WorksheetsAccounting
Total questions: 18
Worksheet time: 9mins
What is the accounting equation?
Assets = Liabilities − Equity
Assets + Liabilities = Equity
Assets = Liabilities + Equity
Assets = Revenue − Expenses
Which of the following is an asset?
Accounts Payable
Bank Loan
Owner’s Capital
Cash
Which account is increased with a debit?
Revenue
Equity
Assets
Liabilities
Buying equipment with cash will:
Increase assets and increase liabilities
Increase one asset and decrease another asset
Increase assets and increase equity
Decrease assets and decrease equity
Which of the following is a liability?
Supplies
Equipment
Account Payable
Owner’s Drawings
If total assets are $10,000 and liabilities are $6,000, what is equity?
$16,000
$14,000
$6,000
$4,000
Every business transaction affects at least two accounts.
True
False
When recording a journal entry a debit goes on what side?
Left
Right
Which Financial Statement shows a business's profit or loss?
Balance Sheet
Income Statement
Statement of Financial Position
Statement of Cash Flow
Which Account type is increased with a credit?
Account Payable
Cash
Account Receivable
Inventory
Accounting helps business understand their money.
True
False
When recording a journal entry, a credit goes on the left side.
True
False
If a owner contributes equipment of $50k, what is the correct journal entry.
Debit Cash $50K
Credit A/P $50K
Debit Equipment $50K
Credit O/E $50K
Debit Equipment $50K
Credit Cash $50K
Debit A/P $50K
Credit O/E $50K
If a business takes a loan of $100K from a bank, what is the correct journal entry?
Debit Cash $100K
Credit Loan Payable $100K
Debit Loan Payable $100K
Credit Cash $100K
Debit Inventory $100K
Credit O/E $100K
Debit O/E $100K
Credit Cash $100K
If you purchase furniture for $20K on credit or on account, what is the correct journal entry?
Debit Cash $20K
Credit A/P $20K
Debit Furniture $20K
Credit Cash $20K
Debit Furniture $20K
Credit A/P $20K
Debit O/E $20K
Credit A/P $20K
You credit sales revenue to increase it.
True
False
Which account is an expense account and would be on an Income/Profit and Loss Statement
Cash
interest Income
Loan Payable
Office Expenses
You debit expense and asset accounts to increase it.
True
False
