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WorksheetsQuiz - Review Accounting 1
Total questions: 20
Worksheet time: 4mins
1. Which of the following is an example of an asset?
Accounts Payable
Cash
Service Revenue
Capital
2. The accounting equation is:
Assets = Liabilities – Equity
Assets = Liabilities + Equity
Assets + Equity = Liabilities
Liabilities = Assets + Expenses
3. Which financial statement reports revenues and expenses?
Balance Sheet
Income Statement
Statement of Owner’s Equity
Cash Flow Statement
4. Accounts Payable is classified as a:
Revenue
Expense
Liability
Asset
5. An increase in an asset account is recorded as a:
Debit
Credit
Contra-account
Adjustment
6. In Accrual Basis, Revenue is recognized when:
Cash is received
Work is performed or goods are delivered
Customer orders the service
Customer promises to pay
7. Which account normally has a credit balance?
Cash
Accounts Receivable
Owner’s Equity
Supplies
8. Depreciation is used to:
Estimate cash flows
Record asset purchases
Increase profit
Allocate the cost of an asset over its useful life
9. The trial balance is used primarily to:
Verify that debits equal credits
Prepare bank reconciliation
Determine net income
Record adjusting entries
10. Prepaid Rent is considered a:
Liability
Expense
Asset
Revenue
11. Which financial statement shows a company’s financial position at a specific date?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Owner’s Equity
12. Unearned Revenue is classified as:
Asset
Expense
Revenue
Liability
13. Which of the following increases owner’s equity?
Owner withdrawals
Expenses
Revenue
Purchases of equipment
14. When a company pays an expense, the effect is:
Assets increase
Equity increases
Liabilities increase
Assets decrease
15. A credit to an asset account indicates:
A decrease
An increase
No change
A correction
16. Which account is an expense?
Service Revenue
Salaries Expense
Notes Payable
Rent Payable
17. The matching principle states that:
Assets must equal liabilities
Revenues must be recorded before expenses
Expenses should be recorded in the same period as related revenues
Cash must be received before recording revenue
18. The cash basis of accounting records revenues when:
Earned
Confirmed
Received
Delivered
19. A business document that verifies a transaction is called a:
Source document
Journal
Ledger
Trial balance
20. The ledger is a book that contains:
A chronological list of transactions
Only asset accounts
A list of customers and suppliers
A summary of all accounts and their balances
