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WorksheetsAccounting 2 Review - Semester 1 (Acc. Essentials)
Total questions: 65
Worksheet time: 48mins
What classification is "Accounts Payable"?
Asset
Liability
Owner's Equity
What classification is "supplies"?
Asset
Liability
Owner's Equity
What classification is "Michael Delgado, Capital"?
Asset
Liability
Owner's Equity
What classification is "prepaid insurance"?
Asset
Liability
Owner's Equity
What two accounts are changing? Paid cash for supplies
Cash + Supplies +
Cash - Supplies +
Cash - Supplies -
What two accounts are changing? Bought supplies on account.
Cash - Supplies +
Cash + Supplies -
Supplies + Accounts Payable +
Supplies + Accounts Payable -
What two accounts are changing? Paid Cash on account.
Cash - Accounts Payable +
Cash + Accounts Payable -
Cash + Accounts Payable +
Cash - Accounts Payable -
What is Revenue?
A part of the business plan
Something the IRS gives you
An increase in equity due to the sale of goods
Cash paid to a creditor
What is an expense?
Something expensive
Increases in the Cash account
Decreases in the Prepaid Insurance account
Cost of goods & Services used to operate a business
What are financial statements?
Records that show the employee salaries of a business
Statements that track the inventory of a business
Documents that outline the marketing strategies of a business
Reports that summarize the activities and financial performance of a business
What is the purpose of financial statements?
To give investors and lenders an understanding of a business's financial health
To provide a breakdown of a business's marketing expenses
To track the number of employees in a business
To calculate the taxes owed by a business
Which financial statement gives a snapshot of a business's assets, liabilities, and equity at a single point in time?
Statement of profit and loss
Cash flow statement
Balance sheet
Income statement
What does the balance sheet show?
The cash inflows and outflows of a business
The revenue and expenses of a business over a period of time
What a business owns and what it owes
The profitability of a business
What is the accounting equation that the balance sheet must adhere to?
Assets + Liabilities = Equity
Assets = Liabilities - Equity
Assets = Liabilities + Equity
Assets - Liabilities = Equity
Which financial statement summarizes a business's revenues and expenses over a period of time?
Income statement
Balance sheet
Cash flow statement
Statement of profit and loss
What does the income statement show?
The profitability of a business over a period of time
The cash inflows and outflows of a business
The assets, liabilities, and equity of a business
The marketing expenses of a business
What is the net profit of a business?
The total revenue earned by a business
The total expenses incurred by a business
The difference between revenue and expenses
The total assets of a business
Why do businesses need a cash flow statement?
To reconcile the difference between revenue and expenses
To show the cash inflows and outflows over a period of time
To calculate the taxes owed by a business
To track the inventory of a business
What is the cash flow statement used for?
To show the cash inflows and outflows over a period of time
To provide a breakdown of a business's marketing expenses
To give investors and lenders an understanding of a business's financial health
To track the number of employees in a business
What is the cash method of accounting?
Tracking the cash inflows and outflows of a business
Calculating the profitability of a business
Recognizing revenue when cash is received and recording expenses when cash is paid out
Recognizing revenue as it's earned and recording expenses as they are incurred
What is the accrual method of accounting?
Calculating the profitability of a business
Recognizing revenue as it's earned and recording expenses as they are incurred
Tracking the cash inflows and outflows of a business
Recognizing revenue when cash is received and recording expenses when cash is paid out
Why do businesses using accrual accounting need a cash flow statement?
To show the cash inflows and outflows over a period of time
To reconcile the difference between revenue and expenses
To track the inventory of a business
To calculate the taxes owed by a business
What does the cash flow statement show?
The marketing expenses of a business
The profitability of a business over a period of time
The cash inflows and outflows of a business
The assets, liabilities, and equity of a business
If a coffee shop sells 800 cups of coffee for $1.75 each, what is their revenue?
$1,400
$1,750
$1,600
$1,200
Find the missing amount:
Assets = 800
Liabilities = -200
Owner Equity =
600
1000
100
500
If Buddy the Elf borrows money, which two columns is it listed under?
Assets and Liabilities
Assets and Equity
Capital and Liabilities
Assets
Find the missing amount:
Assets =
Liabilities = -200
Owner Equity = 700
850
900
500
1000
__________________________ expenses are paid but have not yet been used, they are considered a Deferred Expense.
ACCRUED
ACCOUNTING
USEFUL
ASSETS
PREPAID
Which of the following is an example of a prepaid expense one that you would defer throughout the year?
A. Service Revenue collected in advance
B. Salaries payable
C. Insurance paid in advance
D. Rent paid for the current month
After completing adjustments the worksheet must
Still be in balance
Contain only negative numbers
Have more debits than credits
Havre credits than debits
If an accountant realizes an earlier posting mistake during an accounting period, she should:
Go back and erase the original entry and then replace it correctly.
