WorksheetsIntroduction to Accounting Principles
Total questions: 9
Worksheet time: 5mins
Accounting is mainly concerned with:
Managing employees
Producing goods
Recording financial transactions
Marketing products
Which of the following best defines accounting?
Buying and selling goods
Recording, classifying, and summarizing financial transactions
Managing business operations
Auditing financial statements
Which of the following is NOT an importance of accounting?
Helps determine profit or loss
Controls employee behavior
Required for tax purposes
Assists in decision-making
Who primarily uses accounting information to assess business performance?
Customers
Business owners
Suppliers
Competitors
Which of the following is an example of an asset?
Cash in hand
Owner’s capital
Rent expense
Loan payable
Liabilities refer to:
Owner’s investment
Business expenses
Amount owed by the business
Business income
Capital (Equity) represents:
Amount owed to outsiders
Owner’s investment in the business
Business expenses
Business profit
Profit occurs when:
Liabilities exceed assets
Expenses are more than revenue
Revenue equals expenses
Revenue is more than expenses
Which formula represents profit?
Liabilities – Assets
Assets + Equity
Revenue – Expenses
Assets – Liabilities
