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Accounting Pre-Test Flashcards | StudBud
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Accounting Pre-Test
Accounting Pre-Test
30 terms
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Select the answer which is the most correct.
Flashcards
30 cards
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Questions
30
Answers
1
What is an increase in equity resulting from the sale of goods or services?
Returning funds.
Perquisite
Revenue.
Proceeds.
2
What is a method of paying employee based on the amount of sales?
A wage
A commision
A salary
a pay period
3
What is a form for recording transactions?
A journal.
A double-entry account.
A source document.
A chronological record
4
What is a corporation?
An organization with legal rights of a person.
A business with available stock.
A company headed by a board of people.
A multi-million dollar company.
5
What is an account used to summarize the owner's equity in a business?
Sale on Account
Account trade
Account Balance
Function Account
6
Which of the following answers is
not
part of the process of
accounting
?
Compiling of financial data.
The use of ethics in making business decisions.
Analyzing financials to plan for future success.
Recording financial activities.
7
Which of the questions is
not
used for analyzing a transaction?
How is each classification changed?
Which accounts are affected?
Will assets or liabilities increase?
How is each account classified?
8
What is a business plan?
A document that describes the nature of a business.
A plan for a business on how to pay expanses.
Where the owner assumes all liabilities of the business.
The plan for a business to increase profits.
9
What is the name given to an account?
Capital Account.
Financial Account.
Business title.
Account title.
10
Which of the below is
not
an asset?
Personal Cash
A Car
A Car Loan
Jewelry
11
What must be done if a transaction increases the left side of the accounting equation?
Nothing, it is fine as is.
It must be balanced on each side.
The right side must surpass the left.
12
What is GAAP?
generally accepted accounting principles
general acemdemic accounting precepts
generous appropriating of accounting proceeds
gross academia assets in possesion
13
What is a Proprietorship?
Your taxable assets.
A corporation following proper moral etiquette.
When a business performs an activity for a fee.
A business owned by one person.
14
How is owner's equity affected when cash is received from sales?
It increases in equal measure.
Equity remains the same.
Liabilities is decreased proportionate to goods sold.
15
A withdrawal decreases owner's equity.
True
False
16
When is general journal page complete?
When all assets and liabilities are balanced.
When there is no more space to record entries.
When all transactions are completed.
When you start a new subject matter.
17
What is a person or company to whom money is owed?
A collector.
A creditor.
A beneficiary.
A grantee.
18
The accounting equation does not have to be in balance to be correct.
False
True
19
What are assets taken from the business for the owner's personal use?
Recantations
Withdrawals
Abjurations
Recissions
20
Why are source documents important?
It provides accurate information on credit transactions.
They prove that a transaction occurred.
It provides accurate information on debit transactions.
It records entries into a journal.
21
A creditor would favor a positive net worth.
True
False
22
What is an account used to summarize the owner's equity in a business?
Capital Account.
Financial Account.
Savings Account.
Business Account.
23
True or false: 72/interest=years to double money
False
True
24
Assets are taken from the business for an owner's personal use. What is this?
Reapportionment.
An extraction of funds.
A withdrawal
A Recantation.
25
What is the form describing the quantity, the price and the terms of sale?
An invoice.
A check.
A receipt.
A memorandum.
26
What is Equity?
The total value of a company.
The value of the goods a person owns.
A persons financial reliability.
The Difference between assets and liabilities.
27
In what order are transactions recorded in a journal?
Debit then credit.
By Monetary Value
Alphabetical.
Chronological
28
What is a business owned by one person?
A holding.
A proprietorship.
A domain
A partnership.
29
What is merchandise?
Ownership of assets.
Goods sold to costumers.
Goods that are sold to create profit.
Goods that a business purchases to sell
30
True or False: Accounting is the language of business.
False
True
