the asset.
True
False
Depends on the asset type
Only if specified in the contract
What is an uncleared check?
A check that has been written and recorded in the payer's records, but the check has not yet been paid by the bank on which it is drawn.
A check that has been cashed and is no longer valid.
A check that has been lost and cannot be recovered.
A check that is written for an amount greater than the account balance.
How can a company adjust its inventory balance?
Inventory adjustment entries
Income statement entries
Cash flow entries
Sales revenue entries
When do duplicate entries happen?
They sometimes happen when you import lists and transactions from an external program into your company data file.
They occur when two users try to edit the same entry simultaneously.
They happen when data is manually entered incorrectly by users.
They are caused by system errors during data processing.
