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Accounting 1 Lesson 1 (Stukent)

Total questions: 22

Worksheet time: 19mins

Name
Class
Date
1.

On April 7, Genevia Financial Planning (NYSE) had 34,524,350 shares outstanding. With a share price of $54.30, what is the company's total market capitalization? Round the Market Capitalization amount to the nearest dollar.

2.

On August 15th, The Coca-Cola Company (Ticker: KO) had a market capitalization of $277,605,000,000 and the market price for 1 share of stock was $64.18. Determine the total number of shares outstanding on August 15th. Round the number of shares outstanding to the nearest whole number.

3.

Regenify is a biotech startup in Boston, MA that recently raised a new round of funding from three prominent venture capital firms. There are 15,620,550 shares outstanding after the financing with a valuation of $120,000,000. What is the price per share of Regenify? Round to the nearest cent.

4.

Identify the accounting method that fits the following scenario.


Rebecca Brown, the sole owner of REDBE Lawncare is paid $120,000 on June 5th to provide lawncare services over the next 12 months for Jessamine Country Club. Rebecca records the $120,000 as revenue on June 5th when the cash was received.

a)

Accrual Accounting Method

b)

Cash Accounting Method

5.

Identify the accounting method that fits the following scenario.

Geoff Morgan purchases 6 months of billboard advertising from A-Jax Media in November. His bookkeeper records the full cash payment and advertising expense in November.

a)

Accrual Accounting Method

b)

Cash Accounting Method

6.

Identify the accounting method that fits the following scenario.

Morton's Car Repair sells its services to customers on credit and records revenue at the time they provide car repair services, not when payment for the services is made by the customer.

a)

Accrual Accounting Method

b)

Cash Accounting Method

7.

Identify the accounting method that fits the following scenario.

Jeri Winter is the owner of the residentual painting company, Bright Applications. Starting in October, Jeri started a series of painting jobs for one customer that is going to take 5 months to compelete. The customer will make one payment for all jobs at the end of the 5 months. In December, the end of the accounting period, Jeri has completed 3 of the jobs and records revenue equal to the value of the 3 jobs, even though payment has not been made yet.

a)

Accrual Accounting Method

b)

Cash Accounting Method

8.

For each job role below, identify its accounting information user type.

Categorize the following

Controller

Internal Auditor

Bookeeper

Customer Service Rep

Cost Accountant

Chief Marketing Officer

Staff Accountant

Stock Trader

Auditor

Tax Planning

Private Equity

Appraiser

Criminal Investigator

Internal User
External User
9.

For each job role below, identify its appropriate career area.

Categorize the following

Controller

Internal Auditor

Bookeeper

Cost Accountant

Staff Accountant

Stock Trader

Auditor

Customer Service Rep

Private Equity

Appraiser

Criminal Investigator

Chief Marketing Officer

Financial
Managerial
Accounting - Related
Not Accounting - Related
10.

Match each explanation to its appropriate accounting principle or assumption.

a)

Expenses incurred to provide a product or service should be recorded (or matched) at the same time the related revenue for the sale of that product or service is recorded.

1.

Matching Principle

b)

Every purchase should be recorded based on its actual acquisition cost (or price).

2.

Cost Principle

c)

A company will not dissolve or go bankrupt, and is therefore able to meet its financial obligations and objectives in the future.

3.

Going Concern Assumption

d)

Financial statements are to be based on solid evidence and should be free and clear of management’s personal opinions and biases.

4.

Objectivity Principle

11.

Match each explanation to its appropriate accounting principle or assumption.

a)

The same accounting methods are consistently used across accounting periods.

1.

Consistency Assumption

b)

Revenues must be recognized (recorded) in the period when they are earned. If accounting on a cash basis, revenues are to be recognized when cash is received.

2.

Revenue Recognition Principle

c)

Companies consistently maintain and report financial information using the same period of time, usually monthly, quarterly, and/or annually.

3.

Time Period Assumption

d)

Expenses incurred to provide a product or service should be recorded (or matched) at the same time the related revenue for the sale of that product or service is recorded.

4.

Matching Principle

12.

(a)   is an independent, non-profit organization that establishes financial reporting standards through GAAP.

Choose from the below words
Financial Accounting Standards Board (FASB)
Generally Accepted Accounting Principles (GAAP)
Sarbanes-Oxley Act (SOX)
Securities and Exchange Commission (SEC)
13.

(a)  

is a commonly-followed set of accounting rules, standards, and procedures for reporting financial information to external users. It attempts to improve the clarity, reliability, and comparability of financial information.

Choose from the below words
Sarbanes-Oxley Act (SOX)
Securities and Exchange Commission (SEC)
Generally Accepted Accounting Principles (GAAP)
Financial Accounting Standards Board (FASB)
14.

(a)  

is a law created in 2002 that helped restore confidence in the financial markets by cracking down on accounting errors and protecting investors from fraudulent accounting and financial reporting practices.

Choose from the below words
Securities and Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
Sarbanes-Oxley Act (SOX)
Generally Accepted Accounting Principles (GAAP)
15.

The government regulatory agency responsible for policing the US financial markets is called​ (a)   .

Choose from the below words
Securities and Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
Generally Accepted Accounting Principles (GAAP)
Sarbanes-Oxley Act (SOX)
16.

An accounting method that states revenues and expenses are recognized and recorded at the time they are earned or incurred, even if money doesn’t change hands.

a)

Accrual Accounting Method

b)

Cash Accounting Method

17.

An accounting method that states revenues and expenses are recognized and recorded when cash actually changes hands.

a)

Accrual Accounting Method

b)

Cash Accounting Method

18.

Match the following

a)

The function of accounting that involves preparing financial statements and reports for external users.

1.

Financial Accounting

b)

The system of accounting used by governments and non-profit organizations to group resources into specific funds so they know what resources are available to complete a specific purpose or task.

2.

Fund Accounting

c)

The function of accounting that helps an organization make well-informed decisions through the measurement, analysis, and communication of accounting information.

3.

Managerial Accounting

d)

Also referred to as internal accounting, this refers to a role inside a company that helps record transactions and prepare/analyze financial statements and reports, in order to inform company decision-making.

4.

Private Accounting

e)

Also referred to as external accounting, refers to a business that works with their clients to help prepare reports and review (audit) financial information for accuracy and completeness before it is shared publicly.

5.

Public Accounting

19.

Someone within a company that uses financial information to inform company decision making is called​ an (a)   .

Choose from the below words
Internal User
External User
20.

Someone outside of a company that has limited access to accounting information is called an​ (a)   .


Choose from the below words
External User
Internal User
21.

Match the following

a)

The process of recording, maintaining, and reporting an organization’s financial transactions and records.

1.

Accounting

b)

Focuses on the management of the assets, liabilities, and cash flow of an organization, financial analysis like ROI and ROE, and financial planning of future growth.

2.

Finance

c)

The value of a company, calculated by multiplying the number of outstanding shares by the current stock price.

3.

Market Capitalization

22.

How do you calculate Market Capitalization, or the value of a company?

4 lines