Inform the IRS
Make (an) adjusting entry(ies)
None of these
Recognizing that a loss of value has occurred to vehicles during an accounting period requires a debit to
Vehicles
Cash
Accounts Payable
Depreciation Expense
On January 1 a company purchased billboard advertising for 12 months for $6,000. On January 31, an adjusting credit was made to the __________account for $__________.
Prepaid Advertising/$500
Advertising Expense/$500
Cash/$1,000
Accrued Advertising/$500
When adjusting prepaid accounts, which accounts are debited?
Revenues
Assets
Expenses
Liabilities
What is NOT shown on the balance sheet?
Owner’s capital
Amount and types of property the business owns
Amounts owed to creditors
Revenue and expenses
Match each figure to the financial statement on which it’s listed.
Net cash from investing activities
Statement Of Cash Flows
Net income
Income Statement
Beginning capital balance
Statement of Owner's Equity
Total liabilities and owner’s equity
Balance Sheet
Which option describes the final closing entry?
Debit to Income Summary, credit to Owner’s Capital
Debit to Owner’s Capital, credit to Owner’s Withdrawal
Debit to Service Revenue, credit to Income Summary
Credit to Rent Expense, debit to Income Summary
The FIRST account that we CLOSE is...
Advertising Expense
Drawing
Income Summary
Sales
Which account is a temporary account?
Accts. Rec. - Donatelli Enterprises
Income Summary
Mrs. Guttridge, Capital
Accts. Pay. - Midgett's Gadets
What is the first step in the accounting cycle?
Organize into groups and edit
Archive
Capture activity of a business
Publish the story
How is the activity of a business captured in the accounting cycle?
Through a ledger account
By preparing a cash flow statement
By creating a balance sheet
Through a journal entry
What does 'organize into groups and edit' involve in the accounting cycle?
Closing the books
Creating a trial balance
Posting journal entries
Preparing financial statements
What is the 'story' in accounting referred to in the text?
Trial balance
Ledger accounts
Financial statements
Journal entries
What is the final step in the accounting cycle as mentioned in the text?
Capture activity of a business
Publish the story
Archive
Organize into groups and edit
What is the purpose of the closing process in accounting?
To prepare the books for the next period
To capture business activity
To organize information into accounts
To create financial statements
Which of the following is NOT a component of the accounting cycle mentioned in the text?
Budgeting
Capture activity of a business
Organize into groups and edit
Archive
What is the purpose of organizing information into accounts?
To edit and group data
To prepare a budget
To create a cash flow statement
To finalize the balance sheet
What is the role of journal entries in the accounting cycle?
To capture business activity
To publish financial statements
To archive data
To prepare a trial balance
What is the main content of the video mentioned in the text?
Detailed financial analysis
Tax preparation methods
Advanced accounting techniques
Key components of the accounting cycle
Which of the following presents the first three steps in the accounting cycle in the correct order:
Post, analyze, and journalize
Analyze, post, and journalize
Analyze, journalize, and post
Post, journalize, and analyze
The payment of an employee's net pay using electronic funds transfer.
EFT
Payroll Check
Wage Check
Pay Period Check
Direct Deposit
FICA taxes include:
social security tax
withholding allowances
local tax
commission
The amount of money that tax calculations are based on is called:
social security income
liability income
taxable income
itemized deductions
Define the term 'pay stub'.
A document an employee receives listing payment details
A type of tax form
A digital payment method
A financial planning tool
Define the term 'net pay'.
The total amount of money earned by an employee before any deductions.
The amount of money an employee takes home after all deductions.
The total amount of an employee's earnings allocated for retirement plans.
The amount of money an employee earns in overtime.
Employee's Withholding Allowance Certificate
W-2
W-9
W-6
W-4
Total amount of money earned for the entire year up to the current pay period
Year to Day
Year to Date
Year to Time
Year to Cost
How do you calculate Gross Profit?
Sales - COGS
Sales - NP
COGS - Expenses
COGS - NP
What does liquidity mean?
The company's ability to pay its obligations.
The company's ability to collect its receivables.
The company's ability to increase financing
The company's ability to obtain a new loan
If the ending inventory balance for March is $60,000, what will be the beginning inventory balance for April?
$50,000
$60,000
$70,000
$80,000
Calculate the Units available for Sale and the Goods available for sale ($) using the following information:
Purchases: Jan: 8 units @ $140; Feb: 10 @ $135; March: 13 @ $130; April: 15 @$120; May: 8 @ $115.
50 units/$5,400
76 units/$8,740
64 units/$7,890
54 units/$6,880
