WorksheetsBasics o Accounting
Total questions: 30
Worksheet time: 16mins
Accounting is primarily concerned with:
Recording financial transactions
Hiring employees
Production of goods
Marketing of products
Which of the following is known as the ‘father of accounting’?
Adam Smith
Luca Pacioli
Henry Fayol
Kohler
The left side of an account is known as:
Credit side
Debit side
Asset side
Liability side
Which financial statement shows the financial position of a business?
Cash Flow Statement
Income Statement
Balance Sheet
Statement of Retained Earnings
The accounting equation is:
Assets = Capital – Liabilities
Assets = Liabilities – Capital
Assets = Liabilities + Capital
Assets = Capital
Which concept assumes that business and owner are separate?
Money Measurement Concept
Cost Concept
Business Entity Concept
Matching Concept
Goods purchased for resale are called:
Fixed assets
Current liabilities
Purchases
Expenses
Depreciation is charged on:
Current assets
Fixed assets
Intangible assets only
None of the above
Recording transactions in chronological order is done in:
Ledger
Journal
Trial Balance
Balance Sheet
A trial balance is prepared to:
Find net profit
Record transactions
Check arithmetical accuracy of books
Prepare cash account
Which account does Rent Paid relate to?
Personal Account
Real Account
Nominal Account
Asset Account
The rule for nominal accounts is:
Debit what comes in, credit what goes out
Debit all expenses and losses, credit all incomes and gains
Debit the receiver, credit the giver
Debit assets, credit liabilities
Which of the following is a characteristic of a liability?
It represents an obligation to pay
It is an asset owned by the business
It increases equity
It is not measurable in monetary terms
What is the primary purpose of a cash flow statement?
To record all transactions
To show profitability
To summarize financial position
To track cash inflows and outflows
Which accounting principle requires expenses to be matched with revenues?
Revenue Recognition Principle
Accrual Principle
Conservatism Principle
Matching Principle
What is the primary function of the income statement?
To show cash inflows and outflows
To report revenues and expenses
To summarize assets and liabilities
To track inventory levels
Which accounting principle dictates that revenue should be recognized when earned?
Accrual Principle
Revenue Recognition Principle
Matching Principle
Conservatism Principle
What type of account is 'Accounts Payable' classified as?
Asset Account
Liability Account
Equity Account
Expense Account
What is the purpose of the balance sheet?
To summarize revenues and expenses
To track inventory levels
To report the financial position of a business
To show cash inflows and outflows
Which of the following accounts is considered a real account?
Sales Revenue
Accounts Receivable
Rent Expense
Service Revenue
What does the term 'accrual' refer to in accounting?
Recording revenue when cash is received
Both revenue and expenses recognized when earned or incurred
Recording expenses when they are incurred
Recognizing income before it is earned
Which accounting principle states that expenses should be recorded in the same period as the revenues they help to generate?
Revenue Recognition Principle
Matching Principle
Accrual Principle
Conservatism Principle
What is the primary purpose of the general ledger?
To prepare financial statements
To track inventory levels
To record all financial transactions
To summarize cash flows
Which of the following is an example of a current asset?
Equipment
Long-term Investments
Accounts Receivable
Land
If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000, the amount of net income or net loss for the period was:
net loss of $35,000
net income of $35,000
net income of $14,000
net loss of $14,000
Transaction & events not capable of being expressed in terms of money are not to be recorded in accounting due to
Going concern
Accounting entity
Money measurement
Periodicity
A collection of all accounts is a ___________
Journal
Trial balance
Ledger
Chart of Accounts
Accounts receivable normally has ________ balance
Debit
Credit
Negative
Tidak ada jawaban yang benar
Accountants use Generally Accepted Accounting Principles (GAAP) to make the financial information communicated
I. relevant II. reliable III. comparable IV profitable
I, II and III
I, II and IV
I, III and IV
)II, III and IV
One of the detailed rules used to record business transaction is
Objectivity
Accruals
Going Concern
Double entry book keeping